Strategic use of social media in new product development in B2B firms: The role of absorptive capacity

Business-to-business (B2B) small and medium-sized enterprises (SMEs) possess untapped potential in leveraging social media (SM) strategically to acquire external knowledge, a crucial catalyst for bolstering absorptive capacity and, consequently, improving new product development (NPD). Despite this potential, a research gap exists in the understanding of the intricate relationship between SM use, absorptive capacity, and NPD. We conceptualize SM use as a strategic capability and propose its impact on NPD both directly and indirectly through absorptive capacity processes. Surveying 146 managers in UK B2B SMEs, our findings reveal the nuanced and multifaceted connections between SM use, absorptive capacity processes, and NPD, broadly supporting our hypothesized relationships with interesting variations. This study provides valuable insights into the strategic use of SM for cultivating absorptive capacity, thereby enhancing NPD in B2B SMEs. The practical implications extend to businesses aiming to optimize SM use for knowledge acquisition and innovation.