Effect of Social Media on Saudi Entrepreneurs
Professional Dissertation
Date of Submission
7/9/2015
ACKNOWLEDGEMENT
This research paper has been completed with the help and support from my peers, tutor, husband and my family. I would like to offer my sincere gratitude to my tutor and professor Andrew Walker for the guidance that he has offered, constant feedback, for his mentor ship and encouragement.
Secondly, would like express my appreciation for the moral support that I have received from my husband and the rest of my family as I undertook this research paper. I thank them for their patience and because they have provided me with advice and offered financial support throughout my educational journey abroad. This project could not have been conducted successfully without the assistance of the above mentioned.
EXECUTIVE SUMMARY
The study on the effects of social media on Saudi Arabian entrepreneurs is an important factor in the study of the avenues that the individuals are using to progress their business. From the beginning of the research, it was evident that there was a need for the study to be conducted because of the lack of enough research that would help in the study. The evaluation of the information for the research showed the cultural, religious and political factors that affect the use of the avenues for business ventures. During the research process, it was revealed that the extent to which the Saudi Arabian individuals use avenues such as Twitter, Facebook, and LinkedIn to manage their businesses.
The study took the qualitative approach, where the information was gathered from interviews and secondary research. The information was analyzed in themes that were evident in the evaluation of the information. Four interviews were used in this study from entrepreneurs who work in Saudi Arabia and use social media in their businesses. From the analysis and the discussion of the study, there was the revelation that the use of the social networking sites has helped the individuals grow their businesses, although there are some challenges that they encounter in their entrepreneurial ventures. Recommendations and conclusions were then made in line with the discussion of the study.
Table of Contents
CHAPTER 1: INTRODUCTION 5
Background of the Study 5
Problem Statement 8
Research Objectives 8
General Objective 8
Specific Objectives 8
Research Questions 9
Significance of the study 9
CHAPTER 2: LITERATURE REVIEW 11
Saudi Entrepreneurs 11
Business in Saudi Arabia 12
Businesses in the Social Media World 13
Adaptation of Social Media by Entrepreneurs 14
Effective Mechanism of Business in Saudi Arabia 17
Social Media Platform Usage 18
Twitter 19
YouTube 20
Facebook 21
LinkedIn 22
The Degree of Use of Social Media in Saudi Arabia 22
Benefits and Advantages of Social Media to Saudi Entrepreneurs 23
Politics and Challenges Inhibiting Social Media Platforms 25
Social Media Constrains in Saudi Arabia 26
Effective Mechanisms of Social Media 28
Student’s use of Social Media in Saudi Arabia 30
CHAPTER 3: METHODOLOGY 31
Introduction 31
Brainstorming 31
Interviews 32
Data Collection 33
Data Analysis and Writing 34
Reliability and Validity 35
Limitations and Ethical Consideration 38
Secondary Research 39
Introduction 39
Research design and purpose 40
Procedure of using secondary data 41
Data collection 41
Sources of secondary data 42
Evaluating the Quality of Secondary Data 43
Inductive Approach 44
Primary Research 46
CHAPTER 4: FINDINGS AND ANALYSIS 49
Introduction 49
Overview of the Information Collected 49
Social Media Avenues used in Business 51
Success of Social Media in Businesses 52
Control of Social Media in the Business 53
Use of Social Media in Achieving Business Objectives 54
Challenges Facing the Use of Social Media in Business 55
Analysis of Secondary Research 56
Conclusion 61
CHAPTER 5: DISCUSSION, RECOMMENDATIONS & CONCLUSION 62
Introduction 62
Overview of the Use of Social Media in Saudi Arabia 62
Recommendations 68
Conclusion 69
References 72
APPENDICES 78
Appendix 1: Interview Guide 78
Appendix 2: Sample Interview Questions 79
Appendix 3: Interview Responses 80
Respondent 1 80
Respondent 2 81
Respondent 3 82
Effects of Social Media on Saudi Entrepreneurs
CHAPTER 1: INTRODUCTION
The use of social media in Saudi Arabia is increasingly becoming prevalent with the advent of the new technology. The usage of these platforms can be essential in the political, social, and economic arena because a significant number of people are using social media in the country. In Saudi Arabia, more than 3 million persons use Twitter while LinkedIn has approximately 840,000 users. In addition, YouTube has many users because more than 90 million videos are viewed on a daily basis. In this regards, the level of engagement on social media platforms in Saudi Arabia is evident. Individuals and organizations can benefit extensively from using social media, not only in business but also as a platform for socialization. The private and public sectors in Saudi Arabia can exploit the untapped opportunities in Saudi Arabia that have risen from the high levels of social media activity in the country.
Background of the Study
A significant number of people use social media worldwide in businesses, education, politics, and social forums. Social media help companies in terms of marketing and engaging directly with customers. Most of the large corporations in the world use social media platforms to market and promote their products. Social media enhances education because some forums have useful sites that support learning. Most politicians in different countries know the effectiveness of social media and, therefore, they use the forum to campaign or facilitate propaganda. In essence, most citizens in Saudi Arabia use social media platforms to reap the benefits associated with their application in the different aspects of life.
Saudi Arabia is one of the countries that have embraced the use of social media reflected by the high statistics. Breaking news in the country almost spread thanks to the power of social media immediately. The popularity of social media can be partly attributed to the high number of young people who makes up a large portion of the population. The greatest number of users is between 26 to 34 years. 60% of the Saudi Arabians use social media, with Twitter ranking high on usage. Approximately 8 million people in the country use Facebook and, therefore, the extensive use of social media platforms in the country cannot be emphasized.
The use of Twitter has witnessed a steady increase in the last few years, the study will seek to expound on the extent to which is employed in Saudi Arabia and the impact it has on the social life in the country (The Economist 2014: para 3). Journalists who have termed the platform like the new form of Parliament have welcomed the presence of Twitter in the Kingdom of Arabia. The study will attempt to expound on the elites use of Twitter as the fundamental platform for the dissemination of information. The study will also focus on the impact Twitter is having on the freedom of expression especially in respect to the censorship policy that Islamic nations have on the subjects (BBC 2012: para4 )
Notably, despite the grounding of the internet infrastructure the freedom of expression and association continues to be a challenge in the monarchical administration. In essence, the Saudi Arabia government practices Islamic fundamentalism, this, therefore, presents a limitation in the extent to which social media is used (Khalaf 2002: para 10). The study will attempt to explore the degree to which the state of governance in Saudi Arabia affects the use of Social media and the dissemination of information. In this regard, the study seeks to identify the various means that the Saudi nationals use in pursuit of information or in communicating. Arguably, the internet is a safe place to express feelings. Share thoughts and discuss delicate matters without the fear of being victimized or being targeted.
The Arab spring is good examples of the extent to which social media can be utilized to share information or to mobilize support. The study will seek to establishment the various forms through which social media are accessed in Saudi Arabia. A recent survey indicates that the use of smartphones is the most common means of accessing social media. The trend of accessing the internet through social media is perhaps popular because it is personal and private in a country where an Islam fundamentalist is the principle. Social media in Saudi Arabia has hit the headlines over the years with the advent of a new breed of young people who seem to hold a different view from what the administration has been attempting to propagate. For instance, the recent trend in which women in Saudi have recorded themselves while driving is in defiance of the guardianship regulations (Zuhur, 2011: 175). The rules in Saudi limit the freedoms of women and, therefore, these women have chosen to seek reprieve on social media by expressing their feelings.
The use of Blogs and Weblogs in Saudi has gained popularity over the years with more people embracing blog spots as familiar territories for expressing their views and opinions. The study will seek to establish the impact that blogging is having on the Saudi population (WEBIST, 2013: para 6). In addition, the return of Saudi-born youths who have been studying abroad and who consider themselves as citizens of the world has brought in a new sense of social media usage. The study will reflect on the impact of globalization with respect to social media in Saudi Arabia. Social networking services present a unique opportunity in Saudi Arabia for the expansion of social life, which is limited in the country. The study will seek to provide a background check on the issue of thefamily as perpetuated in the Islamic region and its limitation on social media interactions.
Problem Statement
There have been a number of studies on the use of social media in the various fields such as education, business politics, and interactions. The previous studies on education show how different platforms are used to facilitate knowledge in various institutions especially of higher learning. In addition, business is boosted by engaging the online communities through advertisements and promotion. Interacting of entrepreneurs with their customers is also made possible through social media, ultimately leading to lasting relationships. Despite the many studies on the use of social media in different countries, there is limited previous work on the application of social media platform in Saudi Arabia.
This study seeks to explore the different aspects of social media in Saudi Arabia, and how it is used to improve individuals in their daily activities. The study proposes to execute a detailed study on the application of social media in different fields such as education, politics, and businesses in Saudi Arabia.
Research Objectives
General Objective
To examine the use of social media in Saudi Arabia by entrepreneurs.
Specific Objectives
• To find out the different social media platforms that are used by business people in Saudi Arabia.
• To discuss the use of social media in Saudi Arabia businesses.
• To find out the effects of social media in the social and political life of Saudi Arabia citizens.
• To examine the extent to which the Saudi Arabians have adopted social media in their business practices.
Research Questions
• Which are the different social media platforms used in Saudi Arabia?
• How are the different social media platforms in Saudi Arabia used for business purposes?
• In what ways do social media affect the social and political lives of the Saudi Arabian citizens?
• How prevalent is the use of social media in Saudi Arabia?
Significance of the study
The findings from the study will be beneficial, not only in Saudi Arabia but in different countries because of the benefits related to the application of social media. The entrepreneurs who have not adopted the use of social media in their businesses can get detailed information on adopting social media, which would consequently promote sales if applied in the right way. Educators can also acquire different ways of using social media as a learning platform, which would be helpful in teaching different courses.
The study is also significant in adding more knowledge to any work on the use of social media because it fills the gap in the literature. Further, the study will be important in making projections of the possible trends that social media may take in the future. In addition, the study will be critical in analyzing the impact that generational change in the leadership of the Kingdom of Saudi Arabia may portend for the place of social media in governance in the Kingdom of Saudi Arabia (Haykel et al. 2015: 10)
CHAPTER 2: LITERATURE REVIEW
Saudi Entrepreneurs
Communication is one of the greatest needs of human beings because of their social nature. As such the growth of some online social networks such as Twitter, Facebook and LinkedIn among others, has been an achievement in the provision of a fundamental component of human nature (Indrupati and Henari, 2011: 2).These social media platforms have been the result of the dynamic evolution of technology, which has also led to the increasing availability of data that is relevant for most businesses. The information that can be derived from social media can help in the increased productivity of the firms, leading to greater economic growth (Almoaimouni, Houghton, and Sandhu, 2014:7761). Startups and small enterprises play a significant role in the economic growth and development of nations. These small firms end up becoming the large organizations in the economy. As such, businesses have been budding, and the entrepreneurs have realized that their business environment is dynamic because of advancements in technology. Competition from rivals has also been a major issue for small businesses. It should, however,be noted that Saudi Arabia has recorded a low entrepreneurial activity because of the Kingdom’sover-reliance on the income generated from the oil sector. The level of Early-Stage Entrepreneurial Activity (TEA) of this Middle East country is at a low of 12% as compared to Uganda’s 34%, yet the latter among the poorest countries. The low TEA can, however, be contributed to the culture of the Saudi people. Men conduct most of the business activities in the Kingdom, and sometimes when the oil deals get better, they give up on the new ventures that they have just started.
