The role of social media crowdsourcing in gaining competitive advantage: insights into innovation and environmental dynamism

Purpose This study aims to investigate novel factors that influence competitive advantage by analyzing how social media crowdsourcing affects innovation and competitive advantage and taking environmental dynamicism into account as a moderating factor. Design/methodology/approach A partial least squares (PLS) analysis was used to assess a conceptual model based on the resource-based view. Through verified questionnaires, information was gathered from a deliberate sample of 347 small and medium-sized businesses (SMEs). Findings Seventy-one percent of the variance in competitive advantage was explained by the research model. The following are some of the main conclusions: social media has a considerable moderating impact on the relationship between innovation and crowdsourcing, environmental dynamicism has a major moderating function on the relationship between innovation and competitive advantage and crowdsourcing significantly positively influences innovation. Originality/value This study offers new insights into the role of social media and crowdsourcing in gaining competitive advantage, particularly in SMEs. It uniquely demonstrates how environmental dynamism moderates the relationship between innovation and competitive advantage. The findings advance the resource-based view, highlighting the significance of adaptive strategies and offering practical guidance for SMEs to leverage social media and crowdsourcing to thrive in dynamic market conditions.