The use of social media by women entrepreneurs: Does social competence matter for better performance?

Purpose This study aims to investigate the mechanisms through which social media use is associated with both the financial and non-financial performance of women-led ventures. Specifically, it seeks to examine the mediating role of online social capital in the relationship between social media use and business performance, and the contingent moderating effect of the entrepreneurs' social competence on these relationships. Design/methodology/approach From the perspective of the Contingent Resource-Based Theory (CRBT), a conceptual model was proposed and tested using structural equation modeling. Data were collected through a survey, and the sample consisted of 244 Brazilian women entrepreneurs. Findings The use of social media was found to have a positive effect on female entrepreneurs' online social capital, which in turn had a positive impact on both the financial and non-financial performance of their ventures. Furthermore, these relationships were found to be positively moderated by the social competence of female entrepreneurs. Specifically, the findings suggest that higher social competence intensifies the effect of social media use on online social capital as well as the effect of online social capital on both the financial and non-financial performance of women-led ventures. Research limitations/implications Our findings indicate that social competence significantly moderates the effect of social media use by women entrepreneurs, with implications for the fields of gender and entrepreneurship. Women often experience structural impediments in accessing formal or traditional forms of social capital (e.g. exclusive male-dominated business associations). Consequently, the digital space becomes a crucial, yet not automatically beneficial, avenue for resource acquisition. In this context, social competence may act as a contingent complementary resource (in line with CRBT) that can allow women to leverage this digital avenue. Originality/value The study shows that social competence may act as a contingent capability that supports the translation of social media use into financial and non-financial performance. This suggests that without social competence, social media operates below its full potential for generating resources, whereas, with it, social media's strategic value can be amplified as a resource generator.