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福建师范大学

研究生学位论文专家评阅意见落实及修改情况表
专 业 ( 领
研究生姓名 Name 学 号 StudenT ID Major
域)
指导教师姓名 Tutor’s name 培养单位 经济学院
论文题目 Thesis title
请对专家评阅意见逐条进行答复(需详细注明论文修改的具体页、行。此
页不够可加页。)
(I II III means three different professors)
(you should state the result of your thesis first like: BBB)
专家
1. Opinion ( blind review) in your system from other university’s
评阅 professor “I”
该文虽然较完整地阐述了主要内容并得出相关结论。但仍存在一些问题和不足有待解决,具体如下: 1.该研

意见 究在第 2 章提出新冠肺炎的相关内容,但未清楚说明其在该研究中发挥的作用,同时缺乏相关的数据说明
其对社交媒体产生的主要影响。建议作者能在该文中进行补充说明; 2.该研究需要注意书写的逻辑性,该文

落实 的摘要未能清楚完整地说明主要的背景、问题、方法、结果与结论等。建议作者能更有逻辑地将摘要书写清
楚,注意逻辑性; 3.该研究多处存在语言表达不流畅的情况,比如中文摘要第三行等。建议作者通读全文加
及修改 以修正; 4.该研究在写作格式上存在多处问题。首先,目录 2.6、3.4-3.5、4.3、5.3 字体有问题;其次,存在
空白页的情况;另外,该文中多处图未居中,且未表明图名及编号;最后,参考文献格式多处存在错误。建
情况 议作者认真检查加以修改。
English Translation
(Impleme Although this article describes the main content and draws relevant
ntation of conclusions more completely. However, there are still some problems and
experts' shortcomings that need to be resolved. The details are as follows: 1. The
comments study put forward the relevant content of new coronary pneumonia in
and thsis Chapter 2, but did not clearly explain its role in the study. At the same
modification) time, there is a lack of relevant data to explain its social impact. The
main influence of the media. It is suggested that the author can make
supplementary explanations in the article; 2. The research needs to pay
attention to the logic of writing, and the abstract of the article fails
to clearly and completely explain the main background, problems, methods,
results and conclusions. It is recommended that the author write the
abstract more logically and pay attention to the logic; 3. There are many
linguistic problems in the study, such as the third line of the Chinese
abstract. It is recommended that the author read through the full text to
make corrections; 4. There are many problems in the writing format of the
study. Firstly, there are problems with the fonts in the catalog 2.6, 3.4-
3.5, 4.3, and 5.3; secondly, there are blank pages; in addition, many
figures in the article are not centered, and the figure name and number
are not indicated; finally, there are many references to the format error.
It is recommended that the author carefully check and modify it.
2. Your response to professor I’ opinions, including how you will revise
your thesis according to his/her opinions (give the exact page of where
you have modified your thesis according to this opinion; copy here the
original content of your thesis and the part you have modified)
I have added the explanation as to why the covid-19 pandemic
is related to the study and how it served as a catalyst for
multiple companies to go digital. I have revised the abstract
to represent all key parts of the study including a summary of
the conclusion. The fonts and format throughout the paper has
also been revised, it cannot be copy here as it would be too
long so please refer to the revised thesis file instead.

1. 2.8 COVID – 19 Pandemic – Fundamental Change in Consumer


Behavior
Page 34
Internet transactions of physical products have just recently
encountered a rise in demand in certain items as a result of the
coronavirus pandemic which impacted the entire world. Organizations and
industries at first responded to the pandemic by accumulating medical
supplies like alcohol solutions, face masks, and etc. Almost all
governments of the world had enforced social distancing measures:
lockdowns, closure of non - essential businesses. Since retailers and
offices have shut down, consumers are now shifting to acquiring what
they need online. This resulted in an immense increase in internet
purchases as well as an increased demand for electronic services. Many
customers resort to internet shopping. Several brick-and-mortar
businesses have thus shifted resources to e-commerce. This resulted in
a fundamental shift in consumer behavior where the pandemic served as a
catalyst given that there was already a current surge of development
for social and e-commerce. The migration to e-commerce is given great
importance since the inflow of different online sellers has more than
doubled across different categories. Ecommerce isn't merely restricted
to young adults any longer, with anyone in their 40s and 50s saying
they are now far more prepared to shop online (Facebook; Company and
Bain, 2020). This fundamental transformation in consumer behavior has
nevertheless been retained even though the pandemic is gradually
dwindling in numbers. Everyone is far more careful about visiting
public places and is usually inclined to shop online, staying away from
the danger of crowds and also the inconvenience of extended queues.
Together with the forced lockdowns as well as the recommendation to
remain at home, this will modify how customers shop with a lot of them
switching to online shopping. A lot of people around the world will now
be prone to resume buying online, expanding their online shopping into
categories they would have bought in a physical store (Nielsen, 2020).
The speed of the shift to online shopping versus mortar and brick will
induce numerous retail companies to rethink and adjust the future
business models of theirs and also multichannel strategies.
Digital adoption encounters a sharp increase not only because of
online shopping but predominantly other things also. The necessity for
online access has risen much more than ever due to several factors like
working from home, online classes, online meetings, and digital
payments. These cases are rising in order to motivate people to stay at
the security of their homes. Khanh Ngo on the Tiki Corporation stated
that the percentage of first-time digital consumers has grown
substantially in the past several days, driven primarily by government
efforts in motivating individuals to shop online. What this means is
that everyone will need an internet connection to be able to do what
they need and what they want. This is the reason why the pandemic
served as a catalyst to push folks going digital. Contactless
innovations like electronic payments are rising aggressively in a money
- dominant market. Different kinds of companies happen to be adopting
this payment type in order to stay contactless and even in the delivery
of meals. In the Philippines, the digital finance company GCash has
seen a 30% increased transaction volume since March and is now the most
downloaded finance app in Google Play Store (Facebook; Company and
Bain, 2020. According to Facebook and Bain & Company, consumers are
switching to digital services to keep themselves busy while indoors. As
an outcome, the use and adoption of many online applications have
accelerated and will probably remain - a direction which was currently
rapidly increasing the past several years. Across Southeast Asia, 85%
of respondents said they've tested with new online applications during
the first quarter of the year. Applications that have observed the
greatest rise in continued and first-time use are social media, video
streaming, along with instant messaging apps, followed by e-commerce,
food distribution, as well as electronic payments platforms (Facebook;
Company and Bain, 2020). Based on the article, video streaming, social
media, along with instant messaging carry on and experience the
greatest acceleration of usage when grouped by age groups. Among
middle-class groups of 25 to 54 years old, applications that include e-
commerce, digital payments, and food delivery received a spike while
the youth aged 18 to 24 contribute to videos, music, and gaming (Figure
nine). From the figure, it could be found that social media, instant
messaging, and video streaming are likely the most utilized of all age
groups.
In a nutshell, consumer behavior has shifted to digital,
particularly for the categories as groceries, food, remittances, and
fast-moving consumer goods. New methods for companies will evolve and
center around getting digital as they adjust to the new normal.
Figure 9. Extensive bar graph of the Percent of Consumers who Increased
Use of Apps. Adapted from Southeast Asia digital consumer trends that
shape the next normal, by Facebook and Bain & Company.

Modified Version – Page 38


3.0 COVID – 19 Pandemic – Fundamental Change in Consumer
Behavior

Internet transactions of physical products have just recently


encountered a rise in demand in certain items as a result of the
coronavirus pandemic which impacted the entire world. Organizations and
industries at first responded to the pandemic by accumulating medical
supplies like alcohol solutions, face masks, etc. Almost all
governments of the world had enforced social distancing measures:
lockdowns, closure of non - essential businesses. Since retailers and
offices have shut down, consumers are now shifting to acquiring what
they need online. This resulted in an immense increase in internet
purchases as well as an increased demand for electronic services. Many
customers resort to internet shopping. Several brick-and-mortar
businesses have thus shifted resources to e-commerce. This resulted in
a fundamental shift in consumer behavior where the pandemic served as a
catalyst given that there was already a current surge of development
for social and e-commerce. The migration to e-commerce is given great
importance since the inflow of different online sellers has more than
doubled across different categories. Ecommerce isn't merely restricted
to young adults any longer, with anyone in their 40s and 50s saying
they are now far more prepared to shop online (Facebook; Company and
Bain, 2020). This fundamental transformation in consumer behavior has
nevertheless been retained even though the pandemic is gradually
dwindling in numbers. Everyone is far more careful about visiting
public places and is usually inclined to shop online, staying away from
the danger of crowds and also the inconvenience of extended queues.
Together with the forced lockdowns as well as the recommendation to
remain at home, this will modify how customers shop with a lot of them
switching to online shopping. A lot of people around the world will now
be prone to resume buying online, expanding their online shopping into
categories they would have bought in a physical store (Nielsen, 2020).
The speed of the shift to online shopping versus mortar and brick will
induce numerous retail companies to rethink and adjust the future
business models of theirs and also multichannel strategies.
Digital adoption encounters a sharp increase not only because of
online shopping but predominantly other things also. The necessity for
online access has risen much more than ever due to several factors like
working from home, online classes, online meetings, and digital
payments. These cases are rising in order to motivate people to stay at
the security of their homes. Khanh Ngo on the Tiki Corporation stated
that the percentage of first-time digital consumers has grown
substantially in the past several days, driven primarily by government
efforts in motivating individuals to shop online. What this means is
that everyone will need an internet connection to be able to do what
they need and what they want. This is the reason why the pandemic
served as a catalyst to push folks going digital. Contactless
innovations like electronic payments are rising aggressively in a money
- dominant market. Different kinds of companies happen to be adopting
this payment type in order to stay contactless and even in the delivery
of meals. In the Philippines, the digital finance company GCash has
seen a 30% increased transaction volume since March and is now the most
downloaded finance app in Google Play Store (Facebook; Company and
Bain, 2020. According to Facebook and Bain & Company, consumers are
switching to digital services to keep themselves busy while indoors. As
an outcome, the use and adoption of many online applications have
accelerated and will probably remain - a direction which was currently
rapidly increasing the past several years. Across Southeast Asia, 85%
of respondents said they've tested with new online applications during
the first quarter of the year. Applications that have observed the
greatest rise in continued and first-time use are social media, video
streaming, along with instant messaging apps, followed by e-commerce,
food distribution, as well as electronic payments platforms (Facebook;
Company and Bain, 2020). Based on the article, video streaming, social
media, along with instant messaging carry on and experience the
greatest acceleration of usage when grouped by age groups. Among
middle-class groups of 25 to 54 years old, applications that include e-
commerce, digital payments, and food delivery received a spike while
the youth aged 18 to 24 contribute to videos, music, and gaming (Figure
9). From the figure, it could be found that social media, instant
messaging, and video streaming are likely the most utilized of all age
groups.
In short, how does the covid-19 pandemic affect the digital
adoption of businesses and the relevant social impact it has on
businesses and organizations?
First, as the discussed earlier, it has been established that customer
behavior and preferred interactions have changed significantly ever
since the pandemic started and will continue to shift as consumers
carry on the new digital lifestyle that has been evolving the past few
years. According to Mckinsey Digital, 75 percent of people using
digital channels for the first time indicate that they will continue to
use them when things return to “normal. “Companies will need to
ensure that their digital channels are on par with or better than those
of their competition to succeed in this new environment. If the covid-
19 pandemic taught us anything, those businesses who are late to adopt
a digital presence will be substantially disadvantaged during the
recovery. Second, as the economy lurches back, demand recovery will be
unpredictable; uneven across geographies, sectors, product categories,
and customer segments; and often slow to return to precrisis levels.
While a few sectors will face unusually strong demand, leaders in many
industries must deal with periods of structural overcapacity. Companies
must now face the need to change and adjust based shift of consumer
behavior. With the relation of its effect on the digital adoption on
the Philippines, the important aspect to note is that even before the
covid-19 pandemic has hit the Philippines, the country is already
experiencing high penetration rates of social media usage in the
country. As indicated earlier, contactless innovation is rising
aggressively in response to the social distancing measures, to give an
example, the digital finance company in the Philippines, GCash,
experience a surge of user usage. The reasons for this is that more and
more individuals are embracing the use of contactless payments as a
method to practice social distancing measures, and another reason which
can be attributed to cause and effect is that businesses are also
starting to accept digital payments and embracing them as a form of
payment. Furthermore, to expound on what the relationship of covid-19
had on the digital adoption of social media of MSMEs, it can be said
that the covid-19 pandemic was the catalyst in the surge of increase in
the adoption of social media for SMEs. The COVID-19 pandemic is forcing
businesses from retail, manufacturing and service providers to
reevaluate their business models where the traditional “in-person” &
“social” setting is the norm. As a result, businesses began to
realize the need to incorporate a bigger portion of their business
process with an innovative “contactless” method of delivering their
products and services. Otherwise, they will face the alternative option
of shutting down operations until the crisis is over. Given the current
status of the pandemic, that is equal to a death sentence for those
businesses. MSMEs are no different, if not more desperate, for
rethinking their business models in order to overcome the current
crisis and similar future situations. Retail stores are forced to close
due to lockdown measures, so businesses are forced to operate digitally
in order to retain their competitive pressure. Business without a
social media presence before the pandemic are most likely to adopt a
social page during the pandemic, and multiple businesses have to enter
through social media platforms during the pandemic as the social media
platform is the easiest way to gain reach and traction on the market,
especially today where everything is going digital. The widespread
implementation of social distancing has led to an increase dependency
on online shopping so the covid -19 situation has forced or persuade
multiple MSMEs to adopt a online marketing approach such as the use of
social media platforms. Digital media specifically through the use of
social media has proved to be an effective method for communicating an
organization’s products and also communicate with the customers.
Social media marketing makes it easy for MSMEs to provide an accurate,
attractive and useful information to their customers. This pandemic had
emphasized the importance of operating digitally and adopting a social
media platform for one’s business especially in the Philippines where
covid-19 cases are still at high levels and people are resorting to
getting what they need and what they want through the online market and
on the other side of the coin, businesses are resorting to transform
their business model to focus on the adopting a digital marketing
strategy like the adoption of social media to cater to the increased
internet transactions brought about by the covid-19 pandemic.
Undeniably, social media marketing also provides you with a platform to
brand, sell, and market your products and services. But this should not
be the end-all-be-all for social media. Business owners ought to relate
their social media marketing to the ongoing situation. As much as
customers do not want to get reminded about the pandemic wherever
they look, brands that ignore the situation seem misplaced. The
increase in social media usage is bound to continue long after lockdown
restrictions are lifted. It will remain key in determining how
businesses engage with their customers going forward. In a nutshell,
consumer behavior has shifted to digital, particularly for the
categories as groceries, food, remittances, and fast-moving consumer
goods. New methods for companies will evolve and center around getting
digital as they adjust to the new normal.

Figure 9. Extensive bar graph of the Percent of Consumers who Increased


Use of Apps. Adapted from Southeast Asia digital consumer trends that
shape the next normal, by Facebook and Bain & Company.

2. Old Abstract
The internet economy has been seen rising at an exponential
growth throughout the past years. The fundamental shift on consumer
behavior that is going digital and therefore this shift of consumer
behavior will elicit a response to an organization's overall strategy.
In the context of the internet economy, the research would focus
primarily on social media and its adoption of small and micro
enterprises in Metro Manila Philippines. The nature of the adoption
will vary across different types of organizations (e.g. micro, small,
medium) or the country's nature whether it is developed or developing.
Recognizing that the internet economy is brought about by multiple
facets of technology that spur the growth of the internet economy, the
study will mainly delve into social media platforms and its adoption by
different kinds of organizations. The adoption of social media by
organizations is a relatively new strategy that is not yet thoroughly
explored therefore the researchers would like to find out the data
around the adoption of social media. What are the relevant factors that
influence its adoption and what are the barriers to non-adoption by
those organizations that do not have an online presence. In order to
organize and understand data on the reason for adoption better, the
study will employ a TOE (technological, organizational, environmental)-
based model that lets respondents rank the level of importance of each
factor based on the respective perspective. The study shows how
organizations are starting to shift their strategies to going digital
given that consumer behavior has started to shift to digital as well.
Given the relevancy of the coronavirus epidemic and how the Philippines
epidemic cases continue to grow, organizations will have to adapt to
the new change as retail stores are closing. Thus, this study will help
the audience understand the importance of adopting an online presence
like social media to cater to the emergence of a digital economy.

