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Royal Holloway, University Of London, School Of Management
COVERSHEET FOR ONLINE COURSEWORK SUBMISSIONS
Module Code MN
Module Title International Business Research
MethodsIRP (Independent Research Paper)
Module Supervisor Yasaman Soltan-Zadeh
Student Candidate number
I understand that the School does not tolerate plagiarism. Plagiarism is theknowing or reckless presentation of anotherpersons thoughts, writings, andinventions, as ones own. It includes the incorporation of another personswork from published or unpublished sources, without indicating that thematerial is derived from those sources. It includes the use of material obtainedfrom the internet. (Senate Regulations 6.46)
I confirm that I adhere to the Schools Policy on plagiarism.
Continue writing your coursework on the next page. Alternatively, if you havealready written your coursework in another document, copy and paste thecontent of your coursework from your document within this file.
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Independent Research Project Topic
The information and communication architecture of
social media platforms: Implications forinternational business.
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Part I: IntroductionChapter 1: Theoretical framework
Part II: Context of the study
Chapter 2: Critical Literature Review
Part III: Methods Applied
Chapter 3: Research Methodology
Part IV: Empirical Research
Chapter 4: Results from a study of 25 firms.
Part V: AnalysisChapter 5: Discussion, the link between the empiricalstudy and the empirical findings.
Part VI: Conclusions.
Chapter 6: Conclusions
Part VII: Appendices
Part VIII: Bibliography
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Table of Contents
Abstract07
Acknowledgement......................................................................................................................................071.0 Chapter One: Introduction..08
1.1 Introduction.09
1.2 Research Questions.09
1.3 Research Objectives....10
1.4 Theoretical and practical contributions...10
1.5 Research Motives.....11
1.6 Dissertation Structure...12
2.0 Critical Literature Review................................................................................................13
2.1 Defining social media and social network sites14
2.2 International business and social media....15
2.3 The Honeycomb model of Social Media...16
2.4 Challenges for international business17
2.5 Current research (2009-2013)18
2.6 Gaps in understanding, contributions of research..19
3.0 Methodology and research methods...22
3.1 Research Approach.22
3.2 Research Design.23
3.3 Sampling.....24
3.3.1 Pilot Study of survey....25
3.3.2 Measurement of scale items.26
3.4 Validity and reliability27
3.5 Research Philosophy.......................28
3.6 Data analysis.......................28
3.7 Research Ethics.......................28
4.0 Findings/Results/Data Analysis......................30
4.1 Questionnaire results...................31
5.0 Discussion...................37
5.1 Overview of significant findings................38
5.2 Research questions and main discussion................38
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5.3 Recommendations for further research...39
5.4 Limitations40
6.0 Conclusions........................................................................................................................41
6.1 General Conclusions..........42
6.2 Theoretical and practical contributions: main conclusions........42
6.3 Implications for the field.. 43
7.0 Appendices.........................................................................................................................44
7.1 Appendices One .........45
7.2 Name Of Companies.............................................................................................................................46
7.3 Questionnaire..........................................................................................................................................47
8.0 Bibliography .............................................................................................................................................48
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Abstract
This research critically explores the nature of social media platforms and the implication they
have for international business. Reflecting upon a sample of 25 customer facing firms and 100
managers from within them, a survey was carried out to review the attractiveness of social
media factors and the link between social media and overall firm performance. The results of
the survey revealed that identity, and control were key considerations of international firms
and, that one of the core challenges firms face is trying to integrate different platforms acrossglobal economies. This research is committed to examining social media under the theoretical
framework of the Honeycomb framework. The Honeycomb framework makes social media
factors tangible by reflecting upon a number of domains and facets. An appreciation of this
theoretical framework is used to guide the nature of the empirical research.
Acknowledgement
I would like to express my gratitude to my supervisor Yasaman Soltan-Zadehfor the useful
comments, remarks and engagement through the learning process of this independent research
project. Furthermore I would like to thank my colleagues who helped me in introducing the
topic as well for the support on the way. Also, I like to thank the participants in my survey,
who have willingly shared their precious time during the process of interviewing. I would like
to thank my loved ones, who have supported me throughout entire process, both by keeping
me harmonious and helping me putting pieces together. I will be grateful forever for your
love.
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Chapter 1
Introduction
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1.0 Introduction
1.1 Introduction
Information transaction is the basis for all communication (Hutton and Fosdick, 2011: 34).
For international businesses the effectiveness of information transaction has increased
manifold due to the advent of online medium (internet). It has to a large extent transcended
physical and political barriers, albeit with some issues in smoothening out goods and servicetransactions, and associated revenue transactions that are supposed to follow online
transactions (Levere, 2010). Within the overall online environment lies a fast evolving pool of
sub-systems that began with email, and has now seen the coming forth of social media. The
social media architectures are quite varied, from more generic portals like Facebook to more
specific portals like Linkedin and even blog based forums that involve communities of users
or providers along a specific domain (Cha et al., 2010: 4). The presence on and strategizing
for imaging and reach through such portals that now claim nearly a billion users - is
something that no business strategist can ignore. Arguably this is more so in an international
context when the membership on these forums is quite global in nature (Kaplan and Haenlein,
2010: 63). The understanding of how international businesses can leverage social media
portals for enhanced returns is a very pertinent and timely issue that international business
studies should examine.
1.2 Research Questions
The research is underpinned by two central research questions. The research questions have
been derived from the literature and are tested empirically within the given context. A critical
examination of the literature and the key gaps in understanding present within it has resulted
in the development of two, sequential research questions.
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1. What factors make social media forums more attractive in the context ofin ternational business?
