Business and Social Media in the Middle East by Unknown

Author:Unknown
Language: eng
Format: epub
ISBN: 9783030459604
Publisher: Springer International Publishing

Social Media and Corporate Performance

As social media develop, it also has an economic impact insofar as it contributes to the development of companies. They allow them to discover significant growth drivers. According to Akmese et al. (2016), the use of social media results in better financial performance for companies. Such a positive impact has been confirmed in several sectors, including telecommunications (Mahboub 2018; Nyambu 2013), advertising (Smits and Mogos 2013), manufacturing (Surin and Wahab 2013), tourism (Akmese et al. 2016), fishing (Dodokh 2017), etc.

According to Tajudeen (2014), social media are a source of business opportunities. They are communication tools that are increasingly used by individuals to choose their purchases, unlike traditional media. They are also used to express their opinions and advice. For example, companies use social media to promote their products and conduct market research. In MENA countries where the informal sector is predominant, the advent of social media has made it possible for companies to collect valuable data on their consumers through online surveys and price comparison sites. They have better understood their preferences and further improved their products. In addition, social media have facilitated business transactions by providing more connectivity between customers and their suppliers and more mobility of services and products. They have also brought more competition to the markets by expanding customer choices and unveiling more business opportunities.

In terms of marketing practices, social media strengthen companies’ relationships with their customers (Icha and Agwu 2016; Tajudeen 2014). They provide companies with the opportunity to expand their customer base (Bhanot 2012), increase product exposure (Stelzner, 2014) and better understand and meet their needs (Parveen et al. 2016). In fact, they promote the dissemination of information and knowledge. The use of social media by companies has enabled them to develop (sometimes strategic) partnerships and strengthen their links with their suppliers and customers. On the one hand, through social media, companies broaden their access to markets by communicating quickly and on a larger scale. On the other hand, the arrival of social media makes it easier for companies to set up and operate databases for, among other things, sales purposes. In addition, by interacting with social media users, companies benefit from their creativity and expertise. Nyambu (2013) argues that, thanks to social media, banks have been able to acquire a cheaper marketing and sales platform and thus quickly access their customers’ feedback, compared to traditional practices. He reports that in three years, the number of clients obtained by commercial banks in Kenya through social media has almost tripled while the cost of obtaining a client has decreased.

In the MENA region, the positive impact of social media on the performance of firms is also proven. Mahboub (2018), in his study of 102 banks operating in a dozen MENA countries, concludes that the use of Facebook has contributed to their financial performance in terms of profitability and growth. Such a premise is corroborated by Dodokh (2017) who notes that Jordanian fishing companies have benefited from the adoption of social media. Initially,

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