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Why has social media governance become a
critical business agenda?

Adapted from a research proposal submitted to the Australian School of Business, University
of New South Wales, Australia


Michael Ling




30 January 2013




   1
The Rationale



Terms of Reference

      Web 2.0
         Web 2.0 is the technologies that allow contents to be generated
          and published online by users (Hamel, 2012).

      Social Media
         A group of Internet-based applications that build on the
          ideological and technological foundations of Web 2.0 (Kaplan,
          2010).

      Social Business
         The use of social media to drive strategic business outcomes
          (Hinchcliffe & Kim, 2012).

      Online Communities
         A network consists of employees, customers, suppliers and the
          public who can interact and collaborate virtually around a topic, a
          discipline or a body of knowledge using social media.


  2                                                              Prepared by Michael Ling
The Rationale



Online communities evolution – Infancy

                          Organization boundary

                        Social CRM
                                       Social HR
                         System
       Social Product                             Social Workforce
        Development                                 Engagement

  Social Media                                              Social Business
   Marketing                                                  Ecosystem




  3                                                   Prepared by Michael Ling
The Rationale



Online communities evolution – Adolescence

                          Organization boundary

                        Social CRM
                                       Social HR
                         System
       Social Product                             Social Workforce
        Development                                 Engagement

  Social Media                                              Social Business
   Marketing                                                  Ecosystem




  4                                                   Prepared by Michael Ling
The Rationale



Online communities evolution – Adulthood

                          Organization boundary

                        Social CRM
                                       Social HR
                         System
       Social Product                             Social Workforce
        Development                                 Engagement

  Social Media                                              Social Business
   Marketing                                                  Ecosystem
                           Online Communities




  5                                                   Prepared by Michael Ling
The Rationale



A fast growing phenomenon

                           93% of corporate Facebook pages
                            is updated weekly
    Web 2.0
                           79% of corporate accounts
                            engages on Twitter
    Value creation        70% of corporate pages is
                            responding to comments on their
    Communities of         walls

     Practice              Average no. of corporate
                            Facebook page communities has
                            been increased by 275% since
                            2010




                               Fortune Global 100



 6                                     Prepared by Michael Ling
The Rationale



Online Communities – Key characteristics

         Social relationships
         Voluntary
         Self-organizing
         Emerging




  7                               Prepared by Michael Ling
The Rationale



The employee perspective

                                             Employees
Online Communities                              Empowerment
    Social relationships
                                                Making conversations
    Voluntary
                                                Sharing knowledge
    Self-organizing
    Emerging                                   Socializing
                                 Employees      Emotional
                                 Customers

      Social
                  Stakeholders   Suppliers
    communities

                                  Partners


                                  Public


    8                                                        Prepared by Michael Ling
The Rationale



      The organization perspective


                                                                     Organization
                                                 Employees
Online Communities                                                          Expect value creation
                                                    Empowerment
        Social relationships
        Voluntary
                                                    Conversations          Losing control
         Self-organizing                            Knowledge

                                                     Sharing                Mitigate risk exposure
        Emerging
                                                    Socializing            Governance
                                     Employees
                                                    Emotional                             Social CRM
                                                                                                        Social HR
                                                                                            System
                                                                              Social Product                   Social Workforce
                                     Customers                                Development                        Engagement

       Social                                                            Social Media
                      Stakeholders   Suppliers                                                                       Social Business
    communities                                                           Marketing                                    Ecosystem

                                      Partners


                                      Public




                  9                                                                            Prepared by Michael Ling
The Rationale



Why is social media governance critical?

    An age-old legal concept
         Protecting the organization’s confidential data
         Protecting employee’s privacy
         A respectful workplace
         Defamation, reputation and harassment

    Becoming a critical issue
         Casualness and massive potential of lapses in judgement
         Workplace legally required to be safe and harassment free.
         Disrespectful or derogatory comments may hold employer liable.


Social media contextualize its significance
    10                                                     Prepared by Michael Ling
The Rationale



Because it can help solve a business conundrum


         Solving a business conundrum
      Governance is needed to               Value created in online
       mitigate risk exposure in social       communities through knowledge
       media.                                 sharing by employees is critical.
      Lacking knowledge to                  Expect a return from its
       understand employees’                  investment in social business.
       reaction to governance and the
       impact on their knowledge
       sharing behavior.




  11                                                         Prepared by Michael Ling
The Rationale



 Current knowledge on Social Media Governance
       Organizations should “guide employee use, rather than
        developing extensive formal rules that restrict it” (KPMG, 2011).
       Only 20 percent of firms in Australasia has an overarching social
        media policy (Macnamara & Zerfass, 2012).
       Social media governance consists of four aspects in an
        organization (Fink & Zerfass, 2010; Verhoeven et al., 2011):-
               Social media guidelines;
               Tools for monitoring stakeholders’ communications;
               Training programs;
               KPIs that measure social web activities.



A paucity of research on social media governance
                (Zerfass et al., 2011)

   12                                                         Prepared by Michael Ling
The Rationale


There is a sizable knowledge gap

          Altruism (He & Wei, 2008; Kankanhalli et al., 2005)
          Collectivism (Hew & Hara, 2007)
          Confidentiality (Ardichvili et al., 2003; Jarvenpaa & Staples, 2000).
          Conformity (Gray, 2004).
          Knowledge-related factors (Ardichvili et al., 2003; Lichtenstein & Hunter, 2005)
          Personal cognition (Bock & Kim, 2002; Bock et al., 2005; Kankanhalli et al., 2005).
          Policies (Preece, 2001).
          Reputation feedback (Wasko & Faraj, 2005; Marett & Joshi, 2009)
          Reciprocity (He & Wei, 2008; Wasko & Faraj, 2005)
          Technologies (Sharratt & Usoro, 2003; Teigland & Wasko, 2004)
          Time (McDermott, 2001; Preece, 2000; Balafas et al., 2004)
          Trust (Mayer et al., 1995; Mishra, 1996; Wang & Ahmed, 2003)


None of the findings has looked into the effect of
           Social Media Governance.

