The Role of Social Media in Indonesia for Business Transformation Strategy
DOI:
https://doi.org/10.21632/irjbs.13.1.99-112Keywords:
Social media, Social commerce, Business performance, EntrepreneursAbstract
The rise of social media in today’s digital era is considered important because it helps people communicate and share information online. It is not surprising that ease of sharing information and communicating through social media has an impact on increasing many online activities, including business activities. This phenomenon is an inspiration that researchers can use to uncover the role of social media in Indonesia for business activities by knowing the factors that can influence a social media follower or fans into actual buyers. By surveying users of social media, 546 responses were collected from social media entrepreneurs and social media buyers.
The data analysis showed there is enough evidence that social media is being used for business. The frequency of social media usage has strong links to users to use to buy products or do business in that venue. Young people, such as college students, tend to use social media for business more than those with higher levels of education who may already have permanent jobs. Multiple regression analyses have resulted in a proposed model of social media use for business and offers five major factors that influence satisfaction and performance when doing business on social media.
References
Anderson, K., & Mirosa, M. (2014). Revealing barriers to healthier fast food consumption choices. British Food Journal, 116(5), 821–831. https://doi.org/10.1108/BFJ-11-2012-0269
Anderson, M., Sims, J., Price, J., & Brusa, J. (2011). Turning “Like” to “Buy” social media emerges as a commerce channel. Booz & Company Inc, 2(1), 102–128.
Burgess, S., Sellitto, C., Cox, C., Buultjens, J., & Bingley, S. (2017). An Innovation Diffusion Approach to Examining the Adoption of Social Media by Small Businesses: An Australian Case Study. Pacific Asia Journal of the Association for Information Systems, 9(3). Retrieved from https://journal.ecrc.nsysu.edu.tw/index.php/pajais/article/view/423
Carroll, B. (2008). Social shopping: A new twist on e-commerce | Furniture Today. Retrieved March 1, 2017, from http://www.furnituretoday.com/article/377979-social-shopping-a-new-twist-on-e-commerce
Correa, T., Hinsley, A. W., & De Zuniga, H. G. (2010). Who interacts on the Web?: The intersection of users’ personality and social media use. Computers in Human Behavior, 26(2), 247–253.
Culnan, M. J., McHugh, P. J., & Zubillaga, J. I. (2010). How large US companies can use Twitter and other social media to gain business value. MIS Quarterly Executive, 9(4).
Ejupi, R. (2017). The use of Social Media as a marketing tool in Kosovo: Current trends and opportunities.
Ekawati, N. W. (2012). Jejaring Sosial/facebook sebagai Media E-pengecer ( Studi Kasus Mahasiswa di Kota Denpasar). Buletin Studi Ekonomi.
Fenton, A. (2018). The field behind the screen: Social capital and the social media communications of a football club brand (PhD Thesis). University of Salford.
Gavino, M. C., Williams, D. E., Jacobson, D., & Smith, I. (2018). Latino entrepreneurs and social media adoption: Personal and business social network platforms. Management Research Review, 42(4), 469–494. https://doi.org/10.1108/MRR-02-2018-0095
Hatammimi, J., & Sharif, O. O. (2014, May). Selection the way to start business based on social media features. 371–376. https://doi.org/10.1109/ISTMET.2014.6936537
He, W., Wang, F.-K., Chen, Y., & Zha, S. (2017). An exploratory investigation of social media adoption by small businesses. Information Technology and Management, 18(2), 149–160.
Heller Baird, C., & Parasnis, G. (2011). From social media to social customer relationship management. Strategy & Leadership, 39(5), 30–37.
Holmes, K., McLean, R., & Green, G. (2012). Crafting a future online: A study of how independent craftspeople adopt social media and web technologies. Journal of Systems and Information Technology, 14(2), 142–154. https://doi.org/10.1108/13287261211232162
Huang, Z., & Benyoucef, M. (2013). From e-commerce to social commerce: A close look at design features. Electronic Commerce Research and Applications, 12(4), 246–259. https://doi.org/10.1016/j.elerap.2012.12.003
Jussila, J. J., Kärkkäinen, H., & Aramo-Immonen, H. (2014). Social media utilization in business-to-business relationships of technology industry firms. Computers in Human Behavior, 30, 606–613. https://doi.org/10.1016/j.chb.2013.07.047
Kahar, R., Yamimi, F., Bunari, G., & Habil, H. (2012). Trusting the Social Media in Small Business. Procedia - Social and Behavioral Sciences, 66, 564–570. https://doi.org/10.1016/j.sbspro.2012.11.301
Kaplan, A. M., & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of Social Media. Business Horizons, 53(1), 59–68. https://doi.org/10.1016/j.bushor.2009.09.003
Kietzmann, J. H., Hermkens, K., McCarthy, I. P., & Silvestre, B. S. (2011). Social media? Get serious! Understanding the functional building blocks of social media. Business Horizons, 54(3), 241–251. https://doi.org/10.1016/j.bushor.2011.01.005
Lockett, A. (2018). Online Marketing Strategies for Increasing Sales Revenues of Small Retail Businesses. Walden Dissertations and Doctoral Studies. Retrieved from https://scholarworks.waldenu.edu/dissertations/5896
Malhotra, M. K., & Grover, V. (1998). An assessment of survey research in POM: from constructs to theory. Journal of Operations Management, 16(4), 407–425.
