An investigative study on the relationship between business and social media: social media s influence on corporate reputations

Transcription

1 An investigative study on the relationship between business and social media: social media s influence on corporate reputations Copenhagen business school 2012 Cand. Merc. International Marketing and Management MSc Masters Thesis Advisor: Arne Lycke Pages: 77 Character count: 140, December 2012 Rochelle Norwood

2 I. Executive Summary Although social media is still dominated by personal motives for connecting and sharing with family and friends, it is also increasingly becoming part of people s professional lives. The research finds that people s professional social media use is largely dominated by the need for information, and that professional interest is mainly focused on companies products and services. In people s motivation to find and read information about companies, research shows that people access companies social media pages on a daily and weekly basis. In contrast to personal motives for social media use however, social- interaction and self- expression play only secondary roles for professionals. Additionally, findings show that people interact with companies on a more infrequent basis in their professional lives, with a majority of subjects saying that they never comment on material posted by a company. The study supports the hypothesis that social media influences people s perceptions of the companies they interact with. Specifically, social media allows users to get to know a company better, can contribute to increased trust and confidence in a company, and influences the expectations that people form. Corporate reputation theory proposes that these concepts are factors on which people can evaluate and form an opinion of a company, contributing to the formation of a corporate reputation. Taking departure from corporate reputation theory the study reviews current reputation measurement models and various academic perspectives surrounding the topic. The study evaluates the impact and potential influence of social media on corporate reputation and identifies professional motives for social media use. Research methodology is based on a combination of case studies and questionnaire surveys. The research and findings are relevant for B2B companies interested in social media strategy and the potential consequences it has for the corporate name and reputation. The paper offers insights on what drives people to companies social media pages, what information is relevant and interesting, and tactics that engage and create interaction among company followers. 2

3 II. List of Figures 1. Vision- Culture- Image Alignment Model, Hatch and Schultz Corporate Image, Two- Way Communication Process, Hatch and Schultz Interaction between corporate images and reputation, created by author 4. Reputation Quotient, Fombrun et al Theoretical framework, created by the author General Electric s social media integration strategy 7. General Electric understanding and engaging audience 8. BtoB The Magazine for Marketing Strategists, accessed October Welcome to Daily Maersk post on Facebook 10. Maersk Line Facebook, photos shared by ship and container spotters 11. Maersk Line Social Media homepage, Content Analysis of General Electric and Maersk Line s Facebook and LinkedIn pages 13. Questionnaire analysis - Age demographic 14. Questionnaire analysis - Usage, hours per week 15. Questionnaire analysis - Top most used social media sites 16. Questionnaire analysis - Motivation, self- expression 17. Questionnaire analysis - Motivation, information seeking 18. Questionnaire analysis - Motivation, social- interaction 19. Questionnaire analysis - Company branding and awareness 20. Questionnaire analysis - Information seeking 21. Questionnaire analysis Consequences of social media use in a professional context III. List of Tables 1. Corporate Personality Scale, Davies et al Corporate Credibility Scale, Newell and Goldsmith Questionnaire analysis Professional motives 4. Questionnaire analysis Identified motives 5. Questionnaire analysis - Social- interaction and sharing opinions 6. Questionnaire analysis Participant personal experiences 3

4 TABLE OF CONTENTS PART 1 INTRODUCTION INTRODUCTION TO RESEARCH FIELD RESEARCH QUESTION JUSTIFICATION OF THE RESEARCH CONCEPTS FOR ANALYSIS SCOPE AND DELIMITATIONS PART 2 LITERATURE REVIEW LITERATURE REVIEW: CORPORATE IMAGE Corporate Image as part of Corporate Identity Corporate Image as a contributor to Reputation Summary: Corporate Image LITERATURE REVIEW: CORPORATE REPUTATION Reputation Measurement Models Summary: Corporate Reputation LITERATURE REVIEW: SOCIAL MEDIA CRITIQUE OF LITERATURE REVIEW PART 3 THEORETICAL FRAMEWORK THEORETICAL FRAMEWORK CONCEPT DOMAIN SUMMARY: THEORETICAL FRAMEWORK PART 4 METHODOLOGY RESEARCH OBJECTIVE RESEARCH STRATEGY RESEARCH PHILOSOPHY RESEARCH DESIGN CHOICE OF METHODOLOGY ANALYTICAL APPROACH DATA VALIDITY AND RELIABILITY

5 PART 5 ANALYSIS CASE STUDIES Case Study Analysis: General Electric Case Study Analysis: Maersk Line SUMMARY OF FINDINGS: CASE STUDIES QUESTIONNAIRE ANALYSIS Social Media Habits Social Media Motives Social Media s Influence SUMMARY OF FINDINGS: QUESTIONNAIRE PART 6 CONCLUSION RESEARCH OBJECTIVE RESEARCH FINDINGS CONCLUSION MANAGERIAL IMPLICATIONS FURTHER RESEARCH PART 7 REFERENCES PART 8 APPENDICES

6 PART 1 INTRODUCTION In business today, social media has come to the top of the agenda for many companies. Managers, marketing teams, and decision makers are trying to identify ways in which organizations can make constructive use of social media sites such as Facebook, YouTube, and Twitter. With increasing popularity and global network, social media is fundamentally changing the way the world is entertained, communicates and accesses information (Shao, 2009). Many companies have embraced social media as a means of getting closer to consumers, often through advertising, direct communications, and market research. As of March 2012, nearly one out of every seven people in the world was an active Facebook user and every day 340 million Tweets are made around the world (Burson- Marsteller, 2012). The growth in the number of people and conversations happening in social media sites has driven interest among a greater number of business- to- business companies (B2B), whose business partners, customers, suppliers, and employees are all actively engaging, further encouraging the company to develop a social media presence. The highly influential viral networks are driving the conversation, which can outweigh a company s marketing and sales efforts, with its unprecedented immediacy and reach (Baird, 2011). Despite the growing interest, an understanding of how B2B companies can connect with social media users, get involved in the conversations that are happening around them, and the results of these actions has yet to be fully researched and developed. Studies have shown that the top reasons people engage in social media are: for information, for social- interaction, and for the opportunity to express ones self (Shao, 2009). Of these motives, one that is becoming increasingly important to companies is that people use social media as a source for information. Consumers making product and brand choices are increasingly turning to computer mediated- communication for information on which to base their decisions (Kozinets, 2002, p. 61). Social media is not only about connecting with family and friends anymore. Peoples social media uses and habits are evolving, leading more people to turn to social media when they 6

7 are buying a product, investing in a company, or applying for a job (Shao, 2009). This media evolution is significant for businesses as social media is lowering the barriers between the company and the public and lessening company control over that content written and shared about the business. ( ) as a source of news and information, UGM (user- generated material) and social media have been influencing the concept of searching. When consumers type in any product name into a search engine like Google, they may be as likely to find a user- generated site about the product as they are to find the corporate site (Shao, 2009, p. 10). According to Linda Boff, a digital marketing executive, social media isn t only for consumer brands, emphasizing that 90% of B2B decision makers say that they consult social media during the buying process (Callahan, 2012). Not only are people looking to social media for information, but also they are more likely to listen and consider what their peers say than what a company claims on its corporate website (ibid). ( ) people make use of MySpace, Facebook, and other social media to learn how to make sense of things from their peers on just about any subject (Shao, 2009, p. 10). Through social media people can discuss their opinions and perspectives, as well as take advantage of others knowledge and expertise. Social media is playing an increasingly greater role in peoples lives, not only personally but professionally as well. Social media is contributing to the opinions and beliefs that people hold of the companies they work for, partner with, and invest in. While B2B companies are beginning to increase efforts and investments in social media strategies, they are also placing a greater focus on their corporate brand. As a result of globalization and an increase in international brands, marketing perspectives are shifting from the product brand to the corporate brand (Aaker, 2004). In international business it is increasingly difficult to maintain credible product or service differentiation based on imitable characteristics (ibid). While organizations are inherently different, companies are looking to develop their corporate images and create positive, strong corporate reputations (Aaker, 2004). Widespread interest in the topics of corporate image and reputation is evident by the importance and value placed on successful corporate names. The publication America s Most Admired 7

8 Companies, being one of the most well known on the subject, demonstrates the importance and potential value gained from a strong corporate image and reputation. In the book Reputation: Realizing Value from the Corporate Image, author Charles Fombrun (1996) states that reputations consists of the perceptions of how others see the company and that a good reputation can be a source of intangible wealth as it attracts customers to a company s products, investors to its securities and employees to its jobs (p. 81). With such potential to be realized in a reputation, Fombrun (1996) refers to reputation management as a form of enlightened self- interest for the company. A good reputation generates consistent, shared, and favorable impressions among observers about what a company is, what a company does, and what a company stands for (ibid). According to Davies et al. (2003) reputations are based on an accumulation of all personal experiences and interactions with a company, and often are also based on the opinions of others. As well a corporate reputation is a constantly evolving concept as experiences accumulate and people accept some or all of the opinions of others, adjusting their own personal opinion (ibid). As a collection of experiences that are formed not only through personal interaction, but also based on the experiences and accounts of others, it is therefore reasonable to assume that social media will have an impact on corporate reputations. According to Kavita Rekhraj, a senior consulting manager with Deloitte, Social media has dramatically altered the way media and consumer behaviours affect a company's reputation ( accessed November 2012). As a greater number of people use social media in their professional life and are exposed to the views of their colleagues, employees, and competitors, people develop reputations of the companies they do business with. The increasing number of people that use social media not only in their personal life, but also in their professional life, represents both a challenge and an opportunity for companies. In an international marketplace with business partners, customers, suppliers and employees who are using social media, there is a need for research to provide a better understanding of how social media impacts and influences B2B relationships. 8

9 1.1 Introduction to Research Field Based on the idea that people use social media not only in their personal lives, but in their professional lives as well, the author proposes that when people use social media in a professional manner it contributes to the reputations they hold of the companies they interact with. While initial research from academic articles shows that business professionals use social media as a source of information that can contribute to decision- making (Callahan, 2012), there is still a limited understanding of how B2B relations develop in social media and in what ways it contributes to the opinions and perceptions of a company. The aim of the research is to understand how individuals social media interactions and communications, in a professional context, contribute to corporate reputation. Current reputation research focuses on how companies can manage and measure their corporate reputation, but has yet to be researched within the context of social media. Focusing on corporate reputation, the paper will examine various reputational models, factors that research proposes contribute to reputation, and how they relate to and can be interpreted in a social media environment. This paper helps to fill the gap by connecting two different streams of research, the impact of social media in business and society and the corporate reputation as a valuable strategic asset, by investigating the relationship between social media and the corporate reputation. The purpose of the paper is to advance the understanding of corporate reputation and how companies can utilize social media to connect with social media users in ways that positively influence the corporate reputation. Research concentrates on determining the motives for professional social media use, the types of information and communication that is interesting and relevant, and how social media use influences B2B relations and the reputations people hold of companies. This will better allow companies to place attention on features of their communications and social media strategy that contribute to opinions and reputations of the company. 9

10 1.2 Research Question Based on the growth in social media activity and professional use, there is a need for further investigation that can contribute to companies social media strategy. The research question therefore is: To what extent does social media play a part in shaping the reputations of companies in B2B relationships? In order to answer the research question, it is broken down into two sub- questions, which will be explained and justified below. The sub- questions are: 1. What drives people s social media use in their professional lives? 2. Which elements in social media contribute to the reputations people form of the companies they interact with? The first question, What drives peoples social media use in their professional lives? is more practical in nature as it aims at identifying the motivations and purposes behind why people use social media in their professional life. This question investigates how social media can fulfill different professional needs, which social media sites people use most, and how often people interact with companies through social media. The research will look at a variety of different social media sites to understand and identify people s habits and interaction with companies. Research suggests that a person s perception of an organization will be based on a variety of different information sources and interactions (Gotsi & Wilson, 2001; Fombrun, 1996). Therefore, instead of focusing on one specific social media site, the research considers that people may use a variety of social media sites. Ultimately, in social media there can be multiple spokespeople that contribute to a company s image and users will look to other community members as opinion leaders, resulting in the company no longer holding the position of key spokesperson. 10

