INVESTIGATE ON THE EFFECTS OF SOCIAL MEDIA ON E- ENTREPRENEURSHIP

Transcription

1 INVESTIGATE ON THE EFFECTS OF SOCIAL MEDIA ON E- ENTREPRENEURSHIP March 22-23, 2018 NilaiSprings Resort Hotel Nilai, Malaysia

2 ABSTRACT Social media sites continue to grow in popularity. They offer a platform for entrepreneurship practices; however it is important to understand how much trust and confidence entrepreneurs should place on information on social media. This paper examines the influence of social media, particularly Facebook, Instagram and Twitter, on e-entrepreneurship by testing for correlations between recommendations on social media and consumption patterns of consumers. This was carried out by determining the effect of social media on market access, customer relationship management, innovativeness and pricing of products. The study used descriptive research design in which, cluster sampling is used to divide the population of interest and then simple random probability sampling technique to further identify the specific e-entrepreneurship to be used for the study. 2

3 INTRODUCTION Social media sites continue to grow in popularity. They have become new e-commerce platforms for entrepreneurship practices. The emergence of the Internet has caused a switch from the traditional market to market space available online. E-entrepreneurship can be defined as establishing a new company with an innovative business idea using an electronic platform in data networks, which offers its products and/or services based on a purely electronic creation of value (Kollmann, 2006). Social media provides an avenue for enterprises to reach target customers and generate new ideas for starting a business. 3

4 INTRODUCTION It provides an immediate source of information about current market needs, product improvements and demand on new products. It also influences e-entrepreneurs with the right content that helps them to make informed decisions as well as to gain access to resources that might otherwise not be available. 4

5 MARKET ACCESS It is a process that guarantees all customers will get quick and continued access to the product at the right price. New approach, an entrepreneur should research information on new markets in order for his product or services to reach the intended customers. Evidence from literature has confirmed that social media can be employed to access new markets and it has significantly expanded the global reach of networking 5

6 CUSTOMER RELATIONSHIP MANAGEMENT(CRM) Enterprise approach to realize customer behavior through significant interactions with customer, to improve customer acquisition, customer retention, customer loyalty and customer profitability. Social CRM emerges which recognizes the importance of CRM and social media applications. Social CRM enhances e-entrepreneurship by engaging their enterprises with their customers using social media services, techniques and technologies to generate, integrate and respond to customers information and queries 6

7 INNOVATIVENESS New ideas and opportunities are common characteristics for innovation and entrepreneurship, interaction between entrepreneurship and innovation is necessary to sustain long term entrepreneurial success. Services and products are designed based on word-of-mouth and social-media-based conversations 7

8 PRICING OF PRODUCTS Pricing of product or services determines its success as it is directly linked to revenues. In most situations, an enterprise needs to price and re-price its products and services to become competitively advantageous and e-entrepreneurship is not exceptional. Social media may have an impact on pricing decision in e- entrepreneurship. One of the keys to having a successful online business is brand name recognition. 8

9 RESEARCH MODEL H1 Market Access Social Media H2 H3 H4 Customer Relation Pricing of Product Innovation 9

10 HYPOTHESIS DEVELOPMENT H1 : Social media use is a positive related to market access H2: Social media use is a positive related to customer relationship management H3: Social media use is a positive related to innovativeness H4: Social media use is a positive related to pricing of products 10

11 METHODOLOGY Survey items were developed and all items were measured with a 5-point Likert scale In total, data from 93 participants was collected. The target individuals were members of social networking sites such as Facebook, Instagram and Twitter. 11

12 RESULTS MARKET ACCESS Q No Questions Mean Standard Deviation Q1 Q2 Q3 On average, how often do you check your social media account? How often do you shop at the stores you follow on social media? How often do you receive correspondence from the companies you follow on social media? Q4 How often do you shop online? Average of Customer relationship management

13 MARKET ACCESS Frequency description of market access Strongly disagree Disagree Neutral Agree Strongly Agree 5 0 Q1 Q2 Q3 Q4 13

14 CUSTOMER RELATIONSHIP MANAGEMENT Q No Questions Mean Standard Deviation Q1 Q2 I am more likely to share my online shopping experience with others via social media I am more likely to recommend the product, service or company since becoming a follower of social media Q3 I like to take part in product communities discussions on social media Q4 Q5 Social media is the main resource which made me aware of the product I believe the quality of customer services is higher when company embrace social media into its business Q6 I am pleased to establish a relationship with my interested e- commerce company through the use of social media Q7 The company you work with places a high priority on retaining customers Q8 The company you work with considers customers as valuable assets Q9 I have a more effective relationship with e-commerce company because of the use of social media technologies Q10 E-commerce companies who are well known in social media are credible Average of Customer relationship management

15 50 FREQUENCY DESCRIPTION OF CUSTOMER RELATIONSHIP MANAGEMENT Strongly disagree Disagree Neutral Agree Strongly Agree 0 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 15

