Impacts of Social networking Sites on Business


Social Networking has changed the way organization undertake business online since it enables businesses to establish a personal relationship with their clients, target advertisement through the use of information that offered by media sites users and leverages social pressure that affects customer’s purchasing decision (Gensler, Völckner, Liu-Thompkins, & Wiertz, 2013). Because of the impact social media on businesses, the relationship between firms and the clients have changed a lot in the modern tech world. Currently, companies are creating strategies that enable them to analyze and understand the demands of the target market by scrutinizing their likes and dislikes on social media sites. Traditionally, print, TV commercials, and radio ads were costly. However, with the introduction of social media firms can connect with their target market at a small fee. The use of social networking sites like Facebook and Twitter are having tremendous impacts on the growth and performance of a business. While the changes can have positive impacts on sales and brand recognition, when improperly used,social media can have negative effects on small businesses.

Problem Statement

Social media sites are powerful tools for businesses that are trying to build their brands, either locally or internationally to generate sales and online dominance. Through social media, companies have found new ways to run online businesses since it allows them to reach their target market, run ads campaigns, and build a personal relationship with the target customers (Malthouse et al., 2013.). When planned strategically, the impact of social media on business operations can be great. It is because social media can have a positive effect on the sales conversation, customer engagement, and brand building. While the changes from traditional marketing like the use of TV and radio to social media have brought about positive impacts, when it is improperly used, it can have a series of negative impacts to businesses that depend on online marketing. Overreliance on social media can have varied concerns on businesses, particular when a firm does not have enough staff that can constantly monitor feedback from online users regarding the kind of products and services that is offered.


The use of social media has changed the way firms operate and succeed in the current competitive business environment. Companies are now using social media sites like Facebook and Twitter to market themselves to reach a wider market base and have a competitive advantage on their competitors (De Vries, Gensler, & Leeflang, 2012). Although social media has made a stunning impact on business management and operations, through research, it has been found out that social media, if used improperly, can have a negative effect on the operations of an organization. While each and every work of a firm represents the company’s brand, monitoring their activities on social media sites can be challenging. There is a risk when workers post things that are related to the company’s operations and objective on social media sites since it can either damage the image of the company or build its reputation and brand. Therefore, this studyintends to analyze how the use of social media by businesses can negatively affect the reputation and operations of the company.

Research Questions

It is essential to incorporate ideas that pertain to the study through relevant questions to help readers understand the topic in distinct dimensions. Questions asked can help inspire potential solutions to the problem of negative social media impact on the operations and brand of firms. The questions are designed to find connection and balance that exists between social media and business management.

RS1: What is the relationship between social media use and business?

H10: The use of social media by businesses can positively and negatively impact a firm’s brand. As such, companies should be cautious with the kind of information that they feed their target clients.

QS2: How has development in technology-enhanced social media growth and use among businesses?

H20: Technology has enhanced the use of social media sites in distinct geographical regions thereby enabling businesses to reach a wide range of customers.

Research Method

The study will use a quantitative research method since a large population composed of online users will be surveyed. Quantitative research uses larger samples that are attained via a precise process. It is because the use of large samples would result in data that can be generalized thereby making it easier to predict the outcome in the population. The quantitative research methodology is described as a manipulative or experimental study that uses quasi-experimental design, hypothesis testing, and mathematical (Bernard, 2017). As such, in the case of this study, variables would be manipulated to determine differences that will arise in the final results.


Research Design

The study will use a Quasi-experimental design to determine the relationship between the use of social networking sites and its negative impacts on the development of an organization. Quasi-experiment entails the use of a less controlled specimen. It will, therefore, be essential to use subject variables, age, likes, and dislikes of target online users in the study. Grouping online users based on gender, age, likes, and dislikes will help the researcher arrive at a generalized outcome that can help identify prevention measures to the problem.

Theoretical Framework

The theoretical framework for the study includes game theory, feminist theory, and social learning theory (Aparicio, Bacao, & Oliveira, 2016). Social Learning theory was developed by Albert Bandura. The theory holds constructs, which determine, predict, and describe human behavior. The application of the theory to the study would help describe socialization and its impacts on the development of individual behavior among online users upon interaction with their online friends and families. The theoretical bases act as an individual’s learning process that influences people’s socialization with each other. On the other hand, applying feminist theory will enable the researcher to analyze the status of both women and men in society and how the use of social media sites influences their interaction with each other. The theory is mostly concerned with voicing the needs of women in society. Finally, the application of game theory will help explain the interaction that individuals have with each other through online games that are posted on social networking sites like Facebook.


In brief, the significance of social media on the growth of businesses has increased over recent years. With more people joining and using social media sites like Facebook and Twitter, the social media industry is projected to become a bigger marketing vehicle in the coming years. Characterized with amazing growth, current businesses should leverage proper social networking channels to ensure that they reach a wider audience. By giving a business a social media touch, the management would not only generate more returns but also connect with their customers. Despite the significance of social media on business brands and sales, when it is used improperly, it will have a negative impact on the operations of the company. Overreliance on social media can have varied concerns on businesses especially if they do not have enough staff that can manage online offensive behaviors and the kind of information that is fed to the target market.




Aparicio, M., Bacao, F., & Oliveira, T. (2016). An e-learning theoretical frameworkJournal of Educational Technology & Society19(1), 292-307.

Bernard, H. R. (2017). Research methods in anthropology: Qualitative and quantitative approaches. Rowman & Littlefield.

Gensler, S., Völckner, F., Liu-Thompkins, Y., & Wiertz, C. (2013). Managing brands in the social media environment. Journal of interactive marketing27(4), 242-256.

De Vries, L., Gensler, S., & Leeflang, P. S. (2012). The popularity of brand posts on brand fan pages: An investigation of the effects of social media marketing. Journal of interactive marketing26(2), 83-91.


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