Modified Abstract

The internet economy has been seen rising at an exponential


growth throughout the past years. The fundamental shift on consumer
behavior that is going digital and therefore this shift of consumer
behavior will elicit a response to an organization's overall
strategy. In the context of the internet economy, the research would
focus primarily on social media and its adoption of small and micro
enterprises in Metro Manila Philippines. The nature of the adoption
will vary across different types of organizations (e.g. micro,
small, medium) or the country's nature whether it is developed or
developing. Recognizing that the internet economy is brought about
by multiple facets of technology that spur the growth of the
internet economy, the study will mainly delve into social media
platforms and its adoption by different kinds of organizations.
The adoption of social media by organizations is a relatively
new strategy that is not yet thoroughly explored therefore the
researchers would like to find out the data and statistics around
the adoption of social media. This opportunity will only be realized
by SMEs if, and when, social media are adopted in their
organizations. This therefore creates a requirement to understand
the factors that influence SMEs in making the adoption decision. The
research related to such factors is scarce, not least because the
technologies are relatively new. This opportunity will only be
realized by MSMEs if, and when, social media are adopted in their
organizations. This therefore creates a requirement to understand
the factors that influence SMEs in making the adoption decision. The
research related to such factors is scarce, not least because the
technologies are relatively new such as data with regards to the
relevant factors that influence its adoption and what are the
barriers to non-adoption by those organizations that do not have an
online presence.
The study will employ a deductive research approach where
both qualitative and quantitative approaches were combined to meet
the research objectives. A survey was conducted involving 100 MSMEs
in Metro Manila, the capital city of the Philippines to examine the
demographic information of the respondents, their enterprise
information, and the reason of their social media adoption and non-
adoption. The study also employed a TOE (technological,
organizational, environmental)-based model that lets respondents
rank the level of importance of each set of factors based on the
respective perspective.
The survey data was analyzed through the cross – tabulation
of data gathered from the survey. Based from the descriptive
analysis, it has been shown that two-thirds of the MSMEs in Metro
Manila adopts at least one social media platform and the main reason
they adopt at least one social media platform is for advertising and
promotions, which is in line with results from the TOE-model which
showed that in the technological context, the variable: reach is the
most important reason on the adoption of social media. The resulting
research model proposed in this thesis can improve these
stakeholders’ understandings of why some SMEs have chosen to adopt
social media technologies, while other SMEs which face similar
market conditions have not.

Keywords: Philippines, Social Media, Internet Economy, Adoption,

3. Old Chinese Abstract

New Chinese Abstract

4. Fonts are fixed and all the paragraphs are centered.


Figure name and number are also placed on all diagrams
and tabulations and all format errors are fixed. It
could not be copied here so please refer to the revised
thesis file to review the errors.

3. Opinion ( blind review) in your system from other uni’s professor “II”
但文章存在下述问题: 1. 文章英文摘要撰写的规范性欠佳,需分段落
且逻辑清晰。 2. 中文摘要语句不够通顺,需要重新修改。例如:“研究
将主要集中在菲律宾马尼拉大都会的社交媒体及其对小型和微企业采
用。收养性质将因不同类型的组织(例如,微小中)或国家而有所无论
它是发达的还展中”。“影响其采用相关因素有哪些,没在线业务组织
不该障碍是什么?为了更好地组织和理解采用原因的数据,该研究将基
于 TOE (技术,组织环 境)的模型,该可让受访者根据各自观点对每
个因素重要性等级进行排名。”这些表述都不符合中文习惯。 3. 篇章结
构不太合理,第一章太长,占据三分之一篇幅建议压缩。 4. 文献综述
薄弱,第二章中的许多数据都不是文献综述而是现实背景,2.6-2.8 更
倾向于背景描述而不是文献综述。
English Translation
However, the article has the following problems: 1. The
English abstract of the article is not well standardized and
needs to be divided into paragraphs and logically clear. 2.
The Chinese abstract sentence is not fluent and needs to be
revised. For example: "The research will mainly focus on
social media in Metro Manila, Philippines and its adoption by
small and micro businesses. The nature of adoption will vary
depending on the type of organization (for example, micro-
medium) or country, whether it is developed or developed. in".
"What are the factors that affect their adoption? What are the
obstacles that organizations should not have online business?
In order to better organize and understand the data on the
reasons for adoption, the research will be based on the TOE
(Technology, Organizational Environment) model. The authors
ranked the importance of each factor according to their own
opinions.” These expressions do not conform to Chinese
habits. 3. The structure of the chapter is unreasonable. The
first chapter is too long. It is recommended to compress it if
it occupies one third of the space. 4. The literature review
is weak. Many of the data in Chapter 2 are not literature
reviews but realistic backgrounds. 2.6-2.8 are more inclined
to background descriptions than literature reviews.
4. Your response to professor II’ opinions, including how you will revise
your thesis according to his/her opinions (give the exact page of where
you have modified your thesis according to this opinion; copy here the
original content of your thesis and the part you have modified)
I agree with this professor’s opinion and revised my thesis accordingly.
Please refer to my revised thesis file to view it better. I have revised the
abstract and made it more logical in accordance with the paper. I have also
shortened the introduction and moved the information to the related literature
as it is more appropriate there. I added more data on the literature review to
strengthen the section and give more information on social media and its
classifications.
1. Old Abstract
The internet economy has been seen rising at an exponential
growth throughout the past years. The fundamental shift on consumer
behavior that is going digital and therefore this shift of consumer
behavior will elicit a response to an organization's overall strategy.
In the context of the internet economy, the research would focus
primarily on social media and its adoption of small and micro
enterprises in Metro Manila Philippines. The nature of the adoption
will vary across different types of organizations (e.g. micro, small,
medium) or the country's nature whether it is developed or developing.
Recognizing that the internet economy is brought about by multiple
facets of technology that spur the growth of the internet economy, the
study will mainly delve into social media platforms and its adoption by
different kinds of organizations. The adoption of social media by
organizations is a relatively new strategy that is not yet thoroughly
explored therefore the researchers would like to find out the data
around the adoption of social media. What are the relevant factors that
influence its adoption and what are the barriers to non-adoption by
those organizations that do not have an online presence. In order to
organize and understand data on the reason for adoption better, the
study will employ a TOE (technological, organizational, environmental)-
based model that lets respondents rank the level of importance of each
factor based on the respective perspective. The study shows how
organizations are starting to shift their strategies to going digital
given that consumer behavior has started to shift to digital as well.
Given the relevancy of the coronavirus epidemic and how the Philippines
epidemic cases continue to grow, organizations will have to adapt to
the new change as retail stores are closing. Thus, this study will help
the audience understand the importance of adopting an online presence
like social media to cater to the emergence of a digital economy.
New Abstract
The internet economy has been seen rising at an exponential
growth throughout the past years. The fundamental shift on consumer
behavior that is going digital and therefore this shift of consumer
behavior will elicit a response to an organization's overall
strategy. In the context of the internet economy, the research would
focus primarily on social media and its adoption of small and micro
enterprises in Metro Manila Philippines. The nature of the adoption
will vary across different types of organizations (e.g. micro,
small, medium) or the country's nature whether it is developed or
developing. Recognizing that the internet economy is brought about
by multiple facets of technology that spur the growth of the
internet economy, the study will mainly delve into social media
platforms and its adoption by different kinds of organizations.
The adoption of social media by organizations is a relatively
new strategy that is not yet thoroughly explored therefore the
researchers would like to find out the data and statistics around
the adoption of social media. This opportunity will only be realized
by SMEs if, and when, social media are adopted in their
organizations. This therefore creates a requirement to understand
the factors that influence SMEs in making the adoption decision. The
research related to such factors is scarce, not least because the
technologies are relatively new. This opportunity will only be
realized by MSMEs if, and when, social media are adopted in their
organizations. This therefore creates a requirement to understand
the factors that influence SMEs in making the adoption decision. The
research related to such factors is scarce, not least because the
technologies are relatively new such as data with regards to the
relevant factors that influence its adoption and what are the
barriers to non-adoption by those organizations that do not have an
online presence.
The study will employ a deductive research approach where
both qualitative and quantitative approaches were combined to meet
the research objectives. A survey was conducted involving 100 MSMEs
in Metro Manila, the capital city of the Philippines to examine the
demographic information of the respondents, their enterprise
information, and the reason of their social media adoption and non-
adoption. The study also employed a TOE (technological,
organizational, environmental)-based model that lets respondents
rank the level of importance of each set of factors based on the
respective perspective.
The survey data was analyzed through the cross – tabulation
of data gathered from the survey. Based from the descriptive
analysis, it has been shown that two-thirds of the MSMEs in Metro
Manila adopts at least one social media platform and the main reason
they adopt at least one social media platform is for advertising and
promotions, which is in line with results from the TOE-model which
showed that in the technological context, the variable: reach is the
most important reason on the adoption of social media. The resulting
research model proposed in this thesis can improve these
stakeholders’ understandings of why some SMEs have chosen to adopt
social media technologies, while other SMEs which face similar
market conditions have not.

Keywords: Philippines, Social Media, Internet Economy, Adoption,


2. Old Chinese Abstract
Modified Chinese Abstract

3. Chapter1: Introduction Page 9 – 19


1 Introduction

1.1 Background of the Study


In today’s modern marketing environment, the attention in social
media marketing topics has been increased among researchers in the
internet technology field. This is in response to the positive social
media adoption of firms that use this channel for their specified need.
It has become a necessity for some firms to use this medium as the main
communication channel with their consumers and as their main
distribution channel for their goods and services. (Parveen et al.,
2015). Based on the SEA Internet Economy Report of Google, Temasek and
Bain & Company, the Internet penetration in the Philippines is 68
million, which is approximately 64% of the Philippine population of 107
million. According to CNN Philippines, Filipinos are one of Facebook’s
most active users, ranking the first in the region of Southeast Asia
alone for time spent online. A typical Filipino average around 10:02
hours a day on the internet - connecting with friends on social media,
watching videos, checking emails for sales and promos, and shopping,
the study reveals. The social media penetration in the country is at
71% which is a far cry from the worldwide average of 45% (CNN
Philippines, 2019). Therefore, the Philippines was named the Social
Media Capital of the World in 2018. Business World (2019) reported that
in the Philippines, the Internet economy now makes up 2.1% of gross
domestic product (GDP), and could be equivalent to 5.3% of GDP by 2025.
The gross domestic product of the Philippines (GDP) in 2018 is
approximately $330 billion, therefore its internet economy for 2019 and
2025 is valued at $6.93 billion and $17.49 billion, respectively. The
joint e-Conomy SEA 2019 report published by Google, Temasek, and Bain &
Company valued Philippine online economic activities at $7 billion,
which grew from $2 billion in 2015. Moreover, according to the report,
the internet economies of Malaysia, Thailand, Singapore and Philippines
are said to be growing at a rate of 20% to 30% annually which is a
remarkable feat compared to the other regions (Google, Temasek, Bain &
Company, 2019). Therefore, the implementation of social media marketing
by firms would create numerous advantages that would be further
explained later. As a tech-savvy population, Filipinos are a promising
market for businesses. Big brands are not exceptions to adaptation of
digital media marketing as brands like Jollibee, Uber and Manulife have
successfully tapped their markets using the internet. Their engaging
and well - placed advertisements on the internet and their strong
social media presence have helped them increase their market share
through internet means. One example would be the sales of the Jollibee
Yum Burger which quadrupled after one of their videos on social media
went viral (The Manila Times, 2018). For this study however, the paper
would focus on small and medium enterprises and the correlation of
their performance and the adaptation of digital media marketing.
With that being said, despite the high saturation of social media
usage and internet penetration from the Philippines, the usage of
social media by SMEs is an important but under- research area that
leaves a lot of unused potential for Philippine e – commerce to thrive
and take advantage of its high social media penetration rate. Social
media has the capacity to increase social contacts, hasten business
operations, the betterment of customer relations, facilitation of
innovation and favorable pricing, and advantageous recruitment of
highly competent staff. One can look at unused potential of the
Philippines in two perspectives. The first perspective discusses the
gap between the incorporation of social media into businesses that is
often adopted by large organizations in the country; it hasn’t been
well research upon and adopted by SMEs as these organizations fail to
see the benefits and opportunities social media can do for their
respective businesses. The second perspective will be revolved around
the academic side of the effects of social media on SMEs. In general,
there is little research on the effects of social media tools on the
context of small and medium enterprises. Scarcity in academic
literature is reflected in many levels. From a general perspective, it
has been indicated by Meske and Stieglitz (2013, 62) that there is a
growing body of academic literature on social media use in corporate
context. However, most of the studies focus on larger enterprises and
there is little research on social media in the context of SMEs
explicitly. Additionally, the available literature contributions
regarding Social Media tools adoption by SMEs are also limited on the
international level and it has not been witnessed a study concerning
this research point. Moreover, adding to the fact that there is a lack
of academic research on social media impact on SMEs in the Philippines
and more so around the world, most of the studies found on the
application on social media on business is already based on established
organizations.

Southeast Asia Internet Economy is at $100B


In 2018, the internet economy of Southeast Asia reached the $100
billion mark. This is due to the rapid adoption of the generation to
electronics with millennials and the Generation Z taking over in the
next decade as discussed earlier. Consumer behavior has also changed
due to the market getting more competitive. Powered up by the
convenience of the use of the internet and the fast - paced lifestyle
of working individuals, people are starting to handle everything
online. According to the SEA Internet Economy Report by Google, Temasek
and Bain & Company, the internet economy of southeast Asia in 2015 to
2019 ballooned over 40%. From the report the value of the internet
economy has more than tripled between 2015 and 2019. From this growth
rate, the internet economy is on its track to reach a conservative
amount of $300 billion by 2025, not yet considering the fact that
millennials would take over 75% of the labor force by 2025 (Google,
Temasek, Bain & Company, 2019). From the report, the southeast Asia
internet economy consists of 180 million people, more than 30% of the
southeast Asian population of 570 million. The internet economy drivers
are mainly online travel, e - commerce, online media and ride hailing
services; more and more people are not just spending their time online,
but also their money in online products and services. From Figure 2,
it can be observed that

Figure 1. Graph of the Southeast Asia Internet Economy in GMV.


Adapted from Sea Internet Economy Report, by Google, Temasek and Bain &
Company, retrieved from
https://www.blog.google/documents/47/SEA_Internet_Economy_Report_2019.p
df
Figure 2. Graph of the growth of online service and products in
Southeast Asia from 2015 - 2019. Adapted from Sea Internet Economy
Report, by Google, Temasek and Bain & Company, retrieved from
https://www.blog.google/documents/47/SEA_Internet_Economy_Report_2019.p
df

online gaming is the dominant force in driving the internet economy


in 2019, however, the rapid growth of the e - commerce industry cannot
be overlooked. From 2015, the e - commerce driver grew 300 % from 2015
- 2019 while online gaming showed little development of thirty-eight %
from 2015 to 2019. Ride hailing services as Uber and Grab also showed
remarkable increase in demand of 500 %, from eight million people in
2015 to forty million users in 2019. The surge of growth found here may
be due to the fundamental change in the takeover and consumer behavior
of the brand-new demographic. From this, it can be assumed that in the
span of a few years, e-Commerce and Ride Hailing have become an
integral part of daily life for millions of Southeast Asians,
especially those living in big cities. They provide convenience, access
and value to services and products that have been before hard to get.
For example, the great accessibility and affordability of Ride Hailing
services in crowded Metropolitan areas are prompting many Southeast
Asians to rethink the desire to own cars. Ride Hailing is a huge draw
for individuals in crowded towns like Metro Manila in the Philippines
where personal car ownership is expensive, increases air pollution and
it is linked with frustrating jams. In the same way, customers are
depending on Food Delivery services for dishes they would usually need
to prepare at buy or home from food vendors. For an emerging and
increasingly time conscious middle class, the comfort of having piping
meal that is hot shipped to one's doorstep is really appreciated. Such
consumer action is now the norm, especially among dual income families.
With most sectors considered, the GMV of Online economy amounted to 3.7
% of Southeast Asia's gross domestic product (GDP) in 2019, up from 1.3
% in 2015. It is projected to exceed eight % by 2025. Southeast Asia is
closing the gap with advanced markets such as the United States, where
Internet economy had created up 6.5 % of the GDP in 2016.

