Social Media Agencies and Clients: A Resource Integration Approach

ABSTRACT The purpose of this paper is to empirically investigate the agency-client relationship dynamic between a client firm and social media agency through the theoretical lens of service-dominant logic (S-D logic) of marketing, specifically through the application of a resource integration approach. The study adopted an exploratory qualitative research approach to investigate resource integration practices among client firms and social media agencies. 29 expert interviews were conducted with senior social media personnel from both client firms and social media agencies. Data analysis was conducted using a thematic analysis approach to analyze interview-based data. The findings specify that client firms and social media agencies can use their shared operant resources to engage in resource integration activities specific to social media, which can lead to higher-order resource formation that can drive value co-creation. Social media marketing research has largely been dominated by consumer-centric studies. Lesser focus has been given to exploring how social media has been adopted by firms, and how they use social media as a part of their marketing strategy. To that end, the current study contributes to the area of firm-centric research on social media marketing by empirically exploring the relationship between client firms and their social media agencies via the conceptual lens of S-D logic value co-creation. Specifically, the novelty of the study lies in its examination of the social media-based operant resources which are exchanged and integrated within the agency-client dyad, as well as the examination of the resource integration activities which underlie said resource exchanges.