The Role of Social Networking in Global Business Environments

The Role of Social Networking in Global Business Environments

Kijpokin Kasemsap
DOI: 10.4018/978-1-4666-6134-9.ch010
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This chapter introduces the role of social networking in global business environments, thus explaining the overview of social networking, the significance of social networking, the challenges of social networking in global business environments, the interaction on Social Networking Sites (SNSs), and leadership impacts arising from social networking. Social networking technology can facilitate the improved organizational productivity by enhancing the communication and collaboration of employees, which aids knowledge transfer and consequently makes organizations more effective. Leaders of global businesses should provide training through general education courses and lifelong learning and provide the necessary Information and Communication Technology (ICT) skills for all employees to enhance their knowledge to deal with these new technologies in the social media age. Understanding the role of social networking will significantly enhance the organizational performance and achieve business goals in global business environments.
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Social networks are valuable resources since they facilitate economic activity, allow entrepreneurs to be more efficient and access exclusive business opportunities and improve innovation (Alpkan et al., 2010; Cambra-Fierro et al., 2011; Goktan & Miles, 2011; Hotho & Champion, 2011; Rowley et al., 2011; Zhang & Duan, 2010). In addition, the establishment of social networks with other companies also enhances organizational performance (Andersen, 2011; Appelbaum et al., 2011) as well as the creation of network alliances to share information, and provide a low level of redundancy and conflict (Chao, 2011; Sebora & Theerapatvong, 2010). Entrepreneurs in social networks with a high loyalty level among members are able to reduce entrepreneurial risks, specifically in those environments with high uncertainty levels. De Carolis and Saparito (2006) suggested that entrepreneurial behavior is catalyzed with interaction between the social network and some alternative factors.

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