{"id":117,"date":"2018-06-14T19:04:33","date_gmt":"2018-06-14T19:04:33","guid":{"rendered":"https:\/\/pressbooks.ccconline.org\/bus3060\/chapter\/ch07-4\/"},"modified":"2026-02-03T15:40:58","modified_gmt":"2026-02-03T15:40:58","slug":"ch07-4","status":"publish","type":"chapter","link":"https:\/\/pressbooks.ccconline.org\/bus3060\/chapter\/ch07-4\/","title":{"raw":"7.4 Electronic Social Networks","rendered":"7.4 Electronic Social Networks"},"content":{"raw":"
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Learning Objectives<\/span><\/p>\r\n\r\n<\/header>\r\n

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After studying this section you should be able to do the following:<\/p>\r\n\r\n

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  1. Know what social networks are, be able to list key features, and understand how they are used by individuals, groups, and corporations.<\/li>\r\n \t
  2. Understand the difference between major social networks MySpace, Facebook, and LinkedIn.<\/li>\r\n \t
  3. Recognize the benefits and risks of using social networks.<\/li>\r\n \t
  4. Be aware of trends that may influence the evolution of social networks.<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n \r\n\r\n<\/div>\r\n

    Social networks<\/a><\/span> have garnered increasing attention as established networks grow and innovate, new networks emerge, and value is demonstrated. MySpace signed a billion-dollar deal to carry ads from Google\u2019s AdSense network. Meanwhile, privately held Facebook has blown past the flagging MySpace. Its leadership in privacy management, offering new features, allowing third-party applications on its platform, and providing sophisticated analytics tools to corporations and other on-site sponsors have helped the firm move beyond its college roots. LinkedIn, which rounds out the big three U.S. public social networks, has grown to the point where its influence is threatening recruiting sites like Monster.com and CareerBuilder (Boyle, 2009). It now offers services for messaging, information sharing, and even integration with the BusinessWeek<\/em> Web site.<\/p>\r\n

    Media reports often mention MySpace, Facebook, and LinkedIn in the same sentence. However, while these networks share some common features, they serve very different purposes. MySpace pages are largely for public consumption. Started by musicians, MySpace casts itself as a media discovery tool bringing together users with similar tastes (Johnson, 2010).<\/p>\r\n

    Facebook, by contrast, is more oriented towards reinforcing existing social ties between people who already know each other. This difference leads to varying usage patterns. Since Facebook is perceived by users as relatively secure, with only invited \u201cfriends\u201d seeing your profile, over a third of Facebook users post their mobile phone numbers on their profile pages.<\/p>\r\n

    LinkedIn was conceived from the start as a social network for business users. The site\u2019s profiles act as a sort of digital Rolodex that users update as they move or change jobs. Users can pose questions to members of their network, engage in group discussions, ask for introductions through mutual contacts, and comment on others\u2019 profiles (e.g., recommending a member). Active members find the site invaluable for maintaining professional contacts, seeking peer advice, networking, and even recruiting. Carmen Hudson, Starbucks manager of enterprise staffing, states LinkedIn is \u201cone of the best things for finding midlevel executives\u201d (King, 2007). Such networks are also putting increasing pressure on firms to work particularly hard to retain top talent. While once HR managers fiercely guarded employee directories for fear that a list of talent may fall into the hands of rivals, today\u2019s social networks make it easy for anyone to gain a list of a firm\u2019s staff, complete with contact information.<\/p>\r\n

    While these networks dominate in the United States, the network effect and cultural differences work to create islands where other social networks are favored by a particular culture or region. The first site to gain traction in a given market is usually the winner. Google\u2019s Orkut, Mixi, and Cyworld have small U.S. followings, but are among the largest sites in Brazil, Japan, and South Korea. Research by Ipsos Insight also suggests that users in many global markets, including Brazil, South Korea, and China, are more active social networkers than their U.S. counterparts1<\/sup>.<\/p>\r\n

    Perhaps the most powerful (and controversial) feature of most social networks is the feed<\/a><\/span> (or newsfeed). Pioneered by Facebook but now adopted by most services, feeds provide a timely update on the activities of people or topics that an individual has an association with. Feeds can give you a heads-up when someone makes a friend, joins a group, posts a photo, or installs an application.<\/p>\r\n

    Feeds are inherently viral<\/a><\/span>. By seeing what others are doing on a social network, feeds can rapidly mobilize populations and dramatically spread the adoption of applications. Leveraging feeds, it took just ten days for the Facebook group Support the Monks\u2019 Protest in Burma to amass over one hundred and sixty thousand Facebook members. Feeds also helped music app iLike garner three million Facebook users just two weeks after its launch (Lacy, 2008; Nicole, 2007). Its previous Web-based effort took eight months to reach those numbers.<\/p>\r\n

    But feeds are also controversial. Many users react negatively to this sort of public broadcast of their online activity, and feed mismanagement can create public relations snafus, user discontent, and potentially open up a site to legal action. Facebook initially dealt with a massive user outcry at the launch of feeds, and faced a subsequent backlash when its Beacon service broadcast user purchases without first explicitly asking their permission, and during attempts to rework its privacy policy and make Facebook data more public and accessible. (See Chapter 8 \u201cFacebook: Building a Business from the Social Graph\u201d<\/a> for more details.)<\/p>\r\n\r\n

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    Social Networks<\/h4>\r\n

    The foundation of a social network is the user profile, but utility goes beyond the sort of listing found in a corporate information directory. Typical features of a social network include support for the following:<\/p>\r\n\r\n