2. How can international businesses leverage social media portals to enhance businessperformance?
1.3 Research Objectives
In support of the identified research questions, the following research objectives reflect the
overall purpose and goal of the research. Whilst the research questions drive the empirical
study, the research objectives have been identified as providing the overall focus for the
research. The research objectives in particular are theoretically and conceptually discussed
within chapter two, the critical literature review. The following objectives guide the research
process:
1. To explore the nature and inf luence of social media on international businesspractice.
2. To critically review the mechanisms which underlie attractive social mediaplatforms.
1.4 Theoretical and practical contributions
This research makes a number of theoretical contributions, which are central to the field of
international business. The validity of the research and its usefulness is reinforced by the
contributions it makes (Saunders et al, 2011). Drawing upon the existing literature, this
research is placed in its want to explore a number of core gaps in understanding. At present,
the current field is still exploring the relatively new concept of social media, and, great
emphasis is placed on how social media has changed the culture and practice of marketing
(Mangold and Faulds, 2009). This research however steps away from the realm of marketing
and, instead explores social media from within the international business arena. This is
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supported by the work of Kaplan and Haenlein (2010) who note the need to explore both the
challenges and opportunities of social media from a global, international business community
perspective. The concept of social media is seen to be at the top of the agenda for manybusiness executives today (Kaplan and Haenlein, 2010, p. 59) and this statement drives the
want to make a number of practical contributions. This research aims to enable international
firms to understand the opportunities of social media and how social media can be used to
enhance business performance. The practical drivers are therefore related to the need for firms
to understand how to best use social media and, from anadditional, different perspective the
nature of attractiveness of different platforms for the international firm. As such, this research
aims to integrate theoretical discussions with a practical application to the modern day firm.
In light of increasingly dynamic and turbulent business environments this research is focused
upon the want to promote social media as a tool, which can enhance the business performance
of international firms (Teece, 2009). The decision to place this research within the context of
international business is justified when we consider the increasingly integrated nature of the
global economy and the technological changes, which have characterised the global market in
recent years (Forsgren, 2013: Britz and Hertel, 2011).
1.5 Research Motives
This research is underpinned by a want to examine social media from within the international
business field. Whilst social media is an increasingly popular topic tackled by academics, it is
one, which only in recent years has been tackled from within the international business arena
(Bolton et al, 2013). The purpose of this research is therefore to not only review what we
know, but to also identify and then aim to tackle a key area of what we dont know. At
present, within the literature little is known about how international businesses actively use
social media to enhance performance and even less is known about those factors, which make
particular social media platforms desirable. Driven by the work of Bolton et al (2013, p. 245)
this research reflects upon an existing conceptual framework in order to yield a detailed and
progressive research project.
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1.6 Dissertation Structure
Following this introductory chapter, the dissertation is divided in to five sections covering: a
critical literature review (chapter two), research methodology (chapter three), findings from
the empirical study (chapter four), discussion of core concepts and theoretical focus (chapter
five) and conclusions (chapter six). In the final chapter, the research questions are revisited in
order to reinforce and establish the contributions the research has made to the literature and
the implications this has for practice. Figure one below outlines the structure of the
dissertation in diagrammatic form.
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Chapter 2
Context of study: Literature View
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2.0 Critical Literature Review
The literature in the area of business management and information systems has clearly
recognised the arrival of the term social media as beyond social networking portals (Kaplan
and Haenlein, 2010: 67: Xiang and Gretzel, 2010). The creation, generation and impact of the
information exchange on these portals make the value proposition from being in the conduit
of such processes very lucrative (Safko et al., 2009: 115). The reason is that visibility and
reach potential is tremendous as of-course is the networking potential (York, 2009). Both
business-to-business links and business to customer interface become greatly facilitated.
Although both business and the social media contexts have been discussed in extant research
the initial scan of literature reveals very little direct emphasis on the interface between
international business and social media. International business argues reach to potential
customers and the need to be culturally adept with tastes and preferences of customers from
diverse cultures, as major challenges the heterogeneous and complex cultural platform of
social media cutting across the globe become quite lucrative (Wortham, 2010; Safko and
Brake, 2009). Examining this niche area of the interface between the international businesscontext and the social media potential is thus likely to be a useful input into the body of
knowledge for both social media designers and for international business strategists (Fb,
2011).
The challenges for international business in extant research go beyond just adaptability from a
perspective of the heterogeneous customer base. It also transcends business-to-business issues
of working with supply chain partners across the globe and coordination between different
subsidiaries (Zeisser, 2010; Hutton, 2011). Communities of practice perspective has been
taken forward to support this need for networked communication and information sharing
which can also be facilitate by social media (Wortham, 2010; Cha et al., 2010: 6).
This brings one to the perspective on variety in social media itself. While some portals are
blog based forums others are specialized into professional networking like LinkedIn and still
others are more generalized around communities built through informal contacts like the
Facebook and also more open in terms of what is the theme they ordain for a coalescing
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community (Zukerberg, 2010). In this spread of architectures the combination of media
options for an international business both by virtue of its international in scope nature and
by virtue of its area of business (industry, geographic) become crucial selection premises foroptions that social media architectural options that businesses can explore. There is frequently
a footer mark on many business websites that show that visitor can like; them on Facebook
or follow them on Twitter, among others. Clearly this validates the idea of strategic
selection as afore-mentioned. The strategic choice of presence on social media portals for
international businesses has resource implications as well for design and investment in
content formulation and professional inputs to manage the imaging and associated
communications on such portals (Kee et al, 2013).
2.1 Defining social media and social network sites.
Social media has grown in terms of both the amount of users and its influence within the
global economy (Marques et al, 2013,). The interactive environment promoted by social
media has influenced the nature of modern day business practice. Whilst the benefits of social
media are largely explored within the literature from both a user and firm perspective, the
current treatment of literature is yet to review social media from within the realm of
international business. In particular, focusing upon decision making and information sharing,
it is possible to understand just a few of the benefits associated with the application of social
media for the international firm (Luo et al, 2013).
Social network sites are defined by Boyd and Ellison (2008) as being web based services that
allow individuals to 1) construct a public profile within a bounded system, 2) articulate a listof other users with whom they share a connection, and 3) view and traverse their list of
connections and those made by others within the system (p.211). Social media therefore
reviews to the overall term for the collection of social network sites including Facebook,
Twitter, and YouTube. Despite social media sites being around since 1997 (Boyd and Ellison,
2008) it was in 2005 with the launch of Facebook that social media changed forever. Social
media refers to a range of both mobile and web based technologies and is founded upon the
creation of platforms whereby users can share, co-create, discuss and modify user generated
content (Kietzmann et al, 2011, p. 245). In the current economy, a number of rich and
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diverse social media sites exist and have such sites have been experiencing increased and
rapid popularity.
