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5. CONCLUSION

Three of eight hypotheses were confirmed. As predicted, better application of Social Media Governance (SMG) is
associated with better organizational legitimacy (OL). This finding is consistent with legitimacy theory and previous
studies; an organization that is maintaining or creating congruence between social values implied by the organizations’
enactment of SMG, and the values embraced by society as reflected within the social contract will be deemed to be
legitimate (Deegan, 2002; Linke & Zerfass, 2013; Mathews, 1997).

Additionally, this magnitude is more substantial in profit-oriented organizations and the organization with high
members’ involvement in the decision-making process, as shown in clan culture. As supported by institutional theory,
the social context where firms operate and the shared value and norms between members influence an organization’s
behavior (Bretschneider & Parker, 2016; DiMaggio & Powell, 1983; Dyck et al., 2019; Meyer & Rowan, 1977).

An organization with a high clan culture treats members as a family with the value of loyalty, trust, commitment,
tradition, and effective governance (R. E. Quinn, 1988; Zammuto & Krakower, 1991). Conflicts and controversies rarely
occur within the organizations because members have a sense of belonging and a high focus on ethics and unity
(Linnenluecke & Griffiths, 2010). This unity will help to enforce organizations’ strategies, such as SMG, with less difficulty.

Similarly, profit-oriented organizations also strengthen SMG’s positive association on legitimacy because they focus
on enhancing their reputation in the market, image development, and gaining advantages to their operation activities

Appendix A Robustness Tests
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
Coef. (1- Sign Coef. (1- Sign Coef. (1- Sign Coef. (1- Sign Coef. (1- Sign Coef. (1- Sign Avg (1- Sign Avg (1- Sign
tailed) tailed) tailed) tailed) tailed) tailed) tailed) tailed)
Socmed Index + 0.559137 0.0095 *** -2.797359 0.1265 -0.8219297 0.3535 11.32589 0.025 -4.549396 0.044 3.77665 0.006 *** 0.2049012 0.1375 0.8514855 0.0115 **
OrgSize -0.2407716 0.069 * -0.229695 0.122 -0.2415785 0.088 -0.438899 0.013 -0.3374051 0.0345 -0.2701535 0.0475 ** -0.3553959 0.016 ** -0.2870354 0.1005
SqrtCult A -3.895146 0.0025 -1.886713 0.0095 -3.183409 0.015 -4.178492 0.0155
***
SqrtCult B -1.72162 0.0685 * -2.769453 0.107 -3.01957 0.0425 -3.004917 0.036
SqrtCult C -2.110094 0.0715 * -1.858949 0.053 0.9409213 0.2405 -4.013058 0.026
SqrtCult D -2.069655 0.0635 * -1.959701 0.035 -3.581282 0.021 -7.578446 0.0915 10.19515 0.018 **
D Profit -5.442313 0.005 ***
DStateOwned 1.62086 0.156
DListed
SqrtCult A Index + 0.7843411 0.058 *
SqrtCult B Index + 0.4681993 0.2005
SqrtCult C Index + -1.703351 0.028
SqrtCult D Index - 1.286069 0.0255 -3.305467 0.0135 **
D profit Index + 1.786925 0.003 ***
DStateOwned Index _ -0.5551165 0.0925 *
DListed Index _ -9.614103 1.755478 -0.3898892
Cons 0.2950837 47.13179 39.3324 38.16814 89.98665 0.02 51 51 51
No. of Obs 51 51 51 51 51 0.1515 0.2513 0.1189
Pseudo R2 0.0995 0.3082 0.2865 0.4319 0.3416 0.0094 *** 0.0065 *** 0.0631 *
Prob> chi2 0.02485 ** 0.0706 * 0.10585 0.18035 0.1741 11.81 12.68 7.19
Wald chi-square 6 10.94 9.61 7.69 7.83
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.

132 International Conference on Sustainability
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