Perceived Market Leadership and Customer Engagement for IT Companies in the Enterprise Software Market: Evaluating the Role of Social Media Marketing

Purpose:This study evaluates the effectiveness of social media marketing (SMM) activities for IT companies (ITCs) in the enterprise software market. Specifically, it examines the impact of SMM activities on perceived market leadership and customer engagement while considering the moderating role of product category knowledge.Design/methodology/approach:A quantitative research design was employed, utilizing data collected from 322 users of customer relationship management (CRM) software who follow these companies on social media. Structural equation modeling (SEM) was used to test the proposed hypotheses and evaluate the relationships between SMM activities, perceived market leadership, and customer engagement.Findings:The results indicate that informativeness and customization in SMM activities significantly enhance perceived market leadership and customer engagement. Conversely, interaction and entertainment dimensions have limited impact. Perceived market leadership mediates the relationship between SMM activities and customer engagement. Moreover, product category knowledge strengthens the influence of informativeness on customer engagement.Originality/value:This study addresses a critical gap in the literature by exploring the role of SMM activities in B2B contexts, specifically in the enterprise software market, where research is limited. It provides actionable insights for ITCs, emphasizing the strategic importance of informative and tailored SMM approaches in establishing market leadership and fostering customer engagement.