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Empirical analysis of internal social media and product innovation: Focusing on SNS and social capital

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Listed:
  • Idota, Hiroki
  • Minetaki, Kazunori
  • Bunno, Teruyuki
  • Tsuji, Masatsugu

Abstract

Recently social media such as Blog and SNS has been introducing by many firms for means of sharing information inside the firm, in particular to promote product and process innovation. This paper attempts to examine the relationship between social media and product innovation, and research questions are summarized as follows: (i) whether social capital influences the use of social media; (ii) whether social media promotes product innovation; and (iii) whether the effect of social media on product innovation is different in the manufacturing and service industry. The analysis clarifies that social capital in the firm is indispensable for the effective use of social media. Managerial attitudes toward innovation and social media are requirements for firms to promote product innovation. Managers thus should make an effort to raise social capital and nurture reciprocal culture for SNS use inside the firm. The paper finds that social media for product innovation is more important in the service industry than manufacturing. Social media makes it easy to obtain customers' information and share it among related sections, because social media enables to expand channels to make contact directly with the customer in the service industry.

Suggested Citation

  • Idota, Hiroki & Minetaki, Kazunori & Bunno, Teruyuki & Tsuji, Masatsugu, 2011. "Empirical analysis of internal social media and product innovation: Focusing on SNS and social capital," 22nd European Regional ITS Conference, Budapest 2011: Innovative ICT Applications - Emerging Regulatory, Economic and Policy Issues 52152, International Telecommunications Society (ITS).
  • Handle: RePEc:zbw:itse11:52152
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    References listed on IDEAS

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    1. Salinger, Michael A, 1995. "A Graphical Analysis of Bundling," The Journal of Business, University of Chicago Press, vol. 68(1), pages 85-98, January.
    2. Tina Bratkovic, 2009. "European Conference on Entrepreneurship and Innovation – ECEI 2009," Management, University of Primorska, Faculty of Management Koper, vol. 4(4), pages 399-402.
    3. Fred D. Davis & Richard P. Bagozzi & Paul R. Warshaw, 1989. "User Acceptance of Computer Technology: A Comparison of Two Theoretical Models," Management Science, INFORMS, vol. 35(8), pages 982-1003, August.
    4. Chou, Yuntsai & Lee, Chiwei & Chung, Jianru, 2004. "Understanding m-commerce payment systems through the analytic hierarchy process," Journal of Business Research, Elsevier, vol. 57(12), pages 1423-1430, December.
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    More about this item

    Keywords

    Social Media ; Product Innovation; Social Capital; Ordered Probit Regression;

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

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