11 The second sub- research question, Which elements in social media contribute to the reputations people form of the companies they interact with? combines both theory and applied knowledge. The question first identifies the various theoretical concepts on which researchers suggest people form reputations about a company. It is proposed within this paper that there are multiple dimensions on which people can form reputations of a company. The purpose then is to identify which dimensions in social media interactions have a dominant influence on the reputations people form of a company. Answering this question combines both corporate reputation theory and investigation of people s interaction with companies through social media. The idea that people can be influenced by a variety of sources is again reinforced, and related to how reputations are formed in social media. 1.3 Justification of the Research While people have fully adopted social media into their everyday lives, companies have yet to completely understand the opportunities and potential for social media in B2B relationships. Studies have shown that users do not respond positively to mass advertising and traditional marketing tactics in social media, and further that repeated efforts to market to users through social media might actually damage organizational images and reputations (Chaffey, Ellis- Chadwick, Mayer, & Johnston, 2009). The area of research around corporate reputations has received much attention in the past decade and is still a highly relevant topic of study. Researchers Davies, Chun, Vinhas da Silva, and Roper (2003) and Fombrun, Gardberg, and Sever (2000) have documented potential benefits to be gained from a positive reputation among stakeholders, ranging from better financial performance, a source of competitive advantage, a means through which to establish stronger customer relations, and as a factor contributing to the decision- making process. As such, it is reasonable to assume that companies are interested in new and novel ways that can both drive and manage their reputation. From the review of current literature on the topics of social media strategy and corporate reputation, no previous research has been found investigating the ability and potential of social media to influence corporate reputations in B2B relationships. Additionally, this study will 11

12 provide insight on the importance that proposed reputation dimensions have within social media. Answering the research question will identify how social media influences people s B2B relationships and the reputations of the companies they interact with. 1.4 Concepts for Analysis Corporate Reputation The main concept for analysis throughout the paper is corporate reputation. As an intangible asset, researchers have developed reputation measurement models and frameworks that attempt to value and measure the strength and underlying factors that make up a corporate reputation (Fombrun, et al., 2000; Newell & Goldsmith, 2001; Davies et al., 2003). In order to understand the elements that contribute to the formation of reputations in social media, these models will be investigated. Social Media Interaction As dynamic, networking sites, individuals can choose when and how they interact with companies, employees, or colleagues in social media (Shao, 2009). Shao (2009) defines people s social media participation either as user- to- content interaction or user- to- user interaction. User- to- content interaction occurs when people like the content, rate content, save to their favorites, share with others or post comments to content (ibid). User- to- user interaction happens when people interact with each other through chat, messages board, as well as sharing content with others (Shao, 2009). 1.5 Scope and Delimitations The area of focus in this study is the relationship between social media and corporate reputation. Given these topics, the study consists of research methods that investigate the habits of people who use social media in their professional life, as well as the impacts of professionals interaction with companies through social media sites. A narrow focus provides for a more thorough investigation of the topic, in consideration of the time frame and resources available. This also limits the study, excluding other areas of research that would contribute to companies management and social media strategy. Relevant topics that are not addressed are the benefits and advantages of developing a social media strategy, the implementation challenges for 12

13 international B2B companies, and possible methods for evaluating and determining the financial value of a company s social media strategy. As well, this paper takes the B2B perspective, focusing on subjects professional use of social media. This excludes personal uses and the topic of consumer- brand relationships within social media. A B2B perspective was chosen due to the increase in professional networking sites such as LinkedIn and Yammer, as well the increasing numbers of B2B companies establishing a presence in sites such as Facebook, Twitter, and Instagram (Callahan, 2012). The main considerations in the choices of methodology are time and access to the target population. Methodologies that are considered but not chosen are focus groups and case study analysis using a B2B company and its customers. A qualitative research approach, such as focus groups, would have provided more detailed, textual information for interpretation and analysis, affecting the analytical approach and possible findings of the study. However, a focus group was determined not feasible due to the limited number of participants available within the target population, and the need to conduct between 6 8 groups to gather sufficient material for analysis (Cooper & Schindler, 2008). Initially, the research was to focus on a B2B company as a subject for case study analysis, using its customers as respondents for both interviews and questionnaires. This would have provided results based within a specific industry and the possibility for more in- depth information, through the use of one- on- one interviews. However, due to time and access conflicts, it was determined as unfeasible for the researcher and the company. Therefore, observational case studies and questionnaires are chosen, based on the ability to provide relevant and useful data. Additional decisions made regarding methodology choices and analysis will be discussed within Part 4 Methodology. 13

14 PART 2 LITERATURE REVIEW In the following section the literature review will be presented, focusing on the main topics: corporate reputation and social media uses and motivations. The chosen theories and guiding framework will be presented and discussed. To introduce the review, the following definition is used: Corporate identity is the reality and uniqueness of an organization, which is integrally related to its external and internal image and reputation through corporate communication (Grey & Balmer, 1999, p. 171). Taking departure from Grey and Balmer s (1999) definition of corporate identity, the author recognizes the relationship between corporate reputation and corporate image and identity. Through corporate communications, organizations attempt to share the corporate identity, creating relevant images and reputations among stakeholders (ibid). It is therefore important to address how these concepts are related and interdependent to each other. A thorough and solid theoretical foundation will allow for a more complete assessment of the research question, investigation and analysis. As there has been much written on the topics of corporate identity, image and reputation, with various research and theoretical perspectives, the purpose is to provide the necessary theoretical background and clarify the research area. Therefore, the literature review aims to define the relationships between corporate identity, image, and reputation. 2.1 Literature Review: Corporate Image Combining the views of researchers Hatch and Schultz (2003) and Fombrun (1996), this paper proposes that corporate image is both an element of corporate identity and a contributor to corporate reputation. The following discussion will center on various theoretical approaches that seek to explain the concept of corporate image. Relevant theory and models will be presented. 14

15 2.1.1 Corporate Image as part of Corporate Identity Hatch and Schultz (2001; 2001b; 2002) postulate that a successful corporate identity is created by the management and interchange of strategic vision and organizational culture, as well as the corporate images held by its stakeholders (Figure 1). Based on these concepts Hatch and Schultz developed the Vision- Culture- Image (VCI) Alignment model. In this model of corporate identity, corporate images are defined as the views of an organization developed by its stakeholders and help to define who the company is and what it stands for (Hatch & Schultz, 2001). While companies may hold a self- image based on internal perspectives and future corporate aspirations, the actual external images formed by stakeholders may have little in common with the company s self- image (ibid). Stakeholder images may instead be based on interactions with the company, past experience, word- of- mouth or other personal understandings of the company (Schultz, Hatch, & Larsen, 2000). Therefore images are based not only on what the organization says and thinks about itself, but also on external influences. Figure 1: Vision- Culture- Image Alignment Model, Hatch and Schultz 2001 The VCI model is based on the relational view of corporate branding and identity (Hatch & Schultz, 2001). This implies that corporate identity is founded on the interdependent relationships between each of the three elements (ibid). Hatch and Schultz s (2001) model further claims that alignment and coherence between image, vision and culture increases positive awareness among stakeholders about who the organization is and what it stands for (Hatch & Schultz, 2001; 2003; de Chernatony, 2001; Fombrun, 1996). As mentioned previously, image is proposed as both an element of corporate identity and a contributor to corporate 15

16 reputation (Hatch & Schultz, 2003, Fombrun, 1996). Consequently, the alignment and coherence of the vision, culture, and image elements is a factor contributing to the reputation stakeholders form of the company. On the other hand, misalignment between any of the three elements has potential to damage the corporate identity, affecting customer relationships and financial performance (Hatch & Schultz, 2001). According to Hatch and Schultz, (2008) a company s image should be managed through a two- way communication process (Figure 2). The two- way process places equal importance both on how outsiders see the company, as well as how the company would like to be seen, with the challenge to unite these two perspectives (ibid). A process that starts with listening to the customer demonstrates that image should not be a top- down creation, but rather reflects both internal and external perspectives. In social media communications and interaction, social media researcher and specialist Liana Evans further emphasize the significance of a two- way communication process. Evans (2010) states the importance of listening, People want to be heard, and they want acknowledgement that they are being heard. If you re too busy talking about your company ( ) you ll never hear the audience and what they really need from you (p. 43). Similarly, a corporate image that management tries to develop without listening to external perspectives will be out of touch with stakeholder perceptions and needs (Hatch & Schultz, 2008). When companies listen to what is being said about their image, they are in a stronger position to influence perceptions (Hatch & Schultz, 2008). Figure 2: Corporate Image, Two- Way Communication Process, Hatch and Schultz

17 From the literature review, it is observed that two characteristics are commonly referred to as integral parts of a corporate identity and have an interdependent relationship with corporate images. These are, (a) management s vision, or future aspirations and (b) the organization s core values (Hatch & Schultz, 2001; 2003; de Chernatony, 2001; Fombrun, 1996) Corporate Image as a contributor to Reputation As mentioned at the beginning of the literature review, company images contribute to the overall reputation stakeholders have of a company. In order to define the relationship between corporate image and reputation, the author references Fombrun s book Reputation: Realizing value from the Corporate Image (1996) and Gotsi and Wilson s article Corporate Reputation: Seeking a Definition (2001). Gotsi and Wilson (2001) explain the relationship between image and reputation as: Reputations are largely dependent on the everyday images that people form of an organization based on the company s behavior, communication and symbolism (p. 28). Everything from the company s name and logo (Fombrun, 1996) to the behavior of employees and company communications (Gotsi & Wilson, 2001) say something about who the company is. It is then proposed that a company s behavior, communication and symbolism in social media can create images that have potential to contribute to a company s reputation. In the context of social media, company behavior can be interpreted by a variety of different actions, such as how the company engages, acknowledges and responds to community members (Evans, 2010). Additionally, Davies et al. (2003) states that reputation is created through stakeholders multiple interactions with a company. For people that use social media in their professional life, those interactions contribute to their images and overall reputation of the company (Stein, 2012). Thus the author illustrates the relationship between images and reputation in the following figure (Figure 3). 17

18 Figure 3: Interaction between corporate images and reputation, created by author Therefore, company reputations are developed both as a function of corporate identity and the images that they seek to express (Hatch & Schultz, 2003; Fombrun, 1996). Based on the discussion above, reputation can be defined as an overall attitude toward a company, founded on a culmination of images based on behavior, communications, symbolism and interaction (Gotsi & Wilson, 2001; Davies et al., 2003) Summary: Corporate Image In the first part of the literature review, the concept of corporate reputation has been defined given its relationship to corporate identity and corporate image. Combining the views of researchers Hatch and Schultz (2003) and Fombrun (1996), corporate image is shown to be both an element of corporate identity and a contributor to corporate reputation. As an element in the VCI Alignment model (Hatch & Schultz, 2001), corporate images are defined as the views of an organization developed by its stakeholders and helps to define who the company is and what it stands for. In relation to corporate reputation, images about the company s behavior, communications and symbolism contribute to the overall attitudes and opinions of a company. Reputation is therefore a result of everyday images, interactions and experiences with a company formed over time (Gotsi & Wilson, 2001; Davies et al., 2003; Fombrun, 1996). 18

