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The Effectiveness of Social Media for Business Activities in Japanese Firms

Author

Listed:
  • Hiroki Idota

    (Kindai University)

  • Teruyuki Bunno

    (Kindai University)

  • Masatsugu Tsuji

    (Kobe International University)

Abstract

A large number of firms use social media for various business activities. This paper clarifies how social media has become effective to sales in Japanese firms. To this purpose, the following are addressed: (i) whether social media is useful for company activities, (ii) what kinds of business activities are affected using social media, and (iii) how social media improves the final outcomes of sales for firms. This study uses data of business activities and social media conducted in 2014. Probit analysis and structural equation modeling (SEM) are employed. Probit analysis clarifies the relationships between the effects of social media and its use in sales. The SEM model clarifies the relationships among the effects of social media use in business. In the SEM, a model is examined by taking sales caused by use of social media as an explained variable, while the explanatory variables are the first and intermediate effects of social media. The results indicate that social media is effective for business activities such as promoting sales. This study may help to promote social media in Japanese firms.

Suggested Citation

  • Hiroki Idota & Teruyuki Bunno & Masatsugu Tsuji, 2017. "The Effectiveness of Social Media for Business Activities in Japanese Firms," The Review of Socionetwork Strategies, Springer, vol. 11(1), pages 33-45, June.
    • Handle: RePEc:spr:trosos:v:11:y:2017:i:1:d:10.1007_s12626-017-0006-1
    DOI: 10.1007/s12626-017-0006-1
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    References listed on IDEAS

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