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"INVESTIGATING THE ROLE OF SOCIAL<br />

MEDIA IN DEVELOPING A NEW<br />

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INVESTMENT PROMOTION PARADIGM IN<br />

THE EVOLVING FACEBOOK ECONOMY"<br />

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By Mona Salim Bseiso<br />

8/1/2013<br />

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Matriculation #: 09016812<br />

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Thesis submitted <strong>in</strong> partial fulfillment<br />

<strong>of</strong> <strong>the</strong> Degree <strong>of</strong><br />

Master <strong>of</strong> Science<br />

pasdfghjklzxcvbnmqwertyuiopasdfghj<br />

<strong>in</strong><br />

Investment Promotion & Economic Development (IPED)<br />

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"INVESTIGATING THE ROLE OF SOCIAL MEDIA IN DEVELOPING A NEW INVESTMENT PROMOTION PARADIGM IN THE EVOLVING<br />

FACEBOOK ECONOMY"<br />

January 8, 2013<br />

"<strong>Investigat<strong>in</strong>g</strong> <strong>the</strong> Role <strong>of</strong> Social Media <strong>in</strong><br />

Develop<strong>in</strong>g a New Investment Promotion<br />

Paradigm <strong>in</strong> <strong>the</strong> Evolv<strong>in</strong>g Facebook<br />

Economy"<br />

by<br />

Mona Salim Bseiso<br />

Matriculation #: 09016812<br />

January, 2013<br />

Thesis submitted <strong>in</strong> partial fulfillment<br />

<strong>of</strong> <strong>the</strong> Degree <strong>of</strong><br />

Master <strong>of</strong> Science<br />

<strong>in</strong><br />

Investment Promotion & Economic<br />

Development (IPED)<br />

Page 2 <strong>of</strong> 124


"INVESTIGATING THE ROLE OF SOCIAL MEDIA IN DEVELOPING A NEW INVESTMENT PROMOTION PARADIGM IN THE EVOLVING<br />

FACEBOOK ECONOMY"<br />

Acknowledgments<br />

January 8, 2013<br />

To <strong>the</strong> spirit <strong>of</strong> my beloved fa<strong>the</strong>r…my <strong>role</strong> model<br />

To my beloved mo<strong>the</strong>r…my <strong>in</strong>spiration<br />

To my beloved husband…my better o<strong>the</strong>r and true partner<br />

To my beloved daughter ….my treasure and pleasure<br />

To my beloved sons ….my hope for <strong>the</strong> future<br />

To my beloved sister and my beloved nephew….my support<strong>in</strong>g small family<br />

To my beloved <strong>in</strong>-laws….my support<strong>in</strong>g extended family<br />

To my Boss….my l<strong>in</strong>k to pursue excellence<br />

To my first grandson…my beloved<br />

I dearly acknowledge <strong>the</strong> devoted teach<strong>in</strong>g and k<strong>in</strong>d support <strong>of</strong> my pr<strong>of</strong>essor and research advisor<br />

Dr. George Malcotsis, who has given knowledge and generous advice with genu<strong>in</strong>e concern;<br />

Gratitude extended as well to Dr. Robert Raeside, for Baden workshop, and to Dr. John Adams, for great<br />

content and simplify<strong>in</strong>g economics.<br />

Special thanks to all <strong>the</strong> <strong>in</strong>vestment promotion agencies which responded to my surveys, and to <strong>the</strong><br />

<strong>in</strong>ternational experts who were k<strong>in</strong>d enough to fill <strong>in</strong> <strong>the</strong> survey I sent <strong>the</strong>m and respond to <strong>the</strong> comment<br />

question where <strong>the</strong>y added <strong>the</strong>ir precious <strong>in</strong>sights:<br />

To:<br />

David Lovegrove, David O’Donovan, Eamonn Sheehy, David Brown, Christ<strong>in</strong>e Knutsson, Kar<strong>in</strong> Mart<strong>in</strong>ez,<br />

Richard Banks, David East, John Hanna, Peter Lemagnen , Peter F<strong>in</strong>negan, Jacob Dencik, Dr. George<br />

Malctsosis, and Dr. John Adams.<br />

Also my thanks goes to L<strong>in</strong>kedIn FDiIexecutive group, which I am a member <strong>in</strong>, who had a good discussion on <strong>social</strong><br />

<strong>media</strong> <strong>in</strong> <strong>in</strong>vestment promotion brought about by <strong>the</strong> leader <strong>of</strong> <strong>the</strong> group Douglas van den Berghe, and o<strong>the</strong>r<br />

contributors I utilized summary <strong>of</strong> <strong>the</strong>ir views <strong>in</strong> this research paper: Jerome solio, Dany Rottiers, Mat<strong>the</strong>w Hobbs,<br />

Ian Smith, and Anatalio Ubalde.<br />

Page 3 <strong>of</strong> 124


"INVESTIGATING THE ROLE OF SOCIAL MEDIA IN DEVELOPING A NEW INVESTMENT PROMOTION PARADIGM IN THE EVOLVING<br />

FACEBOOK ECONOMY"<br />

Abstract<br />

January 8, 2013<br />

A<br />

s <strong>the</strong> world is exponentially go<strong>in</strong>g “<strong>social</strong>”, this research paper attempts to<br />

<strong>in</strong>vestigate how a <strong>social</strong> <strong>media</strong>-based <strong>in</strong>vestment promotion conceptual model<br />

can be formulated with <strong>the</strong> aim to be more accommodat<strong>in</strong>g to <strong>the</strong> changed<br />

landscape <strong>in</strong> which <strong>the</strong> <strong>in</strong>vestment promotion agencies (IPAs) operate. Tak<strong>in</strong>g this a<br />

step fur<strong>the</strong>r, attention will be channeled to assess <strong>the</strong> m<strong>in</strong>dset that would impact<br />

leadership, governance, and <strong>in</strong>ternal capabilities <strong>of</strong> IPAs to enable <strong>the</strong>m to deliver under<br />

such shift<strong>in</strong>g conditions. IPAs are constantly aspir<strong>in</strong>g to <strong>in</strong>crease <strong>the</strong> effectiveness and<br />

penetration <strong>of</strong> <strong>the</strong>ir <strong>in</strong>vestment promotion efforts utilized to enhance <strong>the</strong>ir countries’<br />

ability to attract more “quality” susta<strong>in</strong>able FDI that will yield <strong>the</strong> targeted economic and<br />

<strong>social</strong> advantages <strong>in</strong> <strong>the</strong> connected and digitalized so-called Facebook economy.<br />

Putt<strong>in</strong>g all o<strong>the</strong>r external factors aside, this research paper will focus on <strong>the</strong><br />

impact <strong>of</strong> <strong>the</strong> massive changes brought by <strong>the</strong> advent <strong>of</strong> <strong>social</strong> <strong>media</strong>, and whe<strong>the</strong>r<br />

such implications could reach to <strong>the</strong> extent <strong>of</strong> revolutioniz<strong>in</strong>g how IPAs operate giv<strong>in</strong>g<br />

rise to a different model IPA pr<strong>of</strong>ile, that <strong>in</strong> turn, will be a prelude to a new <strong>in</strong>vestment<br />

promotion paradigm mak<strong>in</strong>g <strong>the</strong> leap to a different “fifth” generation IP 5.0!<br />

