Part A: Annotated Bibliography- MGT502 Business Communication
1-Gafni, R., & Deri, M. (2012). Costs and benefits of Facebook for undergraduate students. Interdisciplinary Journal of Information, Knowledge, and Manageent , 7 (1), 45-61.
Gafni and Deri (2012) have conducted a study on the costs and benefits of Facebook, and the intended audience for the article consists of undergraduate students. Authors belong to research institutes of Israel and have presented useful research on the benefits and financial impact of Facebook. The cost and benefit for students are in light of their academic performance. The research study finds that Facebook is good for social interaction and communication. It helps absorbing social dynamics and factors in the environment. However, it wastes the time of users because it also offers distractions to students. Although the article does not directly discuss the financial benefits, the cost indicates that. Academic activities incur costs, and a good student uses time and financial resources efficiently. In the case of Facebook, it has fewer benefits and more costs for these students (Gafni & Deri, 2012). This study has the perspective of students, and this perspective is useful to consider as well.
2-Burke, M., & Kraut, R. (2013). Using Facebook after losing a job: Differential benefits of strong and weak ties. Proceedings of the 2013 conference on Computer supported cooperative work, 1-12.
Burke and Kraut (2013) have conducted useful research on the impact of Facebook. Authors have proved their grasp over the topic and have taken a unique topic to study the benefits and impact of Facebook. They have studied the use of Facebook for a person who has lost his job. Then, different benefits have come under consideration from researchers. The benefits and impacts of Facebook revolve around psychological and practical aspects. These benefits are related to stress levels, support in society, acting as a bridge in society, and opportunity for a new job. The research has also noted strong and weak ties following job loss. These factors affect the financial perspective of the person as well because job loss has a direct impact on finances (Burke & Kraut, 2013). The research notes the impact of Facebook on a person after employment; therefore, it follows back his employment experience.
3-Ainin, S., Parveen, F., Moghavvemi, S., Jaafar, N. I., & Shuib, N. L. (2015). Factors influencing the use of social media by SMEs and its performance outcomes. Industrial Management & Data Systems, 115 (3), 570-588.
The financial impact of Facebook is not confined to individuals because companies are also using the platform for various benefits. Ainin, Parveen, Moghavvemi, and Jaafar (2015) have considered the performance outcomes of social media for small and medium enterprises (SMEs). The authors have taken a broader perspective by taking social media and its impact. They have considerably focused on the use of Facebook as well. The study has found that Facebook has a positive impact on the financial performance of SMEs. The study also reports that non-financial factors also see improvements due to the social media platform. Marketing and customer service may reduce their costs, and there is a higher level of information accessibility due to Facebook. The research has a valuable contribution to studying the financial impact and benefits of Facebook. The SME perspective is quite comprehensive to note the financial impact of Facebook (Ainin, Parveen, Moghavvemi, Jaafar, & Shuib, 2015).
4- Dootson, P., Beatson, A., & Drennan, J. (2016). Financial institutions using social media – do consumers perceive value? International Journal of Bank Marketing, 34 (1), 9-36.
Dootson, Beatson, and Drennan (2016) have taken financial institutions in their study that use social media. It helps to understand the impact of social media because financial institutions must seek financial benefits out of the use of social media. Therefore, the financial impact is inevitably part of this research study. For enriching the topic, the research study has taken the perceived value of consumers into account. It is the economic value that leads a customer to make a connection to a financial institution over the social media platform. It means that the financial benefit of the social media platform is there, and it is one of the strongest factors to decide for customers over there. The article has value as it takes the whole social media into account while it also considers Facebook considerably in the research study (Dootson, Beatson, & Drennan, 2016). The use of Facebook for financial institutions is an example of the financial benefits of the platform.
5-Chan, E. Y., & Saqib, N. U. (2015). Online social networking increases financial risk-taking. Computers in Human Behavior, 51, 224–231.
Chan and Saqib (2015) have taken the financial perspective of using social networking sites. It is another name of social media platforms. They have taken a financial perspective as they take financial risk-taking into account. If a person dares to take financial risks, and it is due to social networking sites, it would be a financial impact and benefit of these sites. The article has based the financial impact of Facebook along with other social media platforms because they offer an increased level of social circles. These widened social circles offer financial support and high quality to users. As a result, they can take higher risks financially. It is due to their sense of belonging and collectivism garnered through social media platforms. Therefore, financial benefits and aspects of social media networking sites have gotten evidence through this research. It is worthwhile to note that high risks lead to high financial returns for an individual or an entity (Chan & Saqib, 2015).
