The role of social media in CSR performance: An integrated institutional and resource dependence perspective

Social media provides a public platform where individuals can interactively share ideas and values. Drawing on both the institutional perspective on the motivations for corporate social responsibility (CSR) and resource dependence perspective articulating the power relations between organizations and their environment, the present study develops a theoretical framework to explain the institutional impact of social media on CSR performance, interacting with the moderating effects of state ownership, firm efficiency, and CSR-related discussions. We test the framework utilizing data from publicly listed Chinese firms and a representative social media platform, Sina Weibo, between 2014 and 2018. We find that firms with greater attention or more positive sentiment from the public on social media are more likely to have better CSR performance. Social media's effects on CSR performance are weakened with higher state ownership, firm efficiency, and non-CSR-related discussions. This study contributes to the literature on the institutional determinants of CSR performance by highlighting social media's institutional role and further identifying how this role varies with governmental influence, company financial situations, and CSR-related discussions.