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"INVESTIGATING THE ROLE OF SOCIAL MEDIA IN DEVELOPING A NEW INVESTMENT PROMOTION PARADIGM IN THE EVOLVING<br />

FACEBOOK ECONOMY"<br />

Declaration<br />

January 8, 2013<br />

I<br />

declare that <strong>the</strong> work undertaken for this MSc Dissertation has been undertaken by<br />

myself and <strong>the</strong> f<strong>in</strong>al Dissertation produced by me. The work has not been submitted<br />

<strong>in</strong> part or <strong>in</strong> whole <strong>in</strong> regard to any o<strong>the</strong>r academic qualification.<br />

Title <strong>of</strong> Dissertation:<br />

"INVESTIGATING THE ROLE OF SOCIAL MEDIA IN<br />

DEVELOPING A NEW INVESTMENT PROMOTION PARADIGM<br />

IN THE EVOLVING FACEBOOK ECONOMY"<br />

Name: Mona Salim Bseiso, Matriculation #: 09016812<br />

Signature:<br />

Date: January 6 th , 2013<br />

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"INVESTIGATING THE ROLE OF SOCIAL MEDIA IN DEVELOPING A NEW INVESTMENT PROMOTION PARADIGM IN THE EVOLVING<br />

FACEBOOK ECONOMY"<br />

January 8, 2013<br />

Table <strong>of</strong> Contents<br />

List <strong>of</strong> Tables: .................................................................................................................. 8<br />

List <strong>of</strong> Figures .................................................................................................................. 9<br />

1 Chapter One: Introduction ...................................................................................... 10<br />

1.1 The Research Proposition: ............................................................................... 10<br />

1.2 The Research Method: ..................................................................................... 11<br />

1.3 The Research Paper Structure: ........................................................................ 14<br />

2 Chapter Two: Literature Review on Investment Promotion ................................... 15<br />

2.1 Investment Promotion Def<strong>in</strong>ition: ..................................................................... 15<br />

2.2 Investment Promotion Agencies: ...................................................................... 16<br />

2.3 Functions <strong>of</strong> Investment Promotion: ................................................................. 19<br />

2.4 Investment Promotion Rational and Effectiveness: .......................................... 22<br />

2.5 The Role <strong>of</strong> <strong>the</strong> Internet and Websites: ............................................................ 24<br />

3 Chapter Three: Literature Review on Social Media ............................................... 30<br />

3.1 Social Media Def<strong>in</strong>ition: .................................................................................... 30<br />

3.1.1 Social Media Usage: .................................................................................. 35<br />

3.1.2 Corporate Social Media: ............................................................................ 39<br />

3.1.3 Social Media Actors: .................................................................................. 43<br />

3.1.4 Social Media Term<strong>in</strong>ology and Tools: ........................................................ 45<br />

3.1.5 Social Media Metrics:................................................................................. 47<br />

3.2 The “Facebook” Economy: ............................................................................... 49<br />

3.2.1 Social Media <strong>in</strong> Bus<strong>in</strong>ess and Community ................................................. 49<br />

3.2.2 Social Media Critics: .................................................................................. 51<br />

3.2.3 Social <strong>media</strong> risks ...................................................................................... 51<br />

3.2.4 Social Media Governance .......................................................................... 54<br />

3.2.5 The Next Practice: ..................................................................................... 55<br />

4 Chapter Four: Literature Review on Theory and Social Media Market<strong>in</strong>g Strategy 56<br />

4.1 Literature review on <strong>the</strong>ory: .............................................................................. 56<br />

4.1.1 Market Failure ............................................................................................ 56<br />

4.1.2 Social network <strong>the</strong>ory (SNT)...................................................................... 57<br />

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FACEBOOK ECONOMY"<br />

January 8, 2013<br />

4.1.3 Micro Disruption Theory............................................................................. 58<br />

4.1.4 Communication Theory.............................................................................. 59<br />

4.1.5 Integrated Market<strong>in</strong>g Communication IMC ................................................ 60<br />

4.2 Literature review on Social Media Market<strong>in</strong>g Strategy ..................................... 61<br />

5 Chapter Five: Investment Promotion & Social Media ............................................. 65<br />

5.1 How Social Media fit <strong>in</strong>to IPAs Work: ............................................................... 65<br />

5.2 Measur<strong>in</strong>g IPAS Digital Market<strong>in</strong>g .................................................................... 67<br />

5.3 O<strong>the</strong>r Examples <strong>of</strong> Current Social Media <strong>in</strong> IPAs: ............................................ 71<br />

6 Chapter Six: Research Method and Exploration <strong>of</strong> Data ........................................ 77<br />

6.1 Research Question: ......................................................................................... 77<br />

6.2 Research Method: ............................................................................................ 77<br />

6.3 Research Limitations ........................................................................................ 79<br />

6.4 Current State Analysis and Results .................................................................. 79<br />

6.5 Onl<strong>in</strong>e Survey Primary Data Collection and Results ........................................ 82<br />

6.6 Op<strong>in</strong>ions from L<strong>in</strong>kedIn Discussion Group ....................................................... 89<br />

7 Chapter Seven: Conclusions & Recommendations ................................................ 90<br />

7.1 Conclusions:..................................................................................................... 90<br />

7.2 Recommendations ........................................................................................... 92<br />

8 Appendices ............................................................................................................ 94<br />

8.1 Appendix 1 – List <strong>of</strong> IPAs Sample Population Websites ................................. 94<br />

8.2 Appendix 2 – Onl<strong>in</strong>e Survey Template ........................................................... 99<br />

8.3 Appendix 3 - List <strong>of</strong> Respondents to Onl<strong>in</strong>e Survey ....................................... 101<br />

8.4 Appendix 4 - Summary Results <strong>of</strong> Onl<strong>in</strong>e Survey .......................................... 102<br />

8.5 Appendix 5 – Comments <strong>of</strong> International IP Experts .................................... 105<br />

8.6 Appendix 6 – Tabulat<strong>in</strong>g Discussion on L<strong>in</strong>kedIn Group (fDiExecutives)....... 108<br />

9 Bibliography ......................................................................................................... 113<br />

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FACEBOOK ECONOMY"<br />

January 8, 2013<br />

List <strong>of</strong> Tables:<br />

Table ‎2.1 Investment Promotion Techniques ................................................................ 19<br />

Table ‎2.2 Evolution Path <strong>of</strong> Investment Promotion ...................................................... 20<br />

Table ‎2.3 Summary <strong>of</strong> Research on IPAs Effectiveness .............................................. 23<br />

Table ‎2.4 IPAs Websites Development ......................................................................... 25<br />

Table ‎2.5 DCI Most Effective Market<strong>in</strong>g Tools .............................................................. 28<br />

Table ‎3.1 Kaplan & Haenle<strong>in</strong> Classification Scheme <strong>of</strong> Social Media Types ................ 31<br />

