Social Networks as a Tool for Leadership in Entrepreneurship Ecosystem

Abstract

In the spread of digital technologies, the development of entrepreneurship ecosystems based on social networks is considered to be a business development strategy contributing to the achievement of market leadership. The value of entrepreneurship ecosystems development is determined by the effects of using social networks.Our paper shows that the effects of using social networks may occur at different levels and may also be both positive and negative. At the microeconomic level using social media expands markets for products though causing an increase in competition among companies. Networking at the meso-economic level is a positive effect; however, there is a shift in industry proportions in the economy towards the services sector. And, finally, at the macroeconomic level using social media encourages the development of the domestic market, but this is accompanied by an increase in costs of control and maintenance of economic institutions. In addition, the strategy for the development of entrepreneurship ecosystems is to consider a regional and content differentiation of social networks. Furthermore, our paper analyzes a regional differentiation of social networks markets considering certain global and national features of their development. The analysis of a content differentiation included studying the development of field-specific sites of social networks.

Entrepreneurship Embedding Social Network Capability as Best Practice for Small Firms

“…This shortcoming may be overcome, at least partially, by correct exploitation of the social networks. (Simonova,Popov & Komarova, 2020). Nowadays, there is the widespread opinion that these digital instruments are largely linked to the success of entrepreneurs who, by making accurate use of the same, can acquire knowledge of relevant information which allows them to gain competitive advantages over the competition while bearing costs that are almost equal to zero (Olanrewaju et al, 2020).…”

“…According to some scholars, social networks are tools that can directly improve company performance through the construction of trust-based relationships, (Simonova,Popov & Komarova, 2020), information transfer, and problem-solving agreements (Song, 2015;Lindsey-Mullikin & Borin, 2017). In addition, they make it possible to create "bridges" among groups of close friends, with decisive advantages, especially in a phase of activity which is already underway, as they allow for benefiting from other user groups surrounding the circle of close friends and therefore also from the resources that the latter can provide.…”

“…Therefore, being present on social network platforms like Facebook can constitute a distinctive resource for the company, provided the entrepreneur is able to adapt his/her behaviour to the new scenario. (Simonova,Popov & Komarova, 2020). It should be borne in mind however, that in addition to being beneficial for the company, the user-friendliness of social networks in sharing opinions can also constitute an element of risk and in some cases have negative effects.…”

“…Thanks to the social media, a new marketing method has been created that allows enterprises to interact directly with the consumer, improving the products and services offered based on the latter's tastes and needs. (Lin, Wang & Hajli, 2019;Simonova,Popov & Komarova, 2020).…”

“…In the light of these considerations, it should be noted that a company that manages to correctly use a plurality of marketing channels on a modern, extremely dynamic and demanding market has a greater potential for achieving more competitive advantages compared to other organisations that do not use them (Lindsey-Mullikin & Borin, 2017;Simonova,Popov & Komarova, 2020).…”