Paniagua, J., & Sapena, J. (2014). Business performance and social media: Love or hate?. Business Horizons, 57(6), 719-728. https://doi.org/10.1016/j.bushor.2014.07.005
Evidence suggest that social media can impact business performance. Social media channels give organizations the ability to foster their identity and reputation, facilitate stakeholder conversations, build stakeholder relationships, and communicate important information quickly. These capabilities can benefit organizations by improving their corporate social performance, their financial performance, and their operational performance. An organization’s corporate social performance refers to its ability to “establish honest relations with society.” Using social media can help organizations foster brand awareness, identity, reputation, and loyalty. Both customers’ revealed preferences and marketing through social media can increase an organization’s financial performance. By paying attention to social media conversations, organizations can learn what their customers like and dislike, helping them make strategic business decisions that lead to positive financial outcomes. Social marketing utilizes social media conversations, sharing, and presence to drive sales. Social media can be used by an organization’s employees to build networks that, through knowledge and skill sharing, finding clients, and labor mobility, can improve the organization’s operational performance. Improved capabilities, in turn, improve the customer experience.
Because social media is still relatively new, not all leaders see the value of investing in their organization’s social media capabilities. This article provides evidence of positive business outcomes from using social media, including increased financial performance. This evidence helps me more fully understand, as a social media practitioner, the value of these channels, so that I can make a strong case for the allocation of resources to this important work.
Learning Outcome 2: Demonstrate the ability to assess complex organizational environments and achieve communication goals.
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