Table ‎3.2 Friedman’s Ten Flatteners............................................................................ 34<br />

Table ‎3.3 eMarketer Social Network User Growth (%) 2011-2014 ........................... 36<br />

Table ‎3.4 Spredfast Infographic Presentation <strong>of</strong> Corporate Social Engagement .......... 42<br />

Table ‎3.5 Forrester’s Social Technographics® ............................................................. 43<br />

Table ‎3.6 Metrics for Social Media ............................................................................... 47<br />

Table ‎3.7 Social Media Campaign Measurement .......................................................... 48<br />

Table ‎4.1 Compar<strong>in</strong>g Bought, Owned, and earned Market<strong>in</strong>g ...................................... 62<br />

Table ‎4.2 Socialeconomics W<strong>in</strong>ners & Losers ............................................................. 63<br />

Table ‎4.3 Tradigital Market<strong>in</strong>g ....................................................................................... 64<br />

Table ‎5.1 fDi Magaz<strong>in</strong>e Digital Market<strong>in</strong>g Rank<strong>in</strong>gs 2012 ............................................ 68<br />

Table ‎5.2 Ma<strong>in</strong> F<strong>in</strong>d<strong>in</strong>gs <strong>of</strong> CCOMI 2011 ...................................................................... 70<br />

Table ‎6.1 Regional Classification <strong>of</strong> Survey Sample Population ................................... 80<br />

Table ‎6.2 Economic Development Group <strong>of</strong> Survey Sample Population...................... 80<br />

Table ‎6.3 Results <strong>of</strong> Current State <strong>of</strong> Social Media Use <strong>in</strong> Sample Population ............. 80<br />

Table ‎6.4 Types <strong>of</strong> Social Media Used by IPAs Sample Population ............................. 81<br />

Table ‎6.5 Summary <strong>of</strong> Responses <strong>of</strong> Survey Sample Population ................................ 84<br />

Table ‎6.6 Respondents from Survey Sample Population .............................................. 85<br />

Table ‎6.7 Survey Strengths and Weaknesses .............................................................. 86<br />

Table ‎6.8 Summary <strong>of</strong> Views from L<strong>in</strong>kedIn Group ....................................................... 89<br />

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"INVESTIGATING THE ROLE OF SOCIAL MEDIA IN DEVELOPING A NEW INVESTMENT PROMOTION PARADIGM IN THE EVOLVING<br />

FACEBOOK ECONOMY"<br />

January 8, 2013<br />

List <strong>of</strong> Figures<br />

Figure ‎2.1 UNCTAD Generic IPA Pr<strong>of</strong>ile ....................................................................... 18<br />

Figure ‎2.2 UNCTAD IPFSD Core Pr<strong>in</strong>ciples ................................................................. 21<br />

Figure ‎2.3 Spivack Web Graph ..................................................................................... 26<br />

Figure ‎2.4 The World Bank GIPB Scores by Region ..................................................... 29<br />

Figure ‎3.1 Armano’s Evolution <strong>of</strong> Social Bus<strong>in</strong>ess ........................................................ 32<br />

Figure ‎3.2 eMarketer Forecast for Social Media Growth ........................................... 35<br />

Figure ‎3.3 ComScore Facebook Global Penetration Rate 2007-2011 .......................... 37<br />

Figure ‎3.4 Market<strong>in</strong>g Charts Comparison <strong>of</strong> Top 10 Social Network<strong>in</strong>g Websites &<br />

Forums <strong>in</strong> <strong>the</strong> USA ........................................................................................................ 39<br />

Figure ‎3.5 Mck<strong>in</strong>sey Digital Tools 2011 and Next 2 - 4 years ....................................... 40<br />

Figure ‎3.6 Forrester's Social Technographics® 2011 ................................................... 44<br />

Figure ‎3.7 Klout Score for Mona Bseiso ........................................................................ 48<br />

Figure ‎3.8 Website Unlike Us ........................................................................................ 51<br />

Figure ‎3.9 Telstra's 3Rs ................................................................................................ 53<br />

Figure ‎3.10 Examples <strong>of</strong> Social Media Audit ................................................................. 54<br />

Figure ‎4.1 Micro Disruption Theory & <strong>the</strong> Social Effect ................................................. 59<br />

Figure ‎5.1 Deloitte on IPAs and Social Media ............................................................... 66<br />

Figure ‎5.2 W<strong>in</strong>ners <strong>of</strong> CAOMI 2012 .............................................................................. 70<br />

Figure ‎5.3 IFA New Communications Campaign 2012.................................................. 72<br />

Figure ‎5.4 IFA Communications Campaign 2010 .......................................................... 73<br />

‎Figure ‎5.5 Invest <strong>in</strong> Sweden Facebook Entry at Home Page ........................................ 74<br />

Figure ‎5.6 ConnectIreland Jobs Campag<strong>in</strong> 2012 .......................................................... 75<br />

Figure ‎5.7 Invest <strong>in</strong> Reims Communications: Shift to <strong>the</strong> New Paradigm...................... 76<br />

Figure ‎6.1 Current State <strong>of</strong> Social Media Use <strong>in</strong> IPAs Sample Population .................... 81<br />

Figure ‎6.2 Current State <strong>of</strong> Types <strong>of</strong> Social Media Used by IPAs Sample Population . 82<br />

Figure ‎7.1 My Model for an IPA Pr<strong>of</strong>ile <strong>in</strong> <strong>the</strong> Web 3.0 era ........................................... 91<br />

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"INVESTIGATING THE ROLE OF SOCIAL MEDIA IN DEVELOPING A NEW INVESTMENT PROMOTION PARADIGM IN THE EVOLVING<br />

FACEBOOK ECONOMY"<br />

1 Chapter One: Introduction<br />

January 8, 2013<br />

1.1 The Research Proposition:<br />

A<br />

s <strong>the</strong> world is exponentially go<strong>in</strong>g “<strong>social</strong>”, this research paper aims to<br />

<strong>in</strong>vestigate how a <strong>social</strong> <strong>media</strong>-based <strong>in</strong>vestment promotion conceptual model<br />

can be formulated with <strong>the</strong> aim to be more accommodat<strong>in</strong>g to <strong>the</strong> changed<br />

landscape <strong>in</strong> which <strong>the</strong> <strong>in</strong>vestment promotion agencies (IPAs) operate. Tak<strong>in</strong>g this a<br />

step fur<strong>the</strong>r, attention will be channeled towards assess<strong>in</strong>g <strong>the</strong> m<strong>in</strong>dset that would<br />

impact leadership, governance, and <strong>in</strong>ternal capabilities <strong>of</strong> IPAs to enable <strong>the</strong>m to<br />

deliver under such constantly shift<strong>in</strong>g conditions. IPAs are constantly aspir<strong>in</strong>g to<br />

<strong>in</strong>crease <strong>the</strong> effectiveness and penetration <strong>of</strong> <strong>the</strong>ir <strong>in</strong>vestment promotion efforts, which<br />

are utilized to enhance <strong>the</strong>ir countries’ ability to attract larger shares <strong>of</strong> FDI that will yield<br />

