Journal of Business & Financial Affairs

An Information-Based Perspective on Social Media Usage and Entrepreneurship Investment

Abstract

Maria Anggreainy*

This study explores the relationship between entrepreneurs' use of social media and their decision to reinvest in their businesses. We suggest that social media use has an inverted U-shaped relationship with entrepreneurial investment as a result of the competing pressures of information collection and information processing associated with social media use, drawing on the information-based view of entrepreneurship. In recently established businesses or high-tech industries, this relationship will be more obvious. Our empirical results, which are based on a sizable sample of Chinese private enterprises, support the main claims. This study offers crucial new perspectives on the intricate effects of social media use on entrepreneurship activities.