2.2 International business and social media
The rise of social media has resulted in a change to the way in which the corporate world
communicates (Sublet et al, 2011). Corporate communication has become democratized and
the rise of theoretical positions such as relationship marketing advocate the need for the
modern day firm to interact and communicate with its consumers. Firms therefore are
increasingly involving social media strategies in their overall strategic approach. As noted by
Weber (2010, p.1) These days, one witty tweet, one clever blog post, one devastating video
forwarded to hundreds of friends at the click of a mouse can snowball and kill a product or
damage a companys share price. As such, in addition to the numerous opportunities
associated with social media, great challenges result for firms trying to manage social
communications online (Hanna et al, 2011).
2.3 The Honeycomb model of Social Media
Forming the theoretical framework for the development of the survey instrument in this
research, the honeycomb framework of social media is a framework which consists of seven
functional blocks: identify, conversations, sharing, presence, relationships, reputation and
groups. Within each block it is possible to then explore a series of additional facets. The
blocks present within the framework are not mutually exclusive and do not have to be present
in their entirety across each social media platform, however, the domains outlined allow for a
level of functionality to be achieved when reviewing social media sites (Kietzmann et al,
2012).
The first block present within the Honeycomb framework of social media is particularly
important when considering the importance of social media for the international firm
(Sianipar and Yudoko, 2012). The domain of identity refers to the extent to which users use
social media to create an identity for them. Identity is considered to be core to social
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media and in turn this has implications for the multinational firm with regards to which social
media platforms they choose to be on and the identity they promote. To a certain extent
decisions related to social media must be aligned to the organisational culture of the firm(Schein, 2012). Integration and consistency thus remains key when approaching social media.
For the multinational firm there is a need to ensure that the identity of the firm is integrated
and consistent in its approach to communications (Hutton, 1996). .
Social media has introduced a number of pervasive changes to communication between
organisations, individuals and communities. In an era of stakeholder importance (Hayes,
2007), social media provides a platform from which organisations can directly communicate
with their consumers. However, whilst the opportunities of social media are prevalent, many
challenges exist with regards to how multinational firms can control and manage
communications online. The Honeycomb framework provides a useful tool from which to
begin to understand the application of social media. By analysing the different building blocks
within the framework, it is argued that it is possible to develop a social media strategy which
is aligned to the culture of the firm and yet wide reaching to consumers (Berthon et al, 2007:
Kim and Ko, 2012).
2.4 Challenges for international business.
As noted by Berthon et al (2012) social media has influenced the strategic focus of the
multinational firm. In a dynamic and interconnected international environment, there is a need
to consider the way in which social media can be used to sustain a superior competitiveposition (Berthon et al, 2012). The technological tsunami as deemed by Berthon et al (2012,
p. 261) points towards a need for firms to change the way in which they communicate, and in
particularly the interactions they have with their consumers. The need to engage with
consumers and embrace technology is thus a topic of increasing importance for managers.
The new global marketing environment creates challenges for the international business. The
international environment is increasingly integrated and inter-connected in nature. As such,
international firms have to not only deal with the strategic challenge of communicating with
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their consumers but also the challenges related to understand the needs and moves of key
stakeholders, economies and competitors (Teece, 2009). Social media is considered by
Berthon et al (2012, p. 262) to be a function of the technology, culture and government of aparticular country. This in turn has implications for the way in which the international firm
must approach social media. Moving on from this, it is also noted that the actions and
creations of creative consumers tend to be a function of the technology, culture, and
government of a particular country (Berthon et al, 2012, p.263). It can therefore be seen that
social media exists within a particular cultural and contextual setting (Bandura, 2001).
2.5 Current research (2009-2013).
Mangold and Faulds (2009) consider social media to be the new hybrid element of the
promotional mix (p. 357) and, in turn they consider social media to have changed the nature
and magnitude of communications. The new paradigm of communication has resulted in a
great deal of research including the work of Rashtchy et al, (2007) and Vollmer and Precourt
(2008).
In a study by Chua and Banerjee (2013) a review of how Starbucks manage their social media
is conducted. Using a case study approach, the authors conducted a detailed review of how
Starbucks move away from traditional paradigms to draw on the opportunities within social
media. The findings of the study reveal that Starbucks deploy a range of social media tools
and this in turn provides an instrument for effective marketing. Moreover, Starbucks use
strategies to alleviate customers reluctance for voluntary sharing and therefore promoteengagement (Chua and Banerjee, 2013). The Chua and Banerjee (2013) study is fundamental
in reviewing and examining the opportunities of social media. Extending this out, this
research seeks to move away from a case study approach to a research approach, which
reflects on cross industry approaches to social media.
Earlier on this year, Annabi and McGann (2013) conducted a study connecting communities
of practice to business strategy (p.56). Through an embedded case study approach, the
authors show that social media is aligned to the business strategy and is in fact the missing
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link to execute organisational guidelines and strategic approaches (Annabi and McGann,
2012).
2.6 Gaps in understanding, contributions of research.
Whilst a great deal of research dealing with social media focuses upon marketing and strategy
(Kumar et al, 2013: Galan, 2013) an additional focus relates to the behaviour of consumers
(Vij and Sharma, 2013). A focus on the cognitive foundations of the user is typical within
recent research and in turn this largely draws on the experience of consumers and the motives
behind their decisions to interact with firms. At present, very little literature deals with social
media with a specific focus on multinational firms. The international business context is
changing and as such, there is a need to explore the ways in which such changes in the
political, social, economic and technological environment impact upon a firms decision to
invest in social media. Moreover. Whilst social media is argued within the literature to be of
great benefit to the firm (Murphy and Salomone, 2013) little literature deals directly with the
link between social media and the way in which it enhances business performance. In
addition, a core gap identified relates to the need to explore the attractiveness of social media
platforms and how firms decide which platforms to utilise.