<strong>the</strong> targeted economic and <strong>social</strong> advantages.<br />

Putt<strong>in</strong>g all o<strong>the</strong>r external factors aside, this research paper will focus on <strong>the</strong><br />

impact <strong>of</strong> <strong>the</strong> massive changes brought forth by <strong>the</strong> advent <strong>of</strong> <strong>social</strong> <strong>media</strong>, and whe<strong>the</strong>r<br />

<strong>the</strong>ir implications could reach to <strong>the</strong> extent <strong>of</strong> revolutioniz<strong>in</strong>g how IPAs operate. Of<br />

particular concern, and given <strong>the</strong> fact that image build<strong>in</strong>g and target<strong>in</strong>g are well adjusted<br />

to <strong>the</strong> e-promotion medium, is whe<strong>the</strong>r or not, <strong>in</strong> <strong>the</strong> near to medium term, <strong>the</strong> direct<br />

contact with <strong>in</strong>vestors for <strong>the</strong> functions relat<strong>in</strong>g to facilitation and aftercare will give way<br />

to electronic engagements, and thus gradually overshadow <strong>the</strong> personal human factor<br />

to br<strong>in</strong>g about virtual “avatars” <strong>of</strong> IPAs!<br />

This research paper will <strong>the</strong>refore ponder whe<strong>the</strong>r, <strong>in</strong> <strong>the</strong> connected and<br />

digitalized so-called Facebook economy, conventional <strong>in</strong>vestment promotion techniques<br />

(such as image build<strong>in</strong>g, <strong>in</strong>vestor target<strong>in</strong>g, <strong>in</strong>vestor servic<strong>in</strong>g, and advocacy) will still<br />

cont<strong>in</strong>ue to make up <strong>the</strong> major part <strong>of</strong> <strong>the</strong> <strong>in</strong>vestment promotion paradigm.<br />

Fur<strong>the</strong>rmore, this research paper <strong>in</strong>tends to explore whe<strong>the</strong>r or not <strong>the</strong><br />

suggested new emerg<strong>in</strong>g paradigm, based on an <strong>in</strong>teractive user-generated content<br />

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FACEBOOK ECONOMY"<br />

January 8, 2013<br />

(UGC) approach, could be a generic one that would, <strong>in</strong>discrim<strong>in</strong>ately, secure more<br />

extensive w<strong>in</strong>-w<strong>in</strong> outcomes, exemplified <strong>in</strong> attract<strong>in</strong>g more “quality” susta<strong>in</strong>able FDI,<br />

provid<strong>in</strong>g better services for <strong>the</strong> <strong>in</strong>vestors, and consolidat<strong>in</strong>g a susta<strong>in</strong>able economic<br />

development impact <strong>of</strong> <strong>in</strong>ward FDI.<br />

The fundamental question that will be explored is <strong>the</strong>refore, will <strong>social</strong> <strong>media</strong><br />

become an <strong>in</strong>tegral or a hybrid element <strong>of</strong> <strong>the</strong> <strong>in</strong>vestment promotion mix with<strong>in</strong> <strong>the</strong> core<br />

functions, or will it <strong>in</strong>advertently cause a shift to a new <strong>in</strong>vestment promotion paradigm<br />

thus mak<strong>in</strong>g <strong>the</strong> leap towards an entirely differentiated “fifth” generation IP 5.0!<br />

1.2 The Research Method:<br />

D<br />

ue to <strong>the</strong> nature <strong>of</strong> <strong>the</strong> subject matter, <strong>the</strong> research resorted to a qualitative<br />

approach, which is a more applicable method <strong>in</strong> understand<strong>in</strong>g <strong>the</strong> diversity<br />

and subjectivity <strong>of</strong> <strong>the</strong> research problem; it is also conducive to track<strong>in</strong>g<br />

change over a period <strong>of</strong> time, rely<strong>in</strong>g on how to use <strong>in</strong>terpretations <strong>of</strong> best<br />

practices, ra<strong>the</strong>r than universal laws. Often, <strong>the</strong> choice was to lean towards narrative<br />

discourse as a preferred method for demonstrat<strong>in</strong>g varied <strong>in</strong>terrelated concepts, and<br />

present<strong>in</strong>g <strong>the</strong> results <strong>of</strong> research; graphic presentation was thus used spar<strong>in</strong>gly to build<br />

up <strong>the</strong> storyl<strong>in</strong>e. Notwithstand<strong>in</strong>g <strong>the</strong> latter, <strong>the</strong> built <strong>in</strong> bias <strong>in</strong>herent to <strong>the</strong> subjective<br />

nature <strong>of</strong> <strong>the</strong> research method employed, limitations <strong>of</strong> <strong>the</strong> research itself (for example<br />

not embedd<strong>in</strong>g <strong>the</strong> cultural context <strong>in</strong> <strong>the</strong> observations or <strong>in</strong>terpretations), not assess<strong>in</strong>g<br />

<strong>in</strong>dependently for usages and effectiveness <strong>of</strong> <strong>social</strong> <strong>media</strong> channels might have<br />

affected <strong>the</strong> validity and reliability – but not <strong>the</strong> generalisability - <strong>of</strong> <strong>the</strong> research, thus<br />

this shortcom<strong>in</strong>g should be considered throughout <strong>the</strong> paper.<br />

The research method depended on several approaches. It started with an<br />

analysis <strong>of</strong> <strong>the</strong> current state <strong>of</strong> IPAs’ <strong>social</strong> <strong>media</strong> presence <strong>in</strong> <strong>the</strong>ir websites’ home<br />

pages through an <strong>in</strong>dependent pr<strong>of</strong>il<strong>in</strong>g <strong>of</strong> a sample population <strong>of</strong> 65 IPAs <strong>in</strong> an attempt<br />

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to determ<strong>in</strong>e which prevail<strong>in</strong>g <strong>social</strong> <strong>media</strong> channels <strong>the</strong>y subscribed to. All <strong>of</strong> <strong>the</strong> IPAs<br />

sampled were members <strong>of</strong> <strong>the</strong> World Association <strong>of</strong> Investment Promotion Agencies<br />

(WAIPA). The latter was accompanied by direct collection <strong>of</strong> primary data retrieved<br />

from an onl<strong>in</strong>e survey I created for <strong>the</strong> purposes <strong>of</strong> this paper. The survey was sent to<br />

<strong>the</strong> same selected sample population <strong>of</strong> 65 IPAs, as well as to fourteen renowned<br />

<strong>in</strong>ternational <strong>in</strong>vestment promotion experts. The respondents answered questions<br />

regard<strong>in</strong>g <strong>the</strong>ir current plans on <strong>the</strong> use <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>in</strong> <strong>the</strong>ir <strong>in</strong>vestment promotion<br />

activities and whe<strong>the</strong>r or not <strong>the</strong>y <strong>in</strong>corporated <strong>social</strong> <strong>media</strong> tools <strong>in</strong> <strong>the</strong>ir market<strong>in</strong>g<br />

strategies.<br />

The research benefitted from an analysis <strong>of</strong> extensive reliable secondary data on<br />

