Understanding social media business value, a prerequisite for social media selection

While the value of technology has been one of the key areas of research within the Information Systems/Information Technology (IS/IT) domain, the area is characterised by disagreement and a lack of consensus regarding what constitutes appropriate measures for technological value. Notwithstanding the fact that this represents a key obstacle to daily IS/IT operations, it is also a concern given the emergence of new technologies which have a significant impact on future operations. More specifically, this study highlights the lack of value understanding on social media, which is seen as a key prerequisite and part of the intelligence phase in Simon’s (1977) normative decision-making process, as applied to social media selection. Incorporating Amit and Zott’s (2001) model of value creation, this study examines the sources of value in 68 not-for-profit social media projects. Furthermore, utilising an adaptive theory approach, the study extends the model of Amit and Zott (2001) and formally defines key relationships between the sources of value creation, providing a more solid foundation for the process of social media selection. The study makes contributions to the IS/IT value, social media and not-for-profit domain and highlights that value is primarily created through efficiency and novelty, with secondary value sources being identified as lock-in and complementarities. The study also provides a refined value creation model and a number of propositions for further research.

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