Social media as a resource in SMEs’ sales process

Purpose The purpose of this paper is to explore the impact of social media (SM) adoption in upgrading and innovating selling processes by small- and medium-sized enterprises (SMEs) facing complex and rapidly changing market scenarios. Design/methodology/approach To achieve this goal, the paper undertakes an exploratory case study of Gamma, a mechanical company, by actively using SM to start and open a new market. The case-study is analyzed through the industrial marketing and purchasing (IMP) approach, which emphasizes the role of interaction and the interdependencies of resources. Findings The adoption of SM resources helped Gamma to tap into new markets and thus survive and face the downturn of its original market. SM displayed its effects in combination with other resources: a simple and not expensive machinery, capable human resources, effective production and logistical resources. SM represented a strategic resource to implement an effective business networking effort. Originality/value This paper provides novel empirical evidence and conceptual development over the role of SM as a resource in SMEs’ sales processes, using the IMP perspective on combination and development of resources.

[1]  Nory B. Jones,et al.  Impact of social media on small businesses , 2015 .

[2]  Chunling Yu,et al.  Social Media Peer Communication and Impacts on Purchase Intentions: A Consumer Socialization Framework , 2012 .

[3]  Outi Niininen,et al.  Social media and value co-creation in multi-stakeholder systems: A resource integration approach , 2016 .

[4]  Lars-Erik Gadde,et al.  Systematic combining: an abductive approach to case research , 2002 .

[5]  D. Ford,et al.  The theory and practice of business networking , 2013 .

[6]  Daniela Corsaro,et al.  Roles of actors in combining resources into complex solutions , 2012 .

[7]  A. Chong,et al.  Usability perspective on social media sites' adoption in the B2B context , 2016 .

[8]  H. Håkansson,et al.  Developing relationships in business networks , 1995 .

[9]  Heidi Vander Bauwhede,et al.  Formal business networking and SME growth , 2013 .

[10]  Sergio Román,et al.  The influence of sales force technology use on outcome performance , 2015 .

[11]  M. Cooke,et al.  Web 2.0, Social Networks and the Future of Market Research , 2008 .

[12]  Sharyn Rundle-Thiele,et al.  Marketing capabilities: Antecedents and implications for B2B SME performance , 2011 .

[13]  P. Berthon,et al.  Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy , 2012 .

[14]  Peter Naudé,et al.  Network pictures: concepts and representations , 2006 .

[15]  Jari Juhani Jussila,et al.  Social media utilization in business-to-business relationships of technology industry firms , 2014, Comput. Hum. Behav..

[16]  Andrés Hatum Qué puede enseñarle un restaurante a una multinacional , 2010 .

[17]  C. Hawn Take two aspirin and tweet me in the morning: how Twitter, Facebook, and other social media are reshaping health care. , 2009, Health affairs.

[18]  Mary J. Culnan,et al.  How Large U.S. Companies Can Use Twitter and Other Social Media to Gain Business Value , 2010, MIS Q. Executive.

[19]  Minna Mäläskä,et al.  Analysis of content creation in social media by B2B companies , 2015 .

[20]  Olli Kuivalainen,et al.  Antecedents of social media B2B use in industrial marketing context: customers’ view , 2015 .

[21]  Alexandra Waluszewski,et al.  Managing Technological Development , 2002 .

[22]  A. Cameron,et al.  External Relationships and the Small Business: A Review of Small Business Alliance and Network Research** , 2007 .

[23]  Eileen Fischer,et al.  Online entrepreneurial communication: Mitigating uncertainty and increasing differentiation via Twitter , 2014 .

[24]  Thierry Volery,et al.  Entrepreneur ambidexterity: A study of entrepreneur behaviours and competencies in growth-oriented small and medium-sized enterprises , 2015 .

[25]  Walid A. Nakara,et al.  Entrepreneurship and social media marketing: evidence from French small business , 2012 .

[26]  Pauliina Ulkuniemi,et al.  The role of digital channels in industrial marketing communications , 2015 .

[27]  Enrico Baraldi,et al.  Resource interaction in inter-organizational networks: Foundations, comparison, and a research agenda , 2012 .

[28]  K. Eisenhardt Building theories from case study research , 1989, STUDI ORGANIZZATIVI.

[29]  Brian Jones Entrepreneurial marketing and the Web 2.0 interface , 2010 .

[30]  David Carson,et al.  SME marketing in practice , 2001 .

[31]  Youngtae Choi,et al.  Social media: is this the new organizational stepchild? , 2016 .

[32]  H. Håkansson,et al.  A never ending story: Interaction patterns and economic development , 2013 .

[33]  Michael Y. Hu,et al.  Social media: Influencing customer satisfaction in B2B sales , 2016 .

[34]  A. Pagano,et al.  SMEs and Marketing: A Systematic Literature Review , 2018 .

[35]  Jim Bell,et al.  ‘New-wave’ global firms: Web 2.0 and SME internationalisation , 2010 .