<strong>the</strong> subject matter from scholarly journals articles, books, and onl<strong>in</strong>e academic<br />

communities. Reports by several <strong>in</strong>ternational organizations (<strong>the</strong> World Bank,<br />

UNCTAD), <strong>in</strong>dustry leaders (DCI/IEDC), major IT and consult<strong>in</strong>g firms (Deloitte, KPMG,<br />

Mck<strong>in</strong>sey), lead<strong>in</strong>g companies <strong>in</strong> <strong>the</strong> ever chang<strong>in</strong>g <strong>social</strong> <strong>media</strong> bus<strong>in</strong>ess (Intelegia,<br />

Spredfast) were also employed. The data collection from both primary and secondary<br />

resources was completed, analyzed, and conclusions were drawn, and<br />

recommendations furnished.<br />

As a result <strong>of</strong> <strong>the</strong> qualitative approach adopted <strong>in</strong> this research paper, no<br />

statistical model was utilized due to <strong>the</strong> descriptive nature <strong>of</strong> <strong>the</strong> research (as opposed<br />

to a quantitative statistical approach) and thus no statistical tests for significance to<br />

show causality, correlation, and direction <strong>of</strong> relationships were used.<br />

The research benefited from <strong>the</strong> <strong>the</strong>oretical propositions and academic debate<br />

regard<strong>in</strong>g <strong>the</strong> justification <strong>of</strong> IPAs, and <strong>the</strong> evolution <strong>of</strong> <strong>social</strong> <strong>media</strong>, its def<strong>in</strong>ition,<br />

strategy, market<strong>in</strong>g potential, and future developments. This <strong>in</strong>cluded <strong>the</strong>ories on<br />

market failure, <strong>social</strong> cognitive <strong>the</strong>ory, <strong>social</strong> <strong>in</strong>fluence model, <strong>social</strong> pro<strong>of</strong>,<br />

communications <strong>the</strong>ory, and <strong>in</strong>tegrated market<strong>in</strong>g <strong>the</strong>ory, among o<strong>the</strong>rs. A noted gap <strong>in</strong><br />

<strong>the</strong> research paper, to be left for future work, is <strong>the</strong> issue <strong>of</strong> cultural differences to<br />

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assess if <strong>social</strong> <strong>media</strong> has eroded, or narrowed, those differences, much as it<br />

elim<strong>in</strong>ated time zones and geographical boundaries.<br />

A complementary extensive literature review was also performed on case studies<br />

and factual context, portray<strong>in</strong>g available quantitative or qualitative evidence from<br />

selected successful cases.<br />

To be able to fully appreciate <strong>the</strong> research subject matter and its implications, on<br />

an <strong>in</strong>dividual level, I have embedded myself <strong>in</strong> <strong>the</strong> ma<strong>in</strong> <strong>social</strong> <strong>media</strong> networks<br />

(Facebook, Twitter, L<strong>in</strong>kedIn, Google+, P<strong>in</strong>trest, and Mendely) and jo<strong>in</strong>ed groups on<br />

L<strong>in</strong>kedIn (FDI executives, fditracker, fDi forum - which is a sub group <strong>of</strong> fDi rank<strong>in</strong>gs,<br />

FDI opportunity, Social Media Market<strong>in</strong>g). I raised my level <strong>of</strong> engagement, whenever<br />

possible, <strong>in</strong> mean<strong>in</strong>gful conversations, one <strong>of</strong> which was used <strong>in</strong> this research paper for<br />

its direct relevance to <strong>the</strong> research proposition.<br />

The data identified throughout <strong>the</strong> exploration phase was analyzed for pattern<br />

and discrepancies, and classified to see how to l<strong>in</strong>k it to relevant <strong>the</strong>ory and if consistent<br />

with emerg<strong>in</strong>g trends; ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g a constant effort at explor<strong>in</strong>g <strong>the</strong> benefits <strong>of</strong> us<strong>in</strong>g<br />

<strong>social</strong> <strong>media</strong> <strong>in</strong> <strong>in</strong>vestment promotion activities.<br />

To balance <strong>the</strong> validity <strong>of</strong> <strong>the</strong> data sources used, <strong>the</strong> risks and limitations <strong>of</strong> <strong>the</strong><br />

research were <strong>in</strong>vestigated, <strong>in</strong>clud<strong>in</strong>g issues that have beleaguered <strong>the</strong> nature <strong>of</strong> <strong>social</strong><br />

<strong>media</strong>, ma<strong>in</strong>ly <strong>in</strong>fr<strong>in</strong>gement <strong>of</strong> privacy, data reliability, impact on reputation, and<br />

uncontrolled dispersion <strong>of</strong> data to o<strong>the</strong>r platforms beyond <strong>the</strong> <strong>in</strong>itial desire.<br />

The multi-approach method adopted facilitated <strong>the</strong> process <strong>of</strong> draw<strong>in</strong>g fairly<br />

concrete conclusions address<strong>in</strong>g <strong>the</strong> nature <strong>of</strong> <strong>the</strong> emerg<strong>in</strong>g paradigm <strong>of</strong> <strong>in</strong>vestment<br />

promotion, whereby content management and curation by <strong>the</strong> IPAs, as well as<br />

engagement and collaboration with targeted audiences, become <strong>the</strong> most crucial factors<br />

to trigger <strong>the</strong> required promotional “BUZZ”. This could trigger a stream <strong>of</strong> op<strong>in</strong>ions and<br />

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responses, that can reach an unlimited number <strong>of</strong> people beyond targeted audiences,<br />

and potentially pave <strong>the</strong> way ahead for <strong>the</strong> appropriation and settlement <strong>of</strong> fully fledged<br />

“<strong>social</strong> bus<strong>in</strong>ess” <strong>in</strong> <strong>the</strong> cont<strong>in</strong>uously evolv<strong>in</strong>g digital economy.<br />

1.3 The Research Paper Structure:<br />

T<br />

he research paper is structured around several <strong>in</strong>terrelated <strong>the</strong>mes that are<br />

believed to be <strong>the</strong> most crucial elements <strong>in</strong> generat<strong>in</strong>g <strong>the</strong> overall narrative. The<br />

com<strong>in</strong>g chapters, with sub-sections, attempt to reflect <strong>the</strong> richness <strong>of</strong> <strong>the</strong> topic<br />

and its <strong>in</strong>tensity.<br />

To be comprehensive, timely, and <strong>in</strong>clusive, current knowledge, through literature<br />

review, was covered over three consecutive chapters <strong>in</strong> relevance to <strong>in</strong>vestment<br />

promotion, <strong>social</strong> <strong>media</strong>, and related <strong>the</strong>ories.<br />

Chapter Two broadly explores <strong>the</strong> issue <strong>of</strong> <strong>in</strong>vestment promotion, its def<strong>in</strong>ition,<br />

current status and techniques; revert<strong>in</strong>g to <strong>the</strong>oretical rationale for establish<strong>in</strong>g IPAs,<br />

and a brief empirical analysis on IPAs’ effectiveness <strong>in</strong> attract<strong>in</strong>g FDI <strong>in</strong>to <strong>the</strong>ir<br />

countries. The Chapter concludes with an overview <strong>of</strong> <strong>the</strong> ris<strong>in</strong>g <strong>role</strong> <strong>of</strong> <strong>the</strong> <strong>in</strong>ternet and<br />