19 2.2 Literature Review: Corporate Reputation In order to identify how people s social media interactions shape and influence corporate reputation, the literature review on corporate reputation will focus on reputation theory, reputation management and relevant measurement models. In this paper corporate reputation is defined as a stakeholder s overall evaluation of a company formed over a period of time (Gotsi & Wilson, 2001; de Chernatony & Harris, 2000; van Riel & Balmer, 1997; Fombrun, 1996). Further, stakeholder evaluations of a company are based on direct experiences with the company and any other forms of communication that provide information about who the company is (Gotsi & Wilson, 2001; Fombrun, 1996). In recent years corporate reputation has gained greater prominence as a source of competitiveness for companies. Researchers support that there is a strategic advantage in developing favorable perceptions about a company in the minds of stakeholders (Davies et al., 2003). Although reputation management is not a new concept, the way that companies approach the topic and the importance given to the organization s reputation has evolved (ibid). The following section will present the main tenets of corporate reputation, as proposed by Davies et al. (2003), which are most relevant to the research question. 1. Reputation is created through a variety of interactions. 2. Reputation is valuable. 3. Reputation can be managed. 4. Reputation can be measured. As mentioned above, reputation is created through a variety of interactions stakeholders have with a company (ibid). As well, reputation is not only a product of customer attitudes and beliefs, but reflects all stakeholders with a connection to the organization, both internal and external (Davies et al., 2003). Therefore a key concept of reputation management at the corporate level is a concern with multiple stakeholder groups and network relationships (Balmer, 2006). In this sense, a company should consider all networks in which there is the opportunity to build relationships with its stakeholders (ibid). 19

20 Secondly, Davies et al. (2003) propose that reputations are valuable, intangible assets. While companies compete on the traditional elements of price and quality, companies are increasingly competing in the market based on their reputation, or reputational capital (ibid). Reputational capital is defined as a form of intangible wealth based on the favorable perceptions of the attractiveness of a company s products, services, trademarks, brands, and corporate name (Davies et al., 2003). Fombrun (1996) further states that the intangible asset of a good reputation may even provide companies with a stronger, enduring source of competitive advantage. Fombrun (1996) and Davies et al. (2003) propose the following ways in which a company with a large reputational capital has potential for competitive advantage: A reputation enables a company to charge premium prices, achieve lower marketing costs, attracts investors and employees, and provides managers with greater freedom in decision making. Further, as a reputation firstly derives from a corporate identity and is linked to the corporate name, strong corporate reputations are difficult for competitors to imitate (ibid). It is for these reasons that Fombrun (1996) and Davies et al. (2003) refer to a company s attention and investment in strategic reputation building activities as enlightened self- interest. Researchers van Riel and Balmer (1997), Fombrun (1996) and Davies et al. (2003) state that reputation is a concept that can be managed. Fombrun (1996) states that a company s reputation is essentially derived from the corporate identity, however is both a combination of the corporate identity and management s practices to shape and build up favorable images of themselves. This suggests that a reputation is largely dependent on the strategic choices made by an organization (ibid). In line with Fombrun (1996) the paper proposes that one of the main considerations and challenges in reputation management is the ability to manage stakeholers various impressions. Lastly, Davies et al. (2003) state that reputation can be measured. Crucial to reputation measurement, Davies et al. (2003) suggest that a reputation measurement system should first, use a range of criteria that reflect a variety of different associations on which a reputation can be established. When choosing appropriate measurement criteria, reputation should be assessed on 20

21 both the attachment to a company as well as the more tangible things that a company can be evaluated on (ibid). In order to understand how company reputation is influenced, it is important to present relevant measurement models. The following reputation measurement models will be presented: Reputation Quotient (Fombrun et al., 2000) Corporate Personality Scale (Davies et al., 2003) Corporate Credibility (Newell & Goldsmith, 2001) These models have been selected as they represent various theoretical perspectives surrounding reputation theory and measurement Reputation Measurement Models Reputation Quotient The Reputation Quotient (RQ) model is one of the most prominent instruments used to measure stakeholder expectations regarding company behavior (van Riel, 2004; Fombrun et al., 2000). In an effort to add to the research field on reputation management, Fombrun et al. (2000) used eight pre- existing, popular reputation surveys as the basis for developing a more robust and reliable measurement of reputation, resulting in the RQ model. The final RQ model includes 6 main items (Figure 4). The six items are: Emotional appeal, products and services, vision and leadership, workplace environment, social and environmental responsibility, and financial performance. 21

22 Figure 4: Reputation Quotient, Fombrun et al The main idea reflected in the RQ model is the belief that corporate performance is a multi- dimensional, and as there are different dimensions on which a company can perform and be evaluated, reputation can also be expected to be multi- dimensional (Fombrun et al., 2000). Therefore, Fombrun et al. s (2000) reputation dimensions reflect the associations on which stakeholder evaluations of company performance can be based. Corporate reputation researchers Berens and van Riel (2004) analyze and evaluate the Reputation Quotient (Fombrun et al. 2000) and state that it measures the social expectations of a company held by individuals. Social expectations refer to what stakeholders believe that a company is supposed to do, regarding the company s behavior, such as development of quality products, positive financial performance, and environmental protection (ibid). Corporate Personality Scale Describing companies using human personality traits is another dominant stream of thought within reputation research (van Riel, 2004). The personification metaphor of a company is a reference to a wide range of ideas originating from giving human characteristics to a brand or company (Davies et al., 2001). Earlier personification researchers claimed that the main difference between two competing brands, where the products were similar, lay in the different personalities projected by the companies (ibid). 22

23 In response to many existing reputation models, with measurements often based on a company s financial performance, Davies et al. (2003) propose a seven- factor scale to measure the corporate character (Table 1). The factors are: Agreeableness, enterprise, competence, ruthlessness, chic, informality and machismo (ibid). Table 1: Corporate Personality Scale, Davies et al Within corporate personality studies, there has been increased attention to the influence of corporate personality on stakeholder preferences and reputations. This research has investigated the role of perceived similarities between the personality of a company and the personality of an individual, as a mediator of consumer behavior. Although there is a lack of general agreement on the use of personality factors in the study of organizations, based on Davies et al. (2001; 2003) this paper uses the personification metaphor as a tool to facilitate understanding of the social media relationship between a company and social media followers. Davies (2001) research shows that people apply the concept of personality to companies, using it as a metaphor to explain consistent patterns or behavior that a company exhibits. Personifying a company s behavior can increase people s feelings that they know a company (ibid). In contrast to the RQ model, evaluation of a company based on 23

24 personality traits is considered more subjective as it often depends on the congruence between the company and the personality of the perceiver (Davies et al., 2001; 2003). Corporate Credibility Within B2B literature, a stream of reputation research focuses on the concepts of trust and corporate credibility. According to Newell and Goldsmith (2001) corporate credibility is the extent to which people feel that a company has the knowledge and ability to follow through on its promises and whether the company can be trusted to tell the truth. The model developed by Newell and Goldsmith (2001) is based within studies on advertising effectiveness and source credibility, or the perceived expertise and trustworthiness of the source. As source credibility can enhance the believability and validity of the communication, Newell and Goldsmith (2001) propose that the same credibility concepts are applicable to corporate reputation. They further state that if corporate credibility is lacking, stakeholders are less likely to have favorable impressions of any messages or forms of communication presented by the company (ibid). Therefore, corporate credibility plays a crucial role in the perceptions and reputations that are formed by stakeholders. Newell and Goldsmith (2001) conclude that there are two elements to corporate credibility: Expertise and trust (Table 2). Table 2: Corporate Credibility Scale, Newell and Goldsmith Summary: Corporate Reputation Overall a corporate reputation has been presented as a valuable, intangible asset with the potential to provide competitive and strategic benefits to a company (Davies et al., 2003; Fombrun, 1996). In this light, the management and attention to reputation has been referred to as enlightened self- interest (ibid). While management has the responsibility of presenting 24

25 consistent, positive images and managing stakeholder impressions, reputation is also naturally derived from an organization s corporate identity (Gotsi & Wilson, 2001). Lastly, three streams of thought on corporate reputation measurement are presented. The models are the RQ model (Fombrun et al., 2000), Corporate Personality Scale (Davies et al., 2003) and Corporate Credibility (Newell & Goldsmith, 2001). These models will form the basis for the theoretical framework. 2.3 Literature Review: Social Media In order for a company to develop a successful social media strategy that is beneficial to both the company and social media users, it is crucial to understand the reasons and motives behind why people use social media (Shao, 2009; Evans, 2010). Understanding the motivations that drive people to use and engage in social media better positions a company to fulfill users needs and wants (Shao, 2009). Researcher Shao (2009) investigates how and why people use social media and what factors make social media appealing. Based in uses and gratification theory, Shao (2009) studies how people engage in media to fulfill and gratify their needs, and argues that audiences consciously choose the medium that best fulfills their needs and are able to recognize the reasons for their media choices. Social media research finds that people engage in social media in different ways, for different purposes; These are for information, for social- interaction, and for the opportunity for self- expression (ibid). Shao (2009) states that people s uses of social media are driven by their motivations. People consume the content for information and entertainment, participate for social interaction and community development, and produce their own content for self- expression and self- actualization (Shao, 2009, p. 9). Shao (2009) describes information seeking and entertainment as two motivations for social media consumption. According to Shao (2009) information seeking is driven by people s desire to increase awareness and knowledge of one s self, others and the world (p. 10) Using the thinking behind uses and gratifications theory, it can then be assumed that people have the need to understand the world or environment around them and social media fulfills this need through an almost unlimited availability of information (ibid). Shao (2009) further discusses that as a source 25

26 of news and information, social media is significantly impacting the way people search for information. ( ) as a source of news and information, UGM (user- generated material) and social media have been influencing the concept of searching. When consumers type in any product name into a search engine like Google, they may be as likely to find a user- generated site about the product as they are to find the corporate site (Shao, 2009, p. 10). Shao (2009) supports that social media users are also more likely to trust fellow consumers than advertisers and marketers. The growth and acceptance of social media indicates that users accept, recognize and value the information made available through social media networks (Baird, 2011). Shao (2009) also describes social media participation as fulfillment for people s social- interaction needs. In virtual communities, individuals can easily find others who share similar interests and goals, and are able to voice opinions and concerns in a supportive environment (Shao, 2009, p. 13). Shao (2009) defines participating as 1) interaction with content in social media sites as well as 2) interaction with other users, called user- to- content interaction and user- to- user interaction. Given that virtual communities are often built around user- generated content, responding to content is thus important for the development of the community as it encourages and generates dynamic content creation. Studies of online newsgroups by Joyce and Kraut (2006) discovered that a social media user who received a response to an initial post was more likely to post again. Last, social media fulfills motivations for self- expression, through the opportunity for people to produce their own content. According to Shou (2009), self- expression through social media often serves two simultaneous pursuits. First it is assumed that people have a need to present their true or inner self to the outside world, and to have others know them as they know themselves (Shao, 2009, p. 14). The second purpose is that self- expression can be a process through which people attempt to control impressions others have of them (ibid). The motives for individuals social media use can be summarized as: The need for information and entertainment, the need for social interaction with other individuals, and the need for self- expression. Shao (2009) further argues that individuals use social media to fulfill these needs 26

27 due to two main appeals; Social media is easy to use and lets the users be in control. Overall, the review of social media motives and appeals showed how individuals use social media for a variety of purposes and objectives (Shao, 2009). 2.4 Critique of Literature Review The review of literature related to the concepts corporate identity and corporate image focused on researchers Hatch and Schultz and the models and theory supported throughout their work. This serves as the foundation for the literature review as Hatch and Schultz (2001; 2003) propose that corporate images are formed as a result of the external perspectives of the company. Further, Hatch and Schultz state that images are influenced through a variety of difference experiences and interactions with the company, as well as word- of- mouth and other media sources. Therefore, people s interactions with companies through social media may also be considered as a possible determinant of the images stakeholders form. Throughout the literature review process, other authors and models of corporate identity, are also reviewed, however not mentioned in the review above. Some of the authors reviewed but not included are Balmer s (1999; 2002) AC 2 ID Test and New Identity Management Mix (2001), and de Chernatony s Identity- Reputation Gap Model. Key points that these authors, as well as Hatch and Schultz, have in common are: The models serve as a framework help companies and managers audit and manage their corporate identity and image (Hatch & Schultz, 2001; 2003; Balmer, 1999; 2001; 2002; de Chernatony & Harris, 2000). Research and models are based on a variety of disciplines and propose a cross- functional approach to corporate identity management, focusing on both internal and external stakeholders (ibid). Theory is based on the premise that misalignment, or lack of fit between any of the elements causes dissonance that can potentially weaken the company (ibid). Given the research question, two shortcomings of de Chernatony and Harris (2000) model and Balmer s (1999; 2002) AC 2 ID Test is a dominant focus on staff and internal influences and the lack of vision and culture in the AC 2 ID Test. The VCI Alignment model (Hatch & Schultz, 2001) is 27