  13                                                                        Prepared by Michael Ling
The End




14             Prepared by Michael Ling

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Social media governance

  • 1. Why has social media governance become a critical business agenda? Adapted from a research proposal submitted to the Australian School of Business, University of New South Wales, Australia Michael Ling 30 January 2013 1
  • 2. The Rationale Terms of Reference Web 2.0  Web 2.0 is the technologies that allow contents to be generated and published online by users (Hamel, 2012). Social Media  A group of Internet-based applications that build on the ideological and technological foundations of Web 2.0 (Kaplan, 2010). Social Business  The use of social media to drive strategic business outcomes (Hinchcliffe & Kim, 2012). Online Communities  A network consists of employees, customers, suppliers and the public who can interact and collaborate virtually around a topic, a discipline or a body of knowledge using social media. 2 Prepared by Michael Ling
  • 3. The Rationale Online communities evolution – Infancy Organization boundary Social CRM Social HR System Social Product Social Workforce Development Engagement Social Media Social Business Marketing Ecosystem 3 Prepared by Michael Ling
  • 4. The Rationale Online communities evolution – Adolescence Organization boundary Social CRM Social HR System Social Product Social Workforce Development Engagement Social Media Social Business Marketing Ecosystem 4 Prepared by Michael Ling
  • 5. The Rationale Online communities evolution – Adulthood Organization boundary Social CRM Social HR System Social Product Social Workforce Development Engagement Social Media Social Business Marketing Ecosystem Online Communities 5 Prepared by Michael Ling
  • 6. The Rationale A fast growing phenomenon  93% of corporate Facebook pages is updated weekly  Web 2.0  79% of corporate accounts engages on Twitter  Value creation  70% of corporate pages is responding to comments on their  Communities of walls Practice  Average no. of corporate Facebook page communities has been increased by 275% since 2010 Fortune Global 100 6 Prepared by Michael Ling
  • 7. The Rationale Online Communities – Key characteristics  Social relationships  Voluntary  Self-organizing  Emerging 7 Prepared by Michael Ling
  • 8. The Rationale The employee perspective Employees Online Communities  Empowerment  Social relationships  Making conversations  Voluntary  Sharing knowledge  Self-organizing  Emerging  Socializing Employees  Emotional Customers Social Stakeholders Suppliers communities Partners Public 8 Prepared by Michael Ling
  • 9. The Rationale The organization perspective Organization Employees Online Communities  Expect value creation  Empowerment  Social relationships  Voluntary  Conversations  Losing control Self-organizing  Knowledge  Sharing  Mitigate risk exposure  Emerging  Socializing  Governance Employees  Emotional Social CRM Social HR System Social Product Social Workforce Customers Development Engagement Social Social Media Stakeholders Suppliers Social Business communities Marketing Ecosystem Partners Public 9 Prepared by Michael Ling
  • 10. The Rationale Why is social media governance critical?  An age-old legal concept Protecting the organization’s confidential data Protecting employee’s privacy A respectful workplace Defamation, reputation and harassment  Becoming a critical issue Casualness and massive potential of lapses in judgement Workplace legally required to be safe and harassment free. Disrespectful or derogatory comments may hold employer liable. Social media contextualize its significance 10 Prepared by Michael Ling
  • 11. The Rationale Because it can help solve a business conundrum Solving a business conundrum  Governance is needed to  Value created in online mitigate risk exposure in social communities through knowledge media. sharing by employees is critical.  Lacking knowledge to  Expect a return from its understand employees’ investment in social business. reaction to governance and the impact on their knowledge sharing behavior. 11 Prepared by Michael Ling
  • 12. The Rationale Current knowledge on Social Media Governance  Organizations should “guide employee use, rather than developing extensive formal rules that restrict it” (KPMG, 2011).  Only 20 percent of firms in Australasia has an overarching social media policy (Macnamara & Zerfass, 2012).  Social media governance consists of four aspects in an organization (Fink & Zerfass, 2010; Verhoeven et al., 2011):-  Social media guidelines;  Tools for monitoring stakeholders’ communications;  Training programs;  KPIs that measure social web activities. A paucity of research on social media governance (Zerfass et al., 2011) 12 Prepared by Michael Ling
  • 13. The Rationale There is a sizable knowledge gap  Altruism (He & Wei, 2008; Kankanhalli et al., 2005)  Collectivism (Hew & Hara, 2007)  Confidentiality (Ardichvili et al., 2003; Jarvenpaa & Staples, 2000).  Conformity (Gray, 2004).  Knowledge-related factors (Ardichvili et al., 2003; Lichtenstein & Hunter, 2005)  Personal cognition (Bock & Kim, 2002; Bock et al., 2005; Kankanhalli et al., 2005).  Policies (Preece, 2001).  Reputation feedback (Wasko & Faraj, 2005; Marett & Joshi, 2009)  Reciprocity (He & Wei, 2008; Wasko & Faraj, 2005)  Technologies (Sharratt & Usoro, 2003; Teigland & Wasko, 2004)  Time (McDermott, 2001; Preece, 2000; Balafas et al., 2004)  Trust (Mayer et al., 1995; Mishra, 1996; Wang & Ahmed, 2003) None of the findings has looked into the effect of Social Media Governance. 13 Prepared by Michael Ling
  • 14. The End 14 Prepared by Michael Ling