investigate on the effects of social media on e...
TRANSCRIPT
INVESTIGATE ON THE EFFECTS OF
SOCIAL MEDIA ON E-
ENTREPRENEURSHIP
ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)
March 22-23, 2018Nilai Springs Resort Hotel
Nilai, Malaysia
ABSTRACT
• Social media sites continue to grow in popularity. They offer aplatform for entrepreneurship practices; however it is important tounderstand how much trust and confidence entrepreneursshould place on information on social media.
• This paper examines the influence of social media, particularlyFacebook, Instagram and Twitter, on e-entrepreneurship bytesting for correlations between recommendations on socialmedia and consumption patterns of consumers.
• This was carried out by determining the effect of social media onmarket access, customer relationship management,innovativeness and pricing of products.
• The study used descriptive research design in which, clustersampling is used to divide the population of interest and thensimple random probability sampling technique to further identifythe specific e-entrepreneurship to be used for the study.
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)2
INTRODUCTION
• Social media sites continue to grow in popularity. They have become
new e-commerce platforms for entrepreneurship practices. The
emergence of the Internet has caused a switch from the traditional
market to market space available online.
• E-entrepreneurship can be defined as establishing a new company
with an innovative business idea using an electronic platform in data
networks, which offers its products and/or services based on a purely
electronic creation of value (Kollmann, 2006).
• Social media provides an avenue for enterprises to reach target
customers and generate new ideas for starting a business.
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)3
INTRODUCTION
• It provides an immediate source of information about current market
needs, product improvements and demand on new products.
• It also influences e-entrepreneurs with the right content that helps
them to make informed decisions as well as to gain access to
resources that might otherwise not be available.
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)4
MARKET ACCESS
• It is a process that guarantees all customers will get
quick and continued access to the product at the
right price.
• New approach, an entrepreneur should research
information on new markets in order for his product
or services to reach the intended customers.
Evidence from literature has confirmed that social
media can be employed to access new markets
and it has significantly expanded the global reach
of networking
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)5
CUSTOMER RELATIONSHIP MANAGEMENT(CRM)
• Enterprise approach to realize customer behaviorthrough significant interactions with customer, toimprove customer acquisition, customer retention,customer loyalty and customer profitability.
• Social CRM emerges which recognizes theimportance of CRM and social media applications.Social CRM enhances e-entrepreneurship byengaging their enterprises with their customers usingsocial media services, techniques and technologiesto generate, integrate and respond to customers’information and queries
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)6
INNOVATIVENESS
• New ideas and opportunities are common
characteristics for innovation and entrepreneurship,
interaction between entrepreneurship and
innovation is necessary to sustain long term
entrepreneurial success.
• Services and products are designed based on
word-of-mouth and social-media-based
conversations
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)7
PRICING OF PRODUCTS
• Pricing of product or services determines its success
as it is directly linked to revenues. In most situations,
an enterprise needs to price and re-price its
products and services to become competitively
advantageous and e-entrepreneurship is not
exceptional.
• Social media may have an impact on pricing
decision in e- entrepreneurship. One of the keys to
having a successful online business is brand name
recognition.
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)8
RESEARCH MODEL
H1
H2
H3
H4
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)9
Social
Media
Market
Access
Customer
Relation
Pricing of
Product
Innovation
HYPOTHESIS DEVELOPMENT
• H1 : Social media use is a positive related to market
access
• H2: Social media use is a positive related to
customer relationship management
• H3: Social media use is a positive related to
innovativeness
• H4: Social media use is a positive related to pricing
of products
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)10
METHODOLOGY
• Survey items were developed and all items were
measured with a 5-point Likert scale In total, data
from 93 participants was collected.
• The target individuals were members of social
networking sites such as Facebook, Instagram and
Twitter.
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)11
RESULTS – MARKET ACCESS
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)12
Q No Questions Mean Standard
Deviation
Q1 On average, how often do you check your
social media account?
4.06 0.998
Q2 How often do you shop at the stores you follow
on social media?
2.66 1.093
Q3 How often do you receive correspondence
from the companies you follow on social
media?