<strong>the</strong> websites <strong>in</strong> <strong>the</strong> conventional <strong>in</strong>vestment promotion market<strong>in</strong>g mix.<br />

Chapter Three reflects on <strong>the</strong> current knowledge and literature review on <strong>social</strong><br />

<strong>media</strong>: its def<strong>in</strong>ition, metrics, actors, language, audit, and risks; conclud<strong>in</strong>g a subchapter<br />

with highlights <strong>of</strong> <strong>the</strong> so-called Facebook economy.<br />

Chapter Four provides a substantive <strong>the</strong>oretical discussion related to <strong>social</strong><br />

<strong>media</strong> and <strong>in</strong>vestment promotion, <strong>in</strong>clud<strong>in</strong>g market<strong>in</strong>g knowledge, with support<strong>in</strong>g<br />

scholarly articles and current book reviews, important reports and articles.<br />

Chapter Five tackles <strong>the</strong> issue <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>in</strong> <strong>in</strong>vestment promotion and how<br />

it is affect<strong>in</strong>g conventional practices and market<strong>in</strong>g strategies <strong>of</strong> IPAs.<br />

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Chapter six details <strong>the</strong> research method, data collection, analysis, and f<strong>in</strong>d<strong>in</strong>gs <strong>of</strong><br />

<strong>the</strong> various research approaches used for <strong>the</strong> purpose <strong>of</strong> exam<strong>in</strong><strong>in</strong>g <strong>the</strong> validity <strong>of</strong> <strong>the</strong><br />

research proposition. Research limitations were tackled as well.<br />

Chapter seven presents <strong>the</strong> conclusions <strong>of</strong> <strong>the</strong> research paper based on f<strong>in</strong>d<strong>in</strong>gs<br />

and analysis <strong>of</strong> <strong>the</strong> research method; and recommendations for <strong>the</strong> render<strong>in</strong>g <strong>of</strong> a<br />

suggested <strong>social</strong> <strong>media</strong> based model <strong>of</strong> <strong>the</strong> new <strong>in</strong>vestment promotion paradigm, with<br />

generalisability potential.<br />

These conclusions and recommendations are hoped to contribute to <strong>the</strong> ongo<strong>in</strong>g<br />

debate on IPAs’ effectiveness through more accommodat<strong>in</strong>g and competitive bus<strong>in</strong>ess<br />

practices <strong>in</strong> <strong>the</strong> era <strong>of</strong> <strong>social</strong> <strong>media</strong>, as well as aim to reflect on <strong>the</strong> potential impact on<br />

IPAs’ future strategic promotional campaigns and market<strong>in</strong>g plans that aim at brand<strong>in</strong>g<br />

<strong>the</strong> country favorably to attract a higher share <strong>of</strong> quality FDI, and affect<strong>in</strong>g <strong>the</strong><br />

determ<strong>in</strong>ants <strong>of</strong> <strong>in</strong>vestors’ decision.<br />

2 Chapter Two: Literature Review on Investment Promotion<br />

2.1 Investment Promotion Def<strong>in</strong>ition:<br />

I<br />

nvestment promotion, as a discipl<strong>in</strong>e and a practice is rooted back to <strong>the</strong> early<br />

1950s, when foreign direct <strong>in</strong>vestment (FDI) cross-border flows were carried by <strong>the</strong><br />

mult<strong>in</strong>ational corporations, that had become, decades later, <strong>the</strong> more globalized<br />

transnational corporations (TNCs), with <strong>the</strong>ir 800,000 foreign affiliates, contributed to<br />

<strong>the</strong> impressive growth <strong>of</strong> <strong>the</strong> global economy by creat<strong>in</strong>g more than US$7 trillion <strong>in</strong><br />

value added production, compris<strong>in</strong>g around 10% <strong>of</strong> global GDP <strong>in</strong> 2011, while<br />

employ<strong>in</strong>g around 69 million workers, and generat<strong>in</strong>g US$28 trillion <strong>in</strong> sales (UNCTAD,<br />

2012, p. 23).<br />

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It might be safe to assume that <strong>the</strong> standard and most widely used <strong>in</strong>vestment<br />

promotion (IP) conceptual model, as we know now, was designed <strong>in</strong> 1990 <strong>in</strong> <strong>the</strong><br />

sem<strong>in</strong>al work <strong>of</strong> Louis Wells and Alv<strong>in</strong> W<strong>in</strong>t, <strong>the</strong> two prom<strong>in</strong>ent academics and<br />

practitioners, supported by Harvard Bus<strong>in</strong>ess School and <strong>the</strong> World Bank Group among<br />

o<strong>the</strong>rs; <strong>the</strong>ir work was built on exist<strong>in</strong>g knowledge to render <strong>the</strong> <strong>the</strong>oretical framework<br />

known today; <strong>the</strong>ir writ<strong>in</strong>gs <strong>in</strong> Market<strong>in</strong>g a Country became widely adopted to<br />

understand and analyze <strong>the</strong> constantly evolv<strong>in</strong>g IP <strong>in</strong>dustry (Wells & W<strong>in</strong>t, 1990). In<br />

<strong>the</strong>ir words, <strong>in</strong>vestment promotion is def<strong>in</strong>ed as:<br />

“…activities that dissem<strong>in</strong>ate <strong>in</strong>formation about, or attempt to<br />

create an image <strong>of</strong> <strong>the</strong> <strong>in</strong>vestment site and provide<br />

<strong>in</strong>vestment services for <strong>the</strong> prospective <strong>in</strong>vestors.”<br />

[(Wells & W<strong>in</strong>t, 2000)]<br />

Market<strong>in</strong>g a Country has become a standard text on IP functions, and has<br />

provided a strong rationale for embark<strong>in</strong>g on policy reform and adm<strong>in</strong>istrative measures<br />

to improve IP efforts, especially <strong>in</strong> develop<strong>in</strong>g countries (Wells & W<strong>in</strong>t, 1990).<br />

2.2 Investment Promotion Agencies:<br />

I<br />

nvestment promotion agencies (IPAs) are <strong>the</strong> <strong>in</strong>stitutional entities that were<br />

established to handle <strong>in</strong>vestment promotion functions, with <strong>the</strong> pr<strong>in</strong>cipal task <strong>of</strong><br />

“market<strong>in</strong>g <strong>the</strong> country” as an attractive <strong>in</strong>vestment site (Wells & W<strong>in</strong>t, 1990, p. 25).<br />

In short, IPAs are <strong>the</strong> “<strong>in</strong>stitutionalization” <strong>of</strong> a country’s commitment and resolve<br />

at <strong>the</strong> highest level, with public consensus, to attract FDI <strong>in</strong>to <strong>the</strong> country to atta<strong>in</strong><br />

national objectives <strong>in</strong>clud<strong>in</strong>g growth and employment creation. Their <strong>role</strong> is <strong>the</strong><br />

implementation arm <strong>of</strong> <strong>the</strong> government which is mandated with <strong>the</strong> task to translate <strong>the</strong><br />

