The Impact of Social Media Governance on Business Performance: the Successful Online Communications

Transcription

1 EUROPEAN ACADEMIC RESEARCH Vol. I, Issue 11/ February 2014 ISSN Impact Factor: 3.1 (UIF) DRJI Value: 5.9 (B+) The Impact of Social Media Governance on Business Performance: the Successful Online Communications SAEED ALI BS (Petroleum & Gas Engineering), BUITEMS Quetta, Pakistan SYED NISAR AHMED Visiting Faculty Member, BUITEMS Quetta, Pakistan Abstract: Social media admiration is growing day by day and is progressively used in many processes of corporations, small corporate, large administrations and containing startup of any business. The purpose of this study research is to be familiar with the influence of social media on business and online communications. A questionnaire was used and it was distributed to 100 people. The outcomes of the study indicate that social media and business are positively concomitant with each other and it is also found that the use of social media prominently develops business competences and business performance. The eminence of this relationship depends upon how much your clients are skilled and committed with social media networking sites. Key words: Social media, Governance, Online communications, Business 1 Introduction: After the Arithmetical Growth from the conventional infrastructures to social media, a detailed real-world and 4868

2 theoretical conversation progressed around this topic, with sentiments ranging from the observation of social media as a new chance for PR (Breakenridge 2008; Kelleher 2009; Kent 2010; Macnamra 2010; Wright and Hinson 2010; Zerfass et al 2010). Social media tackles are ahead acceptance and are more and more used in steady processes of many corporations, stretching from startups and small and average creativities to huge companies ( Lee et al 2008; Osimo 2008; Andriole 2010; Bell and Loane 2010). Regardless of the widespread use of social media, little is understood about the inspiration on the implements and present technologies on business process enactments (Denyer et al 2011). Contemporary and new technologies acquired additional reputation amongst altered cooperations and empowered them in tracing their business networks (Liu and Liu 2009; Bell and Leoane), and of the consequence of this market advancing more worth (Dutta 2012). Those corporations and groups have the latest technology and make more participants and thus receive more incomes (Harris and Rea 2009; Eisenfeld and Fluss 2009) and in this way the framework has more prominence to recognize the precise impression of social media networking sites on business progression and its presentation (Wetzstein et al 2011). The direct interface between the consumers and organizations will achieve supreme paybacks. A new atmosphere is created for business in which corporations and organizations will make the most of the paybacks and in which they can acquire social media sites into their day-to-day procedures. The objective of this research paper is The Impact of Social Media Governance on Business Performance: The Successful Online Communications. The current study intention is to know more about the social media background and its control on corporate social media implementation used in preparation. To answer these questions we examine how people are allied with social media and how they feel about the 4869

3 existence of business tools on social media. Firstly we examine how much people are allied with social networking sites. Secondly we study how they sense when they see business correlated tools in social media. Thirdly we evaluate how corporation and civilizations can make their commercials more creative and operative on social media sites. Fourthly this study is carried in Quetta, Pakistan, which was never conducted before. Does social media have an effect on business? This study will answer this question. This research will help organizations how to heighten their business on social media and how to fascinate the patrons. 2 Literature Review: 2.1 Outlining Social Media Social media refers to direct information people generate, share and interchange and to their ideas in effective societies and networks. Andreas Kaplan and Michael Haenlein describe social media as a group of internet based applications which is constructed on the technological and ideological basics of Web 2.0, and which allow the interchange and creation of user created information. And further social media can be influenced by mobile and web based technologies to generate extremely cooperative stands through which organization, company, single and communities can share, discuss and enrich user produced content. Social media is more diverse than the old-fashioned communication ways, in terms of regularity, quality, utilization and permanence. According to Nielsen, internet users pass more time with social media sites than any other sites. In America the social media consumers spending time on social media increased by 38 percent, to 121 billion minutes in July 2012 paralleled to 87 billion minutes in July

4 2.2 Social media control on business We appraise the resource based view standpoint on organizations to explain the social media control on business performance. The resource based view shows us that organization attains a set of certain resources like IT substructure, social media and human resources that are specific to firm, very rare and not talented of easy simulated by opponents. A difference can be made between capabilities and resources. Where resources serve basic units to analysis, capabilities are repeatable designs of action in the use of resources to create, or to yield or offer value to market (Barney 1991). A point to be noted is that resources can be acquired easily, but it is not easy to develop business wide capabilities to use the resources to modify business performance. Following we will discuss the resource based view regarding social media as a research model that is used by organizations. H1: Social media and business are positively associated with each other The social media influence on business competences Andriole (2010) identified six factors related to business competencies that are influenced by web tools and that affect business performances: Communication and Alliance Social media can improve the communication and alliance within and among organizations and thus enhance the globalization of their business procedures (Bell & Loane). There are four indicators related to communication and collaboration 1. Ability to organize discussion 2. Ability to reach extra people in less time 3. Ability to bring into line tasks and projects 4. Ability to audit communication stream 4871

