Impact of fake news on firm performance during COVID-19: an assessment of moderated serial mediation using PLS-SEM

Khan, EA; Chowdhury, MMH; Hossain, MA; Baabdullah, AM; Giannakis, M; Dwivedi, Y

Impact of fake news on firm performance during COVID-19: an assessment of moderated serial mediation using PLS-SEM

Khan, EA Chowdhury, MMH Hossain, MA Baabdullah, AM Giannakis, M Dwivedi, Y

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Publisher:: Emerald
Publication Type:: Journal Article
Citation:: International Journal of Physical Distribution and Logistics Management, 2023, 53, (7/8), pp. 838-859
Issue Date:: 2023-01-01

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Field	Value	Language
dc.contributor.author	Khan, EA
dc.contributor.author	Chowdhury, MMH
dc.contributor.author	Hossain, MA
dc.contributor.author	Baabdullah, AM
dc.contributor.author	Giannakis, M
dc.contributor.author	Dwivedi, Y
dc.date.accessioned	2024-03-06T00:20:05Z
dc.date.available	2024-03-06T00:20:05Z
dc.date.issued	2023-01-01
dc.identifier.citation	International Journal of Physical Distribution and Logistics Management, 2023, 53, (7/8), pp. 838-859
dc.identifier.issn	0960-0035
dc.identifier.uri	http://hdl.handle.net/10453/176164
dc.description.abstract	Purpose: Fake news on social media about COVID-19 pandemic and its associated issues (e.g. lockdown) caused public panic that lead to supply chain (SC) disruptions, which eventually affect firm performance. The purpose of this study is to understand how social media fake news effects firm performance, and how to mitigate such effects. Design/methodology/approach: Grounded on dynamic capability view (DCV), this study suggests that social media fake news effects firm performance via SC disruption (SCD) and SC resilience (SCR). Moreover, the relation between SCD and SCR is contingent upon SC learning (SCL) – a moderated mediation effect. To validate this complex model, the authors suggest effectiveness of using partial least squares structural equation modeling (PLS-SEM). Using an online survey, the results support the authors’ hypotheses. Findings: The results suggest that social media fake news does not affect firm performance directly. However, the authors’ serial mediation test confirms that SCD and SCR sequentially mediate the relationship between social media fake news and firm performance. In addition, a moderated serial mediation test confirms that a higher level of SCL strengthens the SCD–SCR relationship. Research limitations/implications: This work offers a new theoretical and managerial perspective to understand the effect of fake news on firm performance, in the context of crises, e.g. COVID-19. In addition, this study offers the advancement of PLS as more robust for real-world applications and more advantageous when models are complex. Originality/value: Prior studies in the SC and marketing domain suggest different effects of social media fake news on consumer behavior (e.g. panic buying) and SCD, respectively. This current study is a unique effort that investigates the ultimate effect of fake news on firm performance with complex causal relationships via SCD, SCR and SCL.
dc.language	en
dc.publisher	Emerald
dc.relation.ispartof	International Journal of Physical Distribution and Logistics Management
dc.relation.isbasedon	10.1108/IJPDLM-03-2022-0094
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	15 Commerce, Management, Tourism and Services
dc.subject.classification	Business & Management
dc.subject.classification	3509 Transportation, logistics and supply chains
dc.title	Impact of fake news on firm performance during COVID-19: an assessment of moderated serial mediation using PLS-SEM
dc.type	Journal Article
utslib.citation.volume	53
utslib.for	15 Commerce, Management, Tourism and Services
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Business
pubs.organisational-group	University of Technology Sydney/Faculty of Business/Management Discipline
utslib.copyright.status	closed_access	*
pubs.consider-herdc	false
dc.date.updated	2024-03-06T00:20:04Z
pubs.issue	7/8
pubs.publication-status	Published
pubs.volume	53
utslib.citation.issue	7/8

Abstract:

Purpose: Fake news on social media about COVID-19 pandemic and its associated issues (e.g. lockdown) caused public panic that lead to supply chain (SC) disruptions, which eventually affect firm performance. The purpose of this study is to understand how social media fake news effects firm performance, and how to mitigate such effects. Design/methodology/approach: Grounded on dynamic capability view (DCV), this study suggests that social media fake news effects firm performance via SC disruption (SCD) and SC resilience (SCR). Moreover, the relation between SCD and SCR is contingent upon SC learning (SCL) – a moderated mediation effect. To validate this complex model, the authors suggest effectiveness of using partial least squares structural equation modeling (PLS-SEM). Using an online survey, the results support the authors’ hypotheses. Findings: The results suggest that social media fake news does not affect firm performance directly. However, the authors’ serial mediation test confirms that SCD and SCR sequentially mediate the relationship between social media fake news and firm performance. In addition, a moderated serial mediation test confirms that a higher level of SCL strengthens the SCD–SCR relationship. Research limitations/implications: This work offers a new theoretical and managerial perspective to understand the effect of fake news on firm performance, in the context of crises, e.g. COVID-19. In addition, this study offers the advancement of PLS as more robust for real-world applications and more advantageous when models are complex. Originality/value: Prior studies in the SC and marketing domain suggest different effects of social media fake news on consumer behavior (e.g. panic buying) and SCD, respectively. This current study is a unique effort that investigates the ultimate effect of fake news on firm performance with complex causal relationships via SCD, SCR and SCL.

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http://hdl.handle.net/10453/176164