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national developmental strategy goals and objectives <strong>in</strong>to effective results: deliverables<br />

and outcomes (WBG, 2009, p. 12).<br />

IPAs vary <strong>in</strong> <strong>the</strong>ir structure, mandate, strategy, objectives, resource availability,<br />

and <strong>the</strong>ir service <strong>of</strong>fer, <strong>in</strong> l<strong>in</strong>e with <strong>the</strong>ir respective national economic goals.<br />

The first IPA established was <strong>the</strong> Irish Industrial Development Agency (IDA),<br />

which started as an entity serv<strong>in</strong>g a protectionist <strong>in</strong>dustrial policy <strong>in</strong> 1949; years later, <strong>in</strong><br />

April 1970, it became an <strong>in</strong>dependent agency responsible for both <strong>in</strong>digenous and<br />

foreign <strong>in</strong>vestments. The tasks were split <strong>in</strong> 1994 and assigned to three new<br />

enterprises, <strong>the</strong> one <strong>in</strong> charge <strong>of</strong> <strong>in</strong>ward FDI only was IDA Ireland. Throughout this<br />

development path, IDA had been a lead<strong>in</strong>g example <strong>of</strong> a successful enterprise reflect<strong>in</strong>g<br />

national policy and <strong>in</strong>stitutional priorities, and a material to study and learn best<br />

practices from worldwide, till today <strong>in</strong> my op<strong>in</strong>ion (Donnelly, 2010, pp. 3, 18, 24).<br />

The 1990s witnessed a rise <strong>in</strong> <strong>the</strong> number <strong>of</strong> IPAs, at <strong>the</strong> national and subnational<br />

levels, especially amongst develop<strong>in</strong>g countries, and subsequently <strong>in</strong><br />

economies <strong>in</strong> transition. This is attributed to <strong>in</strong>creas<strong>in</strong>g liberalization and globalization<br />

(collapse <strong>of</strong> <strong>the</strong> Soviet Union, fall <strong>of</strong> Berl<strong>in</strong> Wall, and establishment <strong>of</strong> WTO, volatility <strong>of</strong><br />

oil prices, and recurrence <strong>of</strong> f<strong>in</strong>ancial crisis, among o<strong>the</strong>rs). The competition for FDI, as<br />

a driv<strong>in</strong>g force for economic growth, <strong>in</strong> addition to trade, had become fiercer, with a<br />

decl<strong>in</strong>e <strong>of</strong> donors <strong>of</strong>ficial development assistance (ODA).<br />

In 1995, <strong>the</strong> World Association <strong>of</strong> Investment Promotion Agencies (WAIPA) was<br />

established as an <strong>in</strong>dependent non-governmental organization (NGO), registered <strong>in</strong><br />

Geneva, Switzerland. It was supported by UNCTAD and o<strong>the</strong>r <strong>in</strong>ternational<br />

organizations. WAIPA serves as a forum for <strong>the</strong> exchange <strong>of</strong> experience and<br />

network<strong>in</strong>g amongst its member agencies. Currently it has a membership that <strong>in</strong>cludes<br />

244 national and sub-national IPAs from 162 countries (WAIPA, 2012).<br />

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To understand <strong>the</strong> general characteristics and operations <strong>of</strong> an average IPA, <strong>the</strong><br />

f<strong>in</strong>d<strong>in</strong>gs <strong>of</strong> a sem<strong>in</strong>al “basel<strong>in</strong>e” survey are referred to here; this study was conducted<br />

on a sample <strong>of</strong> 101 IPAs that were divided <strong>in</strong>to four groups based on <strong>the</strong>ir economic<br />

development stage: OECD, economies <strong>in</strong> transition, least developed countries, and<br />

o<strong>the</strong>r develop<strong>in</strong>g countries.<br />

The survey was rich <strong>in</strong> <strong>in</strong>formation and comparisons <strong>of</strong> <strong>the</strong> <strong>in</strong>stitutional and<br />

organizational structure <strong>of</strong> IPAs. It used <strong>the</strong> averages <strong>of</strong> <strong>the</strong> results <strong>of</strong> <strong>the</strong> four groups to<br />

come up with a Generic IPA Pr<strong>of</strong>ile <strong>in</strong> 2001. This Generic IPA has <strong>the</strong> characteristics<br />

summarized <strong>in</strong> Figure 2.1.<br />

Figure 2.1 UNCTAD Generic IPA Pr<strong>of</strong>ile<br />

Institutional:<br />

Founded <strong>in</strong> 1994<br />

Governmental<br />

Number <strong>of</strong> <strong>of</strong>fices:<br />

Head quarters 6<br />

Regional <strong>of</strong>fice 7<br />

Overseas <strong>of</strong>fices 4<br />

Total staff 29<br />

Pr<strong>of</strong>essional staff 20:economics ,<br />

bus<strong>in</strong>ess, management<br />

Computer/staff ratio 0.6<br />

Ma<strong>in</strong> Services:<br />

Bus<strong>in</strong>ess matchmak<strong>in</strong>g<br />

Domestic market <strong>in</strong>formation<br />

Advice on local employment<br />

conditions<br />

Assistance with<br />

registration/licens<strong>in</strong>g<br />

Assistance with work permits<br />

Legal assistance<br />

Generic<br />

IPA<br />

Pr<strong>of</strong>ile<br />

Ma<strong>in</strong> Tools:<br />

Attend<strong>in</strong>g <strong>in</strong>ternational<br />

conferences<br />

Receiv<strong>in</strong>g visit<strong>in</strong>g missions <strong>of</strong><br />

foreign <strong>in</strong>vestors<br />

Attend<strong>in</strong>g <strong>in</strong>ternational trade<br />

fairs<br />

General promotion brochure<br />

or <strong>in</strong>vestment guide<br />

Website<br />

Sector brochures<br />

Target<strong>in</strong>g:<br />

Most targeted regions:<br />

Western Europe, North<br />

America<br />

Most targeted sectors:<br />

manufactur<strong>in</strong>g<br />

Most targeted method <strong>of</strong><br />

entry: JVs/GF<br />

M<strong>in</strong>imum size <strong>of</strong><br />

<strong>in</strong>vestment: US$ 125 k<br />

F<strong>in</strong>ancial:<br />

Total budget p.a. US$ 1.1<br />

mn<br />

Promotional budget p.a.<br />

US$ 475 K<br />

This generic pr<strong>of</strong>ile will be referred to later <strong>in</strong> <strong>the</strong> research paper to <strong>in</strong>vestigate <strong>the</strong><br />

features <strong>of</strong> a generic IPA with<strong>in</strong> <strong>the</strong> era <strong>of</strong> “<strong>social</strong>” bus<strong>in</strong>ess.<br />

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2.3 Functions <strong>of</strong> Investment Promotion:<br />