6-Kumar, K. V., & Devi, D. V. (2014). Social Media in Financial Services – A Theoretical Perspective. Procedia Economics and Finance, 11, 306 – 313.
Kumar and Devi (2014) have studied social media in financial services and have based their research on a theoretical perspective. The authors have offered their research with an in-depth theoretical analysis that is useful and helpful for understanding the impact of social media. The bottom line of the research is that social media is essential. No company can live without it, and companies providing financial services are no exception as well. It spread word of mouth and enhances customer service. A company can make its reputation and image higher, and it also leads to a competitive advantage for the firm. These factors have a link with increased profitability and higher financial performance of an organization. Therefore, financial services and organizations should use social media so that they can harness the power and opportunities provided by social media. Facebook is one of the companies offering social media services to its users (Kumar & Devi, 2014).
7-Liew, E. J., Vaithilingam, S., & Nair, M. (2014). Facebook and socio-economic benefits in the developing world. Behaviour & Information Technology, 33 (4), 345–360.
Liew, Vaithilingam, and Nair (2014) have considered the socio-economic benefits of Facebook. Another strong point of the research is its focus on developing countries. Many research studies have focused on the impact of Facebook in the developed world and companies situated there. A perspective of developing countries is important to include making the case globally applicable. The study finds socio-economic benefits as a mediator between the adoption of behavior and actual behavior. These benefits affect information seeking, entertainment, socialization, and business development behaviors of users. It means that social media adoption affects the information-seeking behavior of users. It entertains them and helps them socialize. Entities can work on business development through it. Socio-economic benefits work as mediating variables in it. The article is useful because socio-economic benefits lead to a better financial position for an individual and an organization (Liew, Vaithilingam, & Nair, 2014). The perspective of developing countries makes the case global.
8-Deloitte. (2015). Facebook’s Global Economic Impact. Retrieved March 5, 2020, from https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/technology-media-telecommunications/deloitte-uk-global-economic-impact-of-facebook.pdf
In a report by Deloitte for Facebook has examined the economic impact of the company. Economic impact related to the financial impact because a good economic position leads to a better financial position of individuals and entities. The number of people connected through Facebook is more than 1.35 billion. This connection helps them know products, services, and offerings from local and global businesses. Facebook offers an ecosystem that consists of users, professionals, markets, application developers, supply chain partners, manufacturers, and companies. The platform has the role of a catalyst that enables these partners and members to work in a coordinated and connected manner. The report has found a positive connection between Facebook with financial performance and its impact on society. It has summarized effects in three ways. First, it is a tool for marketers of all sizes. Second, it acts as a platform that is suitable for app developers. Third, it acts as a catalyst for an increased level of connectivity within society (Deloitte, 2015).
9-Yoon, G., Li, C., Ji, Y., North, M., Hong, C., & Liu, J. (2018). Attracting comments: digital engagement metrics on Facebook and financial performance. Journal of Advertising, 47 (1), 24-37.
Yoon et al. (2018) have studied the relationship of Facebook with financial performance. The study notes that Facebook is a platform that enables marketing and advertisement possible for companies. The study has focused on commenting on Facebook that can lead to revenue generation for the company. The performance of a company triggers the digital engagement of stakeholders, where the most important stakeholder is a customer. The study has included S&P 500 companies and found direct comments of users for those companies. These comments have a direct link with the revenue of companies that have increased. The tone of comments also had a positive impact on the company’s revenue chosen for the study. Therefore, the impact and benefits of Facebook are positive and encouraging for companies that are a useful study (Yoon, et al., 2018). It shows that companies should maintain their accounts on Facebook actively to have a positive impact and benefits.
10-Heimer, R. Z., & Simon, D. (2012). Facebook Finance: How Social Interaction Propagates Active Investing. AFA 2013 San Diego Meetings Paper, 1-70.
Heimer and Simon (2012) have used a model to provide a platform for retailers. They have answered the question that seeks the impact of social interaction on the active investing of investors. The study notes the propagation of active investment strategies within the network of traders. They have used a network that resembles Facebook, and it eases the communication and socializing on that platform. According to the model, active investors adopt strategies leading them to extremely high returns. It is all because of communication within retailers that led them to adopt active strategies for investment. Ease of contact enables them to have a higher return in the short term. Retailers having communication have a higher chance of engaging in trading activities. Although the research does not relate to Facebook, the authors have adopted the Facebook-like platform for engagement (Heimer & Simon, 2012). This study indicates the possibility of using a Facebook-style platform for having benefits.
