Page 131 - SUSTAINABILITY ISSUES & COVID-19

the organization. Therefore, hypotheses 2a is backed by prior research. The higher presence of clan culture characteristic
on an organization strengthens the association between SMG and organizational legitimacy. Other cultures, Hierarchy,
Adhocracy, and Market Culture, did not significantly impact the association. Therefore, hypothesis 2b, 2c, and 2d are not
supported. Adhocracy Culture (SqrtCultB) show a weak significant negative main effect on organizational legitimacy
(average=-008269, p=0.0845; 10% LoS). However, this result is not supported by the robustness test.

Model 3a examines the moderating effect of dummy profit-oriented organizations (PO). Organizational cultures in
model 2 were omitted in this model. The result shows significant and positive effect of the interaction between profit-
oriented and social media index (DprofitIndex) on organizational legitimacy (average = 0.006, p = 0.054; 10% LoS; R2
= 0.2042). The result support hypothesis 3a. The positive effect of SMG on OL is increased if the organization is profit-
oriented.

The result is supported by prior research that PO have better social media applications because they are essential
for their business (Tuten & Solomon, 2017). Also, because PO use social media for marketing purposes and image
development, they become more innovative in utilizing social media (Bretschneider & Parker, 2016; Mergel, 2012). In
contrast, non-PO burdened by bureaucratic nature makes it challenging to implement SMG (Knox, 2016). Consequently,
POs’ ability to utilize social media’s good practice will likely be better than non-PO.

Table 7
Kernel-Based Regularized Least Squares’ Results
Model 1 Model 2a Model 2b Model 2c Model 2d Model 3a Model 3b Model 3c
Prob Prob Prob Prob Prob Prob Prob Prob
Variables Prod
Avg (1- Sign Avg (1- Sign Avg (1- Sign Avg (1- Sign Avg (1- Sign Avg (1- Sign Avg (1- Sign Avg (1- Sign
tailed) tailed) tailed) tailed) tailed) tailed) tailed) tailed)
Socmed Index + 0.04052 0.0105 ** 0.013864 0.0925 * 0.028069 0.019 ** 0.018439 0.043 ** 0.028282 0.015 * 0.0219 0.0545 * 0.0298 0.058 * 0.0378 0.023 **
OrgSize -0.2981 0.0015 *** -0.019519 0.0035 *** -0.023905 0.0025 *** -0.019774 0.0035 *** -0.024886 0.002 *** -0.0274 0.004 *** -0.0344 0.001 *** -0.0275 0.0125 **
SqrtCult A -0.000289 0.479 0.005942 0.23 0.00476 0.2135 0.00524 0.251
SqrtCult B -0.004452 0.2065 -0.008269 0.0845 * -0.005773 0.1425 -0.00836 0.123
SqrtCult C 0.006187 0.128 0.00593 0.1865 0.002783 0.289 0.006277 0.177
SqrtCult D -0.006036 0.168 -0.010365 0.107 -0.007508 0.1165 -0.010939 0.058 *
D Profit 0.0009 0.489
DStateOwned -0.064 0.029 **
DListed -0.0198 0.2825
SqrtCult A Index + 0.001845 0.0535 *
SqrtCult B Index - 0.000844 0.277
SqrtCult C Index - 0.001233 0.102
SqrtCult D Index + 0.000624 0.352
D profit Index + 0.0056 0.054 *
DStateOwned _ -0.0012 0.355
Index
DListed Index _ -0.0017 0.24
No. of Obs 51 51 51 51 51 51 51
R2 0.2156 0.2276 0.2879 0.2185 0.2857 0.2042 0.256
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 organizations. The score is squared rooted; SqrtCultD = The presence of Market Culture characteristic in an organizations. The csore is squared
rooted; 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; DProfitIndex = interaction between DProfit and SocmedIndex.

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