Document Type : Original Article
Authors
1
Associate Prof., Department of Business Management, Faculty of Management, Kharazmi University, Tehran, Iran.
2
Ph.D. Candidate, Department of Business Management, Faculty of Management, Kharazmi University, Tehran, Iran.
10.22059/mmr.2026.413726.1266
Abstract
Objective
In recent years, the rapid diffusion of social media platforms has profoundly transformed the competitive landscape of the tourism industry. Tourism businesses increasingly rely on social media not only as a communication and promotional channel, but also as a rich source of user-generated data that reflects customers’ needs, preferences, emotions, and experiences in real time. The growing availability of such data has elevated Social Media Analytics (SMA) into a strategic capability that enables firms to extract actionable insights for decision-making, service development, and performance improvement. Despite this growing importance, empirical evidence regarding the mechanisms through which SMA contributes to organizational outcomes remains fragmented, particularly in developing economies and context-specific industries such as tourism in Iran. From a theoretical perspective, prior studies have suggested that the value of social media analytics does not lie merely in data collection, but rather in how analytical insights are transformed into service innovation (SI), enhanced customer engagement (CE), and ultimately business performance (BP). However, existing research has often examined these constructs in isolation, or focused on direct relationships, leaving the mediating processes insufficiently explored. Moreover, most empirical studies have been conducted in Western contexts, limiting the generalizability of findings to countries with different cultural, technological, and institutional characteristics. Against this background, the primary objective of this study is to develop and empirically test an integrated conceptual model that explains how social media analytics practices (SMAP) influences BP in the Iranian tourism industry. Specifically, this research aims to:
1 . examine the direct effects of SMAP on SI, CE, and BP;
2 . investigate the impact of SI on CE and BP;
3 . assess the effect of CE on BP; and
4 . evaluate the mediating roles of SI and CE in the relationship between SMAP and BP.
Research Methodology
This study adopts a positivist, deductive, applied, descriptive, and cross-sectional survey approach. The target population comprises managers and senior experts in Iran’s tourism businesses (agencies, tour operators, hotels, service providers) located in Tehran province and utilizing social media for marketing and customer interaction. A minimum sample size of 222 respondents was determined using G*Power 3 (predictor variables=3, effect size=0.05, power=0.80, alpha=0.05). Due to practical access limitations, convenience sampling was used. Data were collected via a structured questionnaire with items measured on a five-point Likert scale. Content validity was ensured through expert review. Valid responses were gathered, and after data screening for missing values, normality, and outliers, Structural Equation Modeling (SEM) via Partial Least Squares (PLS-SEM) was applied due to its suitability for complex, predictive models and non-normal data. The model evaluation was conducted in three steps: a) measurement model (reliability and validity using standard metrics), b) structural model (testing the hypotheses through path coefficients, t-values, and p-values to assess the significance of direct relationships, as well as bootstrapping for indirect effects), and c) overall model (confirmed using established indices).
Findings
The empirical results provide strong support for most of the proposed hypotheses. The results revealed that SMAP exerted significant effects on SI (β= 0.409, t= 6.317), CE (β= 0.217, t= 2.488), and BP (β= 0.296, t= 3.528). Furthermore, SI demonstrated significant positive effects on CE (β= 0.383, t =4.890), and BP (β= 0.324, t= 4.068). Finally, CE significantly influenced on BP (β= 0.281, t= 3.317). Regarding mediation effects, the mediating role of SI was confirmed, while the mediating role of CE was not confirmed.
Discussion & Conclusion
The findings contribute to the literature on social media analytics, service innovation, customer engagement, and tourism management by providing empirical evidence from the Iranian tourism industry. In particular, the study offers a more detailed understanding of the mechanisms through which social media analytics practices are associated with business performance. The results highlight the importance of service innovation as a mechanism linking social media analytics practices to organizational performance. They suggest that collecting and analyzing social media data may be particularly valuable when businesses use the resulting insights to develop new services, improve existing offerings, and respond more effectively to changing customer needs.
Although customer engagement was positively associated with both social media analytics practices and business performance, its mediating role in the relationship between these two variables was not statistically supported. This finding suggests that customer engagement, despite its importance, may not independently explain how social media analytics practices translate into improved business performance in the context examined.
From a theoretical perspective, the study extends existing research by examining service innovation and customer engagement within an integrated model rather than treating them as separate outcomes of social media analytics. It also provides empirical evidence from Iran, contributing to the understanding of these relationships in a developing economy with distinct cultural, technological, and institutional characteristics. From a managerial perspective, the findings suggest that tourism businesses should move beyond collecting social media data and increasing online interactions with customers. Greater attention should be given to developing analytical capabilities and organizational processes that enable businesses to translate customer insights into service innovation. Integrating social media analytics into strategic planning, service design, and innovation management may help tourism businesses make more effective use of the information available through social media platforms. Overall, the study suggests that service innovation plays an important role in explaining the relationship between social media analytics practices and business performance in the Iranian tourism industry. Although customer engagement is positively related to business performance, its mediating role was not supported in the present model. These findings underscore the importance of distinguishing between different mechanisms through which social media analytics practices may contribute to organizational outcomes. Future research could examine additional mediating and moderating variables, including organizational culture, digital maturity, and environmental uncertainty. Longitudinal studies and research involving tourism businesses in other geographical contexts could also provide further insights into the relationships identified in this study.
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