Abstract
Firm performance is a crucial area of study in organizational research and is a key indicator of an organization's success. However, understanding it can be complex. This study investigates the relationship between social media adoption and firm performance in the food industry. It employs a quantitative descriptive correlational research design to collect relevant data from restaurant owners and managers using a combination of convenience sampling and area sampling methods. The findings indicate a significant positive correlation between social media adoption and firm performance (p<.05), primarily attributed to the perception of its usefulness across various business functions, including operations, productivity, customer service, and inquiry management. Grounded in Social Capital Theory, the results highlight how social media enhances relational and cognitive capital by reinforcing networks and trust, essential elements in the food sector. By bridging theory and practice, this research illuminates how digital engagement can drive improved firm performance in a competitive marketplace, providing valuable insights for practitioners navigating an increasingly digital landscape.