Within the literature, attention is largely directed to case study research conducted within one
industry or one firm. This research therefore seeks to make a contribution by exploring and
examining social media from a survey perspective, which deals with the opinions and
viewpoints of 25 different firms and management within them. This research therefore makes
a contribution to the international business literature and marketing literature by reviewing theconcept in detail and applying the Honeycomb model to a range of firms. The results of the
data are therefore influential in shaping future research. Furthermore, moving away from the
consumer as the user, this research is advocating the need to explore the actions of the
business user. This in turn reveals information with regards to how decisions are made and the
link between corporate strategy and the use of social media. It is recognised within the
literature that social media technology has the potential to contribute to a more consumer
centric approach, which in turn allows for a more superior competitive advantage to be gained
(Trainor et al, 2013).
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Within the international business arena, a key debate exists with regards to standardisation
versus adaptation (Szymanski et al, 1993). Whilst some academics argue that international
business is focused upon standardisation of business models, others argue the need to adapt tocultural surroundings in order to survive. The desirability of an adaptable, hybrid strategy is
thus considered to be preferable within dynamic and competitive environments (Teece, 2009).
Linking to this debate is the role social media plays in promoting a more consumer centric
approach within the firm. Global economies despite being increasingly integrated are still
unique in their own ways and thus, through social media it is possible to argue the need for
firms to communicate with consumers within the constraints of the economys culture and
context (Theodosiou and Leonidou, 2003).
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Chapter 3
Methods Applied: Methodology
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3.0 Methodology and research methods
This chapter presents the methodological approach, justification of research instruments and
an appreciation of research ethics. Throughout, reference is made to the existing
methodologies employed within the field and how, an appreciation of such allows for the
development of a methodology which is founded upon the want to create valid and
meaningful research outcomes.
3.1 Research Approach
A quantitative research approach is applied. The study is based upon the collection of
primary, empirical data. A survey study of international businesses, which have an online
presence, will be targeted to complete a survey. The survey itself will address a number of
scale items taken from within the literature and will be addressed from Likert scale approach.
Respondents will be asked to rate a number of items including statements such as the extent
to which a certain factor matters or the agreement respondents show for different ways in
which social media can be exploited. The survey items used are derived from a detailed
review of the literature within chapter two and have been developed from an extraction of
factors from academic research papers, news items and practionner journals. The Likert scale
instrument used within the survey has been pretested for reliability purposes and is based
upon a construct validity stemming from the link between the developed research questions
and the literature review. In order to validate the use of the survey, a pilot study has been
undertaken with forty undergraduate students. Further details of the pilot study can be found
in section 3.2.1.
Moving away from those studies, which explore social media from a purely conceptual and
theoretical perspective (Kaplan and Haenlein, 2010: Kietzmann et al, 2011), the research
approach adopted stems from a want to explore the topic in an empirical manner. In a
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traditionally conceptual and ambiguous field, there is a need to understand the topic from an
empirical perspective. To date, from within the realm of international business, most studies
are conceptual in nature as a result of the topic being a new consideration to the field(Osterwalder et al, 2005). However, now that the conceptual foundations have been laid it is
possible to begin exploring many of the key concepts from an empirical perspective.
The use of a survey as the core research instrument is justified when we consider the ability of
the researcher to draw on existing scales to create a measurement for social media
attractiveness. Further, by using a survey it is possible to analyse the data in a quantitative
manner, which enables an ability to review the relationship between social media and
enhanced business performance. Social media is highly interactive in nature and, this in turn
justifies interaction with those people who utilise social media from an international business
perspective. Further, the rich and varied nature of social media requires the application of a
tool, which is able to capture the variety of social media platforms (Kietzmann et al, 2011).
Whilst surveys have a number of strengths largely stemming from their ability to capture a
range of data with little cost to the research (Bryman and Bell, 2011), surveys do have
limitations, which must be considered. The main limitation associated with questionnaires is a
lack of potential participant misunderstanding and thus missed responses. In order to reduce
the possibility of this limitation, a pilot study was used to test and validate the survey before
being sent out to the sample group (Leon et al, 2011).
The survey was designed using the online platform Bristol Online Surveys. Bristol Online
Surveys is a professional service, which creates effective looking surveys, which can be
emailed out to the sample group. All surveys were emailed out and participant responses were
automatically collected to be analysed when ready. The justification for completing an online
survey stemmed from the want to collect data in a time and cost efficient manner.
3.2 Research Design
The research design consists of three core stages. The first stage draws on existing secondary
data in order to form the context for the research. A detailed and critical review of existing
conceptual and empirical literature was undertaken in order to present the theoretical
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framework for the research. In addition, the Thomson One database was used to validate
findings from within the survey instrument. The second stage consisted of a survey item with
25 firms. Within each firm a minimum of three representatives from the management of thefirm completed the survey. In total, a sample size of 80 was achieved. The third and final
stage of the research design consisted of an integration of conceptual and empirical work to
develop a series of conclusions and recommendations to move forward in the field. As an
exploratory piece of research the research design is founded upon a want to explore the topic
in an open, and fluid manner (Stebbins, 2001)
3.3 Sampling
Sample Criteria: Middle and top managers taken from international firms present in more than
one international location who have use of at least one social media platform [Validated using
Thomson One Database].
The sample group consisted of 25 firms achieved through a snowballing sampling strategy.
Drawing initially upon personal contacts, a purposive snowballing sampling strategy was then
pursued to gain access to a larger sample group. Once access had been facilitated, participants
were sent the link to an online survey. The recruitment strategy employed stemmed from the
use of online forums and communities of middle managers, which facilitated the sampling
approach (Marczy et al, 2005:2011). In order to validate the nature of the international firm, a
series of secondary data sources were called upon. Firstly, verification that the international
firm utilised social media was completed through an exploration of their existing social mediaplatforms. Moreover, the online database Thomson One was used to review the context of the
firms in question (Thomson One, 2013).
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3.3.1 Pilot Study of survey.
Social media is examined in this research in an empirical study. Due to the typically black
box and ambiguous nature of social media, it was a challenge to develop measures, which
could be used to empirically test the concept. As such, a variety of factors and measures were
taken from a range of academic sources in order to design the survey. Once those measures
had been brought together it was necessary to undertake a pilot study in order to validate the
use of chosen statements. The pilot study adopted a Q methodological approach (Watts and
Stenner, 2012). The process and results of the Q methodology are presented below:
As defined by Watts and Stenner (2012) Q methodology measures subjective viewpoints
through a complex series of steps in which study subjects rank order statements in a precise
fashion (p.4). The purpose of the Q sort was to ensure that the statements present within the
survey tested what they were meant to test. A simple Q sort test was carried out with forty
undergraduate business students. Results gained from the Q sorts were then used to carry outfactor analysis.
