Social media has revolutionized information exchange and collaboration in recent years, with many companies developing proprietary platforms to engage users and R&D partners in innovation. These company-built social media platforms are designed for long-term collaboration, facilitating communication, knowledge sharing, and co-creation, particularly in new product development. However, the impact of these platforms on innovation performance remains ambiguous. This study explores how company-built social media affects both focal companies and their R&D partners, addressing an underexplored area in existing literature. Analyzing 927 R&D partner-year observations across 66 R&D partners of 26 focal companies from 2005 to 2021, our findings reveal that while company-built social media is associated with a general decline in innovation performance for focal firms and their partners, the negative impacts are mitigated for R&D partners with higher market efficiency and long-term partnerships. These results highlight the contingent effects of company-built social media, offering strategic insights for maximizing benefits while managing risks. This study contributes to the intersection of social media and innovation management by addressing gaps in understanding the collaborative dynamics of company-built social media platforms and their implications for innovation performance beyond the focal firm.