Michaelidou, N., Siamagka, N. T., & Christodoulides, G. (2011). Usage, barriers and measurement of social media marketing: An exploratory investigation of small and medium B2B brands. Industrial Marketing Management, 40(7), 1153–1159. https://doi.org/10.1016/j.indmarman.2011.09.009
Paridon, T. J., & Carraher, S. M. (2009). Entrepreneurial marketing: Customer shopping value and patronage behavior. Journal of Applied Management and Entrepreneurship, 14(2), 3.
Parise, S., & Guinan, P. J. (2008, January). Marketing Using Web 2.0. 281–281. https://doi.org/10.1109/HICSS.2008.242
Rahbi, A. L., & Abdullah, H. S. (2017). Factors influencing social media adoption in small and medium enterprises (SMEs) (PhD Thesis). Brunel University London.
Seidman, G. (2013). Self-presentation and belonging on Facebook: How personality influences social media use and motivations. Personality and Individual Differences, 54(3), 402–407.
Simangunsong, E. (2016). Social media & internet: A study in start up companies. Jurnal Manajemen Dan Kewirausahaan, 18(2), 145–151.
Statista. (2017). Number of social media users worldwide 2010-2020. Retrieved March 1, 2017, from Statista website: https://www.statista.com/statistics/278414/number-of-worldwide-social-network-users/
Statista. (2018). Indonesia: Retail e-commerce sales 2016-2022 | Statistic. Retrieved August 16, 2018, from Indonesia: Retail e-commerce sales 2016-2022 | Statistic website: https://www.statista.com/statistics/280925/b2c-e-commerce-sales-inindonesia/
Trainor, K. J., Andzulis, J. M., Rapp, A., & Agnihotri, R. (2014). Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM. Journal of Business Research, 67(6), 1201–1208.
Wang, X., Yu, C., & Wei, Y. (2012). Social media peer communication and impacts on purchase intentions: A consumer socialization framework. Journal of Interactive Marketing, 26(4), 198–208.
Wu, S.-I., & Lu, C.-L. (2012). The relationship between CRM, RM, and business performance: A study of the hotel industry in Taiwan. International Journal of Hospitality Management, 31(1), 276–285.
Downloads
Submitted
Published
How to Cite
Issue
Section
License
Copyright (c) 2020 Eliot Simangunsong, Rudy Handoko
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Journal Author(s) Rights
For IRJBS to publish and disseminate research articles, we need publishing rights (transferred from the author(s) to the publisher). This is determined by a publishing agreement between the Author(s) and IRJBS. This agreement deals with the transfer or license of the copyright of publishing to IRJBS, while Authors still retain significant rights to use and share their own published articles. IRJBS supports the need for authors to share, disseminate and maximize the impact of their research and these rights, in any databases.
As a journal Author, you have rights to many uses of your article, including use by your employing institute or company. These Author rights can be exercised without the need to obtain specific permission. Authors publishing in IRJBS journals have comprehensive rights to use their works for teaching and scholarly purposes without needing to seek permission, including:
- use for classroom teaching by Author or Author's institution and presentation at a meeting or conference and distributing copies to attendees;
- use for internal training by the author's company;
- distribution to colleagues for their research use;
- use in a subsequent compilation of the author's works;
- inclusion in a thesis or dissertation;
- reuse of portions or extracts from the article in other works (with full acknowledgment of the final article);
- preparation of derivative works (other than commercial purposes) (with full acknowledgment of the final article);
- voluntary posting on open websites operated by the author or the author’s institution for scholarly purposes,
(But it should follow the open access license of Creative Common CC-by-SA License).
Authors/Readers/Third Parties can copy and redistribute the material in any medium or format, as well as remix, transform, and build upon the material for any purpose, even commercially. Still, they must give appropriate credit (the name of the creator and attribution parties (authors' detail information), a copyright notice, an open access license notice, a disclaimer notice, and a link to the material), provide a link to the license, and indicate if changes were made (Publisher indicates the modification of the material (if any) and retain an indication of previous modifications.
Authors/Readers/Third Parties can read, print and download, redistribute or republish the article (e.g. display in a repository), translate the article, download for text and data mining purposes, reuse portions or extracts from the article in other works, sell or re-use for commercial purposes, remix, transform, or build upon the material, they must distribute their contributions under the same license as the original Creative Commons Attribution-ShareAlike (CC BY-SA).
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
