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4.2 Hypotheses Test
Table 7 shows the result of KRLS regressions. Model 1 shows that SMG has a positive and significant relationship on
organizational legitimacy (OL) (average=0.04052, p=0.0105; 5% LoS; R2=0.2156). KRLS provides an average marginal
effect instead of coefficient as in the OLS model. Therefore, a one-point increase in social media index is associated
with a 0.04% increase in sentiment score, on average. For that reason, hypothesis 1 is supported. The higher index of
SMG is associated with better legitimacy than an organization that has a lower index. This result fits the legitimacy
theory because successful communication on social media increases the relationship between an organization and its
stakeholders, reducing social pressure on the organization’s activities (Deegan, 2002). These social supports and less
scrutiny help an organization to achieve its goals.

This finding is also supported by previous research. Deegan (2019) found that SMG helps to direct public opinion by
integrating technology and organization strategies to support successful online communication (Linke & Zerfass, 2013).
Good communication encourages citizen participation and transparency; these qualities mitigate the reputational risk
that leads to an organizational de-legitimacy (Dreyer & Ziebarth, 2014; Etter et al., 2019). A better social media practice
will draw favorable judgment in public discourse (Schultz et al., 2013) and improve organizational reputation and
legitimacy (Carroll & McCombs, 2003).

Table 6 Means, Standard Deviations, and Correlations (N=51)
Sentiment Socmed DState DListed SqrtCult A SqrtCult B SqrtCult C SqrtCult D D profit DStateOwned DListed
Variables Mean Std Dev. Score 1 Index OrgSize SqrtCult A SqrtCult B SqrtCult C SqrtCult D DProfit Owned DStateOwned Index Index Index Index Index Index Index
Sentiment Score 1 -0.3415 0.2042 1
Socmed Index 3.1358 0.8432 0.0678 1
OrgSize 2.5098 1.4611 -0.3537* 0.3319* 1
SqrtCult A 4.9863 1.4239 0.0308 0.0844 -0.0258 1
SqrtCult B 3.9041 1.5528 -0.1179 0.2157 0.003 0.1771 1
SqrtCult C 5.7173 1.5347 0.0779 0.0343 0.066 -0.4562* -0.6390* 1
SqrtCult D 4.2989 1.4517 -0.1704 -0.1327 0.198 -0.4042* 0.1093 -0.2285 1
D Profit 0.7451 0.4401 0.1529 -0.1712 -0.1713 -0.0214 0.2142 -0.3670* 0.3335* 1
DStateOwned 0.4706 0.5041 -0.4031* 0.1441 0.2174 -0.0735 -0.1336 0.2790* -0.1149 -0.5302* 1
DListed 0.2745 0.4507 -0.1463 0.0358 0.4924* -0.1419 0.1225 -0.1299 0.2674 0.3598* -0.1398 1
SqrtCult A Index 15.7342 6.0579 0.023 0.8198* 0.3108* 0.5185* 0.2831* -0.2619 -0.2386 -0.1345 0.048 -0.0149 1
SqrtCult B Index 12.5494 5.7838 0.0137 0.7155* 0.2254 0.137 0.7808* -0.4529* 0.0511 0.1422 -0.868 0.1776 0.6904* 1
SqrtCult C Index 18.1195 6.9174 0.0208 0.8139* 0.3259* -0.1652 -0.1586 0.5391* -0.2653 -0.4065* 0.3389* -0.0567 0.5085* 0.3012* 1
SqrtCult D Index 13.2677 5.341 -0.0706 0.6290* 0.5060* -0.1021 0.3271* -0.273 0.5909* 0.1131 0.0347 0.2776* 0.4962* 0.6378* 0.3512* 1
D profit Index 2.2757 1.5706 -0.2009 0.4807* 0.0338 0.0647 0.3704 -0.3206* 0.1879 0.7613* -0.3929* 0.3311* 0.4067* 0.5967* 0.1572 0.4955* 1
DStateOwned Index 1.533 1.6893 -0.3827* 0.3075* 0.2759 -0.1149 -0.0867 0.2872* -0.1133 -0.5531 0.9369* -0.1358 0.1764 0.0547 0.4593* 0.1557 -0.3374* 1
DListed Index 0.88225 1.5358 -0.1399 0.1398 0.5056* -0.1105 0.1535 -0.1559 0.2773* 0.3537 -0.1358 0.9832* 0.0793 0.2507 0.0273 0.3606* 0.3963* -0.124 1
Description: *** significant at 1% (one tailed) I ** significant at 5% (one tailed) I * Significanty at 10% (one tailed)
SentimentScore1= The score of organizational legitimacy multiplied by – 1 ; SocmedIndex = Social Media governance index which calculated from
the average of social media activities, social media strategies,social media skills and regulatory framework indexes;
OrgSize: Organization size, categorized from 1 to 6. SqrtCultA = The presence of Clan Culture characteristic in an organizations. The score is squared
rooted. SqrtCultB = The presence of Adhocracy Culture characteristic in an organizations. The score is squared rooted, SqrtCultC = The presence of
Hierarchy Culture characteristic in an organizations. The score is squared rooted; SqrtCultD = The presence of Market Culture characteristic in an Model 2a to 2d includes all four organizational cultures’ main effect because organizational cultures coexist, and all of
organizations. The score is squared rooted; SqrtCultD = The presence of Market Culture characteristic in an organizations. The csore is squared rooted; them influence the organization with different magnitude (Jones et al., 2005). However, each culture and social media
DProfit = Dummy variable, Code 1 represents profit-oriented organizations. Code 0 otherwise; DStateOwned = Dummy variable, Code 1 represents
state-owned organizations. Code 0 otherwise; DListed = Dummy variable, Code 1 represents listed organizations. Code 0 otherwise; SqrtCultAIndex; index’s interaction effect will be tested separately to avoid serious multicollinearity. The result from model 2a-d shows
DProfitIndex = interaction between DProfit and SocmedIndex.
that only the interaction between Clan Culture and social media index (SqrtCultAIndex) has a positive and significant
effect on the relationship between SMG and OL (average=0.001845, p=0.0535; 10% LoS; R2=0.2276). These results
support hypothesis 2a.

Clan Culture is a culture that combines flexibility and internal focus and also emphasizes on affiliation, attachment,
supportive leader (Zammuto & Krakower, 1991). Zammuto further explained that this culture value members’
participation in decision making. The policy will be effective because it was made by a consensus between members of

International Conference on Sustainability 129
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