The Impact of Social Media Usage on Employee and Organization Performance: A Study on Social Media Tools Used by an IT Multinational in Malaysia

Abstract

The purpose of this research is to examine the impact of social media usage on employee and organization performance. The research was done on one multinational IT Company. Social media usage was measured using knowledge sharing, decision making and communication. Organizational performance was measured using employee and organization performance. Questionnaires were developed and the items were measured using a Likert scale ranging from 1 to 5. This research takes on an explanatory approach and the sample consisting of 206 employees working in call center departments was recruited. The data was analyzed using SPSS 21 and AMOS 22 software. The results showed that only decision making has a positive and signifi cant impact on employee high performance and organizational performance. We found no signifi cant impact of the other two dimensions of social media usage (knowledge sharing and communication) on employee high performance and organizational performance. Therefore, this study suggests that top management in MNC companies as well as employees should consider social media usage for effective decision making to increase employee performance and organizational performance. This research contributes to existing studies on this topic, and future research could put emphasis on extending this research to another country or industry.