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Perceived risks and risk management of social media in an organizational context

Abstract

The use of new electronic media for marketing communication is gaining in popularity with organizations, and the adoption of social media (SOME) is enjoying particularly rapid growth. However, organizations are uncertain about using SOME and perceived risks are limiting their use. This study explores the key types of risks that business organizations associate with using SOME in their marketing communication. We also explore the effectiveness of procedural control and proactive focusing processes in managing these risks. The results show that organizations perceive three types of risks that deterred companies from increasing the use of SOME. Companies applied procedural control mechanisms to manage time-loss risks. An organization’s familiarity with SOME was found to have a strong effect on time-loss as well as on other types of risks. Research revealed that the role that proactive focus and procedural control played in managing SOME-related risks was less than had been anticipated.

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Correspondence to Juha Munnukka.

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Responsible Editor: Shintaro Okazaki

Appendix

Appendix

Table 7 Summary of the research instrument

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Munnukka, J., Järvi, P. Perceived risks and risk management of social media in an organizational context. Electron Markets 24, 219–229 (2014). https://doi.org/10.1007/s12525-013-0138-2

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Keywords

  • Social media
  • Perceived risk
  • Risk management
  • Procedural control
  • Proactive focusing

Jel classification

  • M31