University of Isfahan New Marketing Research Journal 2228-7744 16 1 2026 03 21 Strategic Use of Social Media in New Product Development in Iraqi B2B Companies with the Mediating Role of Absorptive Capacity Strategic Use of Social Media in New Product Development in Iraqi B2B Companies with the Mediating Role of Absorptive Capacity 133 158 30265 10.22108/nmrj.2026.146708.3242 FA Bahman Khodapanah Assistant professor, Department of Business Administration, Faculty of Social Sciences, University of Mohaghegh Ardabili, Ardabil, Iran Ghasem Zarei Professor, Department of Business Administration, Faculty of Social Sciences, University of Mohaghegh Ardabili, Ardabil, Iran Zeynab Mowlaei M.A. in Business Administration, Strategic Orientation, Faculty of Humanities and Social Sciences, University of Kurdistan, Sanandaj, Iran Amir Shakir Hashim Al-Jasim M.A. in Business Administration, Strategic Orientation, Faculty of Social Sciences, University of Mohaghegh Ardabili, Ardabil, Iran Journal Article 2025 09 29 B2B startups are redefining industry standards by innovating and developing new business models, which enhance processes, create ideal job opportunities, boost demand for goods and services, and stimulate investment in inter-business sectors. Recognizing the significance of business model innovation in B2B startups and the potential of Social Media (SM) to facilitate strategic objectives, this study aimed to explore the strategic utilization of social media in the development of new business models among Iraqi B2B startups with a focus on the mediating role of absorptive capacity. This research was applied in its purpose and employed a descriptive-survey methodology. The statistical population comprised managers and employees of startup companies in Iraq with a sample size of 384 individuals determined by using the Cochran formula. A non-probability availability sampling method was utilized. Data were collected through a standardized questionnaire adapted from previously validated scales. Analysis was conducted by using Structural Equation Modeling (SEM) within SPSS and LISREL software. The findings indicated a significant relationship between the strategic use of social media and absorptive capacity and between the strategic use of social media and the development of new business models. Additionally, absorptive capacity was significantly correlated with the development of new business models. Importantly, the strategic use of social media also had a significant impact on the development of new business models in Iraqi B2B startups mediated by absorptive capacity. Overall, this study demonstrated that the strategic application of social media combined with enhanced absorptive capacity not only strengthen the competitiveness of Iraqi B2B startups, but also fostered the creation of an innovative and sustainable ecosystem. Introduction B2B SMEs possess the potential to leverage social media strategically to enhance customer expectations and foster closer relationships with industry clients (Nunan et al., 2018), thereby generating a sustainable competitive advantage (Neeley & Leonardi, 2018). In the context of Iraqi B2B startups, the strategic use of social media can facilitate brand introduction and establishment of effective connections with customers and other stakeholders, which is particularly vital in a developing market like Iraq. Absorptive capacity—defined as an organization's ability to identify, evaluate, and utilize new knowledge and information—has been highlighted in numerous international studies as a mediating factor between social media utilization and innovation (Gunes & Ozer, 2024; Tian et al., 2024). Similar findings have also emerged in research conducted in Iran (Fallah tafti et al., 2023). Nevertheless, the existing research remains limited and fragmented, with few studies focusing specifically on Iraqi startups. As a response to this gap, the current study proposed 4 hypotheses: Strategic use of social media positively affects absorptive capacity. Strategic use of social media positively influences the development of new business models. Absorptive capacity positively impacts the development of new business models. Strategic use of social media positively affects the development of new business models mediated by absorptive capacity. Materials & Methods This research was correlational in nature with an applied purpose and a descriptive-survey methodology that explored the relationships between variables. Data collection employed two approaches: a review of library resources for secondary data and field methods for primary data. The statistical population included managers and employees of startup companies in Iraq. Due to the uncertain size of this population, a statistical sample of 384 individuals was determined by using the Cochran formula. The data collection instrument utilized was a standardized questionnaire comprising 20 specialized items measured on an ordinal scale, along with 4 demographic questions. The questionnaires were distributed non-randomly through convenience sampling. To assess the reliability of the questionnaire items, Cronbach's alpha was calculated, yielding a coefficient of over 0.88. For validity, confirmatory factor analysis was conducted, revealing factor loadings of greater than 0.5. Data analysis was performed by using SPSS and LISREL software and Structural Equation Modeling (SEM) was employed to test the proposed hypotheses. In this study, the independent variable was defined as the strategic use of social media, the mediating variable as absorptive capacity, and the dependent variable as the development of new business models. Research Findings Regarding demographic characteristics, the results indicated that over 66% of the respondents were male and 55% were married with the majority holding a bachelor's degree or higher. The conceptual model of the research demonstrated good fit according to the fit indices (CFI = 0.92, TLI = 0.94). Additionally, the data presented in the table revealed that all questions achieved acceptable significance and path coefficients (greater than 0.3) as determined by LISREL software. Discussion of Results & Conclusion The results indicated that enhancing the strategic use of social media mediated by absorptive capacity significantly bolstered the development of new business models in Iraqi B2B startups. It can be asserted that strategic engagement with social media, through the lens of absorptive capacity, enhances the ability of organizations to identify, evaluate, and leverage new knowledge and information derived from these platforms. This capability serves as a crucial mediator, enabling B2B startups to seize opportunities presented by