Philippines Internet Economy


Philippines’ internet economy in 2019 is 2.1% of the country’s
total GDP and potentially rising to 5.3%. This means the internet
economy of the Philippines in 2015 is at $2 billion which grew at 350%
to $7 billion in 2019. Google and Temasek (2019) indicated that among
the main drivers of the internet economy: e - commerce, online travel,
online media and ride hailing, e - commerce was the prominent driving
force in the Philippines (Figure 4). It showed the most significant
growth of 600% from 2015 - 2019 at $0.5 billion to $6 billion,
respectively. In 2025, it is expected that e - commerce would grow to a
$12 billion due to consumer lifestyle and demographic changes.
With the increasing adoption of Digital Payments and telecom
carrier billing options, more subscribers from outside the Metros are
paying for premium Online Media services such as Gaming, Music and
Video on Demand. Furthermore, with the recent covid – 19 pandemic,
Philippines’ internet economy will experience a further rapid rise
these pandemics as retail stores are closing due to lockdown measures
to prevent the further spread of the disease. As the lockdown
continues, businesses are shifting their strategies towards e –
commerce to replace their retail stores. Not only businesses are going
digital but schools, meetings, and even online payments to encourage
the people to stay at the safety of their homes. Digital adoption will
further increase as more and more people will require the internet to
do the tasks that normally would require them to go outside. The
effects of the pandemic on consumer behavior would further be discussed
in the next chapter.
The internet overall economy of the Philippines can also be
extremely concentrated on its capital city that is Metro Manila or
maybe the National Capital Region (NCR). The majority of the types
which use the application of e - commerce are discovered in that area.
Based on a report posted by the Philippine Institute for Development
Studies, in 2015, NCR occupies roughly forty-five % of the share of e -
commerce companies in the nation. In 2013, NCR had taken up roughly
thirty % of the share of e - commerce share. There is a sizable
increase of e - commerce firms at NCR in only 2 years (Calizo and
Quimba, 2019). Based on the SEA Internet Economy Report by Temasek plus
Google, the disproportionate impact of Metro centers is much more
pronounced when it involves the Internet overall economy.
For many Internet economy players in Southeast Asia, the vast
majority of active users as well as orders are produced from these
places, that collectively account for over 50 % of the region's
Internet economy. Regular earnings from these cities are many times
above all those in the provincial areas. These metropolitan cities can
also be fitted with infrastructure and have logistic facilities which
allow them to effectively transport goods. These cities also use a
dependable community connectivity as compared to provincial places with
minimal connectivity (Google, Temasek, Company and Bain, 2019). An
additional way of evaluating the uneven division between the Non-Metro
and Metro areas is studying patterns in expenditure that is individual.
While estimating just how much people invest in Online economy, we
discovered that the yearly per capita spending stands at nearly $600 in
Metros across the area. This is more than 6 times the nearly $100
annual per capita spending estimated in Non-Metro areas (Figure three).
With the growing adoption of Digital telecom and telecom carrier
billing options, additional members from outside the Metros are
investing in premium Online Media services like Gaming, Video and Music
on Demand. Moreover, with the latest corona virus pandemic,
Philippines' internet economic system will experience an even further
fast rise these pandemics as retailers are closing because of lockdown
steps to keep the further spread of the illness. As the lockdown
continues, companies are moving their strategies towards e - commerce
to exchange the retail shops of theirs. Not just companies are going
digital though schools, conferences as well as online payments to
motivate the individuals to remain at the security of the houses of
theirs. Digital adoption will even further improve as increasingly more
individuals will require the web to carry out the jobs which typically
would require them to head outdoors. The consequences on the pandemic
on consumer behavior would additionally be reviewed in another chapter.

Figure 3. Graph of the growth of online service and products in


Southeast Asia from 2015 - 2019. Adapted from Sea Internet Economy
Report, by Google, Temasek and Bain & Company, retrieved from
https://www.blog.google/documents/47/SEA_Internet_Economy_Report_2019.p
df
Figure 4. Graph of the Southeast Asia Internet Economy in GMV. Adapted
from Sea Internet Economy Report, by Google, Temasek and Bain &
Company, retrieved from
https://www.blog.google/documents/47/SEA_Internet_Economy_Report_2019.p
df

Concentrating on the Philippines' market, based on a report by the


Nielsen Company (2019), the Philippines' population is comparatively
younger with 67 % of the population being under 35 old while 52 % are
23 years older or even young. The country's median age is 24 years old;
this means a proper and increasing labor force and a sustained future
consumption. Being among the youngest populations in the planet, this
suggests that the nation has an excellent opportunity to bolster its
already amazingly rapid development in the online economy. A primary
reason why millennials have much less buying power than Generation X is
due to the fact that they do not possess the assets to buy whatever
they love. But as increasingly more millennials get into the labor
force, they become income producing people who have with them their'
tech - savvy' information as they further in the stage of theirs of
life. As Millennials continue to join the workforce and adopt brand new
lifestyle priorities, their online shopping activity is anticipated to
surge as well and surpass the levels currently showed by earlier
generations. Based on Nielsen (2019), there's a rising demand for
comfort in the Philippines than ever before. The rising hectic
lifestyle and urbanization have led to Filipinos searching for
everything online. This needs increase in recognition of possible
online meal distribution, internet shopping plus ride - hailing.
Additionally, 64% of the public within the Philippines probably has a
chance to access the web and 90 % of these web users should be to
Generation Z and millennials (Nielsen, 2019). Internet access likewise
shows absolutely no signs of slowing down, despite having a slower
internet rate than most the country's southeast Asian neighbors. With
an expanding online penetration, the Philippines has the most space for
development and should capitalize in on its social networking
penetration of 71 % giving the ease of access to the web for everybody
in the nation.

MSME Sector Profile in the Philippines


An MSME in the Philippines is defined as any business activity or
perhaps enterprise engaged in industry, agriculture business and/or
services which has: (one) an asset size (less land) of up to PhP100
million; and (two) an employment size with under 200 employees. Based
on these categories, it is classified as micro, medium or small no
matter the kind of business ownership - Figure 4. (i.e., cooperative,
single proprietorship, corporation, or partnership). As of 2016, there
was a total of 946,988 business enterprises in the Philippines. As
shown in Figure five, MSMEs represented 99.57 % with 942,916
establishments while large enterprises represented 0.43 % with 4072
establishments. Micro enterprises comprised 89.94 % (851,756) of the
total number of SMEs while small and medium enterprises accounted for
9.22 % (87,283) and 0.4 % (3,886), respectively.
Enterprise Asset Size Number of Employees
Micro Up to P3,000,000 1 - 9 employees

Small P3,000,001 - P15,000,000 10 - 99 employees

Medium P15,000,001 - 100 - 199 employees


P100,000,000

Figure 4. Table of MSME Classification. Adapted from The MSME


Sector at a Glance, by the Senate Economic Planning Office of the
Philippines; retrieved from https://www.senate.gov.ph/publications/AG
%202012-03%20-%20MSME.pdf
Figure 5. Pie chart of the Distribution of Establishments by
Enterprise. Adapted from MSME Development, by the Department of Trade
and Industry Philippines; retrieved from https://dict.gov.ph/wp-
content/uploads/2016/07/8.-SMEs-in-the-Philippines-_Empowering-LGUs-
through-ICT-Partnership-with-SUCs.pdf

1.2 Significance of the Study

A variety of senior managers and or maybe managers of their


private businesses look at social media as a trend, similar to a
gimmick in one's business (Kryder, 2011). In present day social media
environment, it is vital that and micro enterprises are in a position
to capitalize on the usage of social media and also be able to invest
in every opportunity it provides. Nevertheless, study shows that
numerous small companies do not possess a good approach when using
social media (Akinyele and Adegbuyi, 2015). Various managers continue
to think social media are all games and fun and that it is inefficient
to operate in. Tim Calkins, a professor at the Northwestern
University's Kellogg School of Management pointed out that social media
are getting increasingly more relevant in a company and that companies
that do not employ the use of social media strategies are in danger of
falling behind the competition and place the said business at risk.
Company and business managers today must maximize the use of social
media for 3 reasons. For starters, social media usually provides a
business with a low-cost platform of operating the business, developing
one’s personal branding and developing a personal relationship with
the consumer. Next is the communication part, social media enables
businesses to easily engage with customers along with staff members
immediately without needing them meet face to face. This also caters to
a wider public since for instance in the Philippines, social media
penetration is around at 70%, therefore groups that use social
networking will typically have a broader access to their respective
industry. Lastly, social media enables a company to get immediate
responses from its clients from their unbiased and personal reviews
that is essential for a company in improving itself (Dutta, 2010).

1.3 Research Question

The study aims to determine the correlation of social media


practices and the overall performance of SMEs. Given the importance of
small and medium enterprises in creating more job opportunities and
boosting the economy, studying the factors shaping their adoption of
Social Media tools in business will be of great importance. Social
media tools has appeared lately since they become a cornerstone in
different business activities. It has become important for business
owners and marketers to understand how social media work as a
communication and marketing tool and how they can significantly grow
their businesses. The paper will also identify the significant
organizational elements that SMEs would need to focus on. The
researchers will also define social media and discuss the importance of
a social media marketing plan that should be embedded in the strategic
plan of a company including showcasing how organizations can develop a
customer - centric strategic approach through social media and how will
this correlate with the performance of small and medium enterprises.
Furthermore, the study will deal with two topics that are usually not
given importance to. First is the marketing strategy of SMEs and its
relevance with social media. Most academic research is focused on large
enterprises which do not necessarily work with small to medium
enterprises since their business model and focus are structured
differently with regards to large enterprises. Second will focus on the
application of social media tools to small and medium enterprises and
techniques to maximize the opportunities of social media and an SME.
The research will provide a set of techniques that the SMEs should use
for their social media strategy, an analysis of these techniques, and
lessons from the techniques.
To achieve the previously said research aims, three objectives are
formed as follows:
a.

1.4 Thesis Structure


Chapter 1: Introduction.
The chapter will introduce he background of the study of the
research and the objective of the study in which the author is planning
to accomplish. It will include all the background information on the
research and research objectives in order for the readers to understand
what the author’s scope is and what is his/her objectives.

Chapter 2: Literature review.


This chapter will introduce the in-depth analysis used in the
study and will provide an explanation of the important concepts
involved and the authors own opinion and knowledge on the topic. This
chapter will bring an emphasis on giving the readers a deeper
understanding of what social media is and how it affects e – commerce
and business strategies.

Chapter 3: Methodology.
The chapter introduces the methodology approach and the steps
for conducting the research. The author explains which method is used
in the thesis and why it is chosen over the others research methods
from the literature. Attention is put on the different data collection
techniques used. Secondary and primary data are described and the
reason why they are used is given. It will also introduce the
conceptual framework discussed earlier in conjunction with SMEs
literature to examine the characteristic determinants of Social Media
adoption in the Philippine SMEs and the effect of this adoption over
business development efforts of these SMEs.

Chapter 4: Research Findings and Analysis.


The chapter presents the author’s findings as a result of
primary and secondary data research. Firstly, the author examines the
secondary data sources stemming from its literature and how it affects
the business development of SMEs. Secondly, the findings from the
author’s own research are presented. They are based on primary data
obtained from interviews with the chosen company. The chapter presents
the empirical findings in terms of the literature about the problem and
tries to answer the research questions set earlier. Empirical findings
are related and compared to the theory in order to answer the research
questions.

Chapter 5: Conclusion and Recommendations.


This chapter concludes the thesis by summarizing the findings
from this research and literature. Limitations and recommendations for
further studies are also provided.
Modified Chapter 1; Introduction Pages 9 - 12
1 Introduction

1.2 Background of the Study

In today’s modern marketing environment, the attention in


social media marketing topics has been increased among researchers in
the internet technology field. This is in response to the positive
social media adoption of firms that use this channel for their
specified need. It has become a necessity for some firms to use this
medium as the main communication channel with their consumers and as
their main distribution channel for their goods and services. (Parveen
et al., 2015). Based on the SEA Internet Economy Report of Google,
Temasek and Bain & Company, the Internet penetration in the Philippines
is 68 million, which is approximately 64% of the Philippine population
of 107 million. According to CNN Philippines, Filipinos are one of
Facebook’s most active users, ranking the first in the region of
Southeast Asia alone for time spent online. A typical Filipino average
around 10:02 hours a day on the internet - connecting with friends on
social media, watching videos, checking emails for sales and promos,
and shopping, the study reveals. The social media penetration in the
country is at 71% which is a far cry from the worldwide average of 45%
(CNN Philippines, 2019). Therefore, the Philippines was named the
Social Media Capital of the World in 2018. Business World (2019)
reported that in the Philippines, the Internet economy now makes up
2.1% of gross domestic product (GDP), and could be equivalent to 5.3%
of GDP by 2025. The gross domestic product of the Philippines (GDP) in
2018 is approximately $330 billion, therefore its internet economy for
2019 and 2025 is valued at $6.93 billion and $17.49 billion,
respectively. The joint e-Conomy SEA 2019 report published by Google,
Temasek, and Bain & Company valued Philippine online economic
activities at $7 billion, which grew from $2 billion in 2015. Moreover,
according to the report, the internet economies of Malaysia, Thailand,
Singapore and Philippines are said to be growing at a rate of 20% to
30% annually which is a remarkable feat compared to the other regions
(Google, Temasek, Bain & Company, 2019). Therefore, the implementation
of social media marketing by firms would create numerous advantages
that would be further explained later. As a tech-savvy population,
Filipinos are a promising market for businesses. Big brands are not
exceptions to adaptation of digital media marketing as brands like
Jollibee, Uber and Manulife have successfully tapped their markets
using the internet. Their engaging and well - placed advertisements on
the internet and their strong social media presence have helped them
increase their market share through internet means. One example would
be the sales of the Jollibee Yum Burger which quadrupled after one of
their videos on social media went viral (The Manila Times, 2018). For
this study however, the paper would focus on small and medium
enterprises and the correlation of their performance and the adaptation
of digital media marketing.
With that being said, despite the high saturation of social
media usage and internet penetration from the Philippines, the usage of
social media by SMEs is an important but under- research area that
leaves a lot of unused potential for Philippine e – commerce to thrive
and take advantage of its high social media penetration rate. Social
media has the capacity to increase social contacts, hasten business
operations, the betterment of customer relations, facilitation of
innovation and favorable pricing, and advantageous recruitment of
highly competent staff. One can look at unused potential of the
Philippines in two perspectives. The first perspective discusses the
gap between the incorporation of social media into businesses that is
often adopted by large organizations in the country; it hasn’t been
well research upon and adopted by SMEs as these organizations fail to
see the benefits and opportunities social media can do for their
respective businesses. The second perspective will be revolved around
the academic side of the effects of social media on SMEs. In general,
there is little research on the effects of social media tools on the
context of small and medium enterprises. Scarcity in academic
literature is reflected in many levels. From a general perspective, it
has been indicated by Meske and Stieglitz (2013, 62) that there is a
growing body of academic literature on social media use in corporate
context. However, most of the studies focus on larger enterprises and
there is little research on social media in the context of SMEs
explicitly. Additionally, the available literature contributions
regarding Social Media tools adoption by SMEs are also limited on the
international level and it has not been witnessed a study concerning
this research point. Moreover, adding to the fact that there is a lack
of academic research on social media impact on SMEs in the Philippines
and more so around the world, most of the studies found on the
application on social media on business is already based on established
organizations.

1.2 Significance of the Study

A variety of senior managers and or maybe managers of their


private businesses look at social media as a trend, similar to a
gimmick in one's business (Kryder, 2011). In present day social media
environment, it is vital that and micro enterprises are in a position
to capitalize on the usage of social media and also be able to invest
in every opportunity it provides. Nevertheless, study shows that
numerous small companies do not possess a good approach when using
social media (Akinyele and Adegbuyi, 2015). Various managers continue
to think social media are all games and fun and that it is inefficient
to operate in. Tim Calkins, a professor at the Northwestern
University's Kellogg School of Management pointed out that social media
are getting increasingly more relevant in a company and that companies
that do not employ the use of social media strategies are in danger of
falling behind the competition and place the said business at risk.
Company and business managers today must maximize the use of social
media for 3 reasons. For starters, social media usually provides a
business with a low-cost platform of operating the business, developing
one’s personal branding and developing a personal relationship with
the consumer. Next is the communication part, social media enables
businesses to easily engage with customers along with staff members
immediately without needing them meet face to face. This also caters to
a wider public since for instance in the Philippines, social media
penetration is around at 70%, therefore groups that use social
networking will typically have a broader access to their respective
industry. Lastly, social media enables a company to get immediate
responses from its clients from their unbiased and personal reviews
that is essential for a company in improving itself (Dutta, 2010).

1.3 Research Question

The study aims to determine the correlation of social media


practices and the overall performance of SMEs. Given the importance of
small and medium enterprises in creating more job opportunities and
boosting the economy, studying the factors shaping their adoption of
Social Media tools in business will be of great importance. Social
media tools has appeared lately since they become a cornerstone in
different business activities. It has become important for business
owners and marketers to understand how social media work as a
communication and marketing tool and how they can significantly grow
their businesses. The paper will also identify the significant
organizational elements that SMEs would need to focus on. The
researchers will also define social media and discuss the importance of
a social media marketing plan that should be embedded in the strategic
plan of a company including showcasing how organizations can develop a
customer - centric strategic approach through social media and how will
this correlate with the performance of small and medium enterprises.
Furthermore, the study will deal with two topics that are usually not
given importance to. First is the marketing strategy of SMEs and its
relevance with social media. Most academic research is focused on large
enterprises which do not necessarily work with small to medium
enterprises since their business model and focus are structured
differently with regards to large enterprises. Second will focus on the
application of social media tools to small and medium enterprises and
techniques to maximize the opportunities of social media and an SME.
The research will provide a set of techniques that the SMEs should use
for their social media strategy, an analysis of these techniques, and
lessons from the techniques.
To achieve the previously said research aims, three objectives are
formed as follows:
b. To determine the current adoption status and level of social
media use of small and micro enterprises in Metro Manila.
c. To determine the main uses and challenges of adopting social
media.
d. Measuring the effect of adoption of social media marketing
and tools of SMEs on their business development efforts

1.4 Thesis Structure

Chapter 1: Introduction.
The chapter will introduce he background of the study of the
research and the objective of the study in which the author is planning
to accomplish. It will include all the background information on the
research and research objectives in order for the readers to understand
what the author’s scope is and what is his/her objectives.

Chapter 2: Literature review.


This chapter will introduce the in-depth analysis used in the
study and will provide an explanation of the important concepts
involved and the authors own opinion and knowledge on the topic. This
chapter will bring an emphasis on giving the readers a deeper
understanding of what social media is and how it affects e – commerce
and business strategies.

