THE ROLE OF SOCIAL MEDIA IN BUSINESS TRANSFORMATION STRATEGIES: DEVELOPMENT AND VALIDATION OF THE SOCIAL MEDIA COMMERCE MODEL First Author Eliot Simangunsong, Second Author Rudy Handoko
Universitas Prasetiya Mulya, Jakarta and Indonesia elliot[at]pmbs.ac.id Universitas Prasetiya Mulya, Jakarta and Indonesia rudy_handoko[at]pmbs.ac.id
Abstract
Introduction: 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. Methods: 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. This model is then validated using a quantitative research method, according to the type of business or industry that is suitable to be marketed through social media. By surveying users of social media, 547 data is collected that consists of social media entrepreneurs and social media buyers. Results: Adapting Wu He (2017) model, the results of data analysis showed that many buyers on social media also make sales on social media. Further analysis using regression also confirms that the frequency of using social media has a strong influence on buying behavior on social media. There is a pattern in which companies also use social media as part of their supply chain. Conclusions: 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.
Keywords: Social media, social commerce, digital era, business transformation, business operations
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