research-article

The Benefit of Being Second: An Event Study of Social Media Adoption

Authors:

Shawn O'Donoghue,

Kevin CooneyAuthors Info & Claims

ACM SIGMIS Database: the DATABASE for Advances in Information Systems, Volume 49, Issue 2

Pages 54 - 78

https://doi.org/10.1145/3229335.3229340

Published: 25 May 2018 Publication History

Abstract

New technologies are continually being introduced and changing how firms interact with their customers. Because of this rapid rate of change, one of the most fundamental questions a firm faces is deciding whether, and when, to adopt a new technology. This is even more challenging for public social media technologies (e.g., Facebook) that can be adopted by all competitors in a marketplace. Our study uses event study analysis to investigate the impact on firm value of adopting two social media technologies: Facebook and Twitter. We find increased value following the adoption of both Facebook and Twitter, but not all firms experienced an increase in value. Interestingly, it was the second wave of adopters (i.e., those that quickly followed the initial adopters) that benefited more than first movers or later adopters. This study sheds light on strategies for companies considering if (and when) they should invest in new social media technologies and other technologies of the same form -direct-to-consumer technologies and apps offered by a third party that are open to all competitors.

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Cited By

Ram JZhang C(2023)The Role of Social Media Analytics in Providing Product Intelligence: A Qualitative StudyACM SIGMIS Database: the DATABASE for Advances in Information Systems10.1145/3614178.361418454:3(119-136)Online publication date: 4-Aug-2023
https://dl.acm.org/doi/10.1145/3614178.3614184

Index Terms

The Benefit of Being Second: An Event Study of Social Media Adoption
1. Human-centered computing
  1. Ubiquitous and mobile computing
    1. Ubiquitous and mobile devices
      1. Mobile phones
2. Networks
  1. Network types
    1. Overlay and other logical network structures
      1. Online social networks

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cover image ACM SIGMIS Database: the DATABASE for Advances in Information Systems

ACM SIGMIS Database: the DATABASE for Advances in Information Systems Volume 49, Issue 2

May 2018

92 pages

ISSN:0095-0033

EISSN:1532-0936

DOI:10.1145/3229335

Editors:
Stacie Petter
Baylor University, Waco, TX
,
Tom Stafford
Louisiana Tech University, Ruston, LA
,
Xihui "Paul" Zhang
Northern Alabama University, Florence, AL

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Published: 25 May 2018

Published in SIGMIS Volume 49, Issue 2

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Cited By

Ram JZhang C(2023)The Role of Social Media Analytics in Providing Product Intelligence: A Qualitative StudyACM SIGMIS Database: the DATABASE for Advances in Information Systems10.1145/3614178.361418454:3(119-136)Online publication date: 4-Aug-2023
https://dl.acm.org/doi/10.1145/3614178.3614184

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