Chapter 3: Methodology.
The chapter introduces the methodology approach and the steps
for conducting the research. The author explains which method is used
in the thesis and why it is chosen over the others research methods
from the literature. Attention is put on the different data collection
techniques used. Secondary and primary data are described and the
reason why they are used is given. It will also introduce the
conceptual framework discussed earlier in conjunction with SMEs
literature to examine the characteristic determinants of Social Media
adoption in the Philippine SMEs and the effect of this adoption over
business development efforts of these SMEs.

Chapter 4: Research Findings and Analysis.


The chapter presents the author’s findings as a result of
primary and secondary data research. Firstly, the author examines the
secondary data sources stemming from its literature and how it affects
the business development of SMEs. Secondly, the findings from the
author’s own research are presented. They are based on primary data
obtained from interviews with the chosen company. The chapter presents
the empirical findings in terms of the literature about the problem and
tries to answer the research questions set earlier. Empirical findings
are related and compared to the theory in order to answer the research
questions.

Chapter 5: Conclusion and Recommendations.


This chapter concludes the thesis by summarizing the findings
from this research and literature. Limitations and recommendations for
further studies are also provided.

4. Old Review of Related Literature Pages 21 – 34


2 Literature Review

This area is going to review the associated literature which discusses


social media and just how the world today is beginning to trend towards
going electronic in customer behavior. As the social media capital of
the planet, understanding various views of social media helps people
understand just how relevant and crucial social media is in the e -
commerce setup of the Philippines. In this particular part, literature
regarding social media are going to be address from various
perspectives to be able to offer readers a background on just how
social media functions on businesses and aid people in gaining a deeper
knowledge of it. Different platforms of social media will be discussed
and the main platforms which are dominating in engaging consumers. The
part will even delve into the pros and cons of social media within the
participation of a business and the social media profile of the
Philippines in relation to its SMEs.

2.1 Social Media

Human beings have always been sociable in nature, creating bonds


and links with each other through communities, groups, beliefs,
associations, villages, towns, friends, movements and other forms of
groups (Sheth & Sisodia, 1997). Today, there are more than 3 billion
individuals all around the world who are using social media (Clement,
2020). Our world has now been taken over by the internet and media
communication where people are able to see different parts of the globe
without setting a foot outside their homes. People can now communicate
with one another on a different level, having no geographical
limitations or barriers. Other than the advantage in communication,
high internet access, and community-focused population are the other
factors why people began to accept and use social media (Li & Bernoff,
2011). Kaplan & Haenlein (2010) finds that the access and availability
of high-speed internet in developed and developing countries further
paved the way for the growing popularity of social networking sites
such as Facebook, LinkedIn, Twitter and Instagram, which has added to
the growing popularity of social media.

Social media refers to the means of interaction between


individuals in which they create, share and exchange
information and ideas on networks and virtual communities
(Ahlqvist, Bäck, Heinonen, & Halonen, 2008). Boris Loukanov
(Marketo, 2010) defined social media as “the production,
consumption, and exchange of information through online social
interactions and platforms.” Additionally, Safko and Brake
(2009) states that social media consists of activities,
practices and behaviors among communities of people who come
together online to share information, knowledge and opinions,
using conversational media. Social media contain various
social platforms that lets individuals with common interests
gather and interact with one another (Jokinen, 2016). We are
now in the information age where not only those who have
access can rule, but anyone who is using the platform can
access, read, change, influence, and even create information.
Social media is now directed at users and they have three
major roles namely creation and provision of content, support
in the distribution and selection of content, and filtering of
relevant content and services (Ahlqvist, Bäck, Heinonen, &
Halonen, 2008; Macedo, 2013). Furthermore, these web-based
applications also allow users to create and transmit content
in the form of words, images, videos and audio format (Safko
2010).

The emergence of the internet and the evolution of technology has


changed the way of communication and relationships between people.
Hanna, Rohm and Crittenden (2011) claimed that social media has changed
the internet from an information platform to an influence platform.
Social media consists of various types and in some cases, it is
difficult to determine if a website, application or platform fits the
definition of social media. There is still not a consensus about the
exact number of categories social media covers (Macedo, 2013). Kaplan
and Haenlein (2010) state that the social media can be classified into
six different types namely blogs, content communities, social games,
social worlds, collaborative projects and social network sites, while
Constantinides and Fountain (2008) claimed that there are five
primordial categories of social media namely blogs, communities,
forums, aggregators of content and social network.

Blogs are online journals or articles that focus on a specific


topic or an individual’s life. It is usually updated regularly and
consists of text combined with audio or video podcasts once in a while.
Blogs are considered a social platform because of the ability of users
to comment on blog posts, sharing their opinions. It is sometimes
difficult to classify blogs as social media because it does not
characteristically form communities. Although it involves social
interaction, it is focused on specific blog posts created by the author
of the blog (Jokinen, 2016). Communities are thematic sites that
present contents ready to be used and shared by participants. These
online communities often share a common interest which keeps their
group engaged and their members interacting with one another. Forums
are online platforms where people and members can conduct conversations
about certain topics. The objective of a forum is for various people to
contribute and share their ideas and information on a topic being
discussed. Aggregators of content are the applications that allow the
user to customize the web content that he wants to access. Social
networks are online platforms that allow users to make their own
profile or account, accessible to others, which is used to communicate
or exchange information with other users. Online social networks refer
to websites such as Facebook, Google+ and LinkedIn. Online communities
and social networking sites are effective tools for social interaction
and sharing of information (Lu & Hsiao, 2010). Social networking sites
are the major tool used in e-commerce and businesses today as it allows
consumers to make social connections and participate in cyberspace
(Mueller, Hutter, Fueller & Matzler, 2011). Social networking sites
also provide the opportunity for consumers to gather information
through interacting with other consumers before making a purchase Hajli
and Lin (2015). Today, there is already a lot of information and
recommendations available for consumers on these social networking
sites. These information are contributions from other consumers who
have experiences and share information and recommendations about them.
This is an important point as customer involvement through social media
is a key factor in marketing (Hajli, 2014).

2.1.1 Behavioral Perspective of Social Media

Based on Brake and Safko (2009), social media is described as a


set of activities, practices, actions, and behaviors between groups of
individuals online to be able to share opinions and information in
social media platforms. Lincoln (2009) said that through the behavioral
perspective, the individual's use of social media concentrates on the
participation of these people within the internet community. Social
media encapsulates the collective information and participation these
people invest so individuals may seamlessly come together with no
geographical limits, shifting very easily between acting as an audience
and acting as the role of author. Social media is accessible, and its
equipment are both flexible and versatile.
In the application of the viewpoint for business use, Brake and Sakto
(2009) stated that social media enables meaningful discussions with the
business entity and the consumer within the social media platform.
Interactions are an element of sharing information with one another on
social media, and business entities are able to affect these
discussions through the usage of social networking tools found in the
platforms of theirs. These social media tools will likely be talked
about more in detail later on.

2.1.2 Media Perspective of Social Media

Based on Kung (2008), social media can be considered as a third


type of media after mass media and niche media. He mentioned that
social media have three attributes that the other media types do not
emphasize. For starters, social media platforms are created to be
interactive, whether it's an individual entity or maybe a business
entity. Next, most material present in social media platforms are
produced by amateurs rather than professionals in the respective area.
Lastly, the content produced in social media is stressed on content and
community based rather than information based

2.1.2 Psychological Perspective of Social Media

Based on Riva et.al. (2016), from a psychosocial point of view,


social networking could be defined as "digital spaces" allowing users
to control both the network of theirs of social relationships and their
cultural identity. Moreover, the mixed nature of social media which
combines real and virtual elements of an organization or an individual
leads these organizations and individuals to get its own identity when
these respective entities are in social media.
According to Maslow, the various needs that every one of us experiences
are not isolated and self-contained, but they are inclined being set up
in a hierarchy of importance which is named Maslow's hierarchy of
needs, a prominent theory in Psychology. These hierarchy of needs are
as follows (With 1 being the least important and 5 being the most
important):

1. Physiological needs: basic needs associated with survival.


2. Safety needs: ensure tranquility and protection on the person.
3. Associative needs (LB): the need to feel a part of a group, to be
loved and to love as well as
cooperate with others.
4. Needs for self-esteem (ES): the need being respected, appreciated,
and approved, to feel
productive and competent.
5. Needs for self-realization (AC): the demand for realizing one is
unique identity and fulfilling one is own expectations along with
taking a good position in their own individual group

The connection of Maslow's hierarchy require theory with social


media use is the fact that the elements of Maslow's theory specifically
needs for self - esteem, self - actualization, love and belonging are
important factors that affect an individual’s willingness to be on
social media. Singh and Ghatak (2019) concluded that when the element
Ac gets much happier, the social media usage becomes less. As cited in
Singh and Ghatk (2016), Bridwell and Wahba (1976) in the study of
theirs also suggested similar, so the businesses that are ready to
promote social media adoption must focus more on customers with LB
needs and ES needs. AC negatively affects the intensity of social media
usage and means higher status achievement for said individual which
leads to less social media usage. Ghatk and Singh 's article suggested
that the elements ES and LB will be the 2 major factors that affect the
use of a person on a social networking platform. This design is useful
in evaluating consumer behavior in terms of the needs of theirs, that
are pretty useful in increasing social media usage intensity.

2.2 E-commerce

E-commerce is usually associated with web-based communities. According


to Zetlin and Pfleging it is described as consumer – driven online
markets in which consumers’ needs are displayed and sold through a
community website. This gathering of needs in one place facilitates
vendors to have higher sales and more community members to obtain
discounts. Therefore, web-based communication is said to substantially
affect almost every company that provides services or produces consumer
goods. It could change the nature of strategic planning and corporate
advertising, as well as adapt to how consumer behavior is progressing
to going digital in the future.

2.3 Social Commerce

Social commerce is described as the utilization of social


networking, in the context of e commerce, to help with buying and
marketing products and services online. It combines two well-known
digital trends, social media, and e -commerce. Social Commerce can be
viewed from two viewpoints. First of all, social commerce involves
itself through tasks where e - commerce operates. Next is how said
activity is going to affect the business. Shadkam and O' Hara (2013)
mentioned that social commerce is often generalized in conditions of
two leading tasks that are for starters, putting social media resources
in e commerce web sites as well as second, placing e commerce in social
media platforms. Setting social media resources in e commerce sites aid
customers see the reputability of the business and gather more intel
about the item from any other buyers on the social media platform of
theirs. Product reviews from comments, the community discussion board
and social blogs are what comprises this intel. Companies like Nike or
Adidas for instance leave the social media links on their respective
websites to allow the consumer to take a look at their social media
profiles and browse what consumers would say with regard to their
product or company. Second, by placing e commerce websites in the
social media platforms, whenever a customer sees an advertising
campaign and is considering to buy said item, he/she is redirected
towards the e - commerce site to buy the specific product. This
integrates their e - commerce websites to their social media
storefronts for a seamless experience of the customer. Most SMEs are
setup in this manner as it is convenient to get visitors to social
media platforms as well as gain traction for their e - commerce web
sites. Both of these two social commerce solutions are able to enhance
the purchase cycle experience in three key areas: product discovery,
product, and product selection referral

2.3.1 Opportunity for Social Commerce


One will find much more than 350 million online users in Southeast
Asia and ninety % are online users from the smartphones of theirs. The
chance for social commerce is great, particularly in the Philippines
where social networking penetration will be the highest if not among
the planets. By 2025, it's anticipated that the e-commerce industry is
going to exceed US1dolar1 100bn per annum. A survey conducted by
Econsultancy (2019) suggested that respondents to the survey reported
spending considerable sums on the internet, with around 29% spending
far more than $100 monthly on internet purchases. The buying decisions
of theirs is greatly influenced by the info they find out on social
media. Nearly 60% of the people in the survey declared a quarter of
online shopping is affected by social media. The two hottest routes
which triggered a purchase are Facebook which is 78 % and Youtube which
is 52%. With, 44% of the customers suggested that they've created more
than three internet purchases in history month as an outcome of seeing
social media ads and content online. Also, resulting in them after
purchase, 82% of customers share their purchases via social media
platforms thus amplifying the effect and also producing publicity for
that brand. This demonstrates each internet shopping experience could
be social. Econsultancy (2019) mentioned that entrepreneurs that are
working hard in internet retail are already experiencing the advantages
as users go online making purchases. Seventy percent of marketers found
that they currently have seen a rise from online retail and over 90% of
them agreed that social commerce becomes more and more essential in the
upcoming years as social media will proceed driving revenue forward.
It's anticipated that most e-commerce merchants will allocate a budget
in the social media part of their company and also maximize social
media applications like social media advertisements to be able to get
sales up.
Bain & Company and Google (2016) partnered up to survey over 6000
consumers in Singapore, Indonesia, Malaysia, Thailand, Vietnam, and the
Philippines to discuss the landscape of e-commerce. In the report of
theirs, a characteristic that sets Southeast Asians apart from internet
consumers in other markets is the fact that e-customers in this
particular area pick from multiple websites as observed in Figure six.
It may be found that Southeast Asia's Consumers do not show some
preference or loyalty to these retail platforms. Social media despite
not remaining in the dominating list of preferred platforms as observed
in Figure six is very important in conditions on driving product sales
to these e-commerce platforms. Among digital customers, more than 80%
use social media options such as the famous photo-sharing website
Instagram or perhaps messaging apps including Facebook's messenger to
investigate products or perhaps usually link with sellers. As outlined
earlier, social media functions as a store for e-commerce sites which
allows business entities to make use of social networking as a means to
affect customers and also enables customers to discover the item or
maybe system before committing to buy in the e-commerce site.
Institutions are beginning to quickly grow the services of theirs to
social commerce to entice customers. It is already at the stage where
sales that lead from social media comprise up to 30% of the amount of
all transactions. A typical scenario: A customer considering purchasing
something links with a seller on Facebook, agrees investing and after
that arranges for delivery and payment on a peer-to-peer basis. There
is a session in the comment from one Thai consumer: "I purchased the
tea of mine on social media since it is a small batch production and I
enjoyed conversing with the seller. If I'd noticed similar product or
service on an e-commerce site I would not have bought it " (Hoppe,
2016)

Figure 6. Extensive bar graph of the Consumers in Southeast Asia is


buying from a large repertoire of digital platforms.

Adapted from Consumers in Southeast Asia are buying from a large


repertoire of digital platforms, by Bain & Company and Google
2.3.2 Integration of Social Commerce and E - Commerce
In the era of online economy, establishing a shop (online) or
physical and awaiting buyers to arrive is not enough. Rather,
businesses should be assertive by finding ways to interact with
customers, develop relationships, and produce communities. Social
networking is a platform where people share info and affect each other.
What differentiates interpersonal commerce from a regular e - commerce
website would be the components of social media involved. Social
commerce concerns itself with social networking features as referrals,
user recommendations, ratings, and customer reviews, online
communities, social shopping tools and marketplaces discovered within
the social networking platform. These functions within the social
networking causes a trusted atmosphere where friends, acquaintances and
family dynamically contribute articles on the referral and selling of
services and goods though negative and positive comments, reviews
regarding their experiences past and present. Therefore, re-search and
buying cycle are shrunk with the establishment of one location driven
through the strength of several. In a nutshell, cultural commerce is a
trusted setting of what prospective consumers make purchasing choices
based on the recommendations of a system of family and friends, not
strangers they do not understand or even believe in. Social commerce
and also e - commerce works hand in hand as e- commerce concentrates on
maximizing efficiency with strategies for advanced searches, one click
buying, specification driven virtual catalogs and suggestions based on
consumers' past shopping behavior (Hasan, 2017)while social commerce is
oriented toward social objectives, like social networking,
collaborating and info sharing, with a second emphasis on looking
(Hasan, 2017). With respect to consumer relationship, social commerce
consists of the internet community as well as the business entity as so
each one can impact another 's choice while e - commerce concentrates
on maximizing efficiency with strategies for advanced searches, one
click buying, specification driven virtual catalogs and suggestions
based on consumers' past shopping behavior (Hasan, 2017).

2.4 Social Media Marketing

Social media marketing is able to handle a big scope but what is


important is that it provides the primary advertising program of a
business which is incorporated into an organization's social media. Any
online site which enables a person or maybe group to talk about the
content of theirs, opinions, perspectives and promotes interaction, as
well as community building, could be categorized as being a social
media. A few well-known social media websites which are typically used
by businesses are Facebook, Twitter, Instagram, LinkedIn, and the like.
Social media marketing and advertising are not simply about
establishing a Facebook page instantly, it entails a concrete and
thorough social media marketing strategy which is parallel with the
business' marketing efforts to push the development of said business. A
social media program depends on what the company wants. For example, a
company may require an extra channel to market their services or
products without taking on a lot of costs; a company may make a
Facebook page to advertise their products and also offer updates on the
latest offerings of theirs and also simultaneously get consumer
feedback and help to the customers of theirs; they also can use social
media to widen the reach of theirs as internet penetration is
developing at a quick speed, as well as also quicker in the world since
the essential consumer behavior changes and shifts to an online-based -
focused trade (KPMG International, 2017).