[36]  James ‘Mick’ Andzulis,et al.  A Review of Social Media and Implications for the Sales Process , 2012 .

[37]  H. Håkansson International Marketing and Purchasing of Industrial Goods: An Interaction Approach , 1982 .

[38]  Nick Lee,et al.  Revolution in Sales: The Impact of Social Media and Related Technology on the Selling Environment , 2012 .

[39]  M. Durkin,et al.  Exploring social media adoption in small to medium-sized enterprises in Ireland , 2013 .

[40]  Aino Halinen,et al.  Using case methods in the study of contemporary business networks , 2005 .

[41]  Rudolf R. Sinkovics,et al.  Empowerment of SME websites—Development of a web-empowerment scale and preliminary evidence , 2005 .

[42]  J. Mathieu,et al.  A Longitudinal Examination of Individual, Organizational, and Contextual Factors on Sales Technology Adoption and Job Performance , 2006 .

[43]  Damien Wilson,et al.  Tensions and ties in social media networks: Towards a model of understanding business relationship development and business performance enhancement through the use of LinkedIn , 2016 .

[44]  Mark Dodgson,et al.  External Linkages and Innovation in Small and Medium-Sized Enterprises , 1991 .

[45]  Yubo Chen,et al.  The Role of Marketing in Social Media: How Online Consumer Reviews Evolve , 2011 .

[46]  Kathryn Walsh,et al.  Interfirm Cooperation among Small Manufacturing Firms , 2008 .

[47]  A. Kirtiş,et al.  To Be or Not to Be in Social Media Arena as the Most Cost-Efficient Marketing Strategy after the Global Recession , 2011 .

[48]  D. Ford,et al.  IMP – some things achieved: much more to do , 2006 .

[49]  Mike Bernard,et al.  The impact of social media on the B2B CMO , 2016 .

[50]  Madhavan Parthasarathy,et al.  Salesforce automation and the adoption of technological innovations by salespeople: Theory and implications , 1997 .

[51]  Anthony C. Koh,et al.  Adoption of social networks marketing by SMEs: exploring the role of social influences and experience in technology acceptance , 2012 .

[52]  Aikaterini C. Valvi,et al.  Determinants of social media adoption by B2B organizations , 2015 .

[53]  Aodheen O'Donnell,et al.  The nature of networking in small firms , 2004 .

[54]  A. Enders,et al.  The long tail of social networking.: Revenue models of social networking sites , 2008 .

[55]  David J. Houghton,et al.  Is there a place for social media in business relationships and the IMP world? Work-in-Progress , 2014 .

[56]  Hsin-hui Chou,et al.  Mobilising resources to bridge technological discontinuities , 2016 .

[57]  Hugh M. Pattinson,et al.  21st century applicability of the interaction model : does pervasiveness of social media in B2B marketing increase business dependency on the interaction model? , 2012 .

[58]  Efthymios Constantinides,et al.  Web 2.0: Conceptual foundations and marketing issues , 2008 .

[59]  Marjorie A. Lyles,et al.  The impact of managerial networking intensity and market-based strategies on firm growth during institutional upheaval: A study of small and medium-sized enterprises in a transition economy , 2010 .

[60]  J. Postman SocialCorp: Social Media Goes Corporate , 2008 .

[61]  David J. Pauleen,et al.  How social media applications affect B2B communication and improve business performance in SMEs , 2016 .

[62]  Alexander E. Ellinger,et al.  A longitudinal examination of internet‐based customer service system usage in small companies , 2011 .

[63]  Jean Hartley,et al.  Case study research , 2004 .

[64]  Pauliina Ulkuniemi,et al.  Digital communications in industrial marketing , 2015 .

[65]  Lars-Erik Gadde,et al.  Business Networks , 2010, Encyclopedia of Social Network Analysis and Mining. 2nd Ed..

[66]  A. O'Donnell Small firm marketing: Synthesisng and supporting received wisdom , 2011 .

[67]  C. Medlin Interaction in business relationships: A time perspective , 2004 .

[68]  J. Tähtinen,et al.  Sustainable SMEs network utilization: the case of food enterprises , 2011 .

[69]  D. Ford,et al.  Networking under uncertainty: Concepts and research agenda , 2010 .

[70]  In Lee,et al.  Building Web 2.0 enterprises: A study of small and medium enterprises in the United States , 2013 .

[71]  Rodrigo Guesalaga The use of social media in sales: Individual and organizational antecedents, and the role of customer engagement in social media , 2016 .

[72]  M. P. Martínez-Ruiz,et al.  Drivers, Benefits and Challenges of ICT adoption by small and medium sized en-terprises (SMEs): A Literature Review , 2017 .

[73]  ThuyUyen H. Nguyen,et al.  The adoption of customer relationship management (CRM) technology in SMEs: an empirical study , 2013 .

[74]  David Carson,et al.  The Evolution of Marketing in Small Firms , 1985 .