28 better suited to the research question as it draws simultaneously on organizational culture, strategic vision, and corporate images, thoroughly defining each of the concepts in relation to the others and provides a framework in which the concept of corporate reputation can be analyzed (Hatch & Schultz, 2001, p. 1044). The review of corporate reputation is based mainly on the work of Fombrun (1996) and the reputation measurement models of Fombrun et al. (2000), Davies et al. (2003), and Newell and Goldsmith (2001). Integrating three different streams of thought within the research provides for a sound overview of the topic A criticism may be that investigation of three models may not have allowed for as in- depth research as a study that focused on only one specific model. However, as an exploratory study the research hopes to make an initial investigation on the relationship between social media and corporate reputation. This will also provide a foundation for future research on the topic. Social media consumption is examined in reference to the uses and gratification theory that Shao (2009) proposes as a framework in which to study and explain the motives for social media use. This is important as it provides a framework for analysis of the possible motives people have when using social media, and can be applied to both personal and professional contexts. An area of social media research not addressed is 1) the pattern of relationship development in social media communities, from observation to participation, and 2) the community member types, devotee, insider, tourist, and mingler and how this can impact the dynamics and relationships within the media community (Kozinets, 1999). 28

29 PART 3 THEORETICAL FRAMEWORK Through the literature review, areas of research, and theoretical concepts related to the research question were presented. The aim of the paper is to contribute to corporate reputation research and social media strategy by examining how people use social media in their professional lives and how this impacts reputation construction. Therefore, based on the work of Fombrun et al. (2000), Davies et al. (2003) and Newell and Goldsmith (2001) the author applies reputation dimensions within each of the three models to a social media context. This will identify which reputation dimensions social media users are most interested in, in their interactions with companies, and which dimensions contribute to company reputation. The research question to be answered is: To what extent does social media play a part in shaping the reputations of companies in B2B relationships? 3.1 Theoretical Framework The author has composed the theoretical framework (Figure 5) to guide the research and analysis of findings. Using the framework below, the author positions corporate reputation as an element influenced by the images that people form of the organization. As proposed previously, stakeholder images are established based on company behavior, communications, symbolism and direct interaction or experiences with the company (Gotsi & Wilson, 2001; Davies et al., 2003). Within corporate image and reputation theory, the coming research and analysis focuses on how social media interactions influence the dimensions that are proposed as contributing to corporate reputation. For companies that are active in social media, the dynamic, virtual, and viral sharing of information makes company behavior, communications, and symbolism more exposed to the community and the public, while also increasing the opportunities for individuals and companies to interact. Therefore, as a platform through which individuals can observe and experience company behavior, communications and symbolism, social media is considered a tool through which corporate images and reputation can be influenced. 29

30 As identified in the literature review, the framework incorporates the three streams of thought on reputation measurement. The framework proposes that through social media interaction, people are able to evaluate and form opinions of a company based on expectations, company personality, and trust in the company, contributing to the overall corporate reputation. Figure 5: Theoretical framework, created by the author 2012 The research will investigate the three concepts, social expectations, personality, and trust, in relation to people s professional social media use and resulting effect on corporate reputation. The concept of social expectations includes dimensions part of the Reputation Quotient model proposed by Fombrun et al. (2000) and measures the expectations that people have of a company. The question investigated is does social media interaction influence people s expectations of a company. The second concept is personality, in line with Davies et al. (2003) Corporate Personality Scale. The question investigated for this concept is does social media interaction contribute to how well individuals feel they know the company. The final concept is trust, as proposed by Newell and Goldsmiths (2001) Corporate Credibility Scale. This concept questions if social media interaction contributes to the degree of trust people have in a company. 30

31 3.2 Concept Domain Key to the theoretical framework and research is the idea, supported by researchers Davies et al. (2003) and Berens and van Riel (2004), that reputation is multi- dimensional and that people often hold a variety of different perceptions regarding a company. In the literature review, three reputation measurement models were presented, the Reputation Quotient (RQ) model, the Corporate Personality Scale and the Corporate Credibility model. As mentioned previously each of these models attempts to measure different concepts related to corporate reputation. The concepts being: Social expectations, personality, and trust. As the foundation for research and analysis, seven items where chosen that represent the three concepts and reputation measurement models. They are: 1. Products and services 2. Vision and leadership 3. Workplace environment 4. Social and environmental responsibility 5. Financial performance 6. Personality 7. Trust and expertise 3.3 Summary: Theoretical Framework Based on the theoretical framework, the research will investigate the seven dimensions and their influence in shaping reputations in social media. This will reveal how each of the dimensions ultimately contributes to the reputations people form of companies based on social media use. For companies active in social media, the research will also provide a better understanding of how social media activities impacts corporate reputation. This research is founded on the assumptions that reputation is a managerial concept that is both a consequence of the corporate identity and impression management (Davies et al., 2003; Fombrun, 1996), reputation is a multi- dimensional concept based on a variety of different influencers (Davies et al., 2003; Berens & van Riel, 2004), and that social media tools can support companies through interaction that can create greater awareness, engage customers, and in turn develop a positive corporate reputation (Evans, 2010). 31

32 PART 4 METHODOLOGY The aim of this chapter is to provide explanation of the research design and methodological approach of the paper, presenting the research framework that the project will follow. This will provide the basis for the analysis to come and ease the readers understanding throughout the rest of the paper. In the next section the following will be explained: the research strategy, guiding research design, methodology and analytical approach. 4.1 Research Objective The objective of this project is to analyze the three reputation concepts in reference to social media in order to identify how social media contributes to the formation of corporate reputation. Investigation will identify interaction habits of professionals in social media and the reputation concepts that have the greatest effect on company reputations. This will enable recommendations to be made regarding organizations use of and communications through social media, focused on positively influencing corporate reputation. The research question investigated is: To what extent does social media play a part in shaping the reputations of companies in B2B relationships? The research question is then divided into two sub- questions: 1. What drives people s social media use in their professional lives? 2. Which elements in social media contribute to the reputations people form of the companies they interact with? It is important to clearly state here the concepts and constructs of importance that will be used throughout the following research and analysis. In line with Gotsi and Wilson (2001) and the differentiated school of thought, this paper considers corporate image and corporate reputation as different concepts that are, however interrelated. These definitions are given here: 32

33 Corporate image: Corporate image is defined as the views of the organization developed by its stakeholders, ( ) including views of customers, shareholders, the media, the general public, and so on (Hatch & Schultz, 2001, p. 1048). According to Hatch and Schultz (2001) and Gotsi and Wilson (2001) a characteristic of corporate image is that there can be multiple images held by various stakeholders, both internal and external to the organization. Corporate reputation: Corporate reputation is defined as the reflection of an organization over time as seen through the eyes of its stakeholders as expressed through their thoughts and words and embodies the history of peoples experience with a service provider (Fombrun, 1996, p. 3) According to Fombrun (1996), key characteristics of a corporate reputation are: Reputation is created from the bottom up, as each individual applies their own personal combination of economic, social, and personal criteria in judging a company s prospects. Reputation is a snapshot that reconciles the multiple images of a company held by its stakeholders, signaling the overall attractiveness of the company. Social media: Social media are defined as any interactive platform that encompasses blogs, forums, wikis, picture- sharing, video- sharing, social and professional networking, and other user- generated web sites that (Shao, 1999): Function as a collective gathering of individual and community created content. Makes content publicly available over the Internet. Reflects a certain amount of creative effort. 33

34 4.2 Research Strategy This section is intended to provide the reader with a brief overview of the research initiatives. Overall, the research consists of three phases. 1. Secondary research 2. Primary case study research 3. Primary questionnaire research The three research phases will be conducted according to the research needs explained in the paragraphs below. Secondary research provides a sound understanding of the research concepts, corporate image, corporate reputation, and social media use. Academic journals and articles provide the majority of information used to execute the primary research phase. This provides an understanding of how researchers propose that reputation can be created, sustained, destroyed and measured. Online articles containing interviews and information on B2B companies social media strategies contribute to the case study analysis. Reputation theory and models serve as guidelines on which the case study and questionnaire are created, executed, and analyzed. Case studies are used to help answer the first sub- research question: What drives people s social media use in their professional lives? Observational case studies of two B2B companies social media presence gives an initial understanding of why social media users interact with companies, how they interact, and the types of information that is interesting and relevant for company followers. From this knowledge, initial hypotheses can be made regarding individuals professional motives and habits in social media, that are later tested through the questionnaires. In order to understand how social media interaction influences company reputation, it is necessary to first understand the reasons that professionals use social media and in which ways. Before a company can develop a social media strategy with any purpose or objective in mind, it must first understand the social media motives and habits of its stakeholders and social media audience (Evans, 2010). Additionally the case studies provide observations in a natural setting of 34

35 social media interaction and communication. Findings from the case studies are incorporated in the creation of the questionnaire through development of the questions content. The objective of the questionnaire survey, the main research method, is to test the findings from the case studies and gather more detailed information that will answer the research sub- questions. Based on an accumulated knowledge gained from the secondary research and case studies, the questionnaire will further investigate professionals motives for social media engagement with companies and the resulting impacts on people s B2B relationships. The questionnaire will focus on the concepts and dimensions presented in the theoretical framework, with the objective to uncover which are most important and relevant to social media users in their interactions with companies. Triangulation of research techniques, combining data gathered from observational case studies with questionnaire data, provides a greater perspective on the subject matter and allows for a richness of understanding (Cooper & Schindler, 2008). Research techniques were chosen to complement the strengths and weaknesses and provide a sound understanding of the research topic. 4.3 Research Philosophy Guiding this study is a combination of interpretivism and positivism in research design, methodology and analytical approach. Using observational case studies to explore and interpret social media users motives is founded in interpretivistic philosophy. Inherent in purely observational studies is that the researcher attempts to understand subjective realities and offer explanations based on personal interpretations (Blumberg, Cooper, & Schindler, 2008). Analysis of the case studies is based on the author s own motives and beliefs that social media interaction contributes to company reputation (ibid). Therefore the analysis and subjective interpretation is founded on the author s personal research agenda. Further, interpretivism appropriately corresponds with the concept of social media as a social phenomenon, in that social media is characterized by individual experiences and constructed by many individuals, which contribute to the meanings users give to the social world (ibid). While 35

36 each social media users experience is differentiated by the unique and unlimited interactions and experiences and cannot be generalized to a larger group, the study does attempt to identify key aspects that users have in common when interacting with companies in a professional context. In this pursuit the paper also adopts a positivist approach in the questionnaires. The questionnaires were conducted in order to build on the knowledge gained from the case studies as well as gain greater in- depth knowledge on users social media motives and experiences. Therefore analysis was based on the information provided by participants and was therefore more objective in nature and analysis, indicating a more positivistic philosophy. In questionnaire methodology the researcher is independent of the participant responses, posing questions to the participant through the online survey tool SurveyXact. In positivistic research the role of the researcher is that of an objective analyst (Blumberg et al., 2008). Blumberg at al. (2008) state that one of the basic principles of positivism is that the research is considered value- free, meaning the exclusion of opinions and beliefs held by the researcher. Although the research has roots in positivism, the questionnaires were created based on findings from the subjective case study analysis, and are therefore not value- free. The research topic and methodology is based on the hypothesis that when people use social media in their professional lives, they form reputations of the companies they interact and communicate with. As the investigative approach to the research problem is rooted in a combination of interpretivism and positivism, the findings are founded in both inductive and deductive reasoning. 4.4 Research Design As mentioned previously, the objective of the paper is to understand the potential of social media in influencing corporate reputation. In this pursuit the author has chosen reputation concepts representing the three different streams of thought and corporate reputation models proposed by Fombrun et al. (2000), Davies et al. (2003) and Newell and Goldsmith (2001), guiding the research and analysis. While the reputational models have been applied and studied in more traditional settings, the models have yet to analyzed within the context of social media. Considering the applications of existing models to a new context, the research is exploratory in 36

