Creating Value: An SME And Social Media

This study examines how firms are gaining value from using social media. Social media can be used by businesses for a range of functions, including but not limited to marketing and customer relationship management. It is particularly suitable for small and medium-sized enterprises (SMEs) because of its minimal cost, low barriers to participation and low level of IT skills required to use it. This paper focuses on the early findings from one New Zealand SME, a restaurant. Of the possible sources of value investigated, the strongest evidence is that novelty, efficiency, the firm's strategic intent, firm practices, public practices are producing value for the restaurant. There is less evidence of value produced through lock-in or complementarities. Additional sources of value were also identified that were not included in the original conceptual model. As yet, this case study has not revealed any evidence of an effect on firm performance.