I<br />

nitially, <strong>in</strong>vestment promotion functions <strong>in</strong>cluded three basic techniques that<br />

summed <strong>the</strong> variety <strong>of</strong> functions and activities, namely image build<strong>in</strong>g, <strong>in</strong>vestment<br />

generation, and <strong>in</strong>vestor servic<strong>in</strong>g. Table 2.1 lists <strong>the</strong>se activities, based on a survey<br />

addressed to (50) IPAs from <strong>in</strong>dustrial and develop<strong>in</strong>g countries: (Wells & W<strong>in</strong>t, 1990, p.<br />

4). A decade later, policy advocacy was added as <strong>the</strong> fourth technique (Wells & W<strong>in</strong>t,<br />

2000, p. 10).<br />

Table 2.1 Investment Promotion Techniques<br />

Image<br />

build<strong>in</strong>g<br />

Investment<br />

generation<br />

Investment<br />

services<br />

Policy<br />

Advocacy<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

<br />

Advertis<strong>in</strong>g <strong>in</strong> general f<strong>in</strong>ancial <strong>media</strong>.<br />

Participat<strong>in</strong>g <strong>in</strong> <strong>in</strong>vestment exhibitions.<br />

Advertis<strong>in</strong>g <strong>in</strong> <strong>in</strong>dustry or sector specific <strong>media</strong>.<br />

Conduct<strong>in</strong>g general <strong>in</strong>vestment missions from source country to host<br />

country or vice versa.<br />

Conduct<strong>in</strong>g general <strong>in</strong>formation sem<strong>in</strong>ars on <strong>in</strong>vestment opportunities.<br />

Engag<strong>in</strong>g <strong>in</strong> direct mail or telemarket<strong>in</strong>g campaigns.<br />

Conduct<strong>in</strong>g <strong>in</strong>dustry or sector specific <strong>in</strong>vestment missions from source<br />

country to host country or vice versa.<br />

Conduct<strong>in</strong>g <strong>in</strong>dustry or sector specific <strong>in</strong>formation sem<strong>in</strong>ars.<br />

Engag<strong>in</strong>g <strong>in</strong> firm specific research followed by "sales" presentations.<br />

Provid<strong>in</strong>g <strong>in</strong>vestment counsel<strong>in</strong>g services.<br />

Expedit<strong>in</strong>g <strong>the</strong> process<strong>in</strong>g <strong>of</strong> applications and permits.<br />

Provid<strong>in</strong>g post-<strong>in</strong>vestment services.<br />

Participat<strong>in</strong>g <strong>in</strong> policy task forces.<br />

Develop<strong>in</strong>g lobby<strong>in</strong>g activities.<br />

Draft<strong>in</strong>g laws or policy recommendation.<br />

Report<strong>in</strong>g <strong>in</strong>vestors’ perceptions.<br />

In time, <strong>in</strong>vestment promotion had become a more sophisticated <strong>in</strong>dustry on its<br />

own merit. As <strong>the</strong> <strong>in</strong>vestment promotion <strong>in</strong>dustry matured, it is expected to be head<strong>in</strong>g<br />

towards a fourth generation that focuses on “susta<strong>in</strong>able FDI”, as seen <strong>in</strong> Table 2.2<br />

hereunder (VCC & WAIPA, 2010, pp. 10,30).<br />

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Table 2.2 Evolution Path <strong>of</strong> Investment Promotion<br />

First<br />

Generation<br />

IP 1.0<br />

Second<br />

Generation<br />

IP 2.0<br />

Third<br />

Generation<br />

IP 3.0<br />

Fourth<br />

Generation<br />

To be<br />

IP 4.0<br />

Liberalization <strong>of</strong> FDI regulatory framework open<strong>in</strong>g previously<br />

protected sectors. A passive but necessary stage<br />

Establish<strong>in</strong>g IPAs to perform promotional activities and market<strong>in</strong>g <strong>the</strong><br />

country. More pro-active and market<strong>in</strong>g <strong>the</strong> country <strong>the</strong> focal activity.<br />

IPAs activities focused on target<strong>in</strong>g <strong>in</strong>vestors <strong>in</strong>to priority sectors or<br />

clusters or towards certa<strong>in</strong> regions <strong>in</strong> l<strong>in</strong>e with national objectives.<br />

IPAs target<strong>in</strong>g “susta<strong>in</strong>able FDI” becom<strong>in</strong>g more like a full service<br />

economic development <strong>in</strong>stitution.<br />

1970s<br />

1980s -<br />

1990s<br />

2000s<br />

Current<br />

+ future<br />

The elements <strong>of</strong> <strong>the</strong> fourth generation have been studied <strong>in</strong> a jo<strong>in</strong>t survey<br />

<strong>in</strong>tended to determ<strong>in</strong>e which IPAs are familiar with “susta<strong>in</strong>able” FDI issues, and what<br />

<strong>the</strong>y are do<strong>in</strong>g to <strong>in</strong>tegrate it <strong>in</strong>to <strong>the</strong>ir <strong>in</strong>vestment promotion strategies and tools.<br />

The survey, sent by email to WAIPA member IPAS (164 national IPAs and 51<br />

sub-nationals), received a response rate <strong>of</strong> 30%. It showed that IPAs, through <strong>the</strong>ir<br />

advocacy function, were play<strong>in</strong>g a more proactive <strong>role</strong> <strong>in</strong> shap<strong>in</strong>g national policies<br />

aimed not only at attract<strong>in</strong>g a larger share <strong>of</strong> FDI, but target<strong>in</strong>g a more “susta<strong>in</strong>able<br />

FDI” that will support susta<strong>in</strong>able development <strong>of</strong> <strong>the</strong>ir countries.<br />

The “susta<strong>in</strong>able” FDI has four dimensions: economic development,<br />

environmental susta<strong>in</strong>ability, <strong>social</strong> development, and good governance. IPAs, and<br />

foreign <strong>in</strong>vestors, pay unequal attention to <strong>the</strong>se components; IPAs have not taken a<br />

holistic approach to this issue yet (VCC & WAIPA, 2010, pp. 4,5).<br />

This is especially important because it is <strong>in</strong> l<strong>in</strong>e with a call for change <strong>in</strong> <strong>the</strong><br />

<strong>in</strong>vestment policy side. UNCTAD has recently announced <strong>the</strong> release <strong>of</strong> <strong>the</strong> Investment<br />

Policy Framework for Susta<strong>in</strong>able Development (IPFSD), with eleven core pr<strong>in</strong>ciples<br />

(seen <strong>in</strong> Figure 2.2), and a national framework for action and a guid<strong>in</strong>g manual; this has<br />

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been <strong>the</strong> ma<strong>in</strong> <strong>the</strong>me <strong>of</strong> its flagship publication World Investment Report, 2012 Towards<br />

a New Generation <strong>of</strong> Investment Policies. A dedicated website was launched, along<br />

with an onl<strong>in</strong>e dialogue platform. 1<br />

Figure 2.2 UNCTAD IPFSD Core Pr<strong>in</strong>ciples<br />

1-3<br />

• Investment for susta<strong>in</strong>able development(+ <strong>in</strong>clusive growth).<br />

• Policy coherence (with<strong>in