37 nature. Exploratory research opens up new areas for investigation and looks at variables that have not been thoroughly defined within a specific context (Cooper & Schindler, 2008). The scientific approach includes both inductive and deductive reasoning. Induction occurs through observation of a fact and the researcher s attempt to answer the questions why is this? (Cooper & Schindler, 2008). Departing from the observations that a greater number of people are using social media in a professional manner, as well as the value placed on successful corporate reputations (Callahan, 2012; Aaker, 2004), the author induces that more companies are investing time and resources in social media due to the potential impact on corporate reputations. Based on this induction, selected reputation concepts are investigated within the context of social media. Conclusions are then deduced from the analysis and findings. The final recommendations provided are therefore based on deductive argumentation. In line with the purpose of the study and research questions, the research has both descriptive and explanatory aspects. In sub- research question one, the research attempts to describe and define the subjects social media motives and habits (Cooper & Schindler, 2008). Issues investigated are how do people interact with companies in social media, what is the conversation about and what topics interest followers. However, descriptive studies do not help to explain why (ibid). Therefore the questionnaires are used, in which the research takes a more explanatory nature, with the goal to add greater explanation to the observations from the descriptive case studies. Analysis of the questionnaires is important to understanding the participants motives and reasoning of why they use social media to engage with companies. Taking departure from reputation measurement models, the explanatory research is grounded in corporate reputation theory. The exploratory research design and descriptive, explanatory objective of the study guides the choices in data collection and methodology (Cooper & Schindler, 2008). Exploratory research allows models and theory to be tested in a new environment and developed more clearly (ibid). The study approaches the research question using both qualitative and quantitative techniques. Professionals social media habits serve as a starting point for analysis, with exploratory 37

38 research serving to better define the subjects. This analysis serves as the foundation on which a descriptive study will contribute to further answering the research question. 4.5 Choice of Methodology The purpose of this section is to explain the research methods and empirical framework. The data collection framework consists of secondary research, case studies and online questionnaire surveys. The methods of data collection are monitoring and communicative studies. The data collection methods will be described in detail below. Secondary Research The first research method used is exploration of secondary data sources. Secondary sources provided an understanding of the research topics: Corporate reputation and social media uses and motives. Secondary research began with a literature search related to the research question. A list of major publications and influential researchers were identified and incorporated into the research strategy. Therefore, secondary data was used to guide the research methods and analysis. Case Studies Primary data was collected through case studies of two, international, B2B companies with a strong social media presence. Suitable for explanatory, descriptive and exploratory research, the case studies investigated the phenomenon of social media within its real- life context (Blumberg et al., 2008). Evidence for the studies was gathered through direct observation of the subjects. Blumberg et al. (2008) suggest that direct observation helps to minimize the risk of losing objectivity and presenting biased evidence, which is a criticism of case studies. However with an interpretivistic approach, the case study analysis is largely based on the author s subjective interpretations (ibid). The decision to use case studies as an appropriate data- collection methodology is based on two conditions of the research. First, it was important that the researcher observed actual behavior and second, observing behavior in the natural setting added value by providing findings based on the reality of users interactions. These conditions are supported by Blumberg et al. (2008) as relevant reasons for conducting an observational study. 38

39 According to Blumberg et al. (2008) the case studies meet the criteria for good research in the following ways. The purpose is clearly defined, with the objective to describe and define the subjects social media motives and interactions with the companies. The research process is detailed and planned, presenting both how the information was gathered and selection of the companies for study. Triangulation of methods is achieved through measuring the same phenomenon, professional social media use and social media interaction with companies, through different methods, a combination of case studies and questionnaires. Limitations are clearly revealed and discussed throughout the paper. Each of the criteria mentioned above will be discussed in greater detail in the relevant paragraphs throughout the paper. This is to ease the understanding and provide a better flow for the reader. The chosen subjects for the case studies are two B2B companies that have developed a significant presence throughout a variety of different social media platforms. The companies are General Electric, a technology based company and Maersk Line, the largest shipping company and part of the A.P. Moller Group. Case study analysis focuses on the seven dimensions in the theoretical framework and allows for an assessment of the importance and relevance of each dimension on people s social media activities. Questionnaire Survey The questionnaire serves as the main data collection method and provides data necessary to identifying the motives of social media users and consequences for the companies that users interact with. The purpose of the questionnaire is to further uncover participants interactions and resulting relationships with companies in social media. As mentioned before, the questionnaires supplement the information gained from the case studies. As it is harder to detect attitudes, values and opinions through observation, the questionnaire uncovers motives and 39

40 feelings that are unobservable through case study research (Blumberg et al., 2008). Therefore a questionnaire was an ideal method for accessing more abstract information, such as participant motives and opinions. Key to the research question is investigating how these motives and interactions influence corporate reputation. Based on observational and content analysis of the case studies, the reputation dimensions were adapted in the questionnaire to better reflect how people and companies interact in a social media environment. Most notable is the finding that a high majority of conversations observed express social media users opinions. The questionnaire is then developed based on the seven dimensions as well as findings from the case study. The questionnaire consists of 16 questions and uses a combination of questions based on a Likert scale, multiple- choice, and open- ended questions. Before the questionnaire is distributed, pre- testing is used to refine question content, wording and response strategies (ibid). A participant surrogate was used, a person with similar characteristics and background as the desired participants. During the pre- test, the researcher is present and conducts the survey in person. This allows for discussion between the researcher and participant if there are uncertainties or questions. This provides valuable input for the final draft of the questionnaire. A possible alternative to accessing people s inner thoughts and opinions are focus group studies. Focus groups are often used when the researcher needs to access underlying thoughts, beliefs, and opinions (Blumberg et al., 2008). Acknowledging other methodologies, the author chose a questionnaire due to the greater reach and accessibility to the target audience (ibid). As well, the flexibility of a questionnaire allows the data collection process to be completed within a shorter time period, compared to the time needed in coordinating and setting up multiple focus groups (Blumberg et al., 2008). The main weakness of the communication approach and surveys is that the quality and quantity of information is highly dependent on the ability and willingness of participants to cooperate (ibid). 40

41 4.6 Analytical Approach This section will address how the primary data from the case studies and questionnaires is processed and analyzed. Case Studies In the following paragraph the author will present the collection and analysis of the case study data. Additionally any limitations to the research and analysis will be shared. The aim of the case studies is to gather behavioral data in subjects natural social media settings. The case studies are conducted using a netnographic approach to data collection and analysis. According to Kozinets (2002) and Langer and Beckman (2005) netnography, or ethnography on the Internet, enables the researcher to gain deeper insights into people s opinions and motives, in an unobtrusive manner, as people are observed in their natural online environments. Based mainly on the textual and linguistic behavior of the subjects observed, analysis through netnography is based only on the communicative acts of the subjects (Kozinets, 2002). The netnographic approach used can be described according to the procedures supported by Kozinets (2002) and Langer and Beckman (2005). An outline of the approach will be given below. General Electric and Maersk Line are chosen as subjects for analysis because both are larger, international B2B companies with a significant social media presence. The netnography process began with an entrée in order to learn as much as possible about the subjects that the research aims to understand (Kozinets, 2002). Investigation of the companies social media strategies reveals company goals, audiences targeted, and communicative techniques. In the data collection phases, the researcher reviews in detail each of the companies social media pages, looking at conversation threads for content relevant to the research question (ibid). Based on four weeks of data collection, the researcher chose threads that received at least 10 comments. This allows for a more representative sample gathered over time and focuses on conversations and content that it more fully developed. The only threads on observed social media pages that are not included in analysis were threads that did not contain codable content according to the seven reputation 41

42 dimensions. Examples of this are comments that consist of expressions such as wow, amazing, and love it. The data collection process resulted in over 500 individual comments collected from General Electric s and Maersk Line s social media pages. Analysis and interpretations of the data is based on the process of content analysis, as a systematic technique for analyzing message content (McMillan, 2000, p. 81). The context units, or the body of material surrounding the coding units, are the companies Facebook and LinkedIn pages (ibid). The coding units, or the smallest segment of content counted, were the individual comments numbered in threads on each of the pages (McMillan, 2000). Blumberg at al. (2008) also defines two approaches to monitoring linguistic behavior: 1) The use of tallys based on a pre- defined word and 2) The study of content, what and how information is conveyed. A combination of these approaches is used, where the seven reputation dimensions are the pre- defined constructs for analysis and conversations are manually coded, or tallied, based on the content. As stated by Blumberg et al. (2008) the main idea of this method is to count specific words, phrases or ideas that occur most frequently. Finally, the process of content analysis is mostly based on an open analysis procedure. This means that the author attempts to extract the general message from the text (ibid). The main limitations of netnography and content analysis result from the interpretive and observational skills of the researcher, the constantly changing nature of social media sites, and the lack of information identifying the subjects observed, which leads to difficulty generalizing the results to other groups outside of the communities observed (Kozinets, 2002; McMillan, 2000). A limitation of content analysis is that the coding of content is based on the author s subjective assessment of what the comment is about (Blumberg at al., 2008). Therefore the interpretation of comments may vary from researcher to researcher (ibid). The analysis was both qualitative and quantitative in nature, as the author used both subjective interpretations as well as numerical representations of the data based on the coded categories. A benefit to the netnographic approach is the availability and access to the companies public social media sites, the ease of which subjects can be observed, and the opportunities for cross- case analysis (Kozinets, 2002; Langer & Beckman, 2005; Cooper & Schindler, 2008). 42

43 Questionnaire Survey The following paragraph will present the design, collection, and analysis of questionnaire data. The questionnaire was created, delivered, and collected online through the use of the survey tool SurveyXact. A web- based questionnaire increased the reach and sample accessibility, lowered costs, and dealt with time constraints of the research (Cooper & Schindler, 2008). The target sampling population is people that use social media in their professional life, either as part of their current job or in other ways related to their professional life, such as job seeking. As the target sample is quite specific, the distribution strategy for the questionnaire relied on the researcher s professional network. The survey link was distributed to professionals that fit the criteria, who then further distributed it among colleagues. The main sources for distribution are Facebook, CBS study program homepages, company intranet sites, and . The questionnaire contained 16 questions, a combination of administrative, classification, and targeted questions (ibid). The targeted questions were created using simple category scales, multiple- choice, multiple- response scales, and Likert scale in order to assess the attitudes of participants regarding their social media habits and preferences (Cooper & Schindler, 2008). Open- ended questions are also used as they allow participants to record their own thoughts and ideas on the topic, in their own words (ibid). The questionnaire was developed based on the reputation concepts and dimensions and findings from the case study analysis. From the theoretical framework, the questionnaire focused on the seven reputation dimensions. Additionally, two more dimensions, which were identified through the case studies, were included in the questionnaire. These dimensions are employment opportunities and opinion. These items were added because of the relevance and regularity with which they appeared in the case study content analysis. The addition of two new dimensions serve the purpose of including the learnings gained from the case studies into the final stage of the research. Therefore, the questionnaire is based both on theoretical and research knowledge. After the questionnaire is distributed, the first 50 surveys are reviewed in order to look for improvements or corrections that would gain valuable information. Although the questionnaire 43