P Set = 40
Q Set = 25 (+3 categories).
No of Headings = 3.
During the pre-sorting stage, a random sampling strategy was adopted and business school
students were chosen from within the business school caf. Participants were asked to place
25 items in to one of three categories (competitive advantage, attractiveness and other.
Definitions of the three categories were made available to the respondents and they were able
to refer to these statements throughout the course of the Q sort, which lasted between 9-12
minutes. The Q sort took place during the first week of June. Participants were asked to rate
different items depending on how well they felt it reflected the category they placed it within.
Free distribution was used due to the fact that as noted by Brown (1980) researchers often
use forced distribution because it is often easier and more practical, but that the results often
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do not differ and, as such, free distribution can be easier for the participant to do (p.12). I t is
also felt that in this instance, forced distribution may have resulted participants putting
statements in categories simply because they felt they had to. This in turn would impact uponthe quality of the validation tool.
Once the Q-sort data had been collected, the software PQ method was used to review the data.
A process of factor extraction took place and, as a result of the Q sorts, only the statements
validated in the Q-sort were used in the final presentation of the survey. In total, five
statements were removed leaving 20 scale items in the final copy of the survey sent out to
participants.
3.3.2Measurement of scale items.
Given the abstract nature of the measurement of social media and the little empirical
treatment within the literature, the researcher had to adopt the task of measuring social mediaattractiveness and the link between social media and enhanced business performance. In order
to develop a measurement for the survey, different items within the literature were drawn
upon. Utilising the work of Kietzmann et al (2011) the honeycomb model of social model was
translated into a series of statements linked to the attractiveness of a social media platform
and a series of statements linked to functionality and enhancement. A full copy of the model
is shown below in figure two. In addition to the use of the honeycomb model, the work of
Kaplan and Haenlein (2010) was used to create a series of scale items related to the research
questions. (The table is on the next following page)
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3.4 Validity and reliability
The validity of the scale items used within the survey was validated using the Q
methodological approach outlined in section 3.2.1. Furthermore, scale items chosen were
derived from the existing literature and therefore the academic works the scales were based
upon were all respected and well used within the realm of social media. Secondly, by
reflecting upon existing theoretical frameworks and conceptual items, the critical literature
review conducted in the previous chapter allowed for the research to be validated in terms of
its understanding of the research context.
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3.5 Research Philosophy
A post positivist philosophy is adopted for this research. The quantitative research approach is
stemmed from a post positivist approach based upon the use of fact to reinforce relationships
(Benton and Craib, 2012: Schwandt, 2000).
3.6 Data analysis
In order to analyse the survey, descriptive statistics compiled within SPSS were used toreview the key relationships identified. Furthermore, despite a quantitative methodology
being largely employed, a level of interpretation was also applied in order to understand the
context. Methods of analysis deployed were used to show to measures of central tendency,
which were deemed to influence the overall dominance of both factors and approaches. An
analysis of the factors was taken forward in the form of a detailed discussion placed within
the existing literature context in order to understand the implications of the data gained.
Regression based analysis whilst revealing would not be appropriate in this context due to the
small sample size, however, a discussion of comparison results has been completed which can
be taken forward to understand causality (Marcyzk et al, 2005: Bryman and Bell, 2011).
3.7 Research Ethics
A consideration of research ethics is becoming increasingly important within business
research. In addition to following University ethical guidelines, this research is underpinned
by the Academy of Management (2013) ethical guidelines. The use of a series of guidelines is
deemed to be particularly important due to the nature of human participants within this study.
The guidelines below guide any processes of ethical decision making. All respondents
partaking in the study were assured of confidentiality and that the data gained would be used
for academic purposes only. The ethical position of the research was outlined in an email
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prior to the survey being sent out. Respondents were also given the option to request a copy of
the summarized results and findings from the study.
1. ResponsibilityAOM members establish relationships of trust with those withwhom they work (students, colleagues, administrators, clients). They are aware of
their professional and scientific responsibilities to society and to the specific
communities in which they work. They are concerned about the ethicality of their
colleagues' scientific, educational, and professional conduct. They strive to contribute
portions of their professional time for little or no compensation or personal
advantage.
2. I ntegri tyAOM members seek to promote accuracy, honesty, and truthfulness inthe science, teaching, and practice of their profession. In these activities AOM
members do not steal, cheat, or engage in fraud, subterfuge, or intentional
misrepresentation of fact. They strive to keep their promises, to avoid unwise or
unclear commitments, and to reach for excellence in teaching, scholarship, and
practice. They accurately and fairly represent their areas and degrees of expertise.
3. Respect for People's Rights and Digni tyAOM members respect the dignity andworth of all people and the rights of individuals to privacy, confidentiality, and self-
determination. AOM members are aware of and respect cultural, individual, and role
differences, including those based on age, gender identity, race, ethnicity, culture,
national origin, religion, sexual orientation, disability, language, and socioeconomic
status, and they consider these factors when working with all people. AOM members
try to eliminate the effect on their work of biases based on these factors and they do
not knowingly participate in or condone activities of others based upon such
prejudices(Academy of Management, 2013 p.1).
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Chapter 4
Empirical Research
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4.0 Findings/Results/Data Analysis
This chapter will present the results of a survey carried out with 25 firms and 100 participants
in total. Respondents were sent a survey via email and results were collated on the online
platform Bristol Online Surveys. Results are presented in this chapter in a series of tables and
graphs. Descriptive statistics are used to highlight the most popular responses to the survey
items. A full copy of the questionnaire is available in appendix one for your reference. In
order to gain the sample size of 100, 244 surveys were sent out. This therefore reflects a
response rate of 46%.
The sample group of 100 consisted of 25 different firms present within the services sector. All
firms within the sample were considered to be consumer facing and therefore with reason to
communicate with consumers via online platforms. Respondents from within each firm were
middle management upwards. The justification of sampling managers was as a result of
wishing to understand the motives of key decision makers within the firm. A full list of the
companys questioned is available upon request.
