Korea Trade Review (무역학회지)

Korea Trade Research Association (한국무역학회)
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Social Media Performance: From the Perspective of Strategic Direction of Social Media Firm and User's Dependency on Social Media

소셜미디어 기업의 전략적 방향성에 따른 이용자들의 전환 의도 연구

  • Inwon Kang (Department of International Business & Trade, Kyung Hee University) ;
  • Ahra Oh (Department of International Business & Trade, Kyung Hee University)
  • Received : 2022.10.11
  • Accepted : 2022.12.15
  • Published : 2022.12.30
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Abstract

This study sought to look at why Facebook and Twitter, which have dominated the social media market, are moving away from other services. To this end, we sought to identify the causes of churn in terms of firm-level strategic direction and resource allocation, which have not been actively presented to the studies. For this purpose, this study divides the social media firm's strategies into horizontal expansion strategy and vertical integration strategy based on the existing reports and researches, and how each of the representative firms' strategies affects users' switching behavior. As a result, there was a significant difference in the strategic direction of the social media firm, when a horizontal expansion strategy is taken, user's switching intention is higher than when a vertical integration strategy is taken. In addition, the switching intention according to the level of dependence showed that the lower the dependence on social media, the higher the intention to switch to other media. The findings are expected to provide highly realistic and concrete strategic alternatives for a variety of economic actors, such as individuals and companies who want to do business using social media.

Keywords

Acknowledgement

This work was supported by the Ministry of Education of the Republic of Korea and the National Research Foundation of Korea (NRF-2021S1A5A2A01069343)

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