2.90 1.137
Q4 How often do you shop online? 2.88 1.199
Average of Customer relationship management 3.125 1.107
MARKET ACCESS
• Frequency description of market access
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)13
0
5
10
15
20
25
30
35
40
45
Q1 Q2 Q3 Q4
Strongly disagree
Disagree
Neutral
Agree
Strongly Agree
CUSTOMER RELATIONSHIP MANAGEMENT
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)14
Q No Questions Mean Standard Deviation
Q1 I am more likely to share my online shopping experience with others
via social media
2.44 1.118
Q2 I am more likely to recommend the product, service or company
since becoming a follower of social media
2.72 1.158
Q3 I like to take part in product communities discussions on social media 2.36 1.163
Q4 Social media is the main resource which made me aware of the
product
3.59 1.130
Q5 I believe the quality of customer services is higher when company
embrace social media into its business
3.56 0.887
Q6 I am pleased to establish a relationship with my interested e-
commerce company through the use of social media
3.31 1.027
Q7 The company you work with places a high priority on retaining
customers
3.43 1.042
Q8 The company you work with considers customers as valuable assets 3.68 1.055
Q9 I have a more effective relationship with e-commerce company
because of the use of social media technologies
3.19 1.157
Q10 E-commerce companies who are well known in social media are
credible
3.45 0.854
Average of Customer relationship management 3.173 1.059
FREQUENCY DESCRIPTION OF
CUSTOMER RELATIONSHIP
MANAGEMENT
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)15
0
5
10
15
20
25
30
35
40
45
50
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10
Strongly disagree
Disagree
Neutral
Agree
Strongly Agree
INNOVATIVENESS
Q No Questions Mean Standard
Deviation
Q1 When a non-routine situation arises, I am using
social media as new ways of dealing with the
situation
3.44 1.032
Q2 I use social media to get new ideas and
approaches to solve problems
3.61 0.944
Q3 Social media provides new ideas,
requirements, and product improvement
3.71 0.916
Q4 Sharing ideas in social media and learn from
others is an added advantage and best
practices
3.70 0.976
Q5 Learn from early experiences and develop
corporate knowledge and expertise in social
media, are good tools and techniques
3.79 0.859
Average of Innovativeness 3.65 0.945
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)16
FREQUENCY DESCRIPTION OF
INNOVATIVENESS
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)17
0
5
10
15
20
25
30
35
40
45
Q1 Q2 Q3 Q4 Q5
Strongly disagree
Disagree
Neutral
Agree
Strongly Agree
PRICING OF PRODUCTS
Q No Questions Mean Standard
Deviation
Q1 The company you work with, utilise social
media to conduct research on product
pricing
3.10 1.133
Q2 The company you work with, use social media
to gather information about your product
3.26 1.197
Q3 The company you work with, utilise social
media to detect shifts in industries
3.13 1.141
Q4 The company you work with, utilise social
media to make purchase decisions based on
price
2.99 1.147
Q5 It is a big difference to compare the price of
social media and traditional shopping
3.45 1.058
Average of pricing of products 3.186 1.135
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)18
FREQUENCY DESCRIPTION OF PRICING
OF PRODUCTS
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)19
0
5
10
15
20
25
30
35
40
Q1 Q2 Q3 Q4 Q5
Strongly disagree
Disagree
Neutral
Agree
Strongly Agree
FINDINGS
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)20
• Correlation test for all constructs (Market Price,
Customer Relationship Management (CRM),
Innovativeness and Product pricing) shows a
positive correlation.