4.1 Questionnaire results
The survey was sent out to 25 firms in total, firms were identified through a purposive,
snowballing sampling strategy. All respondents completed the survey in a period of six
weeks. Reminder emails were sent out on a fortnightly basis to prompt responses. With
regards to the demographics of respondents, 67% of respondents were male. This is aligned to
management data, which highlights that more males than females are present within
managerial roles.
In order to gauge opinion with regards to social media platform attractiveness and the link
between social media and business performance, respondents were given a list of twenty
statements, which they had to rate on a Liker Scale (1-5). 1 on the scale was strongly
disagreeing with 5 being strongly agreed. The statements were presented to the respondents
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individually on the online platform. In line with the survey instructions, respondents were told
to not think too much about the response and to instead go with their gut feeling or firstthought. In this type of survey where a rating needs to be applied it is important not to over
think opinions.
A presentation of the scale items and a discussion of the responses gained will now follow
[Scale items taken and adapted from the Honeycomb Framework of Social media in
Kietzmann et al, 2011, p. 247].
Part one:attractiveness of social media architecture. What is important to you when deciding
upon a social media strategy?
Item one: the extent to which users know if others are available.
Item two: The extent to which users are able to exchange, distribute and receive content
from the firm.
Item three: The extent to which users reveal themselves and have an identity online.
Item Four: Data privacy and controls to maintain interaction between the firm and the
consumer.
Item Five: Ability to manage content and gain accessible data.
Item Six: Ability to manage the structural and flow properties in a network of relationships.
Item Seven: The reputation of the social media platform.
Item Eight: The ability to control user posts or comments on the social media platform.
Item Nine: Ability to integrate and communicate with a global audience.
Item Ten: Ability to create membership rules and protocols.
Of the above items the items, which received the strongest agree rating with a mean of 4.3,
were items 4, 9 and 10. From this it can be taken that the most attractive factors are those,
which are focused upon ease of integration and security online. Management were keen to
promote the need to follow protocols and control the content of online platforms. This is
related to the need for organisations to manage the challenges, which can be associated with
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social media use. In a day and age where consumers have the power to directly communicate
and challenge organisations, it is important that organisations are able to regain as much
control as they can. The ability to therefore monitor posts and control comments is thereforedeemed to be important to the sample group.
The first three items referred to identity, which is deemed to be a core domain within the
Honeycomb framework of social media. The respondents had mixed opinions with regards to
the importance of users being able to freely exchange information but overall, support was
given for these statements. The pie chart below shows the percentages associated with these
three items combined. As seen in the pie chart, the majority of respondents strongly agreed on
average with statements 1-3. From this it can be inferred that there is evidence to support
identify as being a core consideration of social media platforms from a business perspective.
Item seven asked respondents to state the extent they feel the reputation of the social media
platform to be an attractive factor when deciding upon social media platforms. The results of
this statement indicated that respondents felt the reputation had to be highly positive. 86%
strongly agreed with this statement. Moving forward, future research could be conducted into
understanding how reputation is measured and quantified. Linking to the field or
organisational and corporate reputation, this result is likely to be linked to the importance
Items 1-3 Combined Ratings
Strongly Agree
Agree
Uncertain
Disagree
Strongly Disagree
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placed on the need to secure a positive reputation throughout the actions of the firm (Roberts
and Dowling, 2002).
A further item, which needs to be explored in more detail, is item eight which links to the
control the business user has in controlling user posts. This could be deemed to be particularly
important if unfair or damaging reviews are posted on an online platform. The results for item
eight are presented in the below pie chart.
As seen above, mixed responses were given for item 8. Out of all of the statements within part
one, item 8 received the most mixed response with the highest proportion of respondents
stating that they were uncertain (22%). This is an interesting result and one, which it isadvised requires further exploration in future, studies. In particular there is a need to
understand the motives behind controlling posts and in particular how the consumer would
respond to such actions. Agreeance with the statement was strong and, as such, this is likely
to reflect that organisations wish to gain some control over the dynamic, interactive nature of
social media. Only recently, a newspaper article published identified the dangers to reputation
of false reviews being posted on Trip advisor, an interactive forum (Harding, 2013). The
policy of social media sites is thus gaining increasing prominence and attention from within
Item 8
Strongly Agree
Agree
Uncertain
Disagree
Strongly Disagree
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the media. Examples such as this are likely to make firms weary about misleading or false
postings. As revealed in the work of Correa et al (2010) there is a need to understand why
people act in certain ways online and through such understanding it is possible to control andmanage potential and existing relationships (Correa et al, 2010).
Part two of the questionnaire sought to examine the link between social media and enhanced
business performance. 10 items were used in total and were derived from the literature.
Item eleven: We use social media to improve interactions with our consumers.
Item twelve: We regularly review our usage of social media platforms to seek out new up
and coming platforms.
Item thirteen: We struggle to integrate online social media pages across our global
markets.
Item fourteen: Facebook and Twitter dominate our approach to social media.
Item Fifteen: Social media is a fad.
Item Sixteen: Social media impacts upon our strategic direction and the orientation of the
firm.
Item Seventeen: Social media, we feel directly enables a competitive advantage.
Item eighteen: It is difficult to control social media, unfair comments can be difficult to
come back from.
Item nineteen: Since using social media, we have seen an improved relationship with our
consumers.
Item Twenty: We would benefit from understanding more about the motivation for
interactions online.
Items 11-20 was concerned with understand how international businesses felt about social
media and the links it had with an ability to enhance and then sustain a competitive
advantage. Of these statements, the statements that scored highest and had a mean score
combined of 4.3 were item 11, item 13 and item 19. With regards to item 11, respondents
agreed that they use social media to improve interactions with our consumers. This is
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expected and is supported by a wide range of literature, which links social media use to a
more consumer centric approach (Fisher, 2009). As noted within Fisher (2009) it is possible
to review the return on investment of social media through a consideration of the benefitssocial media brings to the organisation. Increased sales are a direct measure of social media
campaigns. Item 13 received a strong response with over 52% agreeing with the statement.
This in turn points towards the challenges faced from an international business perspective.
