Article Metrics

Article abstract view : 2857 times
PDF full text: 1129 times

The Role of Social Media in Indonesia for Business Transformation Strategy

Eliot Simangunsong, Rudy Handoko

Abstract


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.

Keywords:

Social media, Social commerce, Business performance, Entrepreneurs

* School of Business and Economics, Universitas Prasetiya Mulya, Kampus Cilandak, Jakarta, Jl. RA. Kartini (TB Simatupang) Cilandak Barat, Jakarta, 12430, Indonesia

 https://doi.org/10.21632/irjbs.13.1.99-112


Full Text:

PDF

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-in-indonesia/

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.






Copyright (c) 2020 INTERNATIONAL RESEARCH JOURNAL OF BUSINESS STUDIES

International Research Journal of Business Studies has been covered by the following services:

   
  
Image result for university of Saskatchewan small logo