Zekan, Cvrtak and Seric (1) state that most business people have adjusted their business practices to embrace the new ways of conducting business. Focus of the entrepreneur’s businesses has since shifted to the target market as a way of staying competitive. Most of these small firms use social media as means of managing their marketing communication. Indrupti and Henari (2011: 2) indicate that entrepreneurs have chosen to use social media because it is very interactive and will engage the specific market segments targeted by the small firms.
Business in Saudi Arabia
The society of Saudi Arabia is personalized, and the people value each other’s views and opinions. Ali notes that the personalized nature of the Arab culture allows the people to interact freely and solve disputes directly and amicably (2009:66). However, the personalized characteristics may affect organizational management. The management may be lenient in implementing policies or penalizing employees who are not productive. Similarly, lack of commitment by managers to honor organizational goals affects the company negatively. Most Arabs are not used to rules and regulations. Instead, they respond more to individuals and emotions rather than objects. As such, most of their business is conducted using their personal instinct and gut feeling.
The Arab countries, value their religion and cultures. Hence they integrate their religious beliefs in their businesses. Unlike the Western culture, businesses in the Gulf observe religious rituals and traditions. Similarly, the Arabs believe in theinclusion of family members in their businesses and companies. While, in the West, theinclusion of family members may be considered nepotism, the Arabs believe in the family business. Businesses in Saudi Arabia are conducted in a diligent and honest manner. Most of the business people are conversant with the English language. Hence they can negotiate effectively with foreigners. Saudi Arabia economy is rapidly increasing to attract more investors and businessmen. Therefore, the businesses that are set-up cater to the needs of a wider market. Saudi businessmen are meticulous in their business dealings, and they have an extensive knowledge of business and trade experience. Furthermore, the businessmen make an effort to learn different languages that will enable them in business negotiations. They also respect and appreciate other cultures, and they attempt to accommodate their needs in a business situation.
For any business to be successful in Saudi Arabia, it has to comply with the regulations and rules of the country. The government encourages foreign investments and new business ideas. Additionally, the government supports businesses that are viable and will enhance the country’s economy. Foreign investors are required to have local partners who will have a majority interest in the company. The population of the country is rapidly increasing, this has created a need for real estate development and investments. The government has set regulations that favor foreign investors in the real estate sector. Import of processed foods in Saudi Arabia can be successful. As the country is located in a desert region, not many types of crops can survive, therefore the processing fresh fruits and food stuff and selling to the locals can be a lucrative business in Saudi Arabia. The successes of business in the Arab country rely on thorough market research and compliance with the laws of the nation.
Businesses in the Social Media World
Researchers like Aral, Dellarocas and Godes, are of the opinion that the social media platform is ideal for various business and enterprises (2013:10). They note that most consumers will seek for information on the desired goods or services on the social sites. Recommendation from satisfied friends or family members will also cause people to explore the social sites. For instance, the real estate sector benefits from the social and online platforms. As the global population increases, so does the need for quality and affordable housing. Many real estate companies have utilized the social platforms in advertising housing and office properties. The various platforms on the social sites give adetailed description of the residential or office space. Technology has allowed companies to offer more elaborate details such as virtual tours of the property on the online platforms.
The service industry such as the beauty parlors, Spas, hotels and recreational facilities also benefit from online social platforms. Most people will look for an ideal vacation destination on the social sites. The customers will consider the reviews given by other users, to determine their choice of holiday destination. Similarly, Spa establishments and luxury salons advertize their business on the social sites. Most of these businesses attribute their success to arecommendation from satisfied customers and aggressive online advertising.Nonprofit organizations utilize the social media platforms in their management. Most of the NGOs support community-based projects and charities that aim to eradicate poverty in the society. People are always eager to donate to charitable causes that will build their communities; hence, they support the NGO’s projects. The NGOs often document the success of their various community projects, which helps them in obtaining aid from the public.
Adaptation of Social Media by Entrepreneurs
In the 21 century, businesses and enterprises are competing for the same market and customer, observes Howard and Hussain, (2011:35). Hence, businesses strive to offer the best products and service to meet the market demand. Both the developed and developing nations strive to implement the online and social site in the promotion of their businesses. Similarly, businesses implement various strategies in their operations in order to cater effectively for the market’s demands. Advancement in technology has allowed many businesses to use more efficient and cost effective methods to reach their target market. Entrepreneurs have recognized the changing needs of the consumer. Hence, they constantly adapt their goods and services to appeal to the consumer’s taste, notes Smith and Shaw, (2012:22). Conventional forms of advertising and marketing like the newspapers, magazines, radio and television, are gradually becoming obsolete. Hanna and Crittende note how most business enterprises have realized that the majority of the target market frequents the social and online platforms (2011:265). In an effort to reach the online market, businesses strive to establish a strong online presence that will appeal to the potential customers.
The social sites are normally used for social interaction. However, marketing and advertising activities prominently feature on the sites. Among the popular social sites utilized by entrepreneurs is the Twitter platform. Heller Baird and Parasnis concur that entrepreneurs have realized the attention and popularity of the Twitter platform among the young generation (2011:30). Research also indicates that the older generation is turning to Twitter to get the latest information and updates. According to Coleman and Heriot, businesses need their products and services to be accessible to their target market at any time (2014:55). Therefore, the businesses will inform their potential customers on the latest products and services and how to get them. Additionally, the Twitter platform is ideal for mass communication as satisfied consumers will retweet positive information about the products. The domino effect of retweeting through the social sitescan ensure that success of a product or service. Furthermore, the Twitter platform enables the business owner to evaluate the response of the customers towards a product or service. Consequently, the entrepreneur will be in a position to make informed decisions when implementing future marketing strategies.
Facebook is a social platform that has been adapted by many entrepreneurs in their businesses. Research indicates that the increase of Facebook users, who use the site for social interaction and information updates. As such, businesses target the online consumer by getting their attention at their social point. Modern businesses have Facebook pages that showcase their business products or services. The Facebook platform allows the business owner to inform and update the customer on the latest products on offer. Additionally the Facebook page allows the customers to interact with the company representative by leaving comments or asking questions. A business can evaluate its strengths and weaknesses through the reviews of the online customers. Additionally, the company can ask the customers to offer suggestions and recommendations that the business should implement. Both the developing nations and the western countries utilize the social sites for the promotion of their businesses.
Below is a graph of how various developing and western nations utilize the social media platform in their businesses.
Figure 1: Use of Social Media in Business Enterprise
Effective Mechanism of Business in Saudi Arabia
The cultural set up of Saudi Arabia is Islam and Arab, which is deeply religious and conservative. The citizens of the country value family and cultural traditions. In this regard, Cassell and Blake, suggest that businesses should implement strategies that comply with the cultural practices of the country (2012:150). Additionally, business operations should accommodate religious, cultural and personal preferences of the clients. Customers will feel appreciated and valued when a business owner is sensitive to their needs.
Like any other economy, the Saudi Arabian market fluctuates according to the market’s demands. In this regard, Martiradonna, suggests that business should be able to predict the market’s demands and provide the goods promptly (2014:320). Similarly, it is important for a business to offer quality goods or service. People in Saudi Arabia, value, quality and authenticity in their products. Business should also evaluate the economic climate at a given period and make informed decisions on pricing. An effective business will target the economic capability of different people and strive to cater to their needs. In an effort to reach the target market, the business should use appropriate channels of marketing and advertising. Hence, sufficient market research should be carried about by a company before setting up the business.
The Arab nations are predominantly Muslim. Hence, they are strict about their religious and cultural beliefs. As such, they expect all businesses that cater to the public to comply with those beliefs. Furthermore, the government has enforced laws that prohibit certain behaviors and conducts that do not comply with the Muslim religion. The Arab culture prohibits the consumption of certain foods such as pork. Alcoholic beverages are also not allowed in the Arab countries. In compliance with these laws, businesses should ensure that their products are acceptable within the Saudi Arabian Community. Similarly, the messages and language used on the products should not be offensive to the Islamic culture. People in the Arab country will respond to abusiness that shows respect and recognition to their cultural values and beliefs. The government also offers incentives to business that promote and enhance the Islamic culture.
The population of Saudi Arabia is diverse, it is, therefore, important for abusiness to target a particular market and cater to its needs. Peoples’ attitudes towards a product or service will depend on their social affiliations, age group, and economic capability. A business in Saudi Arabia should segment the market in the appropriate categories in order to efficiently meet their demands. Preferences and tastes will vary across age groups. Similarly, people of the same social class or group will be attracted to similar products or services. Businesses should ensure they explore adequate channels in reaching the customers. There are many platforms that the business can be able to reach their customers. Traditional methods like the television, newspapers and magazine can be effective in reaching the older generation. Whereas, the younger generation will be more responsive to the social and online platforms. The appropriate channel of communication should be used, depending on the target market of the business. In order to gain a competitive market advantage, a business should evaluate its strengths and weaknesses in comparison to its competitors. The business climate in Saudi Arabia is highly competitive. Therefore a business needs to adapt to the regulations of the region.
Social Media Platform Usage
Social media has played an important role in influencing society, and this has marked the advancement of information and communication technology. Social media is comprised of various activities that include online interaction and internet communication. Since most are operations are based on rapidly evolving content, it is necessary to establish modes of linking and sharing information and a central point from which information is disseminated. The consequence is the creation and maintenance of interesting websites. The people who visit a particular website should have access to the new content that is posted. It is possible to obtain information without necessarily accessing the website because there are sharing tools such as RSS feeds, ShareThis, and AddThis. The sharing tools make it easy for the website users to forward information contained in the site. There are many online platforms that are used in Saudi Arabia, and they include Twitter, LinkedIn, YouTube, and Facebook.
Twitter
Twitter is an Internet-based blogging service that allows users to send and receive short messages of up to 140 characters. The access to the site is free as long as one is connected to the internet. The site facilitates a rapid exchange of thoughts between its users. Messages sent via Twitter are commonly referred to as tweets. The messages appear in a chronological order on the screen. The ‘hashtag’ is used to create a connection between the current message and other related texts thus making it easy to follow a conversation. Twitter is particularly effective in conversations that concern the society because of the compact nature of its messages. Conover et al. (2011:26) states that Twitter allows heated political debates to be raised since users do not have the chance of justifying their views and citing sources. Marcello (2013: Para 1) outlines that Saudi Arabia has recorded the fastest-growing Twitter market in the world. He also stated that the number of active Twitter users in the country grew by 57% between 2011 and 2012.
According to Lori (2013, para 3), the high usage of Twitter in Saudi Arabia forms part of the bigger picture of the high social media consumption by the youth of the country. He proceeds to claim that Twitter provides a platform for the citizen to interact and express themselves. For instance the hashtag “The salary is not enough” recorded 17.5 million tweets in the period of four months. The tweet was aimed at forcing the government to raise the purchasing power of the nationals by increasing their salaries. However Lori (2013: Para 7) points out that the Saudi leaders are against the use of Twitter to press for changes. The political leaders consider the medium as a source of social ills. The most influential leader in Saudi Arabia referred to Twitter as a platform through which malicious people spread lies. In addition, the use of Twitter has been condemned by the religious leaders who claim that it threatens national unity. Lori (2013: Para 9), asserts that the Ministry of Culture and information in Saudi Arabia is charged with the obligation of monitoring the use of Twitter. However, it is difficult to regulate the entire Twitter-sphere using one account. As a result, the kingdom is mainly focused monitoring the influential users of Twitter. The marked users include civil and political activists, preachers and lawyers.
