The Role of Social Media in Business Transformation Strategies (Development and Validation of the Social Media Commerce Model)

DOI

10.2991/aebmr.k.200812.039How to use a DOI?

Keywords

social media, social commerce, digital era, business transformation, business operations

Abstract

The rise of social media in the digital era is considered important for anybody because it helps people to communicate and share information with each other online. Because it has become a necessity, it is not surprising that the number of social media users has increased. This also has an impact on increasing various online activities, including business activities. The ease of sharing information and communicating through social media can help entrepreneurs and consumers to conduct business activities or buy and sell online. This phenomenon is an inspiration for researchers to uncover the role of social media in Indonesia in business activities, knowing the factors that can influence a social media follower who initially “likes” to “buy”, so that it can be developed into a social commerce model. By surveying users of social media, 547 data are collected that consists of social media entrepreneurs and social media buyers. Adapting He et al framework, the results of data analysis showed that there is enough evidence that social media has been used for business. The frequency of social media usage has strong links for a user to buy products or do business on social media. 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 analysis resulted in proposed model of social media usage for business. There are five major factors that influence satisfaction and performance of doing business on social media. The results of this study are useful in the management of business operations or start-up companies that use social media. Social media helps businesses to reach consumers easily and quickly without needing to spend a lot of money and energy.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Eliot Simangunsong
AU  - Rudy Handoko
PY  - 2020
DA  - 2020/08/13
TI  - The Role of Social Media in Business Transformation Strategies (Development and Validation of the Social Media Commerce Model)
BT  - Proceedings of the 3rd Asia Pacific Management Research Conference (APMRC 2019)
PB  - Atlantis Press
SP  - 224
EP  - 231
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200812.039
DO  - 10.2991/aebmr.k.200812.039
ID  - Simangunsong2020
ER  -