Social Media Risk and Reward


SocialMedia Risk and Reward


Socialmedia describes the use of information technology in supporting thesharing of content amid networks of users. Communities of practicedescribe a group of individuals who are related by a common interestand share information through a common network. Alternatively socialmedia information system is an information system, which supports thesharing of content amid a network of users. On the other hand, socialmedia provider is a platform that enables the creation of socialrelationships amid individuals having common interests, while socialnetworks are the relationships that individuals who have a commoninterest develop when using the social media. There are three SMISorganizational roles. One of them is that SIMS helps social mediaproviders in sharing content amid the different users. Second,through SIMS, users of social media are capable of sharinginformation across the social media platforms. Third, SMIS helps increating communities, whose members have a common interest (Zhang,2012).

Elementsof Figure 8-3.

CommunityA – this is the first-tier community and comprises of users havinga direct relation with the site.

CommunitiesB-E –these are second-tier communities. Relationships in thesecommunities are intermediated through the first-tier users.

Itis evident from the figure that the number of members in thecommunities grows exponentially. From the figure, it is also evidentthat the social media relies on community A to reach othercommunities.


Socialmedia is critical in sales and marketing since it helps in creatingof sales prospects. It is these sales prospects that shareinformation with their peers, leading to a successful sales andmarketing here, the risk is loss of credibility and bad PR. Socialmedia is also important towards customer support through targetingcertain customers in the social media platforms, an organization isin a position to share information as customers request this isenabled through providing customers with feedback (Zhang, 2012)here, the risk is loss of control. Besides, through the social mediaplatforms, suppliers are in a position to exchange information withpotential buyers here, the risk is privacy. Alternatively, suppliersare also in a position to obtain information that is shared by fellowsuppliers or even manufacturers through the social media here, therisk is privacy. In manufacturing and operations, individuals in theindustry use social media to spread and share vital informationwithin their networks here, the risk is efficiency. Furthermore, inhuman resources, employees can use the different social mediaplatforms in sharing information with the organization and viceversa here, the risk is loss of credibility and errors.


Capitaldescribes resources put as investment for future profitability, whilehuman capital describes an investment in human knowhow and skills forfuture realization of profits. Alternatively, social capitaldescribes an investment in social relations with the projection ofearning returns in a marketplace. Social capital can add valuethrough influence, information, personal reinforcement, and socialcredentials (Koput, 2010). The three factors that determine socialcapital are relationships in social networks, influence, andreinforces (Koput, 2010). An influencer is a social media user thathas the ability of making others follow his/her network. By havingseveral influencers in the social media, one can be in a position toobtain a lot of networks, which is exceedingly critical in buildingor strengthening ones social relationships (Tsiakis, 2015).


Koput,K. W. (2010). Socialcapital: An introduction to managing networks.Cheltenham, UK: Edward Elgar.

Tsiakis,T. (2015). Trendsand innovations in marketing information systems.ershey, PA : Information Science.

Zhang,Y. (2012). Futurewireless networks and information systems: Volume 1.Berlin: Springer.