Abstract
Purpose – This study aims to explore the interaction between social media and firms’ absorptive capacity (ACAP), which involves acquiring, assimilating, transforming and exploiting external knowledge. While existing research often examines these topics separately, this paper bridges the gap by analyzing their interconnectedness to provide a holistic understanding. Design/methodology/approach – A data-driven approach combining bibliographic coupling and authors’ keyword network analysis was used to mitigate the subjectivity of traditional literature reviews. A total of 50 peer-reviewed journal and conference articles from Scopus were analyzed using VOSviewer to identify thematic research streams (RSs). Findings – The analysis identifies five RSs: the impact of social media and ACAP on innovation performance; their effect on performance in a multi-level landscape across different analytical units (individual, team, organization); the role of social media in specific contexts, including internal and external collaborations; online communities; and the new product development process. A key finding is the internal inconsistency in the literature regarding the relationship between ACAP and social media constructs. To address this, two alternative research frameworks are proposed, offering theoretical foundations for future studies. Originality/value – To the best of the authors’ knowledge, this paper is the first to comprehensively address the interaction between social media and ACAP by resolving theoretical inconsistencies, clarifying variable roles and proposing frameworks to guide future research. It also offers actionable insights for R&D and innovation managers to strategically leverage social media for acquiring and exploiting external knowledge, thereby enhancing competitive advantage.