Understanding the role of social media and dynamic capabilities in innovation performance in AgTech: a serial mediation model

Purpose We developed and tested a theoretical model that measures the importance of social media and dynamic capabilities with regard to improving innovation performance in startups from the agribusiness sector (AgTech), that is, technology-based companies with scalability potential that operate in the agribusiness sector. Design/methodology/approach This model analyzed three dynamic capabilities: internal collaboration capacity, absorptive capacity, and organizational agility. To test this theoretical model, we employed structural equation modeling with partial least squares estimation (PLS-SEM) analyzing 237 AgTech in Brazil. Findings Our results show that the use of social media positively affects innovation performance and contributes to internal collaboration capability (a second-order construct that encompasses commitment, communication, and trust). Internal collaboration is an antecedent of absorptive capacity and organizational agility. These two dynamic capabilities positively impact innovation performance. Our results also indicate that these dynamic capabilities serially mediate the relationship between social media and innovation performance. Practical implications While some literature describes the dark side of social media, our study sheds light on the importance of these platforms to improve internal collaboration in AgTech, a pivotal capability that is necessary to develop other relevant capabilities. Originality/value This study presents results from one of most large AgTech survey found in literature. Furthermore, this study also shows that there are dynamic capabilities essential to develop others relevant dynamic capabilities, indicating that innovation performance involves a sequential integration of capabilities.