The performance implications of leveraging internal innovation through social media networks: An empirical verification of the smart fashion industry

• Published in: Technological forecasting & social change 2017-07, Vol.120, p.184-194
• Main Authors: Scuotto, Veronica, Del Giudice, Manlio, Peruta, Maria Rosaria della, Tarba, Shlomo
• Format: Article
• Language: English
• Subjects: Adoption of innovations; Classification; Clothing industry; Consumers; Digital media; Empirical analysis; Fashion; Fashion industry; Innovation; Innovations; Knowledge; Knowledge management; Knowledge search; Mass media; Network analysis; Regression analysis; Return on investment; Searching; Small & medium sized enterprises-SME; SMEs; Social dynamics; Social media; Social media networks; Social network analysis; Social networks; Social systems; Verification
• ISSN: 0040-1625; 1873-5509
• DOI: 10.1016/j.techfore.2017.03.021

Despite rigorous empirical research exploring the changes in innovation dynamics triggered by Social Media Networks (SMNs), the benefits coming from the use of these digital platforms for knowledge search in innovative activities for small to medium enterprises (SMEs) are still unexplored. Customers become the new trailblazers. Thus, by adopting a customer led innovation perspective, this paper seeks to measure the effect on return on investment (ROI) of the use of SMNs as external drivers for supporting internal innovation search processes. On the basis of the extant literature on information system and social network analysis, the research describes and evaluates the multidimensional activities interwoven into the open innovation process, driven by integrating the five constructs of structural dimension, relational behaviour, cognitive dimension, knowledge transfer, and legitimization into our hypothesised conceptual model. Empirical research was conducted via the Classification Regression Tree (CART) on a sample of 2548 SMEs belonging to the fashion industry and based in Italy and in the United Kingdom. This study is of importance to academics and practitioners due to the increasing significance taken on by the adoption of social media networks in the fashion industry to improve innovation search. Recommendations are made to fashion managers and social media experts to support the planning and development of new products and services. New contributions are offered to the innovation and knowledge management literature. In addition, theoretical implications and avenues for future research are also considered. •The use of these Social Media Networks (SMNs) for innovation search for SMEs is offered.•By adopting a customer led innovation view, the effect on ROI of the use of SMNs is tested.•The study showed that the use of digital platforms positively affect the ROI.•Users play a predominant and active role in the search for innovation.•SMNs are valuable external drivers for supporting innovation search processes.