Adoption of Firm Technologies: Analysis of External Factors Influencing Social Media Marketing

Adoption of Firm Technologies: Social Media Marketing: Analysis of External Factors Influencing Marketing

Abstract

Though marketing still remains the major component for the success of every business, a significant number of organizations are yet to embrace new trends in the industry. There is therefore need to gain useful information relating to the factors influencing the adoption of various appropriate technologies and their net effect on the success of the corporate sector. The study therefore focuses on the determinants of technology adoption in marketing with particular emphasis on the use of social media as a strategy. It seeks to evaluate the various external factors influencing the adoption such as culture and digital divide. Both qualitative and quantitative methodologies will provide a good perspective of the topic of study.

Overview of the Thesis

Advances in firm technologies have delivered real benefits to many organizations and are continuing to increasingly provide new ways of tackling the challenges of reducing costs and improving efficiency. Application of improved and cheaper marketing techniques such as use of social media, for instance, has opened new frontiers in improving sales and firm’s profitability. In this view, efficiency and profitability of marketing operations is largely dependent on the awareness and the use of appropriate techniques to reach the target market.

In a world where competition in business is common place, embracing effective and cheap technologies is important. Social media is one such technology in the recent past. As noted by Fang (2016), social media is not only cheaper compared to mainstream media but is also very interactive enhancing customer relations. It has the potential to transform small and medium enterprise (SME) marketing in a number of areas including customization, customer relationship marketing, access to new markets, business-to-business collaboration, co-creation of the product with customers and improving internal efficiency (Freeman, 2009)

Generally, there is a strong appetite for adoption of new technologies for marketing by majority of organizations. However, the implementation of technology is constrained by many factors, both external and internal. External factors play a major role in the decision by organizations to adopt new technologies (Marshal, 2012). However, other studies such as Tuten (2012) argue that the majority of companies are influenced by internal factors such as cost to the organization adopting the business technology.

In the recent past, research has been conducted on social media, mostly focusing on the effects the digital platforms have on the users. However, little academic research on social media can be found related to its use as a marketing strategy. This is specifically the reason why the topic interests many researchers. It will provide knowledge and a clear understanding of the adoption models of business technologies especially the disruptive technologies that have made a great impact in the dynamics of the businesses over time.

History and Relevance of the Thesis

Though there are few studies focusing on the use of social media as a business strategy, past studies on various disruptive technologies have disapproved the notion that “advantageous” technologies will find their way into the market place and diffuse rapidly because of the obvious benefits to potential adopters (Geroki 1991). Covusoglu (2003) in an attempt to explain the trends of disruptive technologies in that business use to kill technologies overlooked the significant external factors such as culture. The focus of this topic will be the external factors and whose information will be used to draw conclusions on other perspectives that have hardly been explained. And since technology is used across various sectors of economy, inferences from an understanding of this topic can also be applied outside the marketing context.

Past experiences across the sectors have shown the importance of new technological innovations in the dynamics of the business. Depending on how organizations develop or use these technologies, the benefits are often much more than just the return on investment. For instance, adoption of disruptive technologies in a competitive business environment plays a major role in the success or failure of firms over time (Barrows, 2013). Therefore, businesses that are keen in identifying and embracing these technologies therefore have an advantage over their competitors who otherwise may not appreciate the significance of such technologies.

Suitable Methodology

To effectively address the objective of this study, both quantitative and qualitative methodologies can be employed and data obtained from both primary and secondary sources. Informational interviews can be useful in sourcing primary knowledge of the management and other stakeholders involved in decision making to either adopt new technology or otherwise. Review of related literature on past studies important in sourcing back up secondary data. To ensure completeness and accuracy, it is advisable to conduct the research study in different environments which is also important in generating knowledge from diverse perspectives.

Adoption of Firm Technologies: Social Media Marketing: Analysis of External Factors Influencing Marketing

References

Barrows, G. (2015). Essays on Technology and the Environment from an International Perspective. Berkeley, CA.

Cavusoglu, H., & University of Texas at Dallas. (2003). The economics of information technology investments. (Dissertation Abstracts International, 64-7.

Fang, L. (2016). Entry Barriers, Competition, and Technology Adoption. Economic Inquiry. doi:10.1111/ecin.12391

Freeman, R. B., & Shaw, K. (2009). International differences in the business practices and productivity of firms. Chicago: University of Chicago Press.

Geroski, P., & Schwalbach, J. (1991). Entry and market contestability: An international

comparison. Oxford, OX: Blackwell.

Marshall, G. W., & Johnston, M. W. (2011). Essentials of marketing management. New York, NY: McGraw-Hill/Irwin.

Tuten, T., & Marks, M. (2012). The Adoption of Social Media as Educational Technology

among Marketing Educators. Marketing Education Review, 22(3), 201-214.

doi:10.2753/mer1052-8008220301