2.5 SMEs or Small and Medium Enterprises

In general, there's no universal interpretation of SMEs or small


and medium enterprises. Numerous attempts have undertaken to determine
the term of small businesses, using standards like the number of
employees, sales volume, and value of assets in the company. Much
academic literature utilizes the European Commission specific
description of SME which are: under 250 workers, has possibly an annual
turnover not exceeding €50 million (approximately £40 million) or even
an annual balance sheet total not exceeding €43 million and of whose
capital or even voting rights, twenty-five percent or higher isn't run
by a single business, and collectively by several businesses, that fall
outside this definition of an SME (The FSE Group, 2020).
In the Philippines, it showcases among the youngest age
demographics than its Southeast Asian equivalents and other regions in
the world as well. The population as of today is dominated by
millennials and also Generation Z which is among the primary reasons
why there's a rise in the online economy of the nation. By the next
several years, a growing number of millennials would begin to join in
the workforce that will provide them with the purchasing power to
invest much more online since they're much more informed in the area as
compared to the prior generations. Moreover, as suggested by Nielsen
earlier, among online users of the Philippines which comprises nearly
seventy million people, 90% of these consumers are made up of
millennials as well as Generation Z. From Figure seven, one may observe
that the Philippines has probably the youngest demographic out of all
of the other southeast Asian nations. Moreover, the nation's young
demographic corresponds with the Philippines' time spent on social
media, spending probably the longest period of roughly ten hours on
average each day in the whole world (Figure eight) (Lexicon, 2019).
With web-based channels owning much more access than traditional
channels, the heavy use of social media as well as the convenience
which will come with it provides a good deal of possibilities for SMEs
to cash in on the modification of consumer behavior towards e-commerce.
In order to capitalize on social media, one needs to a well -
planned out social media strategy that can potentially allow SMEs to
advance their business without the need of extensive financial
resources, labor and capital like large enterprises. A good social
media plan can allow SMEs to compete internationally and locally due to
the extensive reach and easy shipment methods that the internet offers.
Moreover, most organizations only use social media as a means for
marketing or advertising their product without fully utilizing all the
benefits that social media can give. They do not integrate their
business fully and thus fail to see the advantages that social media
can offer. On the other hand, while it is true that most SMEs already
realize that having a

Figure 7. Graph for southeast Asia population statistics. For the


Population less than 35 years old is adapted from Statista (2010),
retrieved from https://www.statista.com/statistics/487981/social-
penetration-in-southeast-asian-countries and for the % of social media
penetration, adapted from The Nielsen Company, retrieved from
https://www.nielsen.com/wp-content/uploads/sites/3/2019/06/whats-next-
in-southeast-asia.pdf
Figure 8. Graph of the Time Per Day Spent Using the Internet. Adapted
from Lexicon’s Social Media Trends 2019, retrieved from
https://lexiconthai.com/blog/social-media-trends-2019-southeast-asias-
digital-boom

to be able to profit on social media, a person must have a prepared


social media strategy that can enable SMEs to develop their business
without needing considerable financial resources, capital, and labor
like huge enterprises. A comprehensive social media plan is able to
allow SMEs to compete locally and internationally as a result of the
widespread influence and simple shipment techniques that the internet
offers. Additionally, multiple businesses only utilize social media as
a way of promotion and advertising their product without fully making
use of all of the advantages that social media are able to provide.
They do not incorporate it to their business thus and fully fail to see
the benefits that social networking is able to provide. On another
hand, while it's correct that many SMEs now recognize that creating
social media for their respective business is crucial, they do not
comprehend exactly how to incorporate this online medium into their
current strategic plans. For a company to achieve success and to remain
relevant in the digital era, there ought to be a social media plan
which coincides with the current marketing strategy of the company and
implement it efficiently. In one research, it was discovered that from
the 304 business executives which were surveyed, 47% of them do not use
using social media (Barone, 2011). Among the 47%, 27% of them pointed
out it was the absence of time to maintain the business' social media,
14% of them stated they were not knowledgeable in the technical usage
of social media. To remain relevant with the present and the future
generation, an organization must provide even more attention to their
internet channels as social media and internet penetration would
steadily progress in the upcoming times. Nearly all of those with a
social media profile doesn't have a concrete strategy in mind. The
majority of the SMEs will usually create a Facebook page and believe
that things are done, but what they don't recognize is the fact that a
social media program must define an SME's goals for developing a social
media account. Can they be creating a brand-new distribution channel
through social media? Can they be creating a website to advertise their
products? Can they be trying to get consumer feedback and offer updates
through social media? In a nutshell, having a social media approach
will be crucial in delivering a direction to just what a business is
attempting to accomplish through the usage of social media.

2.6 Advantage of the Application of Social Media in a Business

From a marketing perspective, social media could be utilized to


market products and that's consistent with the mission and vision of
the company. It's economical in which it costs relatively minimal or
perhaps no cost at all in advertising on social media. Because of its
simplicity of implementation, Hasan (2017) reported that organizations
are enabled by social media to do the marketing duties (such as
advertising) without the assistance of classic media outlets.
On the branding level, as cited in Hasan (2017), Stankovic Rice,
2011 and King'ori, 2013 illustrated that navigation of the
organization's brand through social media will boost the online word-
of-mouth effect and consequently boost motivation and the formation of
a community through the growth of digital reputation.
On the customer level, based on Hasan (2017) social media is a
quick, efficient, and adaptable method to achieve large audiences like
actual and potential shoppers. Social media also can produce a long-
term relationship between actual customers and businesses by allowing
individuals to communicate without the requirement to meet up in person
in real-time. it enables the organization to spot prospective customers
by creating a system of supporters for a company that is described as
loyal followers that can bring referrals to the product or service to
others.
From a human resources perspective, internal effectiveness and
talent acquisition are typically the human resources initiatives of
numerous companies. Social media also boosts productivity, contributes
to more seamless collaboration, and improved employee engagement
between workers to get a project completed. Human resources are mainly
in charge of leading an organization's social media policy and
advertising and marketing are responsible for leading said social media
policy. Based on a report by KPMG International, many companies' social
media policies are negatively oriented, directing what to avoid.
Prosperous businesses must think about the effect associated with a
positive and well-thought-out social media policy with an optimistic
orientation in mind. With improved social media policies and engagement
models, they are able to help the business in carrying positive
messages on the marketplace about the quality of their services and
products as well as the dynamics of the workplace itself being a
collaborative environment where expression and creativity of completely
new concepts are both welcomed and also encouraged (Peacey and
Isaacson, 2012).
From an information management perspective, social media allows
employees to access resources (folks skills and info), which
subsequently results in an increase in productivity and performance. It
enables the retention of collective organizational experience and
information being completely accessible and also searchable. Social
media also promotes the efficiency and productivity of a worker by
allowing them to search for the remedies needed on their own (Hasan,
2017).
Social media are able to produce a channel for soliciting
customer reviews and feedback fit of two-way discussion between
consumer and company. Social media allows feedbacks and reviews from
consumers that let a company improve its performance, motivate
employees, and promote consumer and company interaction. This feedback
may also be applied to research and develop products that are new
efficiently.

2.7 Disadvantage of the Application of Social Media in a Business

From a marketing perspective, Hasan (2017) stated that social


media marketing is essentially a brand-new advertising idea that it's
tough to evaluate based on its effectiveness and how to properly
maintain it. Also, due to the powerful element of social media
platforms and technology in general, there's a lack of a unified
agreement on ways to effectively apply the usage of social media in
different conditions like introducing a social media plan with a clear
strategic purpose.
A company's publicity is at risk when including a social
networking strategy. Bad management of one 's social networking may
outright result in damaging publicity as reviews and comments from
buyers are public to other individuals.
From a human resources viewpoint, a report by KMPG International
pointed out that people within an enterprise are multigenerational and
diverse. For instance, while a Generation Y worker might not have any
concerns about being required to learn or use a specific social media
application, a baby boomer might feel confused and distressed by such a
request. The setup of a system or procedure focused on social media is
able to prove to be difficult with a diverse workforce. One of the ways
to better understand the way a social media policy change might
influence a company is through assessing just how each department of a
said organization might be impacted by the change. Such analysis helps
you to determine higher priority concerns and emphasizes key
stakeholder requirements. Moreover, based on Munro (2014) and as cited
in Hasan (2017), social media use in organizations could collapse
conventional communication methods. The increased openness within
individuals and departments may also result in differences in views and
create tension between employees.
From an information management perspective, social media use,
and information sharing in the platforms are able to create privacy and
security risks because of the business. The increased accessibility of
on-demand tools is able to serve as a double-edged sword for companies.
Data is going to be readily available but will likely be vulnerable to
information leaks and privacy issues if it is not implemented right.
Social media is a target for hackers due to the quantity of consumer
information that may be acquired upon a successful breach of the
security system (KPMG International, 2017)

2.8 COVID – 19 Pandemic – Fundamental Change in Consumer Behavior

Internet transactions of physical products have just recently


encountered a rise in demand in certain items as a result of the
coronavirus pandemic which impacted the entire world. Organizations and
industries at first responded to the pandemic by accumulating medical
supplies like alcohol solutions, face masks, and etc. Almost all
governments of the world had enforced social distancing measures:
lockdowns, closure of non - essential businesses. Since retailers and
offices have shut down, consumers are now shifting to acquiring what
they need online. This resulted in an immense increase in internet
purchases as well as an increased demand for electronic services. Many
customers resort to internet shopping. Several brick-and-mortar
businesses have thus shifted resources to e-commerce. This resulted in
a fundamental shift in consumer behavior where the pandemic served as a
catalyst given that there was already a current surge of development
for social and e-commerce. The migration to e-commerce is given great
importance since the inflow of different online sellers has more than
doubled across different categories. Ecommerce isn't merely restricted
to young adults any longer, with anyone in their 40s and 50s saying
they are now far more prepared to shop online (Facebook; Company and
Bain, 2020). This fundamental transformation in consumer behavior has
nevertheless been retained even though the pandemic is gradually
dwindling in numbers. Everyone is far more careful about visiting
public places and is usually inclined to shop online, staying away from
the danger of crowds and also the inconvenience of extended queues.
Together with the forced lockdowns as well as the recommendation to
remain at home, this will modify how customers shop with a lot of them
switching to online shopping. A lot of people around the world will now
be prone to resume buying online, expanding their online shopping into
categories they would have bought in a physical store (Nielsen, 2020).
The speed of the shift to online shopping versus mortar and brick will
induce numerous retail companies to rethink and adjust the future
business models of theirs and also multichannel strategies.
Digital adoption encounters a sharp increase not only because of
online shopping but predominantly other things also. The necessity for
online access has risen much more than ever due to several factors like
working from home, online classes, online meetings, and digital
payments. These cases are rising in order to motivate people to stay at
the security of their homes. Khanh Ngo on the Tiki Corporation stated
that the percentage of first-time digital consumers has grown
substantially in the past several days, driven primarily by government
efforts in motivating individuals to shop online. What this means is
that everyone will need an internet connection to be able to do what
they need and what they want. This is the reason why the pandemic
served as a catalyst to push folks going digital. Contactless
innovations like electronic payments are rising aggressively in a money
- dominant market. Different kinds of companies happen to be adopting
this payment type in order to stay contactless and even in the delivery
of meals. In the Philippines, the digital finance company GCash has
seen a 30% increased transaction volume since March and is now the most
downloaded finance app in Google Play Store (Facebook; Company and
Bain, 2020. According to Facebook and Bain & Company, consumers are
switching to digital services to keep themselves busy while indoors. As
an outcome, the use and adoption of many online applications have
accelerated and will probably remain - a direction which was currently
rapidly increasing the past several years. Across Southeast Asia, 85%
of respondents said they've tested with new online applications during
the first quarter of the year. Applications that have observed the
greatest rise in continued and first-time use are social media, video
streaming, along with instant messaging apps, followed by e-commerce,
food distribution, as well as electronic payments platforms (Facebook;
Company and Bain, 2020). Based on the article, video streaming, social
media, along with instant messaging carry on and experience the
greatest acceleration of usage when grouped by age groups. Among
middle-class groups of 25 to 54 years old, applications that include e-
commerce, digital payments, and food delivery received a spike while
the youth aged 18 to 24 contribute to videos, music, and gaming (Figure
nine). From the figure, it could be found that social media, instant
messaging, and video streaming are likely the most utilized of all age
groups.
In a nutshell, consumer behavior has shifted to digital,
particularly for the categories as groceries, food, remittances, and

fast-moving consumer goods. New methods for companies will evolve and
center around getting digital as they adjust to the new normal.

Figure 9. Extensive bar graph of the Percent of Consumers who Increased


Use of Apps. Adapted from Southeast Asia digital consumer trends that
shape the next normal, by Facebook and Bain & Company.

Modified Review of Related Literature Pages 14 - 38

2 Literature Review
Since our study will be focused on MSMEs, it is important to
define what constitutes an MSME. The researchers would also define what
is considered to constitute an MSME in Philippines and the internet
economy of the Philippines on how well its performing in the Southeast
Asia region. In that regard, the researchers would like to identify the
most common features of MSMEs and, more specifically, the particular
features that distinguish them from large organizations as well.
This section aims to analyze the associated literature which
discusses social media and just how the world today is beginning to
trend towards going digital in consumer behavior. As the social media
capital of the planet, understanding various views of social media
helps people understand just how relevant and crucial social media is
in the e - commerce setup of the Philippines.
In this particular part, literature regarding social media are
going to be address from various perspectives to be able to offer
readers a background on just how social media functions on businesses
and aid people in gaining a deeper knowledge of it. Different platforms
of social media will be discussed and the main platforms which are
dominating in engaging consumers. The part will even delve into the
pros and cons of social media within the participation of a business
and the social media profile of the Philippines in relation to its
MSMEs.

2.1.3 Southeast Asia’s Internet Economy

In 2018, the internet economy of Southeast Asia reached the $100


billion mark. This is due to the rapid adoption of the generation to
electronics with millennials and the Generation Z taking over in the
next decade as discussed earlier. Consumer behavior has also changed
due to the market getting more competitive. Powered up by the
convenience of the use of the internet and the fast - paced lifestyle
of working individuals, people are starting to handle everything
online. According to the SEA Internet Economy Report by Google, Temasek
and Bain & Company, the internet economy of southeast Asia in 2015 to
2019 ballooned over 40%. From the report the value of the internet
economy has more than tripled between 2015 and 2019. From this growth
rate, the internet economy is on its track to reach a conservative
amount of $300 billion by 2025, not yet considering the fact that
millennials would take over 75% of the labor force by 2025 (Google,
Temasek, Bain & Company, 2019). From the report, the southeast Asia
internet economy consists of 180 million people, more than 30% of the
southeast Asian population of 570 million. The internet economy drivers
are mainly online travel, e - commerce, online media and ride hailing
services; more and more people are not just spending their time online,
but also their money in online products and services. From Figure 2,
it can be observed that

Figure 1. Graph of the Southeast Asia Internet Economy in GMV. Adapted


from Sea Internet Economy Report, by Google, Temasek and Bain &
Company, retrieved from
https://www.blog.google/documents/47/SEA_Internet_Economy_Report_2019.p
df

Figure 2. Graph of the growth of online service and products in


Southeast Asia from 2015 - 2019. Adapted from Sea Internet Economy
Report, by Google, Temasek and Bain & Company, retrieved from
https://www.blog.google/documents/47/SEA_Internet_Economy_Report_2019.p
df
online gaming is the dominant force in driving the internet economy in
2019, however, the rapid growth of the e - commerce industry cannot be
overlooked. From 2015, the e - commerce driver grew 300 % from 2015 -
2019 while online gaming showed little development of thirty-eight %
from 2015 to 2019. Ride hailing services as Uber and Grab also showed
remarkable increase in demand of 500 %, from eight million people in
2015 to forty million users in 2019. The surge of growth found here may
be due to the fundamental change in the takeover and consumer behavior
of the brand-new demographic. From this, it can be assumed that in the
span of a few years, e-Commerce and Ride Hailing have become an
integral part of daily life for millions of Southeast Asians,
especially those living in big cities. They provide convenience, access
and value to services and products that have been before hard to get.
For example, the great accessibility and affordability of Ride Hailing
services in crowded Metropolitan areas are prompting many Southeast
Asians to rethink the desire to own cars. Ride Hailing is a huge draw
for individuals in crowded towns like Metro Manila in the Philippines
where personal car ownership is expensive, increases air pollution and
it is linked with frustrating jams. In the same way, customers are
depending on Food Delivery services for dishes they would usually need
to prepare at buy or home from food vendors. For an emerging and
increasingly time conscious middle class, the comfort of having piping
meal that is hot shipped to one's doorstep is really appreciated. Such
consumer action is now the norm, especially among dual income families.
With most sectors considered, the GMV of Online economy amounted to 3.7
% of Southeast Asia's gross domestic product (GDP) in 2019, up from 1.3
% in 2015. It is projected to exceed eight % by 2025. Southeast Asia is
closing the gap with advanced markets such as the United States, where
Internet economy had created up 6.5 % of the GDP in 2016.

