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H : The positive effect of social media governance on organizational legitimacy is stronger when the market
2d
culture score is high.

2.5 Organizational Types
Organizations can be differentiated by the nature of goods and services, ownership characteristics, management
characteristics, and dimensional publicness (Bozeman & Bretschneider, 1986). According to institutional theory, these
differences will result in similar practices across organizations that share the same characteristic (DiMaggio & Powell,
1983). In this research, organizations’ type will be distinguished by profit orientation, state ownership, and public
ownership. Mergel (2012) found a strong correlation between organizational type and social media use because they
have a different objective and mission to their stakeholders. Another reason is that one type might have a higher demand
for information than another (Bretschneider & Parker, 2016). An organization with a high demand for transparency will
be likely to implement SMG than otherwise. Bretschneider and Parker (2016) stated that internal characteristics that
consider the organization’s uniqueness influence how managers implement or develop social media tools.

2.5.1 The type of organization based on their profit orientation
Here, organizations are categorized into two groups, profit-oriented organization (PO) and non-profit-oriented
organization (non-PO). POs mainly focus on retaining competitiveness and gaining market share (Criado, Sandoval-
Almazan, & Gil-Garcia, 2013). Thus, these organizations apply social media to enhance their reputation in the market
(Bretschneider & Parker, 2016) and gain advantages to their operation activities, selling goods, or services. Therefore, a
PO mainly uses social media for marketing purposes and image development and less likely to informing and educating
in a way that has no economic benefit as in non-PO (Bretschneider & Parker, 2016).

On the other hand, non-POs have a higher demand for transparency and accountability (Picazo-Vela, Gutiérrez
Martínez, & Luna-Reyes, 2012) and exposed more to political intervention (Roper & Schoenberger-Orgad, 2011) than
POs. For example, a charity foundation that serves a specific social mission using donations must be audited regularly
(Milhaupt & Zheng, 2015). The donation makes non-PO insensitive about efficiency than PO (Li, Lin, & Selover, 2014).
Prior research shows that PO appears to have better social media applications because it is an essential tool for
their business (Tuten & Solomon, 2017). On the other hand, although non-PO also encourages social media use,
their bureaucratic nature makes it challenging to implement SMG (Knox, 2016). Moreover, public pressure to make
social media innovations is higher in PO than non-PO (Mergel, 2012); therefore, POs’ capability to utilize good social
media practice will likely be better than non-PO. In this research, POs are expected to enhance the effect of SMG on
organizational legitimacy.
H : The positive effect of social media governance on organizational legitimacy is stronger in profit-oriented
3a
organizations than otherwise.

2.5.2 The type of organization based on state ownership
Here, organizations are divided into state-owned organizations (SO) and non-state-owned organizations (non-SO).
According to Tan, Zhu, Zeng, and Gao (2014), SO are owned by either central or local government. In contrast, non-SO
are majority-owned by private enterprises. SO follow a central decision made by the governments to fulfill its plans and
missions (Zhou, David, & Li, 2006). SO might be exposed by several constraints that exposed them to political objectives
and dysfunctional governance (Musacchio & Lazzarini, 2013). SO usually provide goods or services, allocate resources,
and distribute output for consumers, not merely by market mechanism but also on social objectives (Park, Li, & David,
2006). In some cases, the government can give aid or loan to reduce their financial loss because of their social role. The
privileged access to resources and government support might reduce their efficiency and competitiveness.

Prior research from (Mergel, 2012) shows that different objectives, environments, and missions motivate the utilization
of information technology in organizations. Justin Tan and Litsschert (1994) stated that the regulatory regime is the
most influential factor in organizations’ performance. SO have formalistic behavior because they oblige to comply
with the authorities (Rainey & Bozeman, 2000). However, although the government has coercive power on employees,
this power diminishes a policy’s effectiveness (Brown, Dennis, & Venkatesh, 2010). Wu et al. (2012) found that SO has
worse performance because government officials run them with more significant concern on their political career than
organizations’ performance. Therefore, in this research, SMG might become less effective in SO than their non-SO.

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