Participants noted that they felt it was difficult to integrate social media pages and, as a result,
this reflects the challenge associated with the cultural and contextual orientations of social
media. The final most highly rated item was item 19, participants stated that they have seen
an improved relationship with their consumers. This is a positive outcome of social media
and can be used as an ROI of social media usage (Weinberg and Pehlivan, 2011). Thus,
despite the challenges associated with social media the overall viewpoint is that social media
provides a more consumer centric approach and thus improved market orientation (Curty and
Zhang, 2011).
Interestingly, item twelve we regularly review our usage of social media platforms to seek
out new and up and coming platforms only received 22% of participants agreeing with the
statement. This therefore can be linked to item 14 where 67% agreed that both Facebook and
Twitter dominate their approach to social media. This is an interesting finding and one that
perhaps raises a potential future challenge related to the need to challenge the status quo with
regards to a firms approach to social media. Structural inertia and culture within the firm
therefore could be detrimental to a firms flexibility with regards to social media (Hayes,
2007).
The statements above are linked to how a firm enhances its performance. Respondents in
general agreed that social media enhances consumer interactions and is considered within the
strategic orientation of the firm. However, in response to item 20, 46% of respondents agreed
that they would benefit from understanding more about how consumers interact online. This
is in turn linked to item 8 where businesses showed the want to be able to control and monitor
individual comments online.
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Chapter 5
Data Analysis / Discussion
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5.0 Discussion
5.1 Overview of significant findings
The empirical research highlighted a number of significant findings, which can be used to not
only draw conclusions bounded by this research but also pave the way for future research.
The main findings to be taken from the empirical study are the importance of social media
within international business, and its accepted link to enhanced business performance.
Attractive factors were identified and from these factors it is possible to shape future
understanding of the way in which firms choose which platforms to communicate on.
Interestingly, a challenge has arose which has been previously un-discussed within the
literature. In a similar vein, to how firms who are bound by structural inertia may experience
strategic drift (Hayes, 2007), this research argues that firms who fail to continually scan the
social media environment may be left behind in terms of technological change. As such, it is
advocated that there is a need to critically explore the environment from a social mediaperspective. Despite the two main social platforms Facebook and Twitter dominating this is
not to say that other valuable ways of communicating are not present. In turn, this has
implications for future research and the challenges associated with social media.
5.2 Research questions and main discussion
Referring back to the core research questions: 1. What factors make social media forums
more attractive in the context of international business? 2.How can international businesses
leverage social media portals to enhance business performance? It is possible to make
conclusions, which are directly aligned to the research questions. In reference to the first
research question, part one of the survey instrument revealed that the following factors are
most important to the firm within the context of international business: identify, control,
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integration and security. Of these, respondents rated the importance of security and the need
to be able to offer a safe platform within which consumers can interact with the firm. Control
was also an issue raised and respondents felt that if they were able to have final control overtheir page this would be attractive to them. This is considered within the light of the need to
police social media particularly in reference to corporate reputation. In light of research
question two; this was largely addressed from a critical review of the literature and an
understanding gained from the empirical data with regards to how businesses felt social media
enhanced business performance. The general responses from the survey revealed that social
media was directly linked to social media and that this in particular stemmed from a more
consumer centric approach. With regards to how a firm can leverage social media portals to
enhance business performance. The following recommendations are derived from the
empirical study and an examination of the literature:
1. Draw on the Honeycomb theoretical framework of social media to operationalize a
review of social media platforms.
2. To draw on the relationship marketing literature to promote the need to adapt across
different online, global platforms. Firms need to recognise that online communication
requires the same level of adaptation as physical communication and market entry
practices.
3. A consistent and integrated approach to social media is needed in order to enhance
business performance.
5.3 Recommendations for further research
There is little doubt within the academic literature that social media has transformed the
nature of business (Qualman, 2012). Since its rise in the mid 2000s, social media has
transformed the nature of communication, as we know it. The rise of social media platforms
such as Facebook and Twitter, have created an interactive platform in which consumers are
able to communicate with businesses on a 24/7 basis. Greater opportunities for consumer
feedback are thus vast and in turn this has resulted in a number of challenges businesses now
face with regards to how they can manage the dynamics of social media. Building upon this
research, it is argued that there is a need to understand on a grander scale, how international
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businesses are able to reflect upon the different cultural and contextual challenges associated
with social media. It is advised that a larger scale research project is carried out in a similar
vein to this one but with a sample size of 300+. In addition, it is believed that the use ofinterviews would further improve the level of detail gained within the research.
Moreover, as recognised within the data collection, firms wish to understand more about the
motivations of the user and the implications this has for how they communicate with
consumers. Building upon this, there is a need to explore the cognitive, psychological
foundations of the user. Here, it is recommended that personality is reviewed and the impact
this has on a persons want to build relationships and interact with the firm in question. This
is in support of recent research in the strategic management field, which is directed towards
understanding the micro level of concepts.
5.4 Limitations
It is important to discuss the limitations associated with the research presented in this
dissertation. The main limitation relates to the sample size used in the study. Constrained by
time, the research utilised a sample of 100 individuals from 25 different firms. For the study
to be considered to be statistically significant and to allow for more meaningful, detailed
statistical tests to be carried out there is a recognised need to have a sample of 200 +
(Saunders et al, 2011). This research could therefore be extended out to reach a larger sample
size. Another limitation relates to the use of one sole research instrument, in an era of mixed
methods it is advised that future research ensures the use of different research instruments in
order to undertake a process of triangulation (Bryman and Bell, 2011).
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Chapter 6
Conclusion
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6.0 Conclusions
This short chapter discusses the theoretical and practical contributions of the research in line
with the main conclusions drawn from the research. With a reference back to the goals of the
research and the core research objectives,the key points to be taken from the research are
reiterated. This chapter also makes reference to the implications the research has to the field
of international business. As a final thought, attention is given to the future paths of research,
which could stem from the empirical data gained.
6.1 General Conclusions
The following principle conclusions are to be taken from the research:
1. Security online and the reputation of the social media platform were seen to be the most
important considerations and attractive factors of social media platforms.
2. Ability to gain control over the social media platform was considered to be a key motivator
when deciding upon social media platform.