• Pricing of products and Innovativeness show a very
high correlation average of 0.671 and 0.683
respectively
• Market price and CRM show a moderate
correlation average of 0.420 and 0.448 respectively
CORRELATION TEST RESULT OF
INNOVATIVENESS
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)21
Table 12. Correlation Test Result of Innovativeness
Q1 Q2 Q3 Q4 Q5
When a non-routine situation
arises, I am using social media
as new ways of dealing with
the situation
Pearson Correlation 1 .743** .684** .582** .641**
Sig. (2-tailed) .000 .000 .000 .000
N 94 93 93 93 92
I use social media to get new
ideas and approaches to solve
problems
Pearson Correlation .743** 1 .711** .580** .642**
Sig. (2-tailed) .000 .000 .000 .000
N 93 93 93 93 92
Social media provides new
ideas, requirements, and
product improvement
Pearson Correlation .684** .711** 1 .741** .757**
Sig. (2-tailed) .000 .000 .000 .000
N 93 93 93 93 92
Sharing ideas in social media
and learn from others is an
added advantage and best
practices
Pearson Correlation .582** .580** .741** 1 .751**
Sig. (2-tailed) .000 .000 .000 .000
N 93 93 93 93 92
Learn from early experiences
and develop corporate
knowledge and expertise in
social media, are good tools
and techniques
Pearson Correlation .641** .642** .757** .751** 1
Sig. (2-tailed) .000 .000 .000 .000
N 92 92 92 92 92
**. Correlation is significant at the 0.01 level (2-tailed).
CORRELATION TEST RESULT OF
PRICING OF PRODUCTS
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)22
Table 13. Correlation Test Result of pricing of products
Q1 Q2 Q3 Q4 Q5
The company you work with,
utilise social media to conduct
research on product pricing
Pearson Correlation 1 .815** .720** .737** .489**
Sig. (2-tailed) .000 .000 .000 .000
N 93 93 92 93 93
The company you work with,
use social media to gather
information about your product
Pearson Correlation .815** 1 .811** .762** .585**
Sig. (2-tailed) .000 .000 .000 .000
N 93 93 92 93 93
The company you work with,
utilise social media to detect
shifts in industries
Pearson Correlation .720** .811** 1 .747** .467**
Sig. (2-tailed) .000 .000 .000 .000
N 92 92 92 92 92
The company you work with,
utilise social media to make
purchase decisions based on
price
Pearson Correlation .737** .762** .747** 1 .577**
Sig. (2-tailed) .000 .000 .000 .000
N 93 93 92 93 93
It is a big difference to
compare the price of social
media and traditional shopping
Pearson Correlation .489** .585** .467** .577** 1
Sig. (2-tailed) .000 .000 .000 .000
N 93 93 92 93 93
**. Correlation is significant at the 0.01 level (2-tailed).
HYPOTHESIS TEST RESULTS
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)23
Hypotheses Supported /
Accepted?
Reason
H1: Social media use is a positive related to
market access
Supported Positive related and significant
H2: Social media use is a positive related to
customer relationship management
Supported Positive related and significant
H3: Social media use is a positive related to
innovativeness
Highly
Accepted
Positive related and significant
H4: Social media use is a positive related to
pricing of products
Highly
Accepted
Positive related and significant
CONCLUSIONS & RECOMMENDATIONS
• Social media on e-entrepreneurship, it is importantto consider the effects of social media on thefollowing constructs: market access, customerrelationship management, innovativeness andpricing of products.
• Social media has a positive impact on marketaccess. E-entrepreneurship companies can usesocial media to reach customers. The results of thisstudy indicate that social media can be used aspromotion tool to make their market accessbecome wider and wider
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)24
CONCLUSIONS & RECOMMENDATIONS
• Social media is positively related with the construct of customer relationship management.
• It indicates if e-entrepreneurship companies use more social media forms, the customer relationship management will be better and increase.
• Involving more social media applications into e-entrepreneurship customer relationship management have so many positive effects, which is in line with our expectation.
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)25
CONCLUSIONS & RECOMMENDATIONS
• Performance dimension of social media has a
significant influence on innovativeness. The results of
this study indicate that there is a link between e-
entrepreneurship companies and social media.
• Relationship of the social media on pricing of
products, the research results show a very positive
related and significant.
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)26
CONCLUSIONS & RECOMMENDATIONS
• Social media usage makes it easier for e-
entrepreneur to implement the right strategy from
the beginning, so that they can appreciate the
benefits that social media can provide to their
business.
• E-entrepreneurs should be aware of the numerous
advantages of using social media regardless of the
phase in which the business lies.
22-23 March, 2018ASIAN CONFERENCE ON ENTREPRENEURSHIP
(ACE 2018)27