Corporate Blogging and Firm Performance: An Empirical Study

Applying the theory of user involvement, we argue that the emergence of corporate Blogs creates new opportunity for companies to interact with customers in the product development process. We then propose that companies that have adopted corporate Blogs will show superior financial performance. Using data collected from Fortune 500 Business Blogging Wiki, we provide empirical evidence to show that Blogging firms normally have a better financial performance than their industry peer firms. After controlling previous financial performance, we show that corporate Blogs are positively associated with future profitability and are negatively associated with future costs.