The Influence Of Online Social Networks On Performance Of Small And Medium Enterprises: An Empirical Investigation Of The Online Business To Business Network Xing

Social networks are considered a contributing factor in the growth and performance of companies, especially in the context of small and medium enterprises (SMEs). This paper examines how CEOs of SMEs perceive online social networks (OSNs) as beneficial for their companies. As CEOs strongly identify with their SME, the influence of the OSN on the SME is largely driven by the CEO's value perception of OSN utilisation. Results of a focus group discussion and survey among 181 owners and CEOs of Austrian SMEs, who are members of the OSN XING, revealed indeed that trust in the OSN and access to resources available only through OSN membership lead to satisfaction with the OSN. Although access to resources does not lead to growth itself, it is mediated by the perceived value of the OSN. Trust and perceived value of the OSN increase the intention of recommending the OSN to other business partners (i.e., word of mouth). These outcomes are largely mediated by company growth and the perceived value of OSN participation. Implications for the use of OSN are discussed from the customer's (i.e., SME's) perspective, as well as from the corporate OSN perspective.