Contribution of Marketing Capability to Social Media Business Performance

  • Penpattra Tarsakoo National Institute of Development Administration
  • Peerayuth Charoensukmongkol National Institute of Development Administration


This research examined the contribution of marketing capabilities to the social media business performance of Thai firms.  The outside-in and inside-out capabilities of Day (1994)’s marketing capabilities framework were used to develop five aspects of marketing capabilities related to social media business, including (1) market-sensing capability, (2) customer-linking capability, (3) channel-bonding capability, (4) technology development capability, (5) and employee development capability. Questionnaire data were collected from 364 entrepreneurs who sold products via social media channels.  The results from the partial least squares regression structural equation modeling showed that all five aspects of marketing capabilities were positively correlated with social media business performance.  However, technology development capability and employee development capability were the most influential factors that strongly explained social media business performance.

Keywords: marketing, capabilities, social media, strategic management, e-business