Maria Anggreainy*
This study explores the relationship between entrepreneurs' use of social media and their decision to reinvest in their businesses. We suggest that social media use has an inverted U-shaped relationship with entrepreneurial investment as a result of the competing pressures of information collection and information processing associated with social media use, drawing on the information-based view of entrepreneurship. In recently established businesses or high-tech industries, this relationship will be more obvious. Our empirical results, which are based on a sizable sample of Chinese private enterprises, support the main claims. This study offers crucial new perspectives on the intricate effects of social media use on entrepreneurship activities.
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