2.1.4 Philippines Internet Economy

Philippines’ internet economy in 2019 is 2.1% of the country’s


total GDP and potentially rising to 5.3%. This means the internet
economy of the Philippines in 2015 is at $2 billion which grew at 350%
to $7 billion in 2019. Google and Temasek (2019) indicated that among
the main drivers of the internet economy: e - commerce, online travel,
online media and ride hailing, e - commerce was the prominent driving
force in the Philippines (Figure 4). It showed the most significant
growth of 600% from 2015 - 2019 at $0.5 billion to $6 billion,
respectively. In 2025, it is expected that e - commerce would grow to a
$12 billion due to consumer lifestyle and demographic changes.
With the increasing adoption of Digital Payments and telecom
carrier billing options, more subscribers from outside the Metros are
paying for premium Online Media services such as Gaming, Music and
Video on Demand. Furthermore, with the recent covid – 19 pandemic,
Philippines’ internet economy will experience a further rapid rise
these pandemics as retail stores are closing due to lockdown measures
to prevent the further spread of the disease. As the lockdown
continues, businesses are shifting their strategies towards e –
commerce to replace their retail stores. Not only businesses are going
digital but schools, meetings, and even online payments to encourage
the people to stay at the safety of their homes. Digital adoption will
further increase as more and more people will require the internet to
do the tasks that normally would require them to go outside. The
effects of the pandemic on consumer behavior would further be discussed
in the next chapter.
The internet overall economy of the Philippines can also be
extremely concentrated on its capital city that is Metro Manila or
maybe the National Capital Region (NCR). The majority of the types
which use the application of e - commerce are discovered in that area.
Based on a report posted by the Philippine Institute for Development
Studies, in 2015, NCR occupies roughly forty-five % of the share of e -
commerce companies in the nation. In 2013, NCR had taken up roughly
thirty % of the share of e - commerce share. There is a sizable
increase of e - commerce firms at NCR in only 2 years (Calizo and
Quimba, 2019). Based on the SEA Internet Economy Report by Temasek plus
Google, the disproportionate impact of Metro centers is much more
pronounced when it involves the Internet overall economy.
For many Internet economy players in Southeast Asia, the vast
majority of active users as well as orders are produced from these
places, that collectively account for over 50 % of the region's
Internet economy. Regular earnings from these cities are many times
above all those in the provincial areas. These metropolitan cities can
also be fitted with infrastructure and have logistic facilities which
allow them to effectively transport goods. These cities also use a
dependable community connectivity as compared to provincial places with
minimal connectivity (Google, Temasek, Company and Bain, 2019). An
additional way of evaluating the uneven division between the Non-Metro
and Metro areas is studying patterns in expenditure that is individual.
While estimating just how much people invest in Online economy, we
discovered that the yearly per capita spending stands at nearly $600 in
Metros across the area. This is more than 6 times the nearly $100
annual per capita spending estimated in Non-Metro areas (Figure three).
With the growing adoption of Digital telecom and telecom carrier
billing options, additional members from outside the Metros are
investing in premium Online Media services like Gaming, Video and Music
on Demand. Moreover, with the latest corona virus pandemic,
Philippines' internet economic system will experience an even further
fast rise these pandemics as retailers are closing because of lockdown
steps to keep the further spread of the illness. As the lockdown
continues, companies are moving their strategies towards e - commerce
to exchange the retail shops of theirs. Not just companies are going
digital though schools, conferences as well as online payments to
motivate the individuals to remain at the security of the houses of
theirs. Digital adoption will even further improve as increasingly more
individuals will require the web to carry out the jobs which typically
would require them to head outdoors. The consequences on the pandemic
on consumer behavior would additionally be reviewed in another chapter.

Figure 3. Graph of the growth of online service and products in


Southeast Asia from 2015 - 2019. Adapted from Sea Internet Economy
Report, by Google, Temasek and Bain & Company, retrieved from
https://www.blog.google/documents/47/SEA_Internet_Economy_Report_2019.p
df
Figure 4. Graph of the Southeast Asia Internet Economy in GMV. Adapted
from Sea Internet Economy Report, by Google, Temasek and Bain &
Company, retrieved from
https://www.blog.google/documents/47/SEA_Internet_Economy_Report_2019.p
df

Concentrating on the Philippines' market, based on a report by


the Nielsen Company (2019), the Philippines' population is
comparatively younger with 67 % of the population being under 35 old
while 52 % are 23 years older or even young. The country's median age
is 24 years old; this means a proper and increasing labor force and a
sustained future consumption. Being among the youngest populations in
the planet, this suggests that the nation has an excellent opportunity
to bolster its already amazingly rapid development in the online
economy. A primary reason why millennials have much less buying power
than Generation X is due to the fact that they do not possess the
assets to buy whatever they love. But as increasingly more millennials
get into the labor force, they become income producing people who have
with them their' tech - savvy' information as they further in the stage
of theirs of life. As Millennials continue to join the workforce and
adopt brand new lifestyle priorities, their online shopping activity is
anticipated to surge as well and surpass the levels currently showed by
earlier generations. Based on Nielsen (2019), there's a rising demand
for comfort in the Philippines than ever before. The rising hectic
lifestyle and urbanization have led to Filipinos searching for
everything online. This needs increase in recognition of possible
online meal distribution, internet shopping plus ride - hailing.
Additionally, 64% of the public within the Philippines probably has a
chance to access the web and 90 % of these web users should be to
Generation Z and millennials (Nielsen, 2019). Internet access likewise
shows absolutely no signs of slowing down, despite having a slower
internet rate than most the country's southeast Asian neighbors. With
an expanding online penetration, the Philippines has the most space for
development and should capitalize in on its social networking
penetration of 71 % giving the ease of access to the web for everybody
in the nation.

2.2 Characteristics of MSME Sector Profile in the


Philippines

An MSME in the Philippines is defined as any business activity


or perhaps enterprise engaged in industry, agriculture business and/or
services which has: (one) an asset size (less land) of up to PhP100
million; and (two) an employment size with under 200 employees. Based
on these categories, it is classified as micro, medium or small no
matter the kind of business ownership - Figure 4. (i.e., cooperative,
single proprietorship, corporation, or partnership). As of 2016, there
was a total of 946,988 business enterprises in the Philippines. As
shown in Figure five, MSMEs represented 99.57 % with 942,916
establishments while large enterprises represented 0.43 % with 4072
establishments. Micro enterprises comprised 89.94 % (851,756) of the
total number of SMEs while small and medium enterprises accounted for
9.22 % (87,283) and 0.4 % (3,886), respectively.
Enterprise Asset Size Number of Employees
Micro Up to P3,000,000 1 - 9 employees

Small P3,000,001 - P15,000,000 10 - 99 employees

Medium P15,000,001 - 100 - 199 employees


P100,000,000

Figure 5. Table of MSME Classification. Adapted from The MSME Sector at


a Glance, by the Senate Economic Planning Office of the Philippines;
retrieved from https://www.senate.gov.ph/publications/AG%202012-03%20-
%20MSME.pdf
Figure 5. Pie chart of the Distribution of Establishments by
Enterprise. Adapted from MSME Development, by the Department of Trade
and Industry Philippines; retrieved from https://dict.gov.ph/wp-
content/uploads/2016/07/8.-SMEs-in-the-Philippines-_Empowering-LGUs-
through-ICT-Partnership-with-SUCs.pdf

2.2.1 Difference between MSMEs and Large Organizations

MSMEs vary from large organizations in various ways and these


varying differences affect organizations and how they adopt these
internet technologies such as social media adoption (Góngora, 2016).
Despite the availability and convenience of internet technology,
numerous MSMEs are still reluctant or hesitant to adopt these
technologies. This is because MSMEs face different challenges in the
adoption and diffusion of internet technologies than compared to large
organizations (Góngora, 2016). In that context, the most important
challenges that face MSMEs are with regards to their financial, human
and technological resources they can muster. (Iacovou et al., 1995;
Kuan & Chau, 2001). MSMEs everywhere around the world have a tendency
to be clustered in highly fragmented industries like the food industry,
the retailing industry and the like. These industries can be
characterized by a high intensity of market competition, that obliges
organizations under these MSMEs to think of a strategic method to
differentiate themselves such as price differentiation, product
uniqueness etc. Furthermore, changes and amendments of the government
laws and regulations, like tax rates, labor laws and interest rates
have a bigger impact to MSMEs compared to large organizations due to
their limited financial resources. The lack of human resources makes it
harder for MSMEs to acquire specialized internet technology skills like
the adoption of social media that is essential for any organizations
especially during these present times where the digital economy is
experiencing a surge of usage. Furthermore, based on Gongora’s report,
about 11% of SMEs fail to survive in any given year, which represents a
failure rate six times higher than large organizations (2016).
Therefore, logically speaking, MSMEs are more risk averse than large
organizations since they do not have the resources to commit mistakes
that would bring financial problems to their company and are less
likely to survive said mistakes. Despite their inherent limited
resources and capabilities, MSMEs enjoy a flatter hierarchy compared to
large organizations, what this means is MSMEs are more capable of being
flexible, adaptable and are able to make more decisions and respond to
consumers faster. The last important difference between SMEs and large
organizations is based on the business objectives. Unlike in large
organizations, few owner-managers of SMEs make financial gain their
primary goal This is because, for SMEs, management decisions are
usually made in the context of survival and operational necessity,
rather than growth and business development (Beaver & Prince, 2004).
Therefore, the adoption of internet technology like social media
adoption by an SME will not be a strategic decision but will be based
on a need to survive.

2.3 Social Media

Human beings have always been sociable in nature, creating bonds


and links with each other through communities, groups, beliefs,
associations, villages, towns, friends, movements and other forms of
groups (Sheth & Sisodia, 1997). Today, there are more than 3 billion
individuals all around the world who are using social media (Clement,
2020). Our world has now been taken over by the internet and media
communication where people are able to see different parts of the globe
without setting a foot outside their homes. People can now communicate
with one another on a different level, having no geographical
limitations or barriers. Other than the advantage in communication,
high internet access, and community-focused population are the other
factors why people began to accept and use social media (Li & Bernoff,
2011). Kaplan & Haenlein (2010) finds that the access and availability
of high-speed internet in developed and developing countries further
paved the way for the growing popularity of social networking sites
such as Facebook, LinkedIn, Twitter and Instagram, which has added to
the growing popularity of social media.

Social media refers to the means of interaction between


individuals in which they create, share and exchange
information and ideas on networks and virtual communities
(Ahlqvist, Bäck, Heinonen, & Halonen, 2008). Boris Loukanov
(Marketo, 2010) defined social media as “the production,
consumption, and exchange of information through online social
interactions and platforms.” Additionally, Safko and Brake
(2009) states that social media consists of activities,
practices and behaviors among communities of people who come
together online to share information, knowledge and opinions,
using conversational media. Social media contain various
social platforms that lets individuals with common interests
gather and interact with one another (Jokinen, 2016). We are
now in the information age where not only those who have
access can rule, but anyone who is using the platform can
access, read, change, influence, and even create information.
Social media is now directed at users and they have three
major roles namely creation and provision of content, support
in the distribution and selection of content, and filtering of
relevant content and services (Ahlqvist, Bäck, Heinonen, &
Halonen, 2008; Macedo, 2013). Furthermore, these web-based
applications also allow users to create and transmit content
in the form of words, images, videos and audio format (Safko
2010).
The emergence of the internet and the evolution of
technology has changed the way of communication and
relationships between people. Hanna, Rohm and Crittenden
(2011) claimed that social media has changed the internet from
an information platform to an influence platform. Social media
consists of various types and in some cases, it is difficult
to determine if a website, application or platform fits the
definition of social media. There is still not a consensus
about the exact number of categories social media covers
(Macedo, 2013). Kaplan and Haenlein (2010) state that the
social media can be classified into six different types namely
blogs, content communities, social games, social worlds,
collaborative projects and social network sites, while
Constantinides and Fountain (2008) claimed that there are five
primordial categories of social media namely blogs,
communities, forums, aggregators of content and social
network.
Blogs are online journals or articles that focus on a
specific topic or an individual’s life. It is usually updated
regularly and consists of text combined with audio or video
podcasts once in a while. Blogs are considered a social
platform because of the ability of users to comment on blog
posts, sharing their opinions. It is sometimes difficult to
classify blogs as social media because it does not
characteristically form communities. Although it involves
social interaction, it is focused on specific blog posts
created by the author of the blog (Jokinen, 2016). Communities
are thematic sites that present contents ready to be used and
shared by participants. These online communities often share a
common interest which keeps their group engaged and their
members interacting with one another. Forums are online
platforms where people and members can conduct conversations
about certain topics. The objective of a forum is for various
people to contribute and share their ideas and information on
a topic being discussed. Aggregators of content are the
applications that allow the user to customize the web content
that he wants to access. Social networks are online platforms
that allow users to make their own profile or account,
accessible to others, which is used to communicate or exchange
information with other users. Online social networks refer to
websites such as Facebook, Google+ and LinkedIn. Online
communities and social networking sites are effective tools
for social interaction and sharing of information (Lu & Hsiao,
2010). Social networking sites are the major tool used in e-
commerce and businesses today as it allows consumers to make
social connections and participate in cyberspace (Mueller,
Hutter, Fueller & Matzler, 2011). Social networking sites also
provide the opportunity for consumers to gather information
through interacting with other consumers before making a
purchase Hajli and Lin (2015). Today, there is already a lot
of information and recommendations available for consumers on
these social networking sites. These information are
contributions from other consumers who have experiences and
share information and recommendations about them. This is an
important point as customer involvement through social media
is a key factor in marketing (Hajli, 2014).

2.3.1 Use of Social Media by MSMEs

Social media offers an opportunity for a high number of


community and social interactions for organizations (Fischer &
Reuber, 2011). However, despite the surge of usage of
consumers and individuals in the usage of social media, MSMEs
have been found to be slower in the adoption of social media
than consumers. (Ashworth, 2011).
Currently, most common social media marketing practices
among SMEs involve creating and operating a company’s fan
page, managing promotions, maintaining public relations, and
conducting market research. Other activities include providing
customer support and encouraging customer reviews and
discussions (Bettiol, Di Maria & Finotto, 2012; Chua, Deans &
Parker, 2009; Gligorijevic & Leong, 2011; Newman, 2013).
Nowadays, there is a wide variety of social media platforms,
each of them having some features that allow SMEs to use them
in different ways and for different purposes. These are the
most utilized used social media platforms for business
purposes:

2.3.1.1 Facebook

Facebook as of 2016, is actually the largest and one of the most


effective social media platforms in the world, with more than 1,55
billion active users. Due to its size and reach, Facebook is already an
intriguing choice for business applications, since it provides the
business the opportunity to reach out nearly everybody (Geoff, 2014).
Facebook requires long term commitment, and it is centered on
developing relationships (Levy, 2013). Of all social networks, Facebook
is actually the very best to be able to spread discussion and also form
communities within the platform, because answers to a post appear in
the feed of the respondents’ friends.
Businesses can also think about advertising or even paying to
market the page of theirs on Facebook, and have the choice to observe
the results of their kind and content it by time and date, in order to
discover probably the best times for engaging customers (Chitwood,
2014).

2.3.1.2 Twitter

Twitter, with 320 million active users in 2016, is a continuing


discussion that, like text messaging, is now widely popular. Unlike
Facebook, users in Twitter cannot determine what to look at their
current feed, and perhaps respond afterwards, it is a lot more "in the
moment." (Geoff, 2014).
Twitter is an intriguing platform for businesses that would like
to reach out to individuals at the present exact moment and expect an
instant response from individuals following them. Twitter will be the
platform for businesses to give people real-time updates and reach
their people following them instantly and directly (Levy, 2013). When
working with Twitter, businesses must concentrate on relevancy, brevity
and personality to create their voice heard.
In Twitter, it's doable to stockpile and also schedule articles
in advance, so that businesses are able to post around-the-clock and
also improve the chance of engaging followers beyond the nation of
theirs or maybe time zone (Chitwood, 2014).

2.3.1.3 Instagram

Instagram, with its 400 million active users as of 2016,


represent probably the largest photo-oriented community on the
Internet. Instagram, like Pinterest, is a visual social media platform
based entirely on photo and video posts (Helmrich, 2016).
Instagram is a platform where more artistic niches excel, that
tends to make it not appropriate for every sector. This particular
platform, almost entirely mobile, is distinguished by its unique photo
and filters and video editing options. While hashtags are useful and
clickable for search purposes, links in comments and captions are not.
Businesses are able to work with the integrated sharing
functions for Twitter or Facebook in order to repurpose the Instagram
posts of theirs for much more shareable media. Another option is in
order to include a relevant hashtag to be much more discoverable on
Instagram as well as to track engagement across sites just where they
reveal the content (Chitwood, 2014).

2.3.1.4 LinkedIn

LinkedIn counts, as of 2016, with 240 million active users as


well as offers the best penetration among individuals aged 35+. This
particular social networking platform is the online analog to
traditional networking, usually used for growing connections in the
business world and utilizing them as necessary (Levy, 2013).
LinkedIn is much more interesting for service providers than for
retailers or manufacturers, since it is less difficult to chat about
what the business does, and since it's not an extremely visual medium.
Businesses should focus on maintaining a company description and
profile page mindful of keyword SEO, but the network of theirs of
employees and contacts is their best (as well as potentially damaging)
information on LinkedIn (Chitwood, 2014).
LinkedIn comes with discussions and groups where users are able
to talk about the interests of theirs, demonstrate to the transparency
of theirs, request for advice, and ask and answer questions.