44 targets people that use social media in their professional life, a qualifying question shows that around 25% of people who start the survey were disqualified because they only use social media in their personal life. Therefore, two additional questions were added in order to benefit from these participants knowledge as well. The questions asked are: Why the participant does not use social media in their professional life and second, if they could think of a reason why they might use social media in their professional life. These open- ended questions provide information on situations in which the participants professionally motivated to use social media. Out of 111 questionnaires, a total of 85 are fully complete and thus usable for analysis. Analysis of the questionnaires is illustrated through the use of graphs and charts that can visually highlight key findings and points of interest. As well, direct participant quotations are used to add greater insight and detail to key questions. The main limitation of the questionnaire is sample representation, limiting the generalizability of the results and analysis to a larger population. Given an unknown population of people that use social media professionally, as well as cost and time constraints, the research is based on nonprobability purposive sampling. The selection of participants and distribution channels for the questionnaire attempts to control for a sample that conforms to the target sample criteria. According to Cooper and Schindler (2008) this is an appropriate sampling technique when used in the early stages of an exploratory study. Other limitations are time and cost of the researcher, non- response error and the amount of in- depth information that can be secured through self- administered surveys, as the number of questions and time required should be kept a minimal amount (Blumberg et al., 2008). The benefits of a web- based questionnaire using SurveyXact are the immediate availability of responses and ease of distribution. 4.7 Data Validity and Reliability In this section the validity and reliability for the case studies and questionnaires will be presented. Case Studies Netnographic procedures for data collection and analysis, outlined by Kozinets (2002, p. 64) were followed to ensure that the research is reasonable and trustworthy. While netnography 44

45 can reveal interesting and insightful conclusions from a small sample of messages, generalizations to markets or communities other than the one studied, ( ) must have corroborating evidence (Kozinets, 2002, p. 65). Regarding external validity, the case study findings are based on social media followers of General Electric and Maersk Line within the time period of the observations. Therefore, the findings may not have a strong external validity across a larger sample of social media users. A possible influencer of external validity, that is hard to control for, is that the companies have different social media strategies. This reflects the writings of Blumberg et al. (2008) in that it is often difficult to know what the true differences are. From the two studies, both differences and similarities are observed in the analysis. Most importantly followers of the companies communicated and engaged in different ways, which the author proposes is partially a consequence of the company s strategy. Therefore the level external validity in this study may depend on the similarity between companies social media strategies. Internal validity is judged to be higher, based on the thorough review of corporate reputation theory and measurement models. Based on this the author believes the measurement instruments to have high content validity, thoroughly representing the subject matter of interest. The key challenge to internal validity is in the coding process. The consistency of the researcher during the coding process is crucial in making valid inferences (Blumberg et al., 2008; McMillan, 2000). The author attempts to ensure consistency through a detailed coding procedure and attention to detail. McMillan (2000) suggests that at least two coders are used in the content analysis process to minimize possible interpretative and coding differences. In this study, the coding and analysis is conducted by only one researcher, and is therefore a factor affecting the internal validity. The reliability of case studies, or observational studies, is considered stable if it gives the same reading on a particular subject when repeated one or more times (Blumberg et al., 2008). Blumberg et al. (2008) state that stability can be determined through repeat observations of a subject to compare for consistency. In order to achieve higher reliability the researcher bases analysis on four weeks of content from the companies social media sites. Overall, broadening the time period and sample of measurement help to improve the reliability (ibid). 45

46 Questionnaire Survey Sampling and distribution of the questionnaire is a limitation of the research and affects the external validity of the research findings. A main restriction of nonprobability sampling is the lack of generalizability of the findings to a greater population (Blumberg et al., 2008). Therefore, the findings based 85 surveys cannot be used to make general statements about people s social media motives and habits, and can only be considered relevant to the research study and participants involved. The internal validity of the questionnaires, as in the case studies, is also judged to be higher. The questions and content are created based on theoretical dimensions that were thoroughly evaluated in the secondary research and literature review. The questions are created with attention to content, wording and response strategy in order to gain the necessary data to answer the research question (ibid). Last, the questionnaire and measurement constructs are refined through the use of a pre- test. Using a participant surrogate allows the researcher to check that the participant understands the content and the questions, allowing for successful data collection (Blumberg et al., 2008). According to Blumberg et al. (2008) the reliability of a survey or questionnaire is harder to assess, as it is more difficult to re- test or re- survey the same respondents (Blumberg et al. 2008). Reliable instruments can be used with the confidence that transient and situational factors do not affect the results (ibid). Overall the validity and reliability of the case studies and the questionnaire complement each of the strengths and weaknesses, providing support to the research and findings. Although the research is not generalizable to a larger population, within the time period of study and among the participants involved, the study offers insights on the relationship between corporate reputation and social media that is possible to be tested among a larger population in the future. 46

47 PART 5 ANALYSIS In the following section the analysis and findings from the case studies and questionnaire will be presented. The findings will be used to answer the research question and sub- questions. The research question: To what extent does social media play a part in shaping the reputations people hold of companies in B2B relationships? The Sub- questions: 1. What drives people s social media use in their professional lives? 2. Which elements in social media contribute to the reputations people form of the companies they interact with? 5.1 Case Studies In the following section analysis of the two companies chosen, General Electric and Maersk Line, will be presented, as well as the criteria on which the companies were selected. In conclusion, how people interact within the community, how companies initiate engagement, and the observed outcomes will be highlighted. This will provide a starting point for analysis and address the first sub- question, identifying possible motives and reasons for interacting with companies in social media sites. The companies chosen for analysis are General Electric and Maersk Line. The companies are selected for case study analysis based on several criteria. In line with the B2B research focus and questionnaires, only B2B companies are considered. This serves to provide consistency throughout analysis of the case studies and questionnaires. As well, by using B2B companies the author attempts to observe the desired target group, individuals that use social media in ways that relate to their professional life. As the companies are not consumer brands, it is assumed that the people interacting with the companies in social media have relations and or interest in the company that is based on a professional context. Secondly, the extent of the company s social media presence was considered. The companies should be present is more than one social media 47

48 platform and frequently active, providing enough material and interaction that will support stronger, more trustworthy analysis. As both General Electric and Maersk Line are present in a variety of platforms, analysis will focus on the platforms in which the companies are most active and have the largest community of followers. Analysis will focus on the company s most active social media sites, specifically looking at: What attracts followers to the companies social media sites: What material, posts, or topics appear to drive the greatest interest. How does the company manage and drive interaction: Through the use of photos, questions, comments, etc. Distinguishing or unique characteristics: What characterizes the companies social media strategy, presence, and relationship with its followers. The analysis will reveal how individuals interact with B2B companies in social media, providing initial findings on individuals motives and interests. As well, analysis from the observations will identify tactics and strategies that the companies use to drive their social media presence and how it is received by community members Case Study Analysis: General Electric With a strong international business portfolio, General Electric (GE) is involved in a variety of B2B industries, such as energy, health, transportation and technology. Visiting GE s homepage, GE shows support for its social media presence in Facebook, Twitter, Tumblr and Pinterest with small logos in the upper right corner ( accessed November 2012). In April 2012, GE s Executive Director of Global Digital Marketing, Linda Boff, discusses how GE has embraced social media, saying We used the mantra business is social and further revealed GE s stock and flow social media strategy, based on providing updated, relevant material that engages followers (Callahan, 2012). GE defines stock as more traditional, content marketing fodder, such as white papers and videos that share information that is relevant for a longer periods of time (ibid). In contrast, flow is lighter, daily information that is based on the most recent news and events. The observational analysis of GE will focus on its YouTube, Facebook, LinkedIn and Pinterest presence. 48

49 A member of YouTube since 2005, GE has created GE s Channel, bringing together a collection of videos that represent all of GE s business enterprises and campaigns ( accessed October 2012). With over 2,000 subscribers and 4,000,000 video views as of November 2012, GE has taken advantage of the power of video in the social world. Browsing GE s latest video posts there are several characteristics that are noticed: First, most videos are under a minute long. Second, GE consistently uses upbeat, playful music that is easily recognizable once you have watched a few of their videos. Last, speaking is kept to a minimum, so that the viewer s senses are focused on the creative imagery and music, creating a pleasant experience. The combination of these special features makes short, compelling videos that a viewer can easily sit and watch, and then be interested in watching another. GE integrates its various social media pages in ways that drive followers between the different sites. An example of integrating its Facebook page with YouTube channel can be seen in some of GE s Facebook posts. Using Facebook, GE posts questions asking followers about topics that interest them. GE then uses this information to create and share videos on YouTube tailored specifically to what followers say interests them. This strategy engages the community, shows that GE listens to its followers, and most importantly provides information that people are most interested in. In one example on Facebook GE asks, Have you ever wondered what was inside that locomotive rumbling by on the train tracks? ( accessed October 2012) Based on followers positive responses, GE posted on Facebook that they would be visiting a manufacturing facility in order to document and share how locomotives are made. This Facebook post received 943 likes, 71 shares and 110 comments (ibid). Only 4 days later, GE published the promised video titled Behind the Locomotive. In only one week the video received 124 likes and 103,000 views on YouTube (Figure 6). The responses of GE s followers to this multi- platform campaign indicates that there is a great amount of interest in GE products and that followers consider GE to be knowledgeable and a source of information. As well, it shows that GE s followers are willing and interact with GE in a variety of different social media sites. 49

50 Figure 6: General Electric s social media integration strategy Posting new material at least once a day, GE is also very active in their Facebook page, with 906,000 likes and 15,000 followers talking about this as of November 2012 ( accessed November 2012). As a shared page for their different business areas, GE shows that they can engage a diverse audience. GE also shows that they know their audience by posting questions that are fun, but also tap into the interests and knowledge of their fans. In line with the knowledge based industries that GE operates in, it is clear that followers also enjoy using and sharing their specialized knowledge. In one example, GE engaged people through posting a math problem (Figure 7). For most companies and fans this would seem uninteresting, boring, and irrelevant, however GE s followers were highly engaged, leading to 3,422 likes and 1,476 shares (ibid). 50

51 Figure 7: General Electric understanding and engaging audience Next to YouTube and Facebook, GE also has a unique presence on Pinterest. In reference to having a presence on Pinterest, the Executive Director of Global Digital Marketing has said We re experimenting with something that has been dismissed by many as having no potential for B- 2- B marketers (Callahan, 2012). On Pinterest GE has 12,000 followers, 21 boards and is very active (pinterest.com/generalelectric/, accessed October 2012). Boards are based around the different business areas of GE and are also integrated with their Facebook and other company sites. The comment below shows that GE s attention to social media and experimentation with Pinterest has gained valuable recognition among its followers (Figure 8). Figure 8: BtoB The Magazine for Marketing Strategists, accessed October

52 According to Shao (2009), social media users often follow a path of involvement from only observation, no involvement, participation, a high level of involvement. Shao (2009) also states that user comments, a form of participation, represent a higher level of involvement with a company and help to build and maintain a connection (ibid). Based on the number of comments that GE receives in response to posts, photos, and videos, followers demonstrate a high level of involvement and connection with the company. To further understand the involvement and participation of GE s followers, content analysis is used, based on the comments and conversations on GE s social media sites. This will provide a more in depth understanding of what interests followers and potential reasons for using social media to engage with companies. The comments on GE s Facebook and LinkedIn pages are analyzed for content and coded according to the seven reputation dimensions presented in the theoretical framework. The key findings, based on over 300 comments from Facebook and LinkedIn, are highlighted below: Facebook: Content is mostly about Products and services, with 41% of the total comments. The second most popular dimension is Workplace environment with 28%. However, further investigation reveals that the comments refer to both GE s workplace environment as well as either being an employee or wanting to be employed with GE. Employment opportunities is not one of the seven reputation dimensions in the theoretical framework. Financial performance is the only dimension included in the theoretical framework that is not found within the content analysis. Content analysis reveals that a large majority of comments express opinions, with 23%. 15% of comments are coded as miscellaneous. A miscellaneous coding means either that the comment is too short or did not contain enough information or text to be coded into one of the seven dimensions. Examples are wow and awesome. In the conversations analyzed, GE make up almost 20% of the total comments. These were often responses to followers comments and questions. 52