16 INNOVATIVENESS Q No Questions Mean Standard Deviation Q1 Q2 When a non-routine situation arises, I am using social media as new ways of dealing with the situation I use social media to get new ideas and approaches to solve problems Q3 Social media provides new ideas, requirements, and product improvement Q4 Q5 Sharing ideas in social media and learn from others is an added advantage and best practices Learn from early experiences and develop corporate knowledge and expertise in social media, are good tools and techniques Average of Innovativeness

17 FREQUENCY DESCRIPTION OF INNOVATIVENESS Strongly disagree Disagree Neutral Agree Strongly Agree Q1 Q2 Q3 Q4 Q5 17

18 PRICING OF PRODUCTS Q No Questions Mean Standard Deviation Q1 Q2 The company you work with, utilise social media to conduct research on product pricing The company you work with, use social media to gather information about your product Q3 Q4 Q5 The company you work with, utilise social media to detect shifts in industries The company you work with, utilise social media to make purchase decisions based on price It is a big difference to compare the price of social media and traditional shopping Average of pricing of products

19 FREQUENCY DESCRIPTION OF PRICING OF PRODUCTS Strongly disagree Disagree Neutral Agree Strongly Agree Q1 Q2 Q3 Q4 Q5 19

20 FINDINGS Correlation test for all constructs (Market Price, Customer Relationship Management (CRM), Innovativeness and Product pricing) shows a positive correlation. Pricing of products and Innovativeness show a very high correlation average of and respectively Market price and CRM show a moderate correlation average of and respectively 20

21 CORRELATION TEST RESULT OF INNOVATIVENESS Table 12. Correlation Test Result of Innovativeness When a non-routine situation arises, I am using social media as new ways of dealing with the situation I use social media to get new ideas and approaches to solve problems Social media provides new ideas, requirements, and product improvement Q1 Q2 Q3 Q4 Q5 Pearson Correlation **.684 **.582 **.641 ** Sig. (2-tailed) N Pearson Correlation.743 ** **.580 **.642 ** Sig. (2-tailed) N Pearson Correlation.684 **.711 ** **.757 ** Sig. (2-tailed) N Sharing ideas in social media Pearson Correlation.582 **.580 **.741 ** ** and learn from others is an Sig. (2-tailed) added advantage and best N practices Learn from early experiences Pearson Correlation.641 **.642 **.757 **.751 ** 1 and develop corporate Sig. (2-tailed) knowledge and expertise in social media, are good tools N and techniques March, **. Correlation 2018 is significant at the 0.01 level (ACE (2-tailed). 2018) 21

22 CORRELATION TEST RESULT OF PRICING OF PRODUCTS Table 13. Correlation Test Result of pricing of products The company you work with, utilise social media to conduct research on product pricing The company you work with, use social media to gather information about your product The company you work with, utilise social media to detect shifts in industries The company you work with, utilise social media to make purchase decisions based on price Q1 Q2 Q3 Q4 Q5 Pearson Correlation **.720 **.737 **.489 ** Sig. (2-tailed) N Pearson Correlation.815 ** **.762 **.585 ** Sig. (2-tailed) N Pearson Correlation.720 **.811 ** **.467 ** Sig. (2-tailed) N Pearson Correlation.737 **.762 **.747 ** ** Sig. (2-tailed) N It is a big difference to Pearson Correlation.489 **.585 **.467 **.577 ** 1 compare the price of social Sig. (2-tailed) media and traditional shopping N **. Correlation is significant ASIAN at the 0.01 CONFERENCE level (2-tailed). ON ENTREPRENEURSHIP 22

23 HYPOTHESIS TEST RESULTS Hypotheses Supported / Accepted? H1: Social media use is a positive related to Supported market access H2: Social media use is a positive related to Supported customer relationship management H3: Social media use is a positive related to Highly innovativeness Accepted H4: Social media use is a positive related to Highly pricing of products Accepted Reason Positive related and significant Positive related and significant Positive related and significant Positive related and significant 23

24 CONCLUSIONS & RECOMMENDATIONS Social media on e-entrepreneurship, it is important to consider the effects of social media on the following constructs: market access, customer relationship management, innovativeness and pricing of products. Social media has a positive impact on market access. E-entrepreneurship companies can use social media to reach customers. The results of this study indicate that social media can be used as promotion tool to make their market access become wider and wider 24

25 CONCLUSIONS & RECOMMENDATIONS Social media is positively related with the construct of customer relationship management. It indicates if e-entrepreneurship companies use more social media forms, the customer relationship management will be better and increase. Involving more social media applications into e- entrepreneurship customer relationship management have so many positive effects, which is in line with our expectation. 25

26 CONCLUSIONS & RECOMMENDATIONS Performance dimension of social media has a significant influence on innovativeness. The results of this study indicate that there is a link between e- entrepreneurship companies and social media. Relationship of the social media on pricing of products, the research results show a very positive related and significant. 26

27 CONCLUSIONS & RECOMMENDATIONS Social media usage makes it easier for e- entrepreneur to implement the right strategy from the beginning, so that they can appreciate the benefits that social media can provide to their business. E-entrepreneurs should be aware of the numerous advantages of using social media regardless of the phase in which the business lies. 27