Advantages and Disadvantages of Using Social Networks in Business

Running head: ADVANTAGES AND DISADVANTAGES OF USING SOCIAL NETWORKS IN BUSINESS
ADVANTAGES AND DISADVANTAGES OF USING SOCIAL NETWORKS IN BUSINESS
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1ADVANTAGES AND DISADVANTAGES OF USING SOCIAL NETWORKS IN
BUSINESS
Table of Contents
4. Literature review................................................................................................................................2
4.1 Explaining social networks..........................................................................................................2
4.2 Significance and relevance of social networks in business.........................................................3
4.3 Advantages of using social networks in business........................................................................5
4.4 Disadvantages of using social networks in business...................................................................7
References:............................................................................................................................................9

2ADVANTAGES AND DISADVANTAGES OF USING SOCIAL NETWORKS IN
BUSINESS
4. Literature review
Introduction
Social networks have both negative and positive effects on business. On the one hand, it has
given a boost to the customer-business interactions and relationships while on the other, it has
increased risks. These risks include bullying and harassment amongst others. This section would
perform a review of literature to analyze the arguments for and against the use of social networks in
business.
4.1 Explaining social networks
The simple definition of social networking is the use of the social media sites to connect with
friends, families and relatives. While the social networks provide great opportunities for people to
make new friends and connect with old friends, in business, it helps market products and services.
The traditional definition of social networks in business is however, different from its present
connotation. Wang and Wang (2013) in fact state that the social networking, which referred to the
“practice of expanding one’s business or social contacts”, has received greater impetus through the
social networks used today. The social networks that include social media sites like Twitter,
Facebook, LinkedIn and Instagram amongst others help business persons connect with individuals
and expand their ‘social networks’. The traditional definition of social network has been given a
boost by the creators of social media. The authors explain that the process of social networking that
included making connections by inviting people is now done on a wider and much bigger platform.
Businesspersons can now connect with people and have both social and formal interactions and
exchanges. While Facebook is a platform to have social interactions, LinkedIn is a business network
allowing for more business conversations.

3ADVANTAGES AND DISADVANTAGES OF USING SOCIAL NETWORKS IN
BUSINESS
The explanation of social networks further extends to the views expressed by the founders of
social media sites and applications. Mark Zuckerberg, the founder of Facebook, in his first television
interview back in 2004, explained Facebook as “an online directory that connects people through
universities and colleges through their social networks there” (Cnbc.com 2018). It is clear from his
explanation that the social media sites have taken social networking to a new level. Reid Hoffman,
cofounder of LinkedIn, had similar explanation regarding the social site except that he defined it as
the “only platform where smart work and not hard work pays off” (Youtube.com 2018). Social
networks thus can also be defined as ways to reduce to the excessive burden on businesses and make
work easy and effective. Jack Dorsey, one of the founders of the micro-blogging site Twitter
explains social networks indirectly by distinguishing his site from other social networks. Twitter,
explains Dorsey, unlike other social sites, provides real time news on events that happen around the
globe. Social networks involve inviting people, sending friend requests and connecting with them. In
Twitter, people could follow someone, may be some celebrities even.
According to Vojtovic, Ditkus and Navickas (2017), “the internet reduces many distance-
related frictions” causing problem for businesses, but it does not assist in strengthening the
relationship between employees and employers or customers and businesses. The following sections
shall further elaborate this discussion on the significance and relevance of social networking in
business.
4.2 Significance and relevance of social networks in business
In the world of business, any innovation and new idea is examined closely and checked
whether it would benefit the business or not. The contemporary social networks were also examined
prior to integrating those in business. It was found that the changing business landscape had the need
for such an innovation. The importance of social networks in business could be judged from the