53 LinkedIn: Content is mostly about Workplace environment and employment opportunities with 28%. The second most talked about dimension is Management and leadership, with 19%. Compared to conversations on Facebook, Products and services made up only 11% of the comments coded. Personality and Trust are the two dimensions that are not found within the analysis. In the conversations analyzed, GE s presence and interaction with individuals on LinkedIn is more minimal compared to their Facebook page, with only a few responses to other s comments. Given the analysis of GE s social media presence, it is clear that GE understands its audience and how to post material that will drive the conversation and engage followers. This is indicated in the number of likes, share, and comments throughout GE s social media sites. On Facebook, GE s social media presence focuses on sharing information about their products as well as stimulating their followers through posts that are very unique and specific to the industries GE operates in, often involving the community s specialized expertise and knowledge in a novel and entertaining way. On LinkedIn, GE s presence focuses on careers, workplace environment, management and leadership, and the future of the industry. Content analysis of their Facebook and LinkedIn pages demonstrates this difference in site strategy. Overall, GE s Facebook has more interaction and varied conversation, with more freedom for individuals to interact with GE. In contrast, the conversations on LinkedIn appear more restrained and more focused on professional career and industry concerns Case Study Analysis: Maersk Line As the world s largest shipping line, Maersk Line employees, customers, and other stakeholders are located throughout the world, representing a variety of different and international industries. In October 2011 Maersk Line made an initiative to develop their social media presence, with the goal being to get closer to our customers ( accessed October 2012). From Maersk Line s homepage a visitor can see that the company has a 53

54 social media presence in Facebook, Google Plus, LinkedIn, Pinterest, Tumblr, Vimeo, Twitter and Instagram ( accessed October 2012). In the article Maersk Line sets B2B social media example Director of Communication, Klavs Valskov, points out that Maersk Line acknowledges its different audiences within the different platforms and tailors the strategy accordingly (Cambié, 2012). The following analysis of Maersk Line s social media presence will focus on the company s official Facebook page, Twitter, LinkedIn and social media site, With over 600,000 likes and 29,000 talking about this Maersk Line s Facebook page receives significant attention from followers ( October 2012). Through Facebook, Maersk Line reaches out to potential and current employees, competition, suppliers, shipping enthusiasts and a wide range of other interested followers (Cambié, 2012). Posts on Maersk Line s Facebook page reflect the variety of followers that it has, sharing information about its ships, services, customer endorsement videos, environmental impacts and achievements and awards. Videos and photos posted by Maersk Line receive a high number of likes, shares and comments. In one example, the Facebook post Welcome to Daily Maersk received 26,764 likes, 307 shares and 283 comments (Figure 9), ( accessed October 2012). Looking more in depth at the 283 comments, the majority are brief and supportive, such as Simply the best always! and good job (ibid). The number of comments from Maersk Line is limited, with its presence seen mostly in the posting of information and photos and not in the comments. Short, positive comments, usually expressing support, characterize the interaction on Maersk Line s Facebook page as observed in October and November

55 Figure 9: Welcome to Daily Maersk post on Facebook A unique interest of Maersk Line followers is what the company refers to as container spotters or ship spotters (Cambié, 2012). Maersk Line containers and ships are recognized around the world with their blue and white star logo, and people have developed a unique interest in capturing photos of these containers and ships, often demonstrating the impressiveness of the company and their services (Figure 10). Maersk Line recognizes this unique interest and uses Facebook as an ideal place where spotters can share the exciting photos they capture. In the photos below, two spotters share their images, both receiving over 1,800 likes, 40 comments, and 150 shares ( accessed November 2012). 55

56 Figure 10: Maersk Line Facebook, photos shared by ship and container spotters As Maersk Line has a wide variety of followers and interested stakeholders accessing their Facebook page, Maersk Line uses both engaging photos as well as more serious posts relating to its shipping services. For example, one of the recent Facebook posts asks: Do you have a reefer related question? Ask our Senior Reefer Specialist ( accessed October 2012). This provides followers with special access to one of Maersk Line s specialists. Based on the observed interaction, participation, and number of people talking about Maersk Line, Maersk Line has achieved a high level of engagement with its followers. According to Shao s (2009) proposed levels of involvement, this can be interpreted as followers using Maersk Line s Facebook page both as a source for information and participation. In Twitter Maersk Line also has a large following, with 6,000 members and posts new material at least once a day (twitter.com/maerskline, accessed October 2012). With ten official tweeters from various parts of the organization Maersk Line focuses on ( ) how to make tweets sound interesting and less corporate (Cambié, 2012). The combination of business related posts with Maersk Line employee Tweets gives both a professional and personal perspective and gives a personal touch to the business. 56

57 While it appears that Maersk Line approaches both Facebook and Twitter with a combination of both business and personal character, Director of Communication Valskov refers to LinkedIn as a serious professional forum where the company can have conversations with its customers (Cambié, 2012). With 21,500 followers on LinkedIn as of October 2012, it is both a combination of employees and business partners ( accessed October 2012; Cambié, 2012). As Facebook and LinkedIn are two of Maersk Line s main social media platforms, content analysis focuses on activity on these pages. Based on over 200 comments, the findings from the analysis are: Facebook: Content is mostly about Products and services, with 38% of the total comments. This is focused on containers and Maersk Line ships. The second most popular dimension is Workplace environment with 23%. Broken down by Workplace and environment and employment opportunities, 15% of comments refer to employment opportunities with Maersk Line. The next most popular dimension is Trust with 11%. Subjective interpretations of trust are based on comments such as the world s most reliable carrier and the best shipping line in the world ( accessed October 2012). Analysis again reveals that a large majority of individuals express opinions about the company, making up 29% of the comments. Of the 180 comments analyzed, Maersk Line comments and responses make up about 6% of the total comments. LinkedIn: Content is mostly about Products and services with 35%. The second most talked about dimension is Trust, with 19%. Compared to the content of conversations on Facebook, there are no significant differences. Both pages were primarily focused on Products and services but include 57

58 other dimensions to a lesser extent. Such as Workplace environment and Knowledge and expertise. Finally, Maersk Line has also created its own social media homepage (Figure 11). At a follower can read articles as well as contribute personal ideas. Under the section Our Articles Maersk Line shares the same articles that are also available through its other social media sites, providing consistency for followers. In the section called Your Ideas Maersk Line has created a place where followers can share suggestions or comments that they think would improve Maersk Line s social media presence. Since July 2012 there have been 6 suggestions that can be viewed on the site, with the most popular currently having 11 votes ( accessed October 2012). While the articles are regularly re- Tweeted and shared by others, the limited use of the Your Ideas page may indicate that the site has not yet been strongly promoted or shared among customers and or employees. Figure 11: Maersk Line Social Media homepage, Based on analysis of Maersk Line s most prominent platforms, findings indicate that Maersk Line has an extensive social media presence and a large group of interested followers. Maersk Line capitalizes on the special interests of its followers, through the use of photos and stories that focus on their international services, performance, industry achievements, and international fleet that can be spotted throughout the world. This is indicated in the number of likes, shares, and 58

59 comments that Maersk Line receives. Maersk Line s Facebook page focuses mainly on photos and information on its containers and ships, while LinkedIn posts are more limited to official company and news articles focusing on the shipping industry. It is clear through observation that followers have a strong interest in Maersk Line and use social media as a means through which to express their opinions of Maersk Line and its services. 5.2 Summary of findings: Case Studies The observational case studies of General Electric and Maersk Line reveal several commonalities in the motives individuals have when interacting with companies, as well as the topics, or reputation dimensions, which are most central in the interaction between the company and the follower. Based on the two cases, the interactions in Facebook are based more on participation and entertainment, while interactions in LinkedIn are based more on consuming information. In Facebook, the degree of conversation and interaction is greater than the conversations in LinkedIn. The conversations in Facebook center mainly around photos, videos and simple conversation starters that the company introduces. In LinkedIn, the companies focus more on serious business related topics and sharing official company and news articles, this contributes to a more reserved audience and online atmosphere. Followers in LinkedIn liked and shared articles, but the conversation is not as active, resulting in fewer comments. The case studies show that people interact with companies in social media to consume information and entertainment and to participate in conversation. In reference to these needs, the reputation dimensions that were found to be the most prevalent in interactions between the company and followers are Products and services and Workplace environment (Figure 12). The least common dimensions are Financial performance and Personality. From the case studies it is concluded that individuals motives for interacting with companies in social media is to gain information or entertainment that is focused around company products and services and workplace environment, and further to participate with people that share these interests. In this aim users then choose the social media sites that best satisfy their specific motivations. 59

60 Case Study Content Analysis: 7 Theoretical Reputation Dimensions Personality 3% Financial Performance 3% Environmental Responsibility 6% Knowledge and Trust 19% Workplace Environment 23% Products & Services 33% Vision & Leadership 13% Figure 12: Content Analysis of General Electric and Maersk Line s Facebook and LinkedIn pages Overall, it was observed that the individuals interact with the companies as a means to consume and participate, using Facebook and LinkedIn to satisfy these needs. As well, it was observed that individual s motivations influence their choice of social media site and the type of interaction. These findings support Shao s (2009) research that users behave in ways consistent with uses and gratifications theory. 5.3 Questionnaire Analysis As stated in Part 4 Methodology, questionnaires are conducted as part of the primary research in order to further identify motives for social media engagement and ultimately the elements that most strongly contribute to company reputations formed through social media. The questionnaires are crucial in obtaining information not available through observational case studies, and allows for comparison of the findings previously gained through the case studies. In the following section the results of the questionnaire will be presented in order to answer the research question. First the author will present the background information on the participants overall social media habits Social Media Habits There was a total of 111 surveys collected and 85 that were fully completed and used in the following analysis. The target population for the questionnaire is individuals that use social media in their professional life. As it is difficult to target and access this population directly, two 60

61 qualifying questions were used to assess the relevance of the respondents and the data gathered. The purpose of the qualifying questions is to determine if the respondent uses social media in a professional context as part of their current job position. Of the participants surveyed, 86% say that they use social media in their current job position and while they are at work. This demonstrates the reach of the desired target segment and clarifies the context for analysis. Of the 85 respondents that completed the questionnaire, the primary age demographic represented is years old with 74% (Figure 13). This is expected in consideration of the distribution method using the researcher s professional network. Therefore, analysis and results of this study are considered most relevant among this specific age group. What is your age? Under Over 55 10% 8% 7% 2% 74% 0% 20% 40% 60% 80% 100% Figure 13: Questionnaire analysis - Age demographic The following analysis provides information on participants general social media habits, in both personal and professional contexts. This allows for comparison of the differences and similarities on how people use social media for different purposes and motives. Regarding the amount of time that people spend on social media sites, the overall trend is that people spend more time for personal reasons compared to professional reasons. The majority of participants, 36%, say that they spend 3 4 hours per week for personal reasons, while professionally 61% spend only 1 2 hours (Figure 14). 61

62 How many hours per week do you spend on social media sites? 100% 80% 60% 40% 20% 0% 14% 5% 5% 10% More than 15 hours 23% 0% 36% 24% 23% 61% hours 5-9 hours 3-4 hours 1-2 hours Personally Professionally Figure 14: Questionnaire analysis - Usage, hours per week Participants are also asked which three social media sites they use most often, both in their personal and professional lives. The responses show that Facebook is the most used site both personally and professionally. Professionally, 84% of participants say they use Facebook the most, 58% said LinkedIn and 42% Twitter (Figure 15). While YouTube is the second most used site personally, with 74%, it ranks fourth professionally with only 34%. The difference in participants choices of social media sites for personal and professional use indicates different needs, and further that people are aware that different sites satisfy different needs. This evidence supports Shao s (2009) findings that social media users consciously choose the sites that best fulfill their needs based on a variety of motives. 100% 84% Which social media sites do you use most often? (Please choose 3) 74% 57% 58% 42% 34% 33% Personally 24% 19% 11% 12% 11% Professionally 8% Facebook YouTube LinkedIn Twitter Instagram Pinterest Google Plus Figure 15: Questionnaire analysis - Top most used social media sites 62