2.3.2 Behavioral Perspective of Social Media

Based on Brake and Safko (2009), social media is described as a


set of activities, practices, actions, and behaviors between groups of
individuals online to be able to share opinions and information in
social media platforms. Lincoln (2009) said that through the behavioral
perspective, the individual's use of social media concentrates on the
participation of these people within the internet community. Social
media encapsulates the collective information and participation these
people invest so individuals may seamlessly come together with no
geographical limits, shifting very easily between acting as an audience
and acting as the role of author. Social media is accessible, and its
equipment are both flexible and versatile.
In the application of the viewpoint for business use, Brake and Sakto
(2009) stated that social media enables meaningful discussions with the
business entity and the consumer within the social media platform.
Interactions are an element of sharing information with one another on
social media, and business entities are able to affect these
discussions through the usage of social networking tools found in the
platforms of theirs. These social media tools will likely be talked
about more in detail later on.

2.3.3 Media Perspective of Social Media

Based on Kung (2008), social media can be considered as a third


type of media after mass media and niche media. He mentioned that
social media have three attributes that the other media types do not
emphasize. For starters, social media platforms are created to be
interactive, whether it's an individual entity or maybe a business
entity. Next, most material present in social media platforms are
produced by amateurs rather than professionals in the respective area.
Lastly, the content produced in social media is stressed on content and
community based rather than information based

2.3.4 Psychological Perspective of Social Media

Based on Riva et.al. (2016), from a psychosocial point of view,


social networking could be defined as "digital spaces" allowing users
to control both the network of theirs of social relationships and their
cultural identity. Moreover, the mixed nature of social media which
combines real and virtual elements of an organization or an individual
leads these organizations and individuals to get its own identity when
these respective entities are in social media.
According to Maslow, the various needs that every one of us
experiences are not isolated and self-contained, but they are inclined
being set up in a hierarchy of importance which is named Maslow's
hierarchy of needs, a prominent theory in Psychology. These hierarchy
of needs are as follows (With 1 being the least important and 5 being
the most important):

1. Physiological needs: basic needs associated with survival.


2. Safety needs: ensure tranquility and protection on the person.
3. Associative needs (LB): the need to feel a part of a group, to be
loved and to love as well as
cooperate with others.
4. Needs for self-esteem (ES): the need being respected, appreciated,
and approved, to feel
productive and competent.
5. Needs for self-realization (AC): the demand for realizing one is
unique identity and fulfilling one is own expectations along with
taking a good position in their own individual group
The connection of Maslow's hierarchy require theory with social
media use is the fact that the elements of Maslow's theory specifically
needs for self - esteem, self - actualization, love and belonging are
important factors that affect an individual’s willingness to be on
social media. Singh and Ghatak (2019) concluded that when the element
Ac gets much happier, the social media usage becomes less. As cited in
Singh and Ghatk (2016), Bridwell and Wahba (1976) in the study of
theirs also suggested similar, so the businesses that are ready to
promote social media adoption must focus more on customers with LB
needs and ES needs. AC negatively affects the intensity of social media
usage and means higher status achievement for said individual which
leads to less social media usage. Ghatk and Singh 's article suggested
that the elements ES and LB will be the 2 major factors that affect the
use of a person on a social networking platform. This design is useful
in evaluating consumer behavior in terms of the needs of theirs, that
are pretty useful in increasing social media usage intensity.

2.4 E-commerce

E-commerce is usually associated with web-based communities.


According to Zetlin and Pfleging it is described as consumer – driven
online markets in which consumers’ needs are displayed and sold
through a community website. This gathering of needs in one place
facilitates vendors to have higher sales and more community members to
obtain discounts. Therefore, web-based communication is said to
substantially affect almost every company that provides services or
produces consumer goods. It could change the nature of strategic
planning and corporate advertising, as well as adapt to how consumer
behavior is progressing to going digital in the future.

2.5 Social Commerce

Social commerce is described as the utilization of social


networking, in the context of e commerce, to help with buying and
marketing products and services online. It combines two well-known
digital trends, social media, and e -commerce. Social Commerce can be
viewed from two viewpoints. First of all, social commerce involves
itself through tasks where e - commerce operates. Next is how said
activity is going to affect the business. Shadkam and O' Hara (2013)
mentioned that social commerce is often generalized in conditions of
two leading tasks that are for starters, putting social media resources
in e commerce web sites as well as second, placing e commerce in social
media platforms. Setting social media resources in e commerce sites aid
customers see the reputability of the business and gather more intel
about the item from any other buyers on the social media platform of
theirs. Product reviews from comments, the community discussion board
and social blogs are what comprises this intel. Companies like Nike or
Adidas for instance leave the social media links on their respective
websites to allow the consumer to take a look at their social media
profiles and browse what consumers would say with regard to their
product or company. Second, by placing e commerce websites in the
social media platforms, whenever a customer sees an advertising
campaign and is considering to buy said item, he/she is redirected
towards the e - commerce site to buy the specific product. This
integrates their e - commerce websites to their social media
storefronts for a seamless experience of the customer. Most SMEs are
setup in this manner as it is convenient to get visitors to social
media platforms as well as gain traction for their e - commerce web
sites. Both of these two social commerce solutions are able to enhance
the purchase cycle experience in three key areas: product discovery,
product, and product selection referral

2.5.1 Opportunity for Social Commerce

One will find much more than 350 million online users in
Southeast Asia and ninety % are online users from the smartphones of
theirs. The chance for social commerce is great, particularly in the
Philippines where social networking penetration will be the highest if
not among the planets. By 2025, it's anticipated that the e-commerce
industry is going to exceed US1dolar1 100bn per annum. A survey
conducted by Econsultancy (2019) suggested that respondents to the
survey reported spending considerable sums on the internet, with around
29% spending far more than $100 monthly on internet purchases. The
buying decisions of theirs is greatly influenced by the info they find
out on social media. Nearly 60% of the people in the survey declared a
quarter of online shopping is affected by social media. The two hottest
routes which triggered a purchase are Facebook which is 78 % and
Youtube which is 52%. With, 44% of the customers suggested that they've
created more than three internet purchases in history month as an
outcome of seeing social media ads and content online. Also, resulting
in them after purchase, 82% of customers share their purchases via
social media platforms thus amplifying the effect and also producing
publicity for that brand. This demonstrates each internet shopping
experience could be social. Econsultancy (2019) mentioned that
entrepreneurs that are working hard in internet retail are already
experiencing the advantages as users go online making purchases.
Seventy percent of marketers found that they currently have seen a rise
from online retail and over 90% of them agreed that social commerce
becomes more and more essential in the upcoming years as social media
will proceed driving revenue forward. It's anticipated that most e-
commerce merchants will allocate a budget in the social media part of
their company and also maximize social media applications like social
media advertisements to be able to get sales up.
Bain & Company and Google (2016) partnered up to survey over
6000 consumers in Singapore, Indonesia, Malaysia, Thailand, Vietnam,
and the Philippines to discuss the landscape of e-commerce. In the
report of theirs, a characteristic that sets Southeast Asians apart
from internet consumers in other markets is the fact that e-customers
in this particular area pick from multiple websites as observed in
Figure six. It may be found that Southeast Asia's Consumers do not show
some preference or loyalty to these retail platforms. Social media
despite not remaining in the dominating list of preferred platforms as
observed in Figure six is very important in conditions on driving
product sales to these e-commerce platforms. Among digital customers,
more than 80% use social media options such as the famous photo-sharing
website Instagram or perhaps messaging apps including Facebook's
messenger to investigate products or perhaps usually link with sellers.
As outlined earlier, social media functions as a store for e-commerce
sites which allows business entities to make use of social networking
as a means to affect customers and also enables customers to discover
the item or maybe system before committing to buy in the e-commerce
site. Institutions are beginning to quickly grow the services of theirs
to social commerce to entice customers. It is already at the stage
where sales that lead from social media comprise up to 30% of the
amount of all transactions. A typical scenario: A customer considering
purchasing something links with a seller on Facebook, agrees investing
and after that arranges for delivery and payment on a peer-to-peer
basis. There is a session in the comment from one Thai consumer: "I
purchased the tea of mine on social media since it is a small batch
production and I enjoyed conversing with the seller. If I'd noticed
similar product or service on an e-commerce site, I would not have
bought it " (Hoppe, 2016)

Figure 6. Extensive bar graph of the Consumers in Southeast Asia is


buying from a large repertoire of digital platforms. Adapted from
Consumers in Southeast Asia are buying from a large repertoire of
digital platforms, by Bain & Company and Google

2.5.2 Integration of Social Commerce and E - Commerce

In the era of online economy, establishing a shop (online) or


physical and awaiting buyers to arrive is not enough. Rather,
businesses should be assertive by finding ways to interact with
customers, develop relationships, and produce communities. Social
networking is a platform where people share info and affect each other.
What differentiates interpersonal commerce from a regular e - commerce
website would be the components of social media involved. Social
commerce concerns itself with social networking features as referrals,
user recommendations, ratings, and customer reviews, online
communities, social shopping tools and marketplaces discovered within
the social networking platform. These functions within the social
networking causes a trusted atmosphere where friends, acquaintances and
family dynamically contribute articles on the referral and selling of
services and goods though negative and positive comments, reviews
regarding their experiences past and present. Therefore, re-search and
buying cycle are shrunk with the establishment of one location driven
through the strength of several. In a nutshell, cultural commerce is a
trusted setting of what prospective consumers make purchasing choices
based on the recommendations of a system of family and friends, not
strangers they do not understand or even believe in. Social commerce
and also e - commerce works hand in hand as e- commerce concentrates on
maximizing efficiency with strategies for advanced searches, one click
buying, specification driven virtual catalogs and suggestions based on
consumers' past shopping behavior (Hasan, 2017)while social commerce is
oriented toward social objectives, like social networking,
collaborating and info sharing, with a second emphasis on looking
(Hasan, 2017). With respect to consumer relationship, social commerce
consists of the internet community as well as the business entity as so
each one can impact another 's choice while e - commerce concentrates
on maximizing efficiency with strategies for advanced searches, one
click buying, specification driven virtual catalogs and suggestions
based on consumers' past shopping behavior (Hasan, 2017).

2.6 Social Media Marketing

Social media marketing is able to handle a big scope but what is


important is that it provides the primary advertising program of a
business which is incorporated into an organization's social media. Any
online site which enables a person or maybe group to talk about the
content of theirs, opinions, perspectives and promotes interaction, as
well as community building, could be categorized as being a social
media. A few well-known social media websites which are typically used
by businesses are Facebook, Twitter, Instagram, LinkedIn, and the like.
Social media marketing and advertising are not simply about
establishing a Facebook page instantly, it entails a concrete and
thorough social media marketing strategy which is parallel with the
business' marketing efforts to push the development of said business. A
social media program depends on what the company wants. For example, a
company may require an extra channel to market their services or
products without taking on a lot of costs; a company may make a
Facebook page to advertise their products and also offer updates on the
latest offerings of theirs and also simultaneously get consumer
feedback and help to the customers of theirs; they also can use social
media to widen the reach of theirs as internet penetration is
developing at a quick speed, as well as also quicker in the world since
the essential consumer behavior changes and shifts to an online-based -
focused trade (KPMG International, 2017).

2.7 SMEs or Small and Medium Enterprises

In general, there is no universal interpretation of MSMEs or


small and medium enterprises. Numerous attempts have undertaken to
determine the term of small businesses, using standards like the number
of employees, sales volume, and value of assets in the company. Much
academic literature utilizes the European Commission specific
description of MSME which are: under 250 workers, has possibly an
annual turnover not exceeding €50 million (approximately £40 million)
or even an annual balance sheet total not exceeding €43 million and of
whose capital or even voting rights, twenty-five percent or higher
isn't run by a single business, and collectively by several businesses,
that fall outside this definition of an MSME (The FSE Group, 2020).
In the Philippines, it showcases among the youngest age
demographics than its Southeast Asian equivalents and other regions in
the world as well. The population as of today is dominated by
millennials and also Generation Z which is among the primary reasons
why there's a rise in the online economy of the nation. By the next
several years, a growing number of millennials would begin to join in
the workforce that will provide them with the purchasing power to
invest much more online since they're much more informed in the area as
compared to the prior generations. Moreover, as suggested by Nielsen
earlier, among online users of the Philippines which comprises nearly
seventy million people, 90% of these consumers are made up of
millennials as well as Generation Z. From Figure seven, one may observe
that the Philippines has probably the youngest demographic out of all
of the other southeast Asian nations. Moreover, the nation's young
demographic corresponds with the Philippines' time spent on social
media, spending probably the longest period of roughly ten hours on
average each day in the whole world (Figure eight) (Lexicon, 2019).
With web-based channels owning much more access than traditional
channels, the heavy use of social media as well as the convenience
which will come with it provides a good deal of possibilities for MSMEs
to cash in on the modification of consumer behavior towards e-commerce.
In order to capitalize on social media, one needs to a well -
planned out social media strategy that can potentially allow MSMEs to
advance their business without the need of extensive financial
resources, labor and capital like large enterprises. A good social
media plan can allow MSMEs to compete internationally and locally due
to the extensive reach and easy shipment methods that the internet
offers. Moreover, most organizations only use social media as a means
for marketing or advertising their product without fully utilizing all
the benefits that social media can give. They do not integrate their
business fully and thus fail to see the advantages that social media
can offer. On the other hand, while it is true that most MSMEs already
realize that having a

Figure 7. Graph for southeast Asia population statistics. For the


Population less than 35 years old is adapted from Statista (2010),
retrieved from https://www.statista.com/statistics/487981/social-
penetration-in-southeast-asian-countries and for the % of social media
penetration, adapted from The Nielsen Company, retrieved from
https://www.nielsen.com/wp-content/uploads/sites/3/2019/06/whats-next-
in-southeast-asia.pdf
Figure 8. Graph of the Time Per Day Spent Using the Internet. Adapted
from Lexicon’s Social Media Trends 2019, retrieved from
https://lexiconthai.com/blog/social-media-trends-2019-southeast-asias-
digital-boom

to be able to profit on social media, a person must have a prepared


social media strategy that can enable SMEs to develop their business
without needing considerable financial resources, capital, and labor
like huge enterprises. A comprehensive social media plan is able to
allow SMEs to compete locally and internationally as a result of the
widespread influence and simple shipment techniques that the internet
offers. Additionally, multiple businesses only utilize social media as
a way of promotion and advertising their product without fully making
use of all of the advantages that social media are able to provide.
They do not incorporate it to their business thus and fully fail to see
the benefits that social networking is able to provide. On another
hand, while it's correct that many SMEs now recognize that creating
social media for their respective business is crucial, they do not
comprehend exactly how to incorporate this online medium into their
current strategic plans. For a company to achieve success and to remain
relevant in the digital era, there ought to be a social media plan
which coincides with the current marketing strategy of the company and
implement it efficiently. In one research, it was discovered that from
the 304 business executives which were surveyed, 47% of them do not use
using social media (Barone, 2011). Among the 47%, 27% of them pointed
out it was the absence of time to maintain the business' social media,
14% of them stated they were not knowledgeable in the technical usage
of social media. To remain relevant with the present and the future
generation, an organization must provide even more attention to their
internet channels as social media and internet penetration would
steadily progress in the upcoming times. Nearly all of those with a
social media profile doesn't have a concrete strategy in mind. The
majority of the SMEs will usually create a Facebook page and believe
that things are done, but what they don't recognize is the fact that a
social media program must define an SME's goals for developing a social
media account. Can they be creating a brand-new distribution channel
through social media? Can they be creating a website to advertise their
products? Can they be trying to get consumer feedback and offer updates
through social media? In a nutshell, having a social media approach
will be crucial in delivering a direction to just what a business is
attempting to accomplish through the usage of social media.

2.8 Advantage of the Application of Social Media in a


Business

From a marketing perspective, social media could be utilized to


market products and that's consistent with the mission and vision of
the company. It's economical in which it costs relatively minimal or
perhaps no cost at all in advertising on social media. Because of its
simplicity of implementation, Hasan (2017) reported that organizations
are enabled by social media to do the marketing duties (such as
advertising) without the assistance of classic media outlets.
On the branding level, as cited in Hasan (2017), Stankovic Rice,
2011 and King'ori, 2013 illustrated that navigation of the
organization's brand through social media will boost the online word-
of-mouth effect and consequently boost motivation and the formation of
a community through the growth of digital reputation.
On the customer level, based on Hasan (2017) social media is a
quick, efficient, and adaptable method to achieve large audiences like
actual and potential shoppers. Social media also can produce a long-
term relationship between actual customers and businesses by allowing
individuals to communicate without the requirement to meet up in person
in real-time. it enables the organization to spot prospective customers
by creating a system of supporters for a company that is described as
loyal followers that can bring referrals to the product or service to
others.
From a human resources perspective, internal effectiveness and
talent acquisition are typically the human resources initiatives of
numerous companies. Social media also boosts productivity, contributes
to more seamless collaboration, and improved employee engagement
between workers to get a project completed. Human resources are mainly
in charge of leading an organization's social media policy and
advertising and marketing are responsible for leading said social media
policy. Based on a report by KPMG International, many companies' social
media policies are negatively oriented, directing what to avoid.
Prosperous businesses must think about the effect associated with a
positive and well-thought-out social media policy with an optimistic
orientation in mind. With improved social media policies and engagement
models, they are able to help the business in carrying positive
messages on the marketplace about the quality of their services and
products as well as the dynamics of the workplace itself being a
collaborative environment where expression and creativity of completely
new concepts are both welcomed and also encouraged (Peacey and
Isaacson, 2012).
From an information management perspective, social media allows
employees to access resources (folks skills and info), which
subsequently results in an increase in productivity and performance. It
enables the retention of collective organizational experience and
information being completely accessible and also searchable. Social
media also promotes the efficiency and productivity of a worker by
allowing them to search for the remedies needed on their own (Hasan,
2017).
Social media are able to produce a channel for soliciting
customer reviews and feedback fit of two-way discussion between
consumer and company. Social media allows feedbacks and reviews from
consumers that let a company improve its performance, motivate
employees, and promote consumer and company interaction. This feedback
may also be applied to research and develop products that are new
efficiently.