YouTube
Youtubeis an internet video service. The main underlying concept in YouTube is that users should be able to upload their videos online and at the same time watch what other people have uploaded. According to Simeon (2014: para 1), Google initiated a campaign to enhance the sharing of online videos in the vast Saudi Arabian market. The residents of Saudi Arabia have recorded the highest number of hours spent on YouTube globally. Simeon (2014: para 2) stated that the time spent on YouTube by Saudi Arabians increased by five-fold between 2013 and 2014. The increase prompted Google to hold a seminar in the Kingdom to promote stronger links with the producers of videos that are in Arabic language. More than half of the Saudi Arabian population is composed of people who are less than 35 years who prefer to use the YouTube platform to gain access to drama, sports, comedy, and news. According to Nahlah (2013: para 6), statistics reveals that the Saudis account for approximately 190 million YouTube views every day. He also stated that, most YouTube watchers in Saudi Arabia seek for entertainment, religion, sports and politics.
Nahlah (para 8) outlines that there are certain unique circumstances that lead to Saudi Arabia being ranked as the top YouTube user. First there is the fact that the population is made up of approximately 70% young people who are highly connected. Another factor is that Saudi has a high penetration of smartphones and mobile phones. YouTube statistics indicates that 50% of views come from smartphones. Thirdly, Nahlah (Para 10) claimed that there are few venues for entertainment in Saudi Arabia, and this is evidenced by the lack of movie theaters. The absence of entertainment facilities prompts the Saudis to turn to YouTube.
Facebook
According to the Arabian Gazette (2013: Para 1), Saudi Arabia has the highest number of Facebook users among the Gulf countries. Facebook.com takes the third position when websites in the country are ranked in order of popularity. Most of the Saudis prefer to use Arabic language when communicating via the site. Shuaa, Andree and Sandra (2013: 80), claim that Facebook is one of the most used social sites by students in Saudi Arabia. They go on to claim that since the site was introduced in 2004, it has grown into a tool and mirror for social interaction. Facebook has transformed the mode of communication used in the 21st century. Shuaa, Andree and Sandra (2013: 83) carried out a study to investigate the behavior of Facebook users in the Saudi Arabia. Their study revealed that most people used a personal laptop to log on to Facebook while the rest used a mobile phone.
LinkedIn
According to Nina (2013: Para 1), Mary (2013: Para 1) by 2013, LinkedIn had registered over a million users in Saudi Arabia. LinkedIn press releases highlighted the three main skills that are found in the Saudi market. The skills were sales, training, and management. In addition, the top three industries were found to be oil and energy, healthcare and construction. Nina (2013: para 3) observed that most of the LinkedIn users use mobile phones to gain access to the site. Since Saudi Arabia has the highest penetration of smartphones, it is easy for the citizens to join the LinkedIn community. In addition, the platform was used by Saudi companies such as SABIC, Saudi Telecom Company and Saudi Aramco to source for talent among the citizens.
The Degree of Use of Social Media in Saudi Arabia
According to Harrah (2014: para 11) about 59% of users of social media reveal that the social media activities of a company create the perception that the firm is responsive and accessible. 69% of the people in the same survey suggested that companies should use social media platforms for their customer service. These claims are supported by Al-Mommani, Al-Afifi and Mahfuz (2015: 64-70), who indicate that the use of social media has been a course changer for most enterprises. Companies have adopted proper use of these internet platforms to market their products, and communicate with their customers.
Harrah (2014: para 11) reports that the use of social media has been proven to be beneficial to most businesses that apply its use. Al-Mommani, Al-Afifi and Mahfuz (2015: 64-70) indicates that the benefits arise because social media allows the enterprises to understand the virtual communities. In addition, the social platforms help them in assessing the changes in the current business environment. Zekan, Cvrtak and Seric (1) reveal that for most of the entrepreneurs of small businesses, however, the use of internet or social media for their businesses is still something foreign to them. As such, some of these business people or small firms fail to realize the degree of importance, especially in marketing, that the media holds in the firm. The entrepreneurs have to give emphasis to social media because according to The Economist (2014: para 3), the number of people who use Facebook was 8 million. 60% of the Saudis who use internet use Twitter, making the Kingdom the world’s highest Twitter penetration. 2012 and 2013 witnessed the growth of Twitter users by 45%.
The success of the use of social platforms, however, involves more of the younger generation. Most of the users of the internetare aged between 26 and 34 years, and 87% of them are male (The Economist 2014: para 3).
Benefits and Advantages of Social Media to Saudi Entrepreneurs
Stimulation of word of mouth is of the main positive influences that have been brought by the use of social media Zekan, Cvrtak and Seric (1). The Saudi entrepreneurs have the chance to enjoy word-of-mouth marketing, with is a form of marketing that is free and very satisfying for the customers. This form of advertising is among the most credible because the conveyer of the message is usually someone who is trusted. Al-Mommani, Al-Afifi and Mahfuz (2015: 64-70) state that the use of social media has given the entrepreneurs a platform for analyzing and monitoring the consumer behavior. When the users who are also customers of the business express their views on social media, it makes it much easier for the entrepreneurs to make adjustments in the strategies that they are currently using. Customers using social media have a tendency of sharing their experiences online. Such information provides a source of data that would help the firm to improve on the faults or commend itself for the compliments.
Zekan, Cvrtak and Seric (7) add that some of the advantages that small entrepreneurs have realized from social media include reduced promotional costs, because the use of social media for marketing is free as long as there is internet connection.In addition, the platforms provide a chance for the firm to interact with potential customers. According to Indrupati and Henari (2011: 2) social media platforms such as Facebook and LinkedIn are the most popular sites used by entrepreneurs in the GCC. While using LinkedIn, the company can create a profile that would be accessed by potential customers, as they view the products and services that they can offer to them. Additionally, the information from the site can be updated by anyone mandated by the firm at any given time, meaning that the social media will help in giving the customers updated information. Zekan, Cvrtak and Seric (7) state another benefit of social media as a platform where the company can create a network of loyal customers. These customers can contribute their opinions about the firm’s products as they promote the products of the firm. The creation of these networks are very easy because of the lack of thetime limit associated with social media. These platforms can be accessed at any time by the firm and the customers leading to a better connection. Almoaimouni, Houghton, and Sandhu, (2014:7761) add that social media and e-commerce have enabled companies to gain competitive advantage from the information that is available. The information allows the firm to assess the market potential. Getting to understand the customers, with theaid of the data, may lead to better satisfaction of the customers, because the products will now be targeting specific markets. Such activities will lead to the perception that the firm is efficient, making social media a very important aspect of entrepreneurship.
Politics and Challenges Inhibiting Social Media Platforms
In the Middle East, not just the Kingdom of Saudi Arabia, there have been cases where the government interferes with the right to press freedom. Lack of press freedom as explained by Odine (2013: para 1), refers to the inability of the people to have access to information. The people in these regions are sometimes not allowed to receive information, analyze or interpret the functionalism of mass media. The issue of political participation in some of the people’s rights is a limitation to the socio-economic development of the region. The author’s study also suggested that Saudi Arabia is very conservativeon most issues regarding social media. BBC reported that the Saudi Government threatened to ban some social media platforms such as Whatsapp and Skype. These threats are just the examples that show the degree of political interference in the operations of social media in Saudi Arabia (2013: para 6).
The other factor is limiting the widespread use of social media is cultural and religious reasons. Koshy states that more than 80% of companies in the Middle East are reluctant to use social media because they fear customer comments on these platforms and how it will affect their reputation (2013: 4).The media can be used for negative word of mouth, which can be damaging to the company in the highly religious Kingdom. Some of the uses of social media contradict the national laws, which are guided by religion.
Harrah (2014: para 27) reveals that the use of social media in firms as a marketing tool is rather controversial. The reason for the controversy is that the effectiveness of the advertisements on social media platforms is questionable. Only a few of the young generation that use social media are influenced by the advertisements because they tend to use these sites for the original purpose, socializing. The use of social media can be effective, however, there has to be much input in terms of time to make the process work. The diversity of the results can be discouraging, but realistically, the results of using social media as a marketing tool cannot be the same for different enterprises.
Social Media Constrains in Saudi Arabia
The application of social media in the various sectors in Saudi Arabia is met with various constraints regarding the use of the avenue for different ventures. The debates that rise in politics because of the use of social media is a factor that entrepreneurs have to consider when incorporating the avenue into the marketing strategy. The use of social media in Saudi Arabia is on the increase with almost half of the population having access to Twitter (Foreign and Commonwealth Office: para 10). Twitter is the most used platform in the country, and it provides a platform for debates in the Saudi society. One of the major constraints of social media use in Saudi Arabia is the limited freedom of speech in the country. The monitored use of the avenues limits the online freedom of expression.
Constraints that are brought up regarding social media are included in the hefty fines that people who go against the policies on the use of social media. The Saudi Arabian Commission in charge of communication and information technology directed that a penalty of five-year imprisonment and a fine of $799,929 (BBC Monitoring Middle East: para 2). The stiff penalties have led to individuals taking precautions when it comes to the use of social media in businesses. The kingdom sternly monitors the social networks use, which has an effect on the use in business. The Economist (para 5) indicate that the use of the social networking sites is often done anonymously because of the fear people have because of the restrictions. The fear that people have in sharing their opinions is a factor that has affected the use of the medium in the country.
In Saudi Arabia, constraints of using the social media is a factor that has been brought up by the restrictions because of the unrest caused by the information shared on the platform. The fact that social media has been used negatively has changed the perspectives that people have on the use of social media. The social media platforms in the country are used as a means of protesting against injustices in the country. Entrepreneurs have rarely used the platforms for business purposes. The aspect has led to the fact that the platforms are rarely seen as the ventures that can be used for business. Harb (para 8) states that the social media platforms have been used to mobilize individuals. The factor can work in favor of the entrepreneurs in Saudi Arabia, but the mobilization is donewith other intentions.
The businesses that are connected to politics may suffer because of the restraints that surround the use of the internet in sending information. BBC Monitoring Middle East (para 10) states that the ban of websites that host political content. The factor leads to the limitation of the avenues that businesses can advertize their products and services. The factor leads to the discouragement of the entrepreneurs in using the online platforms in advertising their services and products. The article notes that the restrictions have not prevented the spread of social media use, as the country still ranks among the highest in the use of social media in the Middle East.
Effective Mechanisms of Social Media
Communication technology in the 21st century is more accessible, reliable and has faster delivery. Social media has become popular as it is cost effective and time efficient.