63 Participants are then asked why they use their chosen sites the most and are given a free text box. Based on the free- text answers provided, there are three themes that emerge. Most participants indicate that they make their social media choices for reasons related to staying informed, making connections, and for company branding and awareness (Table 3). The motives for staying informed and making connections are similar to Shao s (2009) information seeking and social- interaction motives. The analysis of participants social media habits shows that professional use of social media is still second to personal use, with participants spending on average 1.6 hours per week professionally, compared to a personal average of 2.3 hours. Also, participants choose which sites they use based on different motivations and uses. The motivations related to professional social media use found in this study are staying informed, making connections, and company branding and awareness. The top three sites that participants say they use the most in their professional lives, to satisfy these motives, are Facebook, LinkedIn, and Twitter. Table 3: Questionnaire analysis Professional motives 63

64 5.3.2 Social Media Motives In the following section, analysis of the questionnaire will be presented according to each of the sub- research questions. First, analysis will focus on What drives people s social media use in their professional lives? Three motives have been identified based on participants explanations for the social media sites they use and answer the question why people use social media in their professional lives. Additionally, a fourth potential motive, opinion sharing, is discovered through the case study analysis. An objective of the case studies was also to provide an initial understanding of why people engage with companies in social media. In the content analysis it is observed that followers comments often express their personal opinions or attitudes. This motive is similar to Shao s (2009) motive termed self- expression. Analysis will now focus on the targeted questions within the questionnaire in order to gain a more complete understanding of these four motives and how they are satisfied through social media. Based on case study analysis, the concept of opinion is included in the questionnaire. Participants are asked to what extent, on a scale from 1 to 5 (strongly disagree to strongly agree), they use social media to share their opinions. The results show that 41% agree or strongly agree and 39% disagree or strongly disagree (Figure 16). Further 20% were unsure. This indicates that participants have mixed thoughts regarding the use of social media to share their professional opinions. Therefore, although opinion was a dominant motive in the case studies, it is not as strong a motive for questionnaire respondents. Given these responses, it is possible to conclude that sharing or expressing an opinion is not a dominant driver of social media use in participants professional lives. 64

65 I use social media as a regular tool through which I can share my opinion. Strongly disagree 5% Strongly agree 2% Disagree 34% Agree 39% Not sure 20% Figure 16: Questionnaire analysis - Motivation, self- expression Based on Shao s (2009) proposed motivations for social media use, participants are also asked about their social media use in relation to their motives for information seeking and social- interaction. Respondents are asked to rate, on a scale from 1 to 5 (strongly disagree to strongly agree), two statements regarding information seeking and social- interaction. Of the responses, 73% of participants agree or strongly agree with the statement that in their professional life they regularly use social media to find and read information about companies and their employees (Figure 17). On a scale from 1 to 5, respondent sentiment was an average of 3.9. I use social media as a regualr tool through which I can _ind and read information about companies and their employees. Disagree 10% Not sure 12% Strongly disagree 5% Strongly agree 24% Agree 49% Figure 17: Questionnaire analysis - Motivation, information seeking 65

66 In comparison to the strong motivation shown for using social media as a source for information, respondents are not as motivated by social- interaction. When asked about using social media in order to interact with companies and or employees, only 39% say they agree or strongly agree (Figure 18). Analysis of this question indicates that participant views are split, with 39% agreeing/strongly agreeing and 39% disagreeing/strongly disagreeing. This indicates that social- interaction is not as strong a motive for using social media professionally as information seeking. Comparing these results to the case studies provides a clearer picture of the observed subjects. As content analysis is based only on what can be seen and recorded, the questionnaire indicates that followers who interact and share their opinions represent the minority of social media users. Further, when participants are asked in the questionnaire how often they comment on a company s article, photo or video, the majority of respondents say never. Therefore, in contrast to the case study observations, the results from the questionnaires show that the majority of participants social media use is driven by the motive to obtain information. Therefore information seeking is seen as a strong motive, while social- interaction and self- expression are considered only moderate motivators. I use social media as a regualr tool through which I can interact and communicate with companies and their employees. Strongly disagree 10% Strongly agree 15% Disagree 29% Not sure 22% Agree 24% Figure 18: Questionnaire analysis - Motivation, social- interaction 66

67 A final motive, company branding and awareness, is identified through analysis of participants free text answers. As a possible motivator that emerged during the research process, the study is unable to make a conclusion on the strength of the motive on a scale from strongly agree to strongly disagree. From the research it can only be observed that respondents indicate its general importance. When respondents are asked to select reasons relevant for using social media (respondents are allowed to choose more than one dimension), 72% of the time respondents indicated that it allows them to promote the company that they work for (Figure 19). Participants also indicate that interacting with colleagues is not highly relevant. This reinforces previous findings that social- interaction is not a strong motivator. Please choose the following reasons that apply to the statement "In my professional life it makes sense for me to use social media because..." I can promote the company that I work for 72% I can share information about the company that I work for 61% I can interact with colleagues 42% I can create greater company awareness I can communicate directly with customers 54% 53% I can pind out what others think of the company that I work for 26% Figure 19: Questionnaire analysis - Company branding and awareness Four motivations, seen in the table below, have been identified and explained based on the strength and relevance that respondents indicate (Table 4). These motives are based on the literature review, case study analysis, and findings from the questionnaire. Addressing the first sub- research question, participants choose to engage in social media because it allows them to fulfill their primary professional need for information, and secondary needs for establishing connections and sharing opinions. It is concluded that making connections and sharing opinions is only a secondary motive as the importance differs significantly from individual to individual. 67

68 Managing company branding and awareness was also shown to be an important driver for some respondents. Research study Shao (2009) Strength of motivator 1. Staying informed Information seeking Strong 2. Making connections Social- interaction Moderate 3. Sharing opinions Self- expression Moderate 4. Company branding and awareness Table 4: Questionnaire analysis Identified motives Social Media s Influence Last, analysis will focus on the second sub- research question Which elements in social media contribute to the reputations people form of the companies they interact with? Based on the identification of four participant motives, analysis will now look at how people s motives drive their social media use and the impact it has on company relations. Focusing first on information seeking, the analysis will identify how participants use social media in their effort to stay informed and the types of information that are most relevant. Respondents are asked to select topics, from a list, that are most important to them when using social media as a source for information (respondents are allowed to choose more than one topic). The topics are based on the seven reputation dimensions that the literature reviews states contribute to the expectations and reputations people hold of companies. Two additional topics, employees and employment opportunities, are based on findings from the case studies, as potential topics on which a person may have expectations of a company. Using the reputation dimensions allows for identification of the dimensions that are most important to respondents in social media environments. Findings show that the majority of participants are primarily interested in learning about company products and services. Out of nine information dimensions, the dimension Products and services is chosen 74% of the time (Figure 20). The second most popular dimension is Knowledge and expertise, chosen 41% of the time. These results are further supported by the 68

69 findings from the case studies based on content analysis. As previously mentioned, Products and services is the most common dimension throughout the case studies and Financial performance is the least common (refer to Figure 12). Please choose the following reasons that apply to the statement "In my professional life it makes sense for me to use social media because..." I can learn about a company's products and I can learn about a company's vision and core I can learn about a company's leadership and I can learn about a company's workplace I can learn about a company's employees I can learn about a company's employment I can learn about a company's pinancial I can learn about a company's social and I can learn about a company's knowledge and 7% 31% 24% 34% 31% 24% 22% 41% 74% Figure 20: Questionnaire analysis - Information seeking Focusing on social- interaction, analysis shows how often and in which ways participants interact with companies through social media. Social- interaction was identified as a moderate motive for using social media. When asked how often they visit a company s social media page, 39% of respondents said they visit daily and 41% said that they visited weekly (Table 5). This indicates that participants have a regular need for accessing a company s social media page and do so on a daily and weekly basis. However, direct interaction with the company, through comments and likes, occurs less regularly. Most participants only comment on a company s article, photo, or video monthly or less than one a month. Compared to interaction through comments, respondents were more likely to like an item shared by the company and on a more frequent basis. 38% said they like an item shared by a company weekly and only 4% said that they never like a piece of information shared by a company. These findings also provide an understanding of how often and in which ways participants are likely to share their opinions. As observed in the case studies, followers expressed their opinions through the use of comments. Therefore, comments can fulfill both motives for social- interaction and sharing of opinions. 69

70 How often do you participate in each of the activities? Daily Weekly Monthl y Less than once per month Never Visit a company s social media page 39% 41% 9% 9% 2% Read an article posted by a company in 22% 48% 19% 10% 0% social media Comment on a company s article in social 5% 16% 20% 25% 34% media View photos or videos posted by a 30% 46% 14% 10% 0% company in social media Comment on photos or videos posted by a 2% 12% 29% 25% 32% company in social media Like a piece of information shared by a 11% 38% 30% 18% 4% company Share a company s articles, photos, or videos with others through social media 9% 15% 39% 27% 10% Table 5: Questionnaire analysis - Social- interaction and sharing opinions Based on the analysis it can be concluded that the most dominant use of social media in participants professional lives is for finding information on company products and services. In order to answer the research question it is necessary to understand how this social media use impacts the relationships participants form with the companies they interact with. To identify how social media use impacts participants perceptions of companies, the questionnaire focuses on the concepts of personality, trust, and social expectations. Respondents are asked to rate, on a scale from 1 to 5 (strongly disagree to strongly agree), the following statements: Interacting with a company through social media helps me to get to know the company better. Interacting with a company through social media can increase my level of trust and confidence in a company. Interacting with a company through social media influences my expectations or opinions of a company. 70

71 When asked if social media allows for getting to know a company better, 87% of participants indicate that they agree or strongly agree (Figure 21). Further, no participants say that they disagree with the statement. When asked if social media can increase the level of trust in a company, 66% say they agree or strongly agree and only 5% say they disagree. However, the concept of trust has the highest percentage of respondents saying that they are not sure, with 29%. Last, when asked if social media influences expectations or opinions of a company, 88% agree or strongly agree and only 2% disagree. These findings provide significant support that participants interaction with companies through social media influences their company perceptions. Interacting with a company in social media... Strongly disagree Disagree Not sure Agree Strongly agree Allows me to get to know a company better Can increase my level of trust in a company Inpluences my expectations or opnions of a company 0% 20% 40% 60% 80% Figure 21: Questionnaire analysis Consequences of social media use in a professional context Additionally, participants are asked to describe a memorable experience they had interacting with a company in social media and how it affected them. These free- text responses provide personal insight on the actions and consequences of participants who interacted with a company through social media. Three examples are used to further prove that social media is influential not only in facilitating personal connections with family and friends, but also in the professional relationships people maintain with companies (Table 6). 71

72 Table 6: Questionnaire analysis Participant personal experiences 5.4 Summary of findings: Questionnaire The analysis above has established a greater understanding of the motives information seeking, social- interaction, and opinion sharing and has identified ways that social media satisfies these needs. The majority of participants indicate that they use social media as a tool through which to find and read information about companies. The least important use of social media was finding information about companies financial performance. The same participants also indicate that social- interaction and opinion sharing are not dominant motivations to using social media professionally. Participants say they visit companies social media pages on a daily and weekly basis, however are not as likely to interact with a company through comments. Further, the majority of respondents say they never comment on an article, photo or video posted by the company. This supports the premise that in the context of professional life, participants mainly look to social media in order to find knowledge and information. Finally, in their use of social media, participants provide strong support that interacting with a company can influence relations with the company. Specifically, analysis shows that social media can impact how well participants know a company, the degree of trust in a company, and can contribute to expectations and opinions of a company. Combined, these concepts contribute to the perspectives people hold of companies and are concepts on which corporate reputation can be formed. 72