The Use of Social Media During Internationalisation: A Case Study Approach

Abstract

Social media is becoming increasingly important in our society. Its growing popularity has led to the integration into many individuals’ everyday lives. It is therefore not surprising to find that an increasing number of firms are relying on the Internet while expanding to international markets. Although, there have been various theories surrounding internationalisation of firms, there have been diverse environmental and societal changes which have impacted the ways in which firms internationalise. This calls for a modification of existing internationalisation theories, in which the incorporation of the Internet is needed. This research will focus on the incorporation of the Internet into the Uppsala models, a common internationalisation theory. Using a qualitative case study approach, this research explored how firms, more specifically a New Zealand (NZ) small and medium sized enterprise (SME) can effectively utilise social media in emerging countries. This case was chosen as it provides a successful example for existing and future firms intending to internationalise into emerging countries, through identifying relevant opportunities and challenges associated with this. The findings of this research highlighted that there are various aims that can be achieved through the use of social media. These are namely, understanding consumers, consumer engagement, brand awareness and the creation of presence. Moreover, each of these aims had relevant opportunities and challenges, which had implications as to how it may affect the Uppsala models and thus impact a firm’s internationalisation efforts. Implications of these findings showed that firms intending to use social media to target emerging countries must consider carefully how to do so. This is because social media can effectively ameliorate or increase challenges associated with internationalisation, depending on how it is used.