Social media has impacted all aspects of the 21st century. There has been a significant revolution in businesses, social and political sectors since the advent of social networks. The social media sites such as Twitter, Facebook, and blogs allow the users to interact with other people whom they share similar interests. The online platforms expose the domestic culture to the international cultures, thus enhancing theglobalization. Through the online sites, people from any part of the world can share valuable information and connect with family and friends. Saudi Arabia is among the countries that have embraced the social sites as a tool for business and networking. Research shows that 8 million people in Saudi Arabia are active users of the social sites. (Saudi Arabia Social Media Statistics, 2013:7). However, the traditions of Saudi Arabia limit communication with the outside world especially on social issues. As such, many young people are hesitant to express their opinions and principles openly. The Saudi Arabian culture prohibits the use of certain social sites that might be offensive to their beliefs. In addition, women are also not allowed to express their opinions freely or socialize with non-Muslims.
The social sites that are most popular in Saudi Arabia are Facebook and Twitter. These sites are utilized by the young peoplefor socializing as well as sharing information. Statistics shows that most young people in Saudi Arabia use their mobile phones to access the social sites. According to a recent study, 74% of the Facebook users were male while the majority were between 26-34years, Jeddah (2014: 4). Additionally the sites are popular within the country as they allow people to share their views globally. More than half of the populations of Saudi Arabia have Facebook profiles which they regularly update. Facebook is considered an effective medium of interacting with friends and getting updates. Many of the young people uses the Facebook platform to update their latest personal status, such as, married, divorced and engaged. Through the Facebook platform, the young people form relationships with people of similar social class. Many people in the country are conservative, therefore they prefer to express their opinion through the Facebook platform. In addition, companies and organizations have utilized the Facebook platform in order to reach more customers. Companies that intend to have a competitive advantage, establish a strong online presence that targets the younger generation. Similarly, companies utilize the Facebook platform in promoting their goods or services. Organizations have discovered the efficiency of the online platform in reaching the global market. One of the leading social sites in Saudi Arabia, SocialBakers.com, reported that Facebook usage has increased to more than 50% in the last two years. The site further reveals that Saudi Arabia has the most Facebook users compared to other Arab countries.
The second leading social network in Saudi Arabia is Twitter. More than five million people in the country use the Twitter platform for communication. The number of Twitter users increased from three million in 2012 to five million in 2013. Statistics indicates that the number of Twitter users increases by 45 % annually. The same study revealed that Twitter was widely used within the Kingdom, both government officials and the local people. According to the study, more than 150 million tweets are sent each month, 85% of the tweets were written in Arabic. Religious figures in Saudi Arabia are regular users of the Twitter platform (Jeddah, 2014:7). Mohammad al-Arefi is leading with 7.5 million followers, followed by Aid al-Qarni with over 5.1 million, and Ahammadal-Shugairi and Salman al-Odah with 4 and 5 million followers respectively. The religious leaders regard the Twitter platform as an efficient and effective tool for reaching their followers with important information. Similarly, the followers have easy access to their religious leaders on the Twitter site. Meanwhile, the YouTube online site is exclusively used for video viewing and streaming. The study revealed that around 90 million YouTube videos are watcheddaily. The statistics also indicated that an average internet user in Saudi Arabia views around seven videos per day.
Student’s use of Social Media in Saudi Arabia
Saudi Arabia has one of the largest percentages of social network users. The majority of the users are young people. The social sites have become a part of the daily routine for the young people in Saudi Arabia. As such, higher learning institutions have incorporated the use of social media in interacting with the students (Aljasir, Woodcock, & Harrison, 2013: 86). According to Moran, Seaman, and Tinti-Kane, faculty members and the administration of many institutions have utilized the social media in order to communicate to the students effectively (2011:24). Lectures at the Higher learning institutions will often use the Twitter site to update students on an urgent development. Al-Khalifa and Garcia note that the social sites are an effective means of communication between the faculty members and the students (2013:65). In addition, students in the same institution can use the social sites to interact and share information on their various courses. The social platforms also enable students to interact with the alumni of their institution (Transforming Education in The Arab World, 2013:14).
CHAPTER 3: METHODOLOGY
Introduction
The use of social media by businesses in Saudi Arabia is an aspect that is slowly being utilized by the entrepreneurs. The use of social media sites such as Facebook, Twitter, Instagram, YouTube, LinkedIn, and Skype are some of the avenues used to manage enterprises in the country. There are various strategies that will be used to analyze how entrepreneurs use the avenue to improve their businesses. The use of the different types of methods that will help analyze the use of social media by the entrepreneurs in the Kingdom of Saudi Arabia.
Brainstorming
Brainstorming is an important tool in the research process because it helps define the problem that will be discussed. Isaken and Gaulin (315) state that the brainstorming process is helpful in the research process because of the generation of ideas. Effective brainstorming sessions included the analysis of the general aspect of social media use by different industries. The brainstorming session incorporated the idea of social media use in Saudi Arabia. The use of social media in the kingdom is a fairly new venture, hence the choice of topic. Since the adaptation of the avenue in Saudi Arabia, this thesis will discuss how businesses are progressing through the use of social media.
The brainstorming session in during this research was extremely helpful in knowing what is already known and what is not. Whitaker (6) states that brainstorming will help in knowing what an individual knows about a specific topic, the perspectives that a person has and what else can be researched the topic. In coming up with this topic, the brainstorming aspect was useful in determining what direction the research will take. The effect of social media on Saudi Arabian entrepreneurs is affected by different aspects that were discussed in this research.
Interviews
The use of interviews in research is very helpful in understanding complex issues regarding the topic. The use of interviews will be helpful in understanding the perspectives that the people have regarding the effects of social media on entrepreneurship in Saudi Arabia. The use of the interviews helped in analyzing the real life situations concerning the social media use in Saudi Arabia. The interviews were in the form of semi-structured questions that will be given to the Saudi Arabian entrepreneurs who will give an insight on the use of the social networking sites on increasing the business. The use of the interviews also helped in providing the basis for the application of the ideas concerning the topic.
The effect of social media on Saudi Arabian entrepreneurs is a social study, which is an excellent method that helps in building theories around the study. The use of social media in the kingdom is a fairly new aspect in the country, but the use is widespread. The use of the interviews helped in analyzing the strategies that have been used by the business people in increasing their business. The specific target group used in the research on social media use were Saudi Arabianwomen and their use of social media avenues, specifically Twitter and Facebook.
The use of the interviews in the research was done in line with the research questions and the need to cover the gap in knowledge concerning the matter. The target population of the study was the women in Saudi Arabia and other entrepreneurs, in general. The data collected was derived from interviews conducted by the Saudi business people and learning on the usage of social media in their business ventures. The information derived from the interviewswas used in line with the findings of the secondary information of the research. The information was a useful exploratory tool that will hopefully increase the literature available in the field of study.
Data Collection
This research was focused on the deriving information from qualitative data. The main methods that were used in this research involved the use of qualitative data from individual interviews, observations and research from secondary sources. The collection of data can be based on the interviews collected on an individual basis or in a group setting. The collection of data in qualitative research is time-consuming, which means that the process is better off done on a small sample. The cost of getting the research done is another aspect that needs to be considered before the research takes place (Kothari: 97).
The study on the Saudi entrepreneurs and their use of social media in marketing their businesses is a factor that needed interactions with individuals from the country. The information needed was derived from the structured questionnaire that was sent to the individuals in the country through the use of social networking sites (Twitter and Facebook). The questions were also sent via email, which meant that the response rate was fast as compared to other means of getting the questionnaire to the target population. The questions sent to the interviewees were mostly open-ended because of the need to get qualitative data for analysis. The choice of the questions and the target population depended on the types of businesses that the respondents had, which was strategic in order to expand on the areas of study instead of focusing on a specific industry.
The strategies used to send out the questions for the study was also a strategic move regarding the research. The fact that the qualitative data collection method is time-consuming means that there was the need to save time when collecting the data needed for this research process. The use of technology worked to the advantage of the research since the questions were sent via online means which meant that the response rate was faster as compared to other means of getting the information. The cost of getting in touch with the respondents was also reduced because of the use of the avenues that were selected to send out the questionnaires. The cost of traveling to different places was cut and also the time used in the collection of data.
The use of online media and academic journals was also helpful in identifying the research problem. The current state that the social media usage is at with regards to business ventures is still unclear, hence the need to conduct this research. The use of the secondary sources of information was helpful in getting to know the marketing strategies used by the businesses and the entrepreneurs in Saudi Arabia. The target study of the topic was selected after the analysis of the information derived from the online publications regarding the social media status in Saudi Arabia.
Data Analysis and Writing
Data analysis in qualitative research involves the use of data that is continuously collected through the study process. The analysis of the data is done in simultaneous way because there is information that surfaces as the research progresses. Based on the observations that are made during the data collection period, the information is analyzed in line with the basis of data collected. The type of analysis used in the research depends on the methods used in collecting information and the type of information that is represented in the research. The need to have proper analysis that is accurate and appropriate will ensure that the research findings are valid and will form the basis of the discussion of the research (Crowther & Lancaster: 176). There is a need for integrity issues to be covered in the research process by ensuring the information is not bias.
The data analysis process needed to be in line with the objectives of the research and the process of proving the hypothesis. Careful consideration was placed in selecting the data analysis process and determining the significance of this research. The information was analyzed based on unbiased inferences on the information and the topic that was being discussed. The process also involved the proper documentation of the information that was collected, and it followed a systematic process that was useful to the researcher.
In the Saudi Arabian context involving the use of social media by the entrepreneurs, the information was filtered and analyzed based on the usefulness of the information in the research. The information used was based from the beginning of the use of social media in the country up to the contemporary society. The entrepreneurs in Saudi Arabia have not completely embraced the use of the technology in marketing their products hence the need to conduct the study that could be helpful in future. The information given was unbiased because the specific findings were objective and ethical in line with the information collected.
Reliability and Validity
Reliability and validity in the research process ensure that the value of the research is captured depending on the objectives of the study (Golafshani: 601). The aspect of reliability and credibility ensured that the findings of the research are true, and the results will be the same if another study is carried out on the same population. The use of social media in Saudi Arabia is a new concept, and there is bound to be more research that will be conducted concerning the aspect. Carrying out this research helped in getting the information needed for the research and it was done to ensure that the aspect of reliability and validity was followed accordingly. The two factors in the research process also challenges the results to be adapted to other populations and the information can be used in the studies of the same nature. All the parameters of the research need to be followed to ensure that the results from the research are original if all the parameters needed in the study were followed.
Ellen (2011:106); Rosenthal and Ronsnow (1991:46) outlined that reliability is a major concern when psychological tests are used to measure behaviors and attributes. Reliability is defined as the extent to which measurements can be repeated when the study is carried out on a different occasion by different people. There are various factors that can render a research unreliable. Subject reliability arises from factors affecting the mood of the respondent. Factors influencing the interviewer cause observer reliability. There are various aspects that were important in the analysis of the social media use in Saudi Arabia. Since the reliability is the consistency of measurement of various conditions, the correlation coefficient can be used to test its existence. Other techniques that can be applied to the valuation of reliability include test-retest, split-halves, internal consistency, alternative forms and inter-rata reliability (Ellen, 2011:108).
Validity refers to the extent to which the data collection instrument can quantify what it is meant to measure. Various techniques were used to ensure that the study had internal validity. The information collected during this research process was measured based on the interviews and the secondary data collected. The information collected from the correspondents was compared to identify similarities and differences. The study of the environment in Saudi Arabia in relation to the use of social media in the country wasvalid as the research conducted contained evidence that was derived in the research process.
