Social Media Use and the Challenge of Complexity: Evidence from the Technology Sector

Social Media encourages networks in the complex and dynamic environment within which firms are immersed. The purpose of this study is to analyze the role and impact of Social Media on complexity variables and organizational performance. More specifically, we explore the presence of elements of "spontaneous order creation": heterogeneous agents with motives to connect with each other, and their impact on innovativeness and dissipative structures. The research model was tested on a sample of 201 technology firms through Structural Equation Modelling (SEM). Our research contributes to extant literature by exploring the impact of digitally enabled networks (Social Media) on complexity dynamics through analysis of their influence on firm performance. We aim to advance explanation of how increasing complexity changes behavioral dynamics in complex ecosystems, and how information and Social Media can be used to cope with the new managerial challenges posed by increasing digital complexity.