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Use of Social Networks in Small and Medium Enterprises: The Case of Algarve

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Author Info

  • Belo, Ana Gago

    ()
    (University of Algarve)

  • Castela, Guilherme

    ()
    (University of Algarve)

  • Fernandes, Silvia

    ()
    (University of Algarve)

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    Abstract

    The present work aims at analyzing the use of social networks for the performance of SME (small and médium enterprises) in Algarve, having completed a questionnaire. The empirical study reveals that the collected data (from 70 firms) have good psychometric qualities. It validated that some firms already have an integrated business strategy with social networks, as well as a group of individuals within the enterprise responsible for its involvement in these networks. The data show that the most performed activities are: communicating with customers, being closer to potential customers, and marketing. However, these firms also use social networks for other activities such as: analyzing their competitors and behavioral patterns, knowing trends, cooperation, fidelization, internationalization, new products’ launching, new brands and businesses, opinion searching, new ideas, and recruitment. Data also showed that few SME are using social networks for promotions and technical assistance. Most entrepreneurs/managers consider that social networks enhance the performance of their firms, but few really measure the results obtained. The firms that most frequently accede to social networks are those whose entrepreneur/manager has a higher level of qualifications. In addition, the SME that most use these networks are from services and hotel/restaurant/bar sectors.

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    Bibliographic Info

    Paper provided by CIEO-Research Centre for Spatial and Organizational Dynamics, University of Algarve in its series Spatial and Organizational Dynamics Discussion Papers with number 2013-8.

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    Length: 16 pages
    Date of creation: 28 Nov 2013
    Date of revision:
    Handle: RePEc:ris:cieodp:2013_008

    Contact details of provider:
    Postal: University of Algarve, Faculty of Economics, Campus de Gambelas, 8005-139 Faro, Portugal, email of President of the Centre: mtvaz@ualg.pt
    Phone: +351 289 244 406
    Fax: 351-289-818303
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    Web page: http://www.cieo.pt/
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    Related research

    Keywords: Social Networks; SME; Performance; Involvement;

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