The Impact of Social Media Usage on Multiple Strategic Orientations and Its Effect on Financial and NonFinancial Performance

Abstract

Earlier research predominantly concentrated on a single strategic orientation to explain 
organizational performance; the significance of multiple strategic directions for an organization’s 
long-term success still needs to be studied. Therefore, the current study is an attempt to explore 
organizational performance both in terms of financial (profitability and sales growth) and non
financial indicators, explicitly focusing on maintaining customer relationships (customer 
satisfaction and loyalty) by developing multiple strategic orientations (customer and competitor 
orientation). Two separate surveys, one completed by the organization’s top management and the 
other by the corresponding customers of the organizations from various sectors of Pakistan who 
were also active on Facebook, were used in a quantitative cross-sectional research design to 
gather primary data using a structured questionnaire. Ultimately, 209 participants from each 
survey were chosen for data analysis. This suggested model was tested using AMOS and Smart 
PLS. The multiple strategic orientations act as a positive mediator between the direct relationship 
between social media usage and organizational performance, and all of the study's findings are 
found to be significantly positive. Moreover, adopting social media usage and multiple strategic 
orientations are essential for attaining competitive advantages and organizational performance, 
as this study offers managerial insights. It also establishes the groundwork for marketing 
researchers, managers, and practitioners to emphasize the value of customer and competitor 
orientation in enhancing an organization’s financial and non-financial performance