5 Fast application progress Social media can modify application progress by integrating third party and joining the available technologies and applications to new business. These tools appoint customers, suppliers, experts as the company employees in the development efforts thus speeding them up. 1. Competency to improve and develop applications faster 2. Competency to easier applications support 3. Ability to progress required modeling. Consumer association management With the help of social media we can solve and identify the issues of customers. Using different type pages on Facebook or Twitter we can overcome these problems. 1. Know-how to reach more customers 2. Easily handgrip customer data 3. Proficiency to ask customer feedback 4. Skill to excellently communicate with customers. Modernization It is the result of the direct exchange of ideas between users and experts (Bell, Loane 2010). Social media allow faster innovations to appear by empowering on the market clock across the boundaries communication between the persons having expertise in the field (Schenckenberg 2009). Innovation is measured as 1. Know-how to expand success rate 2. Skill to increase improvement activities 3. Skill to produce successfully Working out Social media is also the best source to train the customers, share information with them so they can easily expand knowledge about your product. The control of social media on working out is measured as 1. Skill to support traditional training 2. Know-how to enhance training content 4872

6 3. Skill to codify and issue training content Information management Social media can enhance knowledge management process, knowledge exchange, and knowledge creation (Schenckenberg 2009). Social media can enhance the transfer of knowledge with the interior focus between employees and with external focus with two way communication with consumers and suppliers. 1) Share 2) Establish 3) Regain 4) Power knowledge These are six factors which are related to organizational capabilities influenced by social media. H2: Social media is positively associated with business capabilities The social media impact on business performance Business process performance is that type of adapting with which companies and organizations convert the available inputs into outputs (Brocke and Rosemam 2010). Traditionally, business process performance is analyzed by making a set key performance indicators which are associated with each process of the company. The management board set a target value for each key performance pointer and compare these targets to actual and historical values (Swabey 2009; Wetzen et al 2011). Several other methods of business process performance exist containing the balance score card (Kaplan & Norton 1993), the self-assessment (Hakes 1996), the customary monitoring methodology ( Harrington 1991), H3: Social media experience greatly impact on business performances 3 Methodology: Following we describe the method of accessibility sampling: a 4873

7 sample of 100 students and teachers of Balochistan University of Information Technology Engineering and Management Sciences was selected for this study. The students were of Bachelor and Master level. Out of 100 questionnaires, 90 questionnaires were received back. The response rate was 90%. The questionnaire contained 8 items about social media and business. The following table is used for the frequency of these questions. Gender Male Female Age Education Bachelors Masters Experience Table 1 Social media and business Frequency %age Results and discussion: Table 1 shows the frequency of the relationship between business and social media. 99% student were in touch directly and indirectly with social media. 85% students gave a positive response about the use of social media for business. 5% could not give any answer for the use of social media for business. 9% were not in favor of social media use for business. Recommendations: Following are the recommendations drawn from this study: Organizations and companies should focus on social media to make their product valuable in market. Organization should give access to customers to their websites so they can get good results. Positive response to the customers feedback can made 4874

8 their product more effective. Give better guideline to the customer, this also having a good effect on the organization business. Make special team for social media who will be responsible to give feedback to the customers. Limitations and future research: This research study also has some limitations. One of the major limitation of the study is that the sample size of study was not large enough. So future research is directed to have a larger sample in order to conduct such research work. The study was limited to a single university. If it is conducted in more universities more positive and accurate results can be obtained. Audience were not experienced. If experience customers were included then better results can be obtained. Another limitation was the time and resource shortage due to which data is not collected from different organizations. BIBLIOGRAPHY: Andriole, S. J Business impact of Web 2.0 Technologies. CACM 53(12): Barney, J Firm resources and sustained competitive advantage. J of Management 17 (1): Bell, J. and Loane, S "New Wave" Global Firms: Web 2.0 and SME Internationalisation. J of Marketing Management 26(3-4): Birkinshaw, J. and Crainer, S Using Web 2.0 to create management 2.0. Business Strat Rev Bradbury, D Web 2.0 beyond buzz words. Computer Weekly. Brocke, J.V. and Rosemann, M Handbook on business 4875

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