[75]  I. Snehota,et al.  Assembling resources when forming a new business , 2012 .

[76]  R. Brennan,et al.  The Use of Social Media in B2B Marketing and Branding : An Exploratory Study , 2012 .

[77]  Eric W. T. Ngai,et al.  Social media models, technologies, and applications: An academic review and case study , 2015, Ind. Manag. Data Syst..

[78]  N. Michaelidou,et al.  Usage, barriers and measurement of social media marketing: An exploratory investigation of small and medium B2B brands , 2011 .

[79]  Urs Buehlmann,et al.  Competitive Actions of Small Firms in a Declining Market , 2011 .

[80]  Esa Sirkkunen,et al.  Social media. Introduction to the tools and processes of participatory economy , 2008 .

[81]  K. Parry,et al.  Exploring Distributed Leadership in the Small Business Context , 2011 .

[82]  Geoff Simmons,et al.  A Conceptualization of the Determinants of Small Business Website Adoption , 2008 .

[83]  P. Matthyssens,et al.  Market strategy renewal as a dynamic incremental process , 2012 .

[84]  E. Ramsey,et al.  Entrepreneurial marketing in SMEs: the key capabilities of e‐CRM , 2012 .

[85]  Ramendra Singh,et al.  Bringing “Social” Into Sales: The Impact of Salespeople’S Social Media Use on Service Behaviors and Value Creation , 2012 .

[86]  Paul Matthyssens,et al.  Involving the process dimensions of time in case-based research , 2010 .

[87]  A. Kaplan,et al.  Users of the world, unite! The challenges and opportunities of Social Media , 2010 .

[88]  C. Erixon,et al.  Information technology utilization for industrial marketing activities: the IT–marketing gap , 2015 .

[89]  Tiia Vissak,et al.  Recommendations for Using the Case Study Method in International Business Research , 2010 .

[90]  Lemuria Carter,et al.  Social Media Tools Adoption and Use by SMES: An Empirical Study , 2014, J. Organ. End User Comput..

[91]  Robert M. Peterson,et al.  Social Media’s Influence on Business-to-Business Sales Performance , 2012 .

[92]  Alexandra Waluszewski,et al.  Information technology at IKEA: an "open sesame" solution or just another type of facility? , 2005 .

[93]  Stefan Stieglitz,et al.  Adoption and Use of Social Media in Small and Medium-Sized Enterprises , 2013, PRET.

[94]  Frida Lind,et al.  Capturing processes in longitudinal multiple case studies , 2012 .

[95]  Ainin Sulaiman,et al.  Factors influencing the use of social media by SMEs and its performance outcomes , 2015, Ind. Manag. Data Syst..

[96]  Richard A. Rocco,et al.  Exploring buyer-seller dyadic perceptions of technology and relationships: Implications for Sales 2.0 , 2016 .

[97]  John Kitching,et al.  Small business responses to a major economic downturn: Empirical perspectives from New Zealand and the United Kingdom , 2012 .

[98]  Keith E. Niedermeier,et al.  The use of social media among business-to-business sales professionals in China , 2016 .

[99]  K. Deans,et al.  Web Marketing Practices of Service Providers , 2003 .

[100]  Wynne W. Chin,et al.  Factors Leading to Sales Force Automation Use: A Longitudinal Analysis , 2002 .

[101]  Jason Bennett Thatcher,et al.  The Influence of Social Aversion and Institution-Based Trust on Computer Self-Efficacy, Computer Anxiety and Antecedents to IT Use , 2014, J. Organ. End User Comput..

[102]  L. Piscitello,et al.  Globalisation, E-Business and SMEs: Evidence from the Italian District of Prato , 2004 .

[103]  Christian Felzensztein,et al.  Social networks and marketing cooperation in entrepreneurial clusters: An international comparative study , 2009 .

[104]  Sally Sambrook,et al.  Exploring succession planning in small, growing firms , 2005 .

[105]  Carla Ramos,et al.  Network pictures as a research device: Developing a tool to capture actors' perceptions in organizational networks , 2011 .

[106]  Ygal Bendavid,et al.  Evolving B2B e‐commerce adaptation for SME suppliers , 2009 .

[107]  Michael A. Abebe Electronic commerce adoption, entrepreneurial orientation and small- and medium-sized enterprise (SME) performance , 2014 .

[108]  Harri Oinas-Kukkonen,et al.  E-selling: A new avenue of research for service design and online engagement , 2015, Electron. Commer. Res. Appl..

[109]  J. Hultman,et al.  Small business e‐commerce development in Sweden – an empirical survey , 2008 .

[110]  P. Ford D Hakansson H. Naude,et al.  The Idea of Interaction , 2005 .

[111]  Yichuan Wang,et al.  The impact of sellers' social influence on the co-creation of innovation with customers and brand awareness in online communities , 2016 .

[112]  Sylvie Lacoste,et al.  Perspectives on social media ant its use by key account managers , 2016 .