The reliability and validity of this research can be measured based on the information that was collected from the Saudi entrepreneurs. The information given was original and based on the contacts I had in the country. The results can be tested for authenticity and credibility to ensure that the same results are derived in the repeat process. The study of the use of social media by entrepreneurs in Saudi Arabia has helped understand the perspectives that the business owners have on the use of the avenues to understanding the scope of the research. The plans that the entrepreneurs in Saudi Arabia have that involve the use of social media in their businesses are in line with those of other business owners in other countries. The factor proves that the information used in this research is valid.
From the information collected, it is also important to note that the aspect of reliability was usefulin knowing what was useful during the research process and what information would be considered useful in the context of Saudi Arabia. The information could alsobe used on another population, and the results will almost be similar to the experimental process. The consistency in the findings of the research based on the information collected from the gray literature and the interviews showed consistency in the research aspect. All the processes used in the research helped in knowing and analyzing the effects of social media on the Saudi entrepreneurs. The transferability and credibility of the research process helped enhance the analysis of the research.
Limitations and Ethical Consideration
One of the limitations of this research was the fact that the use of social network sites is a new concept in the country. Therefore, there was limited gray literature for effective study. There was the unavailability of gray literature that would have been useful in this research was limited, which was one of the main purposes of conducting this research (Cooper, Hedges & Valentine: 531). The available information on the use of social media in the country was used to build the foundation of the research. There is limited information that has been conducted regarding social media use by entrepreneurs in the country, which affected the data collected for the study. The rigorous search for materials affected the time taken in finding the information needed to exhaust the research topic completely.
Another limitation of the research was the fact that the target population was not easily accessible. The target population is situated in Saudi Arabia, which meant that the only way through which the participants could be contacted was through online means. This meant that it washard to create rapport before conducting the experiment. Ensuring that there was truth established was important in knowing what aspect is important in the research and whether they were telling the truth and who was concealing the information. In the research process,it was important to ensure that a relationship is formed before the conducting the research, which was constrained because of distance. The effectiveness of the results may have been limited because of the aspect.
The ethical considerations in this research were based on the limitations that occurred during the research process. The study was conducted ethically as the information collected was based on the views of the entrepreneurs in the target population. Participation in the study was not mandatory, and the respondents had a choice of not to take part in the study. The policies of the University for conducting research were followed to ensure that the information was original and not plagiarized from another source. Academic and credible online sources were used to get the information on the study, which meant that citations were used when the information used was from a different source.
Secondary Research
Introduction
According to Myres and Avison (2002:3), a research method refers to the strategy of inquiry that specifies the data collection methods and the entire research design. Secondary research is also known as desktop research, and it entails the collection, summarizing and synthesis of existing data as opposed to carrying out a primary study (Cnossen, 1997:1). Secondary research is the most used data collection method. In most cases, the technique involves obtaining information from third parties such as reports, websites, journals, books and magazine articles. In order to achieve accurate results, it is necessary to conduct the research with utmost care and diligence. The review of the secondary data enables a researcher to compare and contrast the work of other researchers and scholars thus obtaining accurate information.
The use of literature has both advantage and disadvantages. The strong points of the research methodology include:
• The analysis of secondary takes a relatively shorter period as compared to primary data collection and analysis.
• The use of secondary data methods saves money since the primary data collection activities are not conducted.
• Conducting a literature review give the researcher the ability to recognize trends and point of change and thus to point out areas that require further study.
The shortcomings associated with the use of secondary data include;
• It is difficult to evaluate the quality of data collected from secondary sources.
• The data contained in secondary sources is general thus it provides an indirect measure of the phenomenon under concern. It is, therefore, difficult to customize a research to meet a community’s needs.
• It is necessary to apply great caution when evaluating data obtained from multiple sources to ensure that the studies measure similar things.
• Availability of up-to-date information is a key constraint on the use of the literature review research design. The lack of current information interferes with the quality of research findings.
Research design and purpose
Issam (2012: 162) points out that the choice of the research design influences the technique applied in gathering data. According to Katherine (2005: 1) Secondary research involves the review and analysis of a lot of information. It is, therefore, important to develop a problem statement. A problem statement provides a detailed definition of the aim of carrying out the research. When the researcher has a clear understanding of the purpose of collecting data, the type of data required and the type of analysis to be performed they can maintain focus thus achieving the research objectives. The research design highlights is a detailed plan that guides the process of data collection and analysis.
Procedure of using secondary data
Several activities are performed prior to and during the use of secondary data in a study. The first step involves the identification of key indicators that are relevant in a particular area of study. A key indicator can be defined as a piece of information that avails data concerning the subject matter. The selection of key indicators is guided by the measures that are commonly used by specialists in a given area of study. In this case, the main indicators were social media, its various platforms and how entrepreneurs use it in Saudi Arabia. In addition, evaluating the number of Saudis who have subscribed to various social media platforms helped to shed light on the extent to which the use of social media has been rooted in Saudi Arabia.
The second step involves interpreting the data. The meaning of the data can be made clear by making comparisons. Comparisons can be made over time. For instance in this study, the number of social media users was evaluated over time in order to determine whether or not the Saudis had embraced the technology. In addition, comparing the number of subscribers on the different social media platforms helped to shed light on which site is mostly preferred in Saudi Arabia.
The third step is the gap analysis. Under this section, a comparison is made between “what is” and “what should be”. Gap analysis helps in identifying the potential of the phenomenon being studied (Israel, 1993:3).
Data collection
According to Katherine (2007: 1) the type of data collected using secondary research depends on the focus of the study. In this case, the study aimed at identifying the effect of social media on entrepreneurs in Saudi Arabia. The purpose of the study was to provide an in-depth understanding of social media in Saudi Arabia and how it facilitates business transactions. The following list gives the secondary data and information that was obtained:
• The nature of entrepreneurs in Saudi Arabia
• Social media mechanisms used by entrepreneurs
• Business mechanisms applied in Saudi Arabia
• The various ways in which social media is used
• The advantages and disadvantages of social media advancement to Saudi entrepreneurs.
• The various social media platforms used in Saudi Arabia
• Challenges experienced by entrepreneurs when conducting business through the social media
Sources of secondary data
The first source of data that was used was the official statistics. Official statistics refers to data collected by the Government and their various agencies, departments and bureaus. The statistics are very useful in research because they can be obtained easily. In addition, information provided by the government is comprehensive and covers long time periods. Official statistics is considered scientific since they are collected in a standardized format. According to Gill (1993), sometimes the official statistics may be unreliable and may contain data gaps thus it is important to conduct a critical analysis to ensure validity and accuracy. In this study, the official statistics on the number of subscribers to specific social media platforms were obtained.
Another source of secondary data is technical reports that give an account of the activities performed in research projects. Technical reports are mainly aimed at providing specific research results to research institutions, colleagues, government, and any other interested parties. The reports may outline an already completed or ongoing research. In this study, technical papers on the impact of social media on business and the extent of utilization of social media platforms were analyzed to give an in-depth understanding of the phenomenon.
In this study, scholarly journals were used as a source of secondary data. The journals contain reports on experimentations and original research. Furthermore; the journals are written by experts in the specific field of study. In this case, the journal used contained the reports of experts in the field of social media and its impact on business activities in Saudi Arabia. Some of the journals used were peer reviewed meaning that their content had been evaluated by other experts in the same field. The process of reviewing the journals increases their level of originality, accuracy and relevance. Another source of data for this study was a literature review articles. The article is also similar to the ones contained in journals in that they collect and review the original studies done on a specific subject. The literature reviews articles highlight and enlists the relevant publications that form the basis of the work.
Information obtained from reference books formed a significant part of the study. The books contain specific facts and summaries on particular topics. Manuals, handbooks, encyclopedias, and dictionaries are considered as reference books.
Evaluating the Quality of Secondary Data
In order to enhance the validity and reliability of a research carried out using secondary methods, it is necessary to use high-quality sources of information. There are specific standards that form the basis of the quality of materials used in the study. The first test involves evaluating the reason for carrying out the study. A study may be initiated by the government, corporate or for marketing purposes. The purpose of carrying out the study can be used as key indicator of the likelihood of bias.
Ascertaining the credentials of the article and journal authors can be a mode pf evaluating the quality of information obtained. For instance, socioeconomic statistics reported by the World Bank are considered reliable. It is important to evaluate the methods used in collecting data contained in the articles and their appropriateness. The date of the publication also affects its quality. Some research variables change rapidly, and thus some of the articles may contain outdated information. In addition, research topics that deal with science and technology require the most current information.
The referencing contained in a document can shed light on its level of quality. For a document to qualify for use a secondary source of data, it is important to ensure that its data and figures are accompanied by footnotes and endnotes that provide a complete reference. It is impossible accurately to evaluate the validity and quality of data reported in a document that lacks referencing.
Inductive Approach
According to Fox (2012: 429), induction can be defined as a form of thinking that is applied to help an individual gain understanding of a particular phenomenon. The technique establishes a relationship between day to day observations and theories that exist in a given field. An inductive approach is used by researchers to highlight existing theories with the aim of removing the need for continuous observations. Past experiences are evaluated, and this is followed by a generalization about the future. The inductive approach involves the generalization of particular observations to form broad statements such as theories or propositions regarding the topic of study.
An inductive approach can also be defined as a systematic procedure that can be used for studying qualitative data. In the approach, the analysis is directed by the specific objectives of the research. The main aim of adopting an inductive approach is to obtain research findings from the dominant and frequent themes found in the raw data. The inductive approach avoids the restraints that are imposed by other structured methodologies. The key themes in a study are mostly obscured, left invisible or reframed when a deductive approach is taken. However, the inductive approach pays close attention to the salient themes in the study thus accomplishing the study objectives. The inductive is mostly applied in studies that fall under the category of health and social sciences. This research is concerned with the use of social media for business purposes in Saudi Arabia which fits under the social sciences. Hence the inductive approach is suitable for this context.
There are a number of reasons as to why an inductive approach is used in a study and these include:
• An inductive approach allows the condensation of a large amount of raw data into a brief account
• Through an inductive approach, it is easy to develop clear relationships that exist between the objectives of the study and the summary results obtained from an analysis of the raw data. The approach ensures that that the links are transparent and defensive. Transparency in this context means that the findings can be demonstrated to others. On the other hand, defensible implies that the findings can be justified with reference to the research objectives.
• An inductive approach allows the researcher to develop a theory or a model that is based on the underlying experiences and processes that are evident in the raw data.
Fox (2012: 429) suggests that induction is particularly important in qualitative research approaches. In this study, the questionnaire responses obtained were used to form broad propositions that would be applied beyond the selected respondents. The validity of the inductive reasoning is supported by various techniques. The methods that are mostly used include statistical assessments, recursive abstraction and triangulation with other data sources. In qualitative research, induction is applied when a researcher intends to make generalizations from data obtained from a sample.
Induction is also applied in qualitative research. Inductive reasoning is relevant to qualitative approaches that are aimed at extending existing theories into new settings or developing theories where none exists. Caution should be applied by researchers when making generalizations beyond the data collection setting.