2.9 Disadvantage of the Application of Social Media in a


Business

From a marketing perspective, Hasan (2017) stated that social


media marketing is essentially a brand-new advertising idea that it's
tough to evaluate based on its effectiveness and how to properly
maintain it. Also, due to the powerful element of social media
platforms and technology in general, there's a lack of a unified
agreement on ways to effectively apply the usage of social media in
different conditions like introducing a social media plan with a clear
strategic purpose.
A company's publicity is at risk when including a social
networking strategy. Bad management of one 's social networking may
outright result in damaging publicity as reviews and comments from
buyers are public to other individuals.
From a human resources viewpoint, a report by KMPG International
pointed out that people within an enterprise are multigenerational and
diverse. For instance, while a Generation Y worker might not have any
concerns about being required to learn or use a specific social media
application, a baby boomer might feel confused and distressed by such a
request. The setup of a system or procedure focused on social media is
able to prove to be difficult with a diverse workforce. One of the ways
to better understand the way a social media policy change might
influence a company is through assessing just how each department of a
said organization might be impacted by the change. Such analysis helps
you to determine higher priority concerns and emphasizes key
stakeholder requirements. Moreover, based on Munro (2014) and as cited
in Hasan (2017), social media use in organizations could collapse
conventional communication methods. The increased openness within
individuals and departments may also result in differences in views and
create tension between employees.
From an information management perspective, social media use,
and information sharing in the platforms are able to create privacy and
security risks because of the business. The increased accessibility of
on-demand tools is able to serve as a double-edged sword for companies.
Data is going to be readily available but will likely be vulnerable to
information leaks and privacy issues if it is not implemented right.
Social media is a target for hackers due to the quantity of consumer
information that may be acquired upon a successful breach of the
security system (KPMG International, 2017)

4.0 COVID – 19 Pandemic – Fundamental Change in Consumer


Behavior

Internet transactions of physical products have just recently


encountered a rise in demand in certain items as a result of the
coronavirus pandemic which impacted the entire world. Organizations and
industries at first responded to the pandemic by accumulating medical
supplies like alcohol solutions, face masks, etc. Almost all
governments of the world had enforced social distancing measures:
lockdowns, closure of non - essential businesses. Since retailers and
offices have shut down, consumers are now shifting to acquiring what
they need online. This resulted in an immense increase in internet
purchases as well as an increased demand for electronic services. Many
customers resort to internet shopping. Several brick-and-mortar
businesses have thus shifted resources to e-commerce. This resulted in
a fundamental shift in consumer behavior where the pandemic served as a
catalyst given that there was already a current surge of development
for social and e-commerce. The migration to e-commerce is given great
importance since the inflow of different online sellers has more than
doubled across different categories. Ecommerce isn't merely restricted
to young adults any longer, with anyone in their 40s and 50s saying
they are now far more prepared to shop online (Facebook; Company and
Bain, 2020). This fundamental transformation in consumer behavior has
nevertheless been retained even though the pandemic is gradually
dwindling in numbers. Everyone is far more careful about visiting
public places and is usually inclined to shop online, staying away from
the danger of crowds and also the inconvenience of extended queues.
Together with the forced lockdowns as well as the recommendation to
remain at home, this will modify how customers shop with a lot of them
switching to online shopping. A lot of people around the world will now
be prone to resume buying online, expanding their online shopping into
categories they would have bought in a physical store (Nielsen, 2020).
The speed of the shift to online shopping versus mortar and brick will
induce numerous retail companies to rethink and adjust the future
business models of theirs and also multichannel strategies.
Digital adoption encounters a sharp increase not only because of
online shopping but predominantly other things also. The necessity for
online access has risen much more than ever due to several factors like
working from home, online classes, online meetings, and digital
payments. These cases are rising in order to motivate people to stay at
the security of their homes. Khanh Ngo on the Tiki Corporation stated
that the percentage of first-time digital consumers has grown
substantially in the past several days, driven primarily by government
efforts in motivating individuals to shop online. What this means is
that everyone will need an internet connection to be able to do what
they need and what they want. This is the reason why the pandemic
served as a catalyst to push folks going digital. Contactless
innovations like electronic payments are rising aggressively in a money
- dominant market. Different kinds of companies happen to be adopting
this payment type in order to stay contactless and even in the delivery
of meals. In the Philippines, the digital finance company GCash has
seen a 30% increased transaction volume since March and is now the most
downloaded finance app in Google Play Store (Facebook; Company and
Bain, 2020. According to Facebook and Bain & Company, consumers are
switching to digital services to keep themselves busy while indoors. As
an outcome, the use and adoption of many online applications have
accelerated and will probably remain - a direction which was currently
rapidly increasing the past several years. Across Southeast Asia, 85%
of respondents said they've tested with new online applications during
the first quarter of the year. Applications that have observed the
greatest rise in continued and first-time use are social media, video
streaming, along with instant messaging apps, followed by e-commerce,
food distribution, as well as electronic payments platforms (Facebook;
Company and Bain, 2020). Based on the article, video streaming, social
media, along with instant messaging carry on and experience the
greatest acceleration of usage when grouped by age groups. Among
middle-class groups of 25 to 54 years old, applications that include e-
commerce, digital payments, and food delivery received a spike while
the youth aged 18 to 24 contribute to videos, music, and gaming (Figure
9). From the figure, it could be found that social media, instant
messaging, and video streaming are likely the most utilized of all age
groups.
In short, how does the covid-19 pandemic affect the digital
adoption of businesses and the relevant social impact it has on
businesses and organizations?
First, as the discussed earlier, it has been established that customer
behavior and preferred interactions have changed significantly ever
since the pandemic started and will continue to shift as consumers
carry on the new digital lifestyle that has been evolving the past few
years. According to Mckinsey Digital, 75 percent of people using
digital channels for the first time indicate that they will continue to
use them when things return to “normal. “Companies will need to
ensure that their digital channels are on par with or better than those
of their competition to succeed in this new environment. If the covid-
19 pandemic taught us anything, those businesses who are late to adopt
a digital presence will be substantially disadvantaged during the
recovery. Second, as the economy lurches back, demand recovery will be
unpredictable; uneven across geographies, sectors, product categories,
and customer segments; and often slow to return to precrisis levels.
While a few sectors will face unusually strong demand, leaders in many
industries must deal with periods of structural overcapacity. Companies
must now face the need to change and adjust based shift of consumer
behavior. With the relation of its effect on the digital adoption on
the Philippines, the important aspect to note is that even before the
covid-19 pandemic has hit the Philippines, the country is already
experiencing high penetration rates of social media usage in the
country. As indicated earlier, contactless innovation is rising
aggressively in response to the social distancing measures, to give an
example, the digital finance company in the Philippines, GCash,
experience a surge of user usage. The reasons for this is that more and
more individuals are embracing the use of contactless payments as a
method to practice social distancing measures, and another reason which
can be attributed to cause and effect is that businesses are also
starting to accept digital payments and embracing them as a form of
payment. Furthermore, to expound on what the relationship of covid-19
had on the digital adoption of social media of MSMEs, it can be said
that the covid-19 pandemic was the catalyst in the surge of increase in
the adoption of social media for SMEs. The COVID-19 pandemic is forcing
businesses from retail, manufacturing and service providers to
reevaluate their business models where the traditional “in-person” &
“social” setting is the norm. As a result, businesses began to
realize the need to incorporate a bigger portion of their business
process with an innovative “contactless” method of delivering their
products and services. Otherwise, they will face the alternative option
of shutting down operations until the crisis is over. Given the current
status of the pandemic, that is equal to a death sentence for those
businesses. MSMEs are no different, if not more desperate, for
rethinking their business models in order to overcome the current
crisis and similar future situations. Retail stores are forced to close
due to lockdown measures, so businesses are forced to operate digitally
in order to retain their competitive pressure. Business without a
social media presence before the pandemic are most likely to adopt a
social page during the pandemic, and multiple businesses have to enter
through social media platforms during the pandemic as the social media
platform is the easiest way to gain reach and traction on the market,
especially today where everything is going digital. The widespread
implementation of social distancing has led to an increase dependency
on online shopping so the covid -19 situation has forced or persuade
multiple MSMEs to adopt a online marketing approach such as the use of
social media platforms. Digital media specifically through the use of
social media has proved to be an effective method for communicating an
organization’s products and also communicate with the customers.
Social media marketing makes it easy for MSMEs to provide an accurate,
attractive and useful information to their customers. This pandemic had
emphasized the importance of operating digitally and adopting a social
media platform for one’s business especially in the Philippines where
covid-19 cases are still at high levels and people are resorting to
getting what they need and what they want through the online market and
on the other side of the coin, businesses are resorting to transform
their business model to focus on the adopting a digital marketing
strategy like the adoption of social media to cater to the increased
internet transactions brought about by the covid-19 pandemic.
Undeniably, social media marketing also provides you with a platform to
brand, sell, and market your products and services. But this should not
be the end-all-be-all for social media. Business owners ought to relate
their social media marketing to the ongoing situation. As much as
customers do not want to get reminded about the pandemic wherever
they look, brands that ignore the situation seem misplaced. The
increase in social media usage is bound to continue long after lockdown
restrictions are lifted. It will remain key in determining how
businesses engage with their customers going forward. In a nutshell,
consumer behavior has shifted to digital, particularly for the
categories as groceries, food, remittances, and fast-moving consumer
goods. New methods for companies will evolve and center around getting
digital as they adjust to the new normal.

Figure 9. Extensive bar graph of the Percent of Consumers who Increased


Use of Apps. Adapted from Southeast Asia digital consumer trends that
shape the next normal, by Facebook and Bain & Company.

3.0 The Technology-Organization-Environmental (TOE)


framework

TOE is a widely accepted model for analyzing internet technology


adoption such as the adoption of social media in organizations of
MSMEs. It was first developed by Tornatzky, Fleischer and Chakrabarti
(1990) as a theoretical framework to predict the adoption of various
forms of internet technology innovation. Consequently, it has been
extended and developed by further studies as cited in a report by
Hafedh Rahbi on the Factors Influencing Social Media Adoption in Small
and Medium Enterprises (2017). Thus, as a valuable analytical
framework, TOE has broad applicability and possesses exploratory power
that is useful in order to study a wide range of technological adoption
(Baker, 2012). It has been viewed as an ideal theoretical framework for
analyzing and explaining the adoption of any given technology (Brunel
University London, 2017). Since its inception in 1990, TOE has been
used in different contexts, in developed and developing countries, to
study the adoption and implementation of various technologies. For
example, it has been used to study adoption of cloud computing, e-
commerce (Rowe, Truex and Huynh, 2012; Ghobakhloo, Arias-Aranda and
Benitez-Amado, 2011; Al-Qirim, 2007), e-business (Wen and Chen, 2010),
and enterprise applications systems (Ramdani, Chevers and Williams,
2013). The TOE framework has emerged as a well-established and a robust
framework to analyze different internal (technological and
organisational) and external (environmental) factors that influence the
adoption of different types of technological adoption in the MSME
setting. (Abeysinghe and Alsobhi, 2013). The TOE framework can be best
described as an organizational level theory that comprises of three
main contexts, first is technological, second is organizational, and
third is environmental. Each context has a set of variables that
influences the organization’s adoption of said technology (Brunel
University London, 2017). To explain further what each context
represents, the technological context represents the external and
internal technologies related to enterprises. This are both
technologies that happen to be used at an enterprise and exist, but
aren't presently in use, in the marketplace. You will find just several
research studies which have investigated the effect of the
technological context on the adoption of social networking for business
purposes by pupils. The distant relative advantage, observability,
trialability, complexity, and compatibility are considered to be
technical factors that influence adoption (Rogers, 2010). The
organizational context is connected to the resources and
characteristics of an enterprise; like, managerial structure. Factors
in the organizational context have been discovered to be one of the
predictors of the organizational adoption of ICT (Oliveira and 2011),
Martins. Support from superiors, innovativeness, as well as the IT
experience were considered to be organizational factors that influenced
the adoption of social networking in this study. Since this particular
study focused on the adoption of social networking by undergraduate
pupils in faculty, support from top management support or superiors can
be implied to be some kind of support by lecturers as well as mentors
that provided knowledge regarding how to exploit social networking for
business reasons. The environmental context refers to a business
environment in which an enterprise conducts its business; like,
technology service providers, competitors and industry. Pressure from
competitors, society, and customers are regarded as being environmental
factors which influence the adoption of technology that is new by MSMEs
(Ahmad et al., 2018; Low et al., 2011). Thus, the environmental context
was included in this study as one of the determinants impacting the
adoption of social media.

5. Opinion ( blind review) in your system from other uni’s professor


“III”
中文摘要里有多处表达不到位甚至是错误,比如:收养的性质将
因。。。。里的收养是什么?而且也存在语句不通的现象,请自行阅读、检
查中文摘要,进行改正完善。 论文中目录的标题是用中文写的,但下面
基本上都是用的英文,不过到目录的最后一项居然出现了中文的“参考
文献”字样 。 此外,目录中的页码不整齐。 论文的正文行文中每个段
落的第一个单词前面有的空了 5-6 字符,有的则是顶格写,没有留下哪
怕是 1 个空字符。具体如 P25/28 等页。注意这些需要采用相同的标准。
文中的图表非常不规范,如 P54 关于论文的研究框架示意图居然是拷贝
的 图 形 , 字 迹 还 非 常 模 糊 , 而 且 也 没 有 标 题 ; 再 如
P14/45/46/47/51/53/56/57/58/59 页等等的表格,同样都没有标题,也
不是开放式三线表格。
English Translation
There are many inadequate expressions and even errors in the
Chinese abstract, such as: the nature of adoption will be due
to. . . . What is the adoption in here? Moreover, there is
also a phenomenon that the sentence is not clear. Please read
and check the Chinese abstract by yourself, and correct it.
The title of the catalog in the paper is written in Chinese,
but the following is basically in English, but the Chinese
"reference" appears in the last item of the catalog. In
addition, the page numbers in the table of contents are not
neat. In the main text of the paper, some 5-6 characters are
left in front of the first word of each paragraph, and some
are written in the top box, without even 1 empty character.
For details, such as page P25/28. Note that these need to
adopt the same standards. The diagrams in the text are very
irregular. For example, the schematic diagram of the research
framework of the paper on P54 is actually a copied graphic,
the handwriting is still very vague, and there is no title;
another example is P14/45/46/47/51/53/56/57/58 The forms on
page /59, etc., also have no titles, nor are they open three-
line forms.
6. Your response to professor III’ opinions, including how you will revise
your thesis according to his/her opinions (give the exact page of where
you have modified your thesis according to this opinion; copy here the
original content of your thesis and the part you have modified)
I agree that there was a problem with the indentation in some of the
paragraphs and I have fixed it to have a consistent indentation along all
paragraphs. I have changed the copied schematic diagram and made it so that
it was clearer and regular. Furthermore, I have renamed all the diagrams and
tabulations with titles found below the tables. I could not copy paste it here as
it will be too long so please refer to the revised paper. I also have fixed the
alignment in the table of contents, please refer to the new thesis file as I
cannot copy them here.

1. Old Chinese Abstract


Modified Chinese Abstract

(请导师明确:是否指导该生按合理的评阅意见进行了答复和修改,是
否同意参加答辩)

Students’ tutors’ advice about whether the students revise the thesis
according to the professor ABC’s opinions, and does the tutor agree the
student to take part in the defense or not
导师
指导
意见 指导教师(签名):tutors’ signature
年 月 日

承诺:

我承诺在导师的指导下,已经按照评阅专家的意见对学位论文进行了认真修改。
研究生(签名):students’ signature

年 月 日
学位点负责人意见:(说明是否按合理意见进行了修改,是否同意导师指导意见,是否
同意参加答辩。)
学位点负责人(签名):

年 月 日

学院学位评定分委员会意见:(加审的学位论文需填写此栏,内容应包括对学位论文评
阅意见的答复和修改情况的认定)

学院学位评定分委员会主席(签名):

年 月 日

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