3. Respondents recognised the need to direct future research to understanding the motivations
for interaction from a consumer perspective.
4. Strong support that social media facilitated a more consumer centric approach and thus
enhanced business performance.
5. Admittance that businesses tend to stick with particular, successful social media platforms
and do not seek out new platforms.
6.2 Theoretical and practical contributions: main conclusions.
In order to justify the usefulness of this research and its potential for generalisation, attention
must be given to the theoretical and practical contributions this research has made. On a
theoretical level, social media is commonly reviewed from the perspective of the consumerand, to date little attention has been given to how firms utilise and decide upon social media
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as part of their strategic focus. This research therefore builds a theoretical case for the need to
explore social media from the perspective of different users. Moreover, moving away from a
field focused upon case study research, this research has empirically examined social mediathrough the use of a survey instrument. The design of a scale for the measurement of social
media attractiveness is thus a core theoretical contribution. Building upon the theoretical
framework of the Honeycomb framework, this research makes further theoretical
contributions due to its extension of this framework and its application to a cross industry,
cross firm sample.
With regards to the practical contributions this research makes, this research had a core goal
of wanting to make contributions, which were applicable to the modern day, international
firm. In recognition of the increasingly competitive nature of the business environment, this
research wanted to promote how social media can be used to enhance business performance.
The results of the empirical study have highlighted the most attractive features of a social
media platform and have also highlighted how firms utilise social media to enhance their
performance. Increasingly being viewed as a core capability (Barney, 1999: Teece, 2009),
more and more firms are committed to using social media to gain a consumer centric
approach. The results of the study therefore highlight the modern day international firms
commitment to ensuring a consistent approach to their communications online. Despite
challenges being recognised and referred to, attention in this research is largely given to the
orientation of social media and how it fits within the strategic moves of an international
business. On a practical level, it is hoped that this research will form the basis for future
consultancy opportunities within firms.
6.3 Implications for the field.
The research presented is multi-dimensional in its approach and, through the use of the
development of measurement scales developed from the literature review; future avenues for
research are opened up. Comparing different firms all with a commonality of using social
media, this research has been able to contextualise the environment within which social media
is used. In particular, this research has highlighted the ways in which multinational firms link
social media to enhanced business performance and the factors they consider to be important
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when deciding upon a social media platform. A better understanding has thus been gained as
to the mechanisms, which support the use of social media as a key strategic tool. Future
research stemming from this dissertation could therefore be directed towards a furtherunderstanding and conceptualisation of the way in which social media is used to enhance
business performance and thus be identified as a source of competitive advantage. In
particular, reflecting upon a recent trend focused upon capabilities (Henry, 2007: Teece,
2009) and in particular those capabilities which are considered to be unique and intangible,
this research could be extended to view an approach to social media as a unique source of
competitive advantage (Barney, 1999). This research has promoted the importance of culture
and context when reviewing social media, moving forward there is a need to conduct future
research directed towards understanding the role of context and culture in shaping social
media strategies within the international business arena.
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7.0 Appendices
7.1 Appendix One:A copy of the emailsent to prospective participants
asking them to be involved in the research.
To Whom It May Concern
I am currently pursuing a Masters degree at the University of Royal Holloway,
University Of London. As part of my Masters I am expected to carry out an extendedresearch project. I have chosen to focus my research project upon understanding the
implication social media portals have for international business. The research in
particular seeks to understand the factors, which make social media platforms
attractive and the ways in which International Businesses can use social media to
enhance business performance. Your role as marketing director within the
multinational company Accor is of particular interest to me as I feel you have the
knowledge to shed light on this currently under-explored research area. To this emailI have attached the research aims and what would be involved if you decide to
participate, this includes reference to the ethical approval of the study gained from
the University. I would like to invite you to fill in an online questionnaire, which would
take no longer than 15 minutes.
I will be in touch in a weeks time to secure firmer arrangements and to send the
questionnaire link out to you.
Best,
Ankit Sharma.
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7.2 Name of the companies involved
Name of firm involved Number of Participants
from this firm.
Accor 1
Baskin Robbins 6
Gerdau 1
Ikea 3
ING Group 1
Renault 2
Maggi 7
Starbucks 8
SAV credit 2
Sony 6
KPMG 3
HSBC 5
Samsung 2
Costa 1
Tesco 12
Nissan 4
Honeywell 4
Halifax 7
The Co-operative 5
Motorola 10
Cadburys 3
Nestle 1
Nokia 5
Asda-Walmart 1
N = 100
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7.3 Appendix Two: Copy of the Questionnaire
Many thanks for agreeing to complete the questionnaire. Please answer as honestly
and openly as you canyour responses are purely for academic use only.
Part One: attractiveness of social media architecture. What is important to you when
deciding upon a social media strategy?
Please rank the following statements with either:
5. Strongly agree
4. Agree
3. Uncertain
2. Disagree
1. Strongly Disagree
1. The extent to which users know if others are available.
2. The extent to which users are able to exchange, distribute and receive
content from the firm.
3. The extent to which users reveal themselves and have an identity online.
4. Data privacy and controls to maintain interaction between the firm and the
consumer.
5. Ability to manage content and gain accessible data.
6. The reputation of the social media platform.
7. The ability to control user posts or comments on the social media platform.
8. Ability to integrate and communicate with a global audience.
9. Ability to create membership rules and protocols.
10.Ability to create membership rules and protocols.
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Part two: examining the link between social media and enhanced business
performance.
Please rank the following statements with either:
5. Strongly agree
4. Agree
3. Uncertain
2. Disagree
1. Strongly Disagree
1. We use social media to improve interactions with our consumers.
2. We regularly review our usage of social media platforms to seek out new up
and coming platforms.
3. We struggle to integrate online social media pages across our globalmarkets.
4. Facebook and Twitter dominate our approach to social media.
5. Social media is a fad.
6. Social media impacts upon our strategic direction and the orientation of the
firm.
7. Social media, we feel directly enables a competitive advantage.
8. It is difficult to control social media, unfair comments can be difficult to come
back from.
9. Since using social media, we have seen an improved relationship with our
consumers.
10. We would benefit from understanding more about the motivation for
interactions online.
End Of Questionnaire
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8.0Bibliography
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