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Model 3b tests the moderating effect of the dummy state-owned organization (SO). The result failed to show a
significant moderating effect of SO on the relationship between SMG and OL (DstateOwnedIndex). The result did not
support hypothesis 3b. However, its main effect shows the negative and significant result (average=-0.064, p=0.029;
5% LoS; R2=0.3211) that suggests that in a particular index of SMG application, state-owned organizations is associated
with a 0.064% lower in sentiment score compared to non-SO, on average.

This result is consistent with prior research from Lei, Lu, and Ren (2019) that found that agency problem is worsened
in SO than non-SO because citizen ability to monitor SO is weak. This incapability might fuel citizen distrust, and then
this negative stigmatization could impair organization legitimacy. Moreover, SO are shown to have lower economic
performance than non-SO (Allen, Qian, & Qian, 2005) because they do not behave as expected by economic rationality
like non-SO, but instead follows political logic (J. Wang, 2014). Therefore, a citizen might view SO project as inefficient,
wasteful, non-profitable, and this eventually might negatively affect SO reputation.

Model 3c tests the moderating effect between the dummy variable listed organization (LO). The result failed to provide
significant evidence of the primary and interaction effect between LO and social media index (DprofitIndex) on
organizational legitimacy. Therefore, hypothesis 3c is not supported.

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; 4.3 Robustness Test
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 Sentiment Indexes were divided into two categories, low and high index. All model is recalculated using probit
of Hierarchy Culture characteristic in an organizations. The score is squared rooted; SqrtCultD = The presence of Market Culture characteristic in regression, as shown in Appendix A. The significant results of model 1, 2a, and 3a are still supported, even though the
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 interaction variable shows the opposite signs. However, this is not an issue because Ai and Norton (2003) assured that
represents state-owned organizations. Code 0 otherwise; DListed = Dummy variable, Code 1 represents listed organizations. Code 0 otherwise; probit regression’s interaction effect could not be evaluated simply by looking at the sign. It can have different signs
SqrtCultAIndex; DProfitIndex = interaction between DProfit and SocmedIndex.
for different observations.

International Conference on Sustainability 131
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