social media and refine their business models. Furthermore, B2B startups with higher absorptive capacity can effectively gather market-relevant information and insights through strategic social media use while utilizing this knowledge to fulfill their business objectives. This not only allows them to capitalize on existing opportunities, but also fosters innovation and competitiveness in the marketplace, ultimately leading to the successful development of new business models. B2B startups are redefining industry standards by innovating and developing new business models, which enhance processes, create ideal job opportunities, boost demand for goods and services, and stimulate investment in inter-business sectors. Recognizing the significance of business model innovation in B2B startups and the potential of Social Media (SM) to facilitate strategic objectives, this study aimed to explore the strategic utilization of social media in the development of new business models among Iraqi B2B startups with a focus on the mediating role of absorptive capacity. This research was applied in its purpose and employed a descriptive-survey methodology. The statistical population comprised managers and employees of startup companies in Iraq with a sample size of 384 individuals determined by using the Cochran formula. A non-probability availability sampling method was utilized. Data were collected through a standardized questionnaire adapted from previously validated scales. Analysis was conducted by using Structural Equation Modeling (SEM) within SPSS and LISREL software. The findings indicated a significant relationship between the strategic use of social media and absorptive capacity and between the strategic use of social media and the development of new business models. Additionally, absorptive capacity was significantly correlated with the development of new business models. Importantly, the strategic use of social media also had a significant impact on the development of new business models in Iraqi B2B startups mediated by absorptive capacity. Overall, this study demonstrated that the strategic application of social media combined with enhanced absorptive capacity not only strengthen the competitiveness of Iraqi B2B startups, but also fostered the creation of an innovative and sustainable ecosystem. Introduction B2B SMEs possess the potential to leverage social media strategically to enhance customer expectations and foster closer relationships with industry clients (Nunan et al., 2018), thereby generating a sustainable competitive advantage (Neeley & Leonardi, 2018). In the context of Iraqi B2B startups, the strategic use of social media can facilitate brand introduction and establishment of effective connections with customers and other stakeholders, which is particularly vital in a developing market like Iraq. Absorptive capacity—defined as an organization's ability to identify, evaluate, and utilize new knowledge and information—has been highlighted in numerous international studies as a mediating factor between social media utilization and innovation (Gunes & Ozer, 2024; Tian et al., 2024). Similar findings have also emerged in research conducted in Iran (Fallah tafti et al., 2023). Nevertheless, the existing research remains limited and fragmented, with few studies focusing specifically on Iraqi startups. As a response to this gap, the current study proposed 4 hypotheses: Strategic use of social media positively affects absorptive capacity. Strategic use of social media positively influences the development of new business models. Absorptive capacity positively impacts the development of new business models. Strategic use of social media positively affects the development of new business models mediated by absorptive capacity. Materials & Methods This research was correlational in nature with an applied purpose and a descriptive-survey methodology that explored the relationships between variables. Data collection employed two approaches: a review of library resources for secondary data and field methods for primary data. The statistical population included managers and employees of startup companies in Iraq. Due to the uncertain size of this population, a statistical sample of 384 individuals was determined by using the Cochran formula. The data collection instrument utilized was a standardized questionnaire comprising 20 specialized items measured on an ordinal scale, along with 4 demographic questions. The questionnaires were distributed non-randomly through convenience sampling. To assess the reliability of the questionnaire items, Cronbach's alpha was calculated, yielding a coefficient of over 0.88. For validity, confirmatory factor analysis was conducted, revealing factor loadings of greater than 0.5. Data analysis was performed by using SPSS and LISREL software and Structural Equation Modeling (SEM) was employed to test the proposed hypotheses. In this study, the independent variable was defined as the strategic use of social media, the mediating variable as absorptive capacity, and the dependent variable as the development of new business models. Research Findings Regarding demographic characteristics, the results indicated that over 66% of the respondents were male and 55% were married with the majority holding a bachelor's degree or higher. The conceptual model of the research demonstrated good fit according to the fit indices (CFI = 0.92, TLI = 0.94). Additionally, the data presented in the table revealed that all questions achieved acceptable significance and path coefficients (greater than 0.3) as determined by LISREL software. Discussion of Results & Conclusion The results indicated that enhancing the strategic use of social media mediated by absorptive capacity significantly bolstered the development of new business models in Iraqi B2B startups. It can be asserted that strategic engagement with social media, through the lens of absorptive capacity, enhances the ability of organizations to identify, evaluate, and leverage new knowledge and information derived from these platforms. This capability serves as a crucial mediator, enabling B2B startups to seize opportunities presented by social media and refine their business models. Furthermore, B2B startups with higher absorptive capacity can effectively gather market-relevant information and insights through strategic social media use while utilizing this knowledge to fulfill their business objectives. This not only allows them to capitalize on existing opportunities, but also fosters innovation and competitiveness in the marketplace, ultimately leading to the successful development of new business models.

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