There are some important assumptions underlying the inductive approach. The first assumption is that the study findings are obtained through analyzing the raw data. The second assumption is that the mode of analysis involves developing categories from the data collected into a framework that outlines the key themes. In addition, the findings are determined by the experiences of the researcher during data collection and analysis. The researcher improves the quality of the findings by making decisions on what is important and what is not.
Primary Research
The study incorporated the element of primary research. Primary research is where the researcher is actively involved the collection of data useful for answering the research problem. A survey was conducted on entrepreneurs and senior business students who live in Saudi Arabia. A questionnaire was the quantitative data collection tool that was used. A questionnaire can be defined as a document that contains a set of questions that are arranged in a logical order. The answers provided are analyzed using either qualitative or quantitative methods. The analyzed data forms the basis of the research findings.
Sampling was done since the whole population could not be studied. A sample refers to a subset of the entire population. Samples are drawn using either probability or non-probability techniques. In probability sampling, each element in the population is given an equal chance of selection however in non-probability technique it is not the case. In this study, non-probability sampling was used since it was the people in the researcher’s network who were interviewed. The technique helped to solve on time and cost of data collection.
The study involved the designing of E-questionnaires and disseminating them to 20 Saudi Entrepreneurs who had been selected as a representative sample of the entire population in Saudi Arabia. Mailing of questionnaires was an effective way of reaching the respondents since it led to saving of time and money. The use of questionnaires has both advantages and disadvantages. The advantages include:
• Questionnaires are practical
• Questionnaire allow the researcher to collect a large amount of information from many people within a short period
• It is relatively easy to quantify the results of a questionnaire
• Questionnaire allow or scientific and objective analysis of data
• Quantitative data collected using questionnaires can be used to form new theories and the test hypothesis.
The disadvantages of using questionnaires include:
• Questionnaires do not capture all information such as the change of emotions and behavior
• When using a questionnaire, it is difficult to gauge the respondent is honest
• Different respondents may have different understanding of the same question
CHAPTER 4: FINDINGS AND ANALYSIS
Introduction
This chapter will focus on the findings made through the research process, and the results will be analyzed depending on the information collected. Various tactics were used to evaluate the information collected in the process. The presentation of findings and the analysis of the information is important in finding the perspectives of the Saudi Arabians on the use of social media in their businesses. The importance of this chapter is to gauge the extent to which social media has affected the entrepreneurs in the Kingdom of Saudi Arabia. The participants who took part in the research were 73% female and 27% male; the chart below represents the number of the gender of participants.
Overview of the Information Collected
The evaluation of the responses given by the interviewees showed that the businesspeople in the Kingdom use social media for a variety of aspects that were in line with the needs of the business. After reading the responses from the interviewees, it was easy to understand their responses and the achievement they have in using social media in their entrepreneurship ventures. The responses were categorized according to the responses given by the entrepreneurs, which were the key themes that were derived from the research and the interview questions. There were several themes that developed when undertaking the research, which was important in establishing the social media needs of the various business projects that the respondents had undertaken.
The use of the interviews was a strategic move to associate the themes with the interview questions. The use of the themes helped in the evaluation of the information that was used in the process. The analysis of the information in themes was an important aspect in the evaluation of the information based on the findings of the research. The information being analyzed was based on the three interviews that were conducted and the information from the literature that was available in the available sources. The use of the themes was also important to ensure that the information was reliable for the research process.
The responses given by the interviewees were analyzed based on the themes that manifested themselves through the responses that were given. The responses have been analyzed through the questions that were given to the respondents and the information used to get the foundation of the research. Based on the different industries that the entrepreneurs belonged to, the responses given were analyzed on the basis of the use of social media in the businesses. The challenges and benefits that have been brought by the use of the avenues and the keywords that were used in the definition of the evaluation were also analyzed. The use of the interviews was important in getting the perspectives of the individuals on the specific problem. The management of the social media is important in the enterprises is important in the management of business aspects.
Social Media Avenues used in Business
One of the key themes that arose during the research process were the specific avenues that the business people preferred to use in their businesses and in what ways were the sites helpful to their business ventures. Most of the entrepreneurs preferred the use of Facebook and Twitter for various purposes. One of the interviewees stated that the use of Facebook helps them reach out to the clients on the available and new products that have been stocked in the business. They also mentioned that the avenues were helpful in getting feedback from the clients. Another respondent mentioned that the avenues were used to market the new products that are available in the company. The uses of Twitter and Facebook have been useful in increasing business for the company and getting the perspectives of the clients on the business ventures undertaken. The major avenues for used in business are Facebook and Twitter because of the popularity of the methods. The availability and the ease of use seem to be the aspect that brings out the convenience of the social media sites.
Success of Social Media in Businesses
When asked about the success of the use of social media in the businesses, the respondents had different opinions on the use of the avenues. The use of socialmedia has helped in the improvement of the businesses in the various organizational settings in the Kingdom. One of the respondents mentioned that the use of social media has helped in increasing the client base of the company as the use of the tools have helped in getting the company recognized in the country. The use of the avenues is seen as a benefit for the respondent’s business and their business has improved through the use of the ventures. The incorporation of social media in the operations of the business has helped in getting new business based on the past performance. There has been an increase in sales of certain products when the use of social media was incorporated into the business. One of the respondents indicated that the uniqueness of the items they offered were advertised on social media, which increased the business for the products. According to another respondent, the use of the avenues helped in knowing the improvements that can be made on the facilities being sold in the business.
The respondents from the questionnaire also seemed to agree with those from the interviews as most of them agreed that the use of social media has helped in the management of the customers and it has increased the number of customers for the business. The respondents also noted that the use of social media has helped in the management of the businesses by helping the clients in the management of the business.
Control of Social Media in the Business
For the businesses to thrive there are various aspects that need to be arranged in order to control the use of the avenues in the business ventures. The management of the business needs to arrange for the staff to control the use of social media in the business and focus the methods on other tools to increase the business. The other aspect was control of the use of the avenues in the business ventures. For one respondent, the use of an administrator, who is aware of the operations of the business and the social media use structure in the company. The control of the social media is dependent on the number of clients who use the avenue to reach out to the businesses about the products. The use of social media is also a means that the clients can use to interact with one another on the operations of the business. Another interviewee indicated that the avenue was used several times a day to keep customers on a point on the business operations and to structure the image of the business. Another entrepreneur mentioned that they are the administrator of the accounts of the businesses and that they authorize the posts before they are sent out. The limitation of access to the avenues is another response that was given by a respondent. There are various reasons that are attributed to the aspect of the business venture.
Most of the respondents in from the questionnaire noted that the owners of the company control the use of social media in the businesses. This is because the social media is a huge responsibility that will require for one to be educated on the message that the business wants to pass along. The owners of the business are the most knowledgeable on the message they need to pass across in the business, therefore, the use of social media gives them the platform to do so.
Use of Social Media in Achieving Business Objectives
Various businesses use social media in achieving the objectives of the business by increasing the avenues that are available to control the marketing technique. This important aspect is where the next theme was derived from. The next theme that was evident from the review of the answers given by the respondents was on how much the use of social media has helped in achieving the business goals and objectives. One of the respondents mentioned that there have been increased sales in their businesses because of the use of the avenues in the business venture, timely feedback was another achievement mentioned by the interviewee and the increase in popularity of the business is another aspect.Other business goals that were mentioned by a different entrepreneur was that more clients have been reached through the use of the avenues, there is provision of services even after working hours and the use of social media has helped in ensuring that quality products are offered to the client, and they are of the right quantity.
Knowing the specific market to target is another goal that has been achieved by one of the business people in the Saudi market. Understanding the specific method through which the target audience operates is an important aspect of understanding the methods that the entrepreneur will use in the business venture. Getting higher sales of the products is one of the goals that have been achieved by one of the entrepreneurs, which led to the expansion of the business venture. Furthermore, the respondent mentioned that the social media tools helped in aligning the objectives of the business. Another of the interviewees mentioned that one of the goals that have been achieved in the business is the increase in the number of clients and the increase in the business conducted by the organization. The retaining of the customers is another aspect that the social media has helped accomplish for the business. This factor can be attributed to the delivery of high-quality services to the clients of the business.
Challenges Facing the Use of Social Media in Business
The use of any avenue is important in the management of the business objectives, therefore, it is important to understand the challenges that the business will be faced with in the incorporation of the tools n the management of the business.The last factor that the entrepreneurs were asked about was the challenges that they had faced in the use of social media for their businesses. One of the respondents mentioned that the political interference on the use of social media in the Kingdom was a challenging factor for the business. The respondent mentioned that the government interference has affected the use of the medium by businesses because of restraining the content that goes on the internet. That has been one of the main challenges that the company has faced in development. Another interviewee mentioned that one of the challenges of using social media in the business is understanding that individuals’ views are serious and which were not, and understanding the clients’ needs and how to address them was a serious undertaking of the business.
Another respondent mentioned that convincing clients over social media on the quality of our goods since they cannot see them, hence making sales may be hard to some customers who have to see the products before purchasing them.This was another challenging factor that the business people face in Saudi Arabia when using social media to conduct business. Furthermore, another respondent mentioned that the challenges that they have faced when incorporating social media use include the misinterpretation of messages through the different forums and the increased number of companies using the forums, which increases competition.
Analysis of Secondary Research
The information collected through the literature review indicated that the use of social media for business ventures was not a new concept in the entrepreneurship system. Various businesses had already tried the methods to control the business. Therefore, there was some information on the use of the avenues in various small businesses in the organization. The literature search began with a look at the Saudi entrepreneurs and how they communicate to their intended target market. Their input was incorporated into the business, and the aspect measured various factors on the operations and how the avenues helped in attaining the goals of the business. Some of the authors and researchers found different concepts that were used in the entrepreneurial ventures by the owners of the businesses. This section will analyze the use of social media in business ventures and the effects they have on the operations of the business. In Saudi Arabia, the use of social media increased greatly in 2014, which is shown in the analysis by Statista (2014). The graph below shows the findings based on the research carried out in the Saudi population.
Social Media Penetration in Saudi Arabia as of 2014
(Source: Statista, 2014)
An analysis of the information provided in the works of Indrupati and Henari (2011:2) indicate that the use of social media has helped in the establishment of various business ventures that have been fundamental in the development of the avenues of social media. The authors focus on the way the avenues can be used to increase operations for small businesses in the Kingdom. Some of the businesses in the Kingdom started as online ventures, which means that their current success is owed to the use of the platforms in getting their business known by the entrepreneurs.
Ali (2009:66) indicates the organizational approaches that affect business in Saudi Arabia, which is affecting the operations of the business. The author evaluates the influences of various aspects such as religion and culture in the country on the way businesses operate. His analysis of the methods of organization in the country influences the running of the organization shows how businesses try to adapt to the new ways to increase the potential that they have. The effect on culture, an religion have been critical in the measure of the success of the businesses in the Kingdom. Some of the constraints in the use of social media have been as an effect of the use of the mediums in the Kingdom and the critique on how the individuals use the social networking sites. To further illustrate how businesses are venturing into the social media world, Aral, Dellarocas and Godes (2013:10) point out that the increased use of social media is because most of the consumers use the social sites to seek information on goods and services.The awareness of the consumers of various goods and services through information derived online is important in the management of the business ventures.
