Understanding social media presence and financial success in digital competition

PurposeThis study applies traditional strategic management concepts to firms operating in digital environments. Specifically, this study examines the role of social media (SM) in the financial performance of entrepreneurial firms and how perceived uniqueness and human capital impact this relationship.Design/methodology/approachThis study analyzes a sample of 797 independent music artists using ordinary least squares regression.FindingsThis study finds that SM presence is positively related to SM success and, in turn, that SM success is positively related to financial success. Further, this study finds that perceived uniqueness negatively moderates the SM presence to SM success relationship and that human capital positively moderates the SM success to financial success relationship.Originality/valueFirms competing in digital environments should limit their perceived uniqueness and increase their human capital in order to maximize the positive benefits of a SM presence.