Information communication technology has plenty of benefits to society. Social media being the product of information technology have become an essential tool for marketers at a very minimum investment. Social media have a positive impact on companies as well as customers. In today’s circumstances, customers judge companies based on their online presence, hence they can innovate and simultaneously create a strong social presence by always catering to their customers’ needs and concerns. Social media are used in day to day activities of several companies, including beginners of micro and small enterprises, medium and large sized business organizations. The purpose of this research is to explore and to analyze to what extent social media have an impact on organizational capabilities and business performance using the review of related literature as a method of this research. It was found out from the review of literature that social media increase the capabilities and performances of a business to a large extent.
Key words: Social media, social networking, business capabilities, business Performance.
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