The aspect of staying ahead of the competition is an important aspect of the management of the business ventures. The competition from the same consumers has led businesses and enterprises compete for the same customers as Howard and Hussain (2011:35) indicate. The two authors try to show how the entrepreneurs are coming up with new ways to stay ahead of the competition. The use of social media in business is an important way of ensuring that the consumers are in the know on the operations andthe availability of the products and services that they need. Smith and Shaw (2012) point out how changing the features of the goods and services has led to the attraction of the consumers, who are constantly changing their tastes and preferences. The use fo the aspect can be beneficial to the social media users as they will know the changes as soon as the employers make them. Hanna and Crittende (2011) also support the views of Aral, Dellarocas and Godes (2013) who point out that consumers seek information on the goods and services from the online platforms. The increased use of the platforms, therefore, assists the businesses to manage the information that is available on the networks that the consumers can use.
The conservative nature and culture of the Saudi Arabian people affects the mechanism through which they conduct business as pointed out by Cassell and Blake (2012) who suggest that businesses should be conducted through the strategies that comply with the beliefs in the country.The following the laws set help in the management of the extent to which the management can conduct the businesses. Furthermore, Martiradonna (2014) studies the way through which the cultures of the given country affect the operations of the business. The use of social media may be beneficial for the businesses in the country, but the aspect of the management is important in managing the extent to which the avenues are used in the business. There are various degrees through which social media is used in Saudi Arabia, which have been studied by various scholars. Harrah (2014) and Al-Mommani, and, Al-Afifi and Mahfuz (2015) study the degree to which social media has been effective in running businesses. For some entrepreneurs, the use of the ventures has ben important in getting knowledge of the consumers that will be useful in the business. To support the study, Zekan, Cvrtak and Seric (1) point out how social media has helped small businesses grow in the Kingdom and to what extent the ventures have been effective for the use in businesses.
The use of social media in businesses has various advantages for the business people in the Kingdom. Zekan, Cvrtak and Seric (1) and Al-Mommani, Alfifi and Mahfuz (2015) show how the use of social media has helped in studying the behavior of consumers in Saudi Arabia. There are various factors to consider when evaluating the benefits of the use of the mediums in the business sector. The authorsevaluate the benefits that have been brought to the businesses in Saudi Arabia and the ways through which business can be made better with the use of the avenues. The benefits are, however, countered with challenges that face the entrepreneurs and other businesses.
Odine (2013) points out the various challenges that people in the Kingdom have to go through even the press because of lack of freedom. The issue of challenges that entrepreneurs face when using social media also incorporates the fear that the people have the perceptions and negative feedback of the social media users, as stated by Koshy (2013). Some of the individuals in the Kingdom are afraid of using the networks because of the straining laws on the use of the mechanisms. Harrah (2014) points out the controversies that come with the use of social media as a tool for marketing in the businesses.
The Saudi Arabia Social Media Statistics (2013) helps in this research by analyzing the number of active social media users in the Kingdom. Jeddah (2014) conducted a survey that showed the effective tools of social media in the kingdom. One of the effective mechanisms that has been established in the use of social media is its use in teaching business students in the Kingdom. Various researchers have shown the effectiveness of the use of the tools in the education background and the effectiveness in the field. Al-Khalifa and Garcia (2013) and Moran, Seaman and Tinti-Kane (2011) discuss the extents to which the students interact with the entrepreneurs from Saudi Arabia, who educate them on the entrepreneurial landscape of the country.
Based on the analysis of the qualitative and secondary data in the research process, there are various themes that are demonstrated in the use of the information from the two sources. The effects in terms of benefits and challenges to the use of social media in the Kingdom will be analyzed and discussed further in this research paper, and the appropriate and relevant recommendations will be made. After that, a general conclusion on the topic will be made based on the discussion on the effects of social media use on entrepreneurs in Saudi Arabia.
Conclusion
The analysis of the information was important in knowing how the discussion will take place by the use of the various ventures. The analysis of the information, especially the secondary research revealed that there is still a lack of sufficient information on the use fo social media in the business ventures hence the need to carry out this research. The findings and analysis results will be further discussed in the next chapter of the study.
CHAPTER 5: DISCUSSION, RECOMMENDATIONS & CONCLUSION
Introduction
During the search for the information for this research, there were various aspects that were uncovered on the use of social media and the effects they have on business ventures. This chapter will discuss the use of social media based on the findings of the research and the effects they have on various business ventures. The chapter will finally conclude the findings and give recommendations on the use of the social networking sites on the businesses.
Overview of the Use of Social Media in Saudi Arabia
The analysis of the secondary data and the interview questions revealed that there are several trends in the use of social media by the Saudi Arabian entrepreneurs. The analysis of the information showed the various aspects that are incorporated in the use of the avenues to improve the business. After interviewing various business people, it could be seen that the use of the social media avenues has changed operations in the business ventures that they have. The change in operations can be seen as both positive and negative depending on the way the business is handles and the sector in which it operates. The entrepreneurs have their way of dealing with the challenges and the benefits that they get from the use of social media in their business ventures.
The implications on the use of social media in businesses vary depending on the methods used by the business people in getting the information on the consumers and ensuring that they can relate to the information they are getting from the entrepreneurs. The analysis of the consumer market is important before the use of social media is applied in the various business ventures. In Saudi Arabia, there are various factors that need to be considered before social media is incorporated to the businesses, which may be an aspect that has affected the way through which the entrepreneurs have used the avenues in the business ventures.
Before analyzing the effects of social media use in businesses in Saudi Arabia, there is the need to understand the various channels that the entrepreneurs use to market their businesses. From the analysis, it was evident that Facebook and Twitter were the most popular channels that were are being used for business ventures. Furthermore, the analysis of the literature showed that the use of the two and other several channels is evident in the Kingdom. The use of Facebook, Twitter and blogs for the businesses are the most effective means of communication with the clients in Saudi Arabia. The use of LinkedIn and YouTube is also catching up in the businesses in the Kingdom as more entrepreneurs explore the use of the mediums in expanding the business. The use of LinkedIn has, however, been useful in getting the knowledge of availability of employees and the strategies that can be used in the businesses. YouTube videos are mostly important in the businesses as the entrepreneurs can demonstrate how to use their products and the specific use.
The use of the social networks in Saudi Arabia is not only useful in marketing the business, but the avenues can be used to get employees who might be needed to fill a position in the organization. The use of LinkedIn as a tool to source for employees is one of the factors that are making its usage grow in the country. The increase in the educated number of individuals in the Kingdom means that there is added labor on the market. By the use of LinkedIn, the entrepreneurs can use the network to get employees that will save time and costs of having to hire people through agencies. It is important to note that in the kingdom, most of the individuals in the site have majored in sales and management, which makes it easier for the entrepreneurs to select the candidates they deem fit for their jobs.Other avenues such as Facebook and Twitter can be used by the entrepreneurs to get candidates for the jobs depending on the way the users portray themselves on the network. The company in turn saves time and money used in sourcing for the employees, and there is a variety of individuals whom they can select from. Small entrepreneurs do not only use the channels;major corporations such as news agencies use the social networks to send out a press release and other important information that needs to be transmitted fast.
Social media in the business context is used for a variety of purposes. Some of the companies use the avenues to let their prospective and clients know about the new products that are available in the market and how they can access them. The importance of the business to keep the clients updated on the operations of the company are based on the fact that they are needed to improve the business. The use of the avenues to market the products can be defined as an aggressive marketing strategy that uses all means possible to get the items to the customers. The means of aggressive online marketing is one of the factors that make the businesses more successful as compared to others. The marketing strategy can work depending on the level of research conducted by the company. The entrepreneur needs to understand the needs of the consumers before sending them information that may or may not be useful for the clients. The bombardment of the client with information may be considered too aggressive, which means that the customers may have a negative attitude towards the business, which affects the operations negatively.
Another use of social media in the Kingdom is based on accessing the feedback of the consumers on the operations of the organization. The use of Twitter and Facebook is important in evaluating the response of the market in the products and services of the organization. Alternations on the features of the products can be helpful in ensuring that the consumers get their specific needs identified. The responses given to the company will help the company make more informed decisions about the products, services and the marketing strategies that will be applied in the organization. The use of the avenues is also advantageous to the business because it means that the response rate on the products and services is faster as compared to the traditional marketing techniques. The use of the techniques will also help assess the needs of the market before the innovating of a good or service.
The analysis of the social networks by the business is important when it comes to the evaluation of the current products and services being offered by the company. Entrepreneurs can use the social networks to get strategies on the alterations that can be made on the products and services. The use of social media can also help in getting ideas on new products and services that can be used by the entrepreneurs in their businesses. Interacting with the customers in the social networks helps in getting the views of the consumers which can be used as a way of getting the strategy on the knowledge of the products and services that the business sells and getting the opinions on the items being offered in the market.
The high usage of the avenues makes the business information spread easily as compared to when using traditional means of communication. The greatest number of social media users in the Kingdom are between the ages of 26 and 34 years, while 60% of the Saudi Arabians use social media, with Twitter having high usage as compared to any other avenue. The likelihood of the users to gain access to the information of the company is higher in the country, especially if they are searching for a certain product. The likelihood of businesses operating on an online platform is higher because of the ease of the clients in getting the needed information on the products.
The use of social media in the businesses has helped in achieving a variety of goals for the entrepreneurs in the Kingdom. Although the level of usage of the social networking sites is still on the rise, there are several businesses that have already benefited from the use of the social networks to reach the organizational goals. The evaluation of one of the businesses in the study indicated that sales have increased because the products and services are not only offered in shops, but online as well. Based on the analysis of the information, the use of social media is helpful in increasing sales of the products and services for the entrepreneurs. The client base is also increased for service generating entrepreneurs as more consumers prefer to go online to loom for services, which saves time and effort for the individuals.
Other goals that have, and can be achieved by the use of social media in Saudi Arabia is that the interaction with clients is done through the tools even after the shops have been closed. The access to the clients is done through the use of the social networks which makes them feel important and that the company values their opinions. The popularity of the business has increased because of the sites and the customer satisfaction that is derived from the use of the avenues in the business. The reaching of the goals by the business is a positive aspect as they aim to reach the objectives that have been set out for the company. The overview of the organizational operations in Saudi Arabia is different when conducting business. Therefore, there might be a conflict of the interests of the consumers and those of the company.
The adaptation of social media by the entrepreneurs is one of the most crucial aspects of conducting business in the 12 Century. As businesses strive to get more goods and services that are aligned to the needs of the customers, the use of social media for the businesses has to be strategic so that the client does not get bombarded with information that will make them change their mind on purchasing the goods. One of the interviewees mentioned that the company uses controlled measures when purring information on the internet. Since Saudi Arabia is fairly new in the country, therefore, new businesses may overwhelm the clients with the information until they decide to go to a competitor for the product since they use a different strategy for sending the information.
The use of social media is also controlled by the company to ensure that the clients do not have so much power on the operations of the company. Additionally, the uses of the tools for the business are controlled because of the content that needs to be online regarding the company. Therefore, the entrepreneur needs to have someone they can trust who runs the social sites for the company to reduce the chances of the company name being tarnished. The strategies applied by the Saudi entrepreneurs show that the business people are involved in the operations of the business because of the penalties that the government enforces when the social media regulations are not followed.
