The impact of social information system governance, utilization, and capabilities on absorptive capacity and innovation: A case of Austrian SMEs

• We provide a novel analysis of social information system (SIS)-driven innovation in Austrian small and medium-sized enterprises (SMEs).
• The backbone of SIS utilization is SIS governance.
• SIS capabilities mediate the positive effects of SIS utilization on adsorptive capacity (AC).
• AC components build on each other to positively affect innovation.
• AC mediates the positive effects of SIS capabilities on innovation.

The study aims to understand the influence of social information systems (SIS) on absorptive capacity (AC) and innovation in Austrian small and medium-sized enterprises (SMEs). For this purpose, a framework was developed and empirically tested using a nationwide, mixed-mode survey on a random sample of 138 SMEs of knowledge-intensive industries. The results show that the backbone of SIS utilization is SIS governance. SIS capabilities mediate the positive effects of SIS utilization on AC components, which build on each other and mediate the positive effects of SIS capabilities on innovation. Our findings provide a number of useful implications for research and industry.