There are, however, several challenges that have been paused on the use of social media by the entrepreneurs. One of the challenges is the political interference in the use of the tools by the entrepreneurs is a social ill in the Kingdom. The fact that politicians have the right to impose the laws on the people means that there is some aspect of restriction on the way social media is used in the Kingdom. The imposition of heavy fines when there is an override of the laws means that most entrepreneurs shy away from using the avenues to promote their businesses. Religious leaders have also condemned the use of the avenues on the basis of breaking the strict Islamic laws that govern the country and the spread of social ills. The condemnation of the social media has limited the number of consumers who may not be able to gain access to the platforms, which in turn restricts the businesses of the entrepreneurs.
The religious beliefs and cultures in the Kingdom have strained the use of social media in the country. The perception the leaders have on the use of the avenues has made many businesspeople shy away from the use of the mediums, which has affected the attraction of the consumers to the businesses. From the studies, it was indicated that most of the social media use is directed towards setting religious and political campaigns, which are factors that raise a lot of controversy in the Kingdom. The stipulations set on the use of the avenues in the Kingdom have affected the ways through which entrepreneurs assess the use of the mechanisms, which works at a disadvantage to the businesses as they miss out on the opportunities available to the organization.
Recommendations
Based on the fact that the use of social media is a fairly new aspect in the Kingdom, there are a various recommendations that can be made to the entrepreneurs to meet the business goals by using the social media strategy. One of the factors is that there should be a social media strategy for the company. The policy should contain the goals of the company and the objectives on how the social media will be helpful in the company. Additionally, there should be a target audience who the message will be structured around. The messages that the entrepreneur wants to pass across should consider the fact that it needs to engage the clients. An action plan is important, and the steps for the follow-up process should also be set in place.
Another recommendation is that the company should use information that is authentic, creative and truthful. The social media aspect is about building relationships with the clients. Therefore, the entrepreneur should note that loyal fans cannot be bought, hence the need to have truth in the marketing message. Consumers use social media as a means of relaxation. Therefore, the company should not take the avenue so seriously to the point that the customers want nothing to do with the company, which affects businesses. The language that is used should also not be pushy to the clients.
The Saudi Arabian government should also lessen the restrictions that have been set in place. The restrictions prevent the entrepreneurs to grow their businesses, which in turn hinders their development. The fact that the country is well developed does not mean that every individual is. Therefore, the government should strive to develop the small entrepreneurs by encouraging their business ventures. Responsible social media use should be practiced by the companies and the entrepreneurs to encourage the government to take part in the use of social media in the country.
Finally, it is important that the government of the Kingdom lessens the restrictions that they have and accept the implications of the use of the avenues on the economy of the Kingdom. When the products and services of the Kindom are available thorugh online platforms, there will be an increase of both local and international demand for the prdcts, which will work at an advantage of the economy of the country. The availability of the products of the small businesses will help the individuals grow their businesses, which will improve the state of living for a number of individuals and reduce the rate of unemployment in the country.
Conclusion
The research process has revealed that there are various factors that affect the use of social media by the entrepreneurs in the Kingdom of Saudi Arabia. One of the business objectives of the research was to find out the social media sites that are used by entrepreneurs in Saudi Arabia. From the research, it was established that Facebook, Twitter, and LinkedIn are the most popular avenues that the entrepreneurs use to get information on the clients and the competitors. There are, however, some other avenues that are growing in use in the country. The research also helped establish the use of social media in Saudi businesses.
Social media is a fairly new aspect in the Kingdom, but the entrepreneurs have embraced the use of the technology in business operations. The use of the avenues to market products has been successful for most businesses as sales have increased, and the number of customers retained is also high. There are, however, some factors that have been linked to the use of social media, such as the effects on the social lives of the individuals. The cultural and religious leaders in Saudi Arabia have condemned the use of the sites, which has affected business operations in the Kingdom.
The use of social media has been adopted by the Kingdom fairly easily, and businessmen and women are using the avenues to market their products. Social media has played a big role in finding and retaining clients in the Kingdom, which has also helped in developing the relationships with prospective business partners. The social media use in Saudi has helped various businesses grow and develop into bigger companies. Some of the relationships that have been created by the individuals have helped in the management of the businesses locally and worked to the advantage of the businesses and the economy. Using social media platforms has made the businesses gain knowledge on the consumers, which has helped in the management of the goals and objectives of the company.
Whileconducting this research, it was evident that there was the need to increase the research, both qualitative and quantitative, on the use of social media for business practices. One particular part of the study that lacked the content needed was on the challenges facing the entrepreneurs in Saudi Arabia and how they would overcome them. That was one of the main reasons for conducting the research, to increase the knowledge on the effects of the use of social media in the businesses. There is also the need for a study that evaluates the guidelines that should be followed when incorporating social media into the business strategies. The use of the guidelines could help the individuals and the government has a different perspective on the use of the avenues on the businesses and the positive effects on the general economy of the country. There could also be a framework or model that is developed on how the business can be improved by the use of social media by entrepreneurs. The use of the model or framework would help the entrepreneurs gain the knowledge on the use of the avenues and the advantages that they have in the business. The aspect could also help structure the use of the avenues and give guidance to the entrepreneurs on how to apply the strategies they know to the businesses.
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APPENDICES
Appendix 1: Interview Guide
When developing interview questions, the following rules were used in the preparation for the interviews.
• The questions asked were only in relation to the use of social media in businesses
• Strategizing on how the information will be used in the analysis of the research
• Ensuring that the information used will only be used for the purpose of the research
• Asking the questions that will be helpful in the analysis of the research
The questions were developed mainly in relation to the use of social media in the businesses, and they included problem-solving questions that needed creative and critical thinking and the questions developed were not closed ended.
The research process showed that past behavior is predictive of future behavior, the questions are behavioral based in relation to the use of social media by entrepreneurs. The questions will prevent the surveyor from missing out on important details in the research. The questions asked were not personal or illegal. The questions asked were standard for all the interviewees selected.
Appendix 2: Sample Interview Questions
Thank you for taking your time to give us your perspectives on the effects of social media use by entrereneurs in Saudi Arabia. Your participation is greately appreciated and anonymity will be observed.
1. What type of business do you run and under which industry?
2. Does your business use social media marketing? What avenues do you use?
3. Please give an example of a product/service in your business that has sold successfully because of the use of social media?
4. How do you control the use of social media in your business?
5. What business goals have you accomplished through the use of social media?
6. What challenges have you faced when incorporating social media use in your business?
Appendix 3: Interview Responses
Respondent 1
1. What type of business do you run and under which industry?
My business is in the service industry; event planning for social and corporate clients.
2. Does your business use social media marketing? What avenues do you use?
Yes, social media use in my business is extremely helpful in building the business, especially Twitter and Facebook because of the high usage of the two sites in the industry. The two have been very vital in the increase of the business in the Kingdom and also getting the perspectives of the clients.
3. Please give an example of a product/service in your business that has sold successfully because of the use of social media?
Some of the services that have been successful through the use of social media are the corporate events. Business has increased because most corporate organizations are looking for companies to be their exclusive event planning organization and the use of social media helped in getting the company out there in the market.
4. How do you control the use of social media in your business?
The social media use by the company is based on the client traffic on the avenues. The use of social media helps us communicate with the current and potential clients, who prefer the use of the avenues to exchange information on how to grow the organization by focusing on their specific needs.
5. What business goals have you accomplished through the use of social media?
One of the goals that we have achieved as an organization is the increase in business as the use of social media has helped us increase the number of clients. There has also been efficiency in delivering quality services for the business, which has helped in retaining the customers.
6. What challenges have you faced when incorporating social media use in your business?
One of the challenges that the business has faced is the political interference on the use of social media in the kingdom. The government interference has affected the use of the medium by businesses because of restraining the content that goes on the internet. That has been one of the main challenges that the company has faced in development.
Respondent 2
1. What type of business do you run and under which industry?
I am a designer and I run a small clothing boutique.
2. Does your business use social media marketing? What avenues do you use?
The use of Facebook, Twitter and Instagram is helpful in growing the business and marketing the fashion items I sell in the store. I also operate an online shop that helps boost the sales from the clothing.
3. Please give an example of a product/service in your business that has sold successfully because of the use of social media?
Most of the items in the store have been sold through the use of the avenue, and having a database of clients who help in the improvement of the business by giving their genuine opinion on the avenues.
4. How do you control the use of social media in your business?
There is an administrator who ensures that the social media pages are updated frequently and the photos that are posted several times a day are in line with the image we want to portray as a business.
5. What business goals have you accomplished through the use of social media?
The expansion of the business has been one of the achievements that has been reliable in the use of the social media tools. Getting higher sales of the merchandise has helped in knowing what specific market to target and the tools have also helped in aligning the objectives of the business.
6. What challenges have you faced when incorporating social media use in your business?
One of the challenges of using social media in the business is understanding which individuals’ views are serious and which were not, and understanding the clients’ needs and how to address them was a serious undertaking of the business.
Respondent 3
1. What type of business do you run and under which industry?
I am involved in retail business where I specialize in sale of stationaries
2. Does your business use social media marketing? What avenues do you use?
I use Facebook as an avenue to reach my clients on the available products or new products that I have stocked in the business. I also use the media to get feedback from my clients about the business.
3. Please give an example of a product/service in your business that has sold successfully because of the use of social media?
Quality pens
4. How do you control the use of social media in your business?
I am usually the admin of my business Facebook account and authorize every public posting.
5. What business goals have you accomplished through the use of social media?
I have been able to reach out to more clients
6. What challenges have you faced when incorporating social media use in your business?
Convincing clients over social media on the quality of our goods
Appendix 4: Questionnaire
Please select the answer you think best answers the question.
Answering of the all the questions will be highly appreciated.
The questionnaire might take about 10-15 minutes of your time to answer.
1. What social media pages do you have?
…………………………………………………………………………………
2. Do you believe that having a business page on social media such as Facebook or Twitter has had a positive implication on your enterprise?
Please explain your answer.
……………………………………………………………………………………
3. Do you think these social platforms are helping Saudi entrepreneurs?
Please state the examples of such services that they offer.
…………………………………………………………………………………………
4. Do you own an internet-enabled mobile phone that helps you monitor your social media?
5. Has Social media increased your customer base?
6. Who operates your social media platforms?
7. How often do you use social media to market your products or services?
Multiple times daily once a day once a week
Once a month Never
8. Has the use of social media help in the achievement of your business objectives?
If Yes, Please state your reason
……………….……………………………………………………………………………
9. Have your experienced any challenges while using social media?
If Yes, Please state some of them.
……………….……………………………………………………………………………
For this section, please tick (√) the answer you think is most appropriate.
No. Questions Strongly
Agree Agree Strong Disagree Disagree
1. Using social media enables you to reach your customers more efficiently.
2. It is much easier to get customer feedback and perspective through social media.
3. Using social media or business has been easy and reliable.
4. Social media has improved my business performance.
5. The use of social media has helped me to align my business objectives.
General Information
10. Please state your gender
11. Please state the kind of business you are undertaking …………………………………………………………………..
12. What is your age?
18-30 years 31-40 years 41-60 years above 60 years
13. How long have you used social media for your business?
1 year or less 2-3 4-5 years 6 years and above
Thank you in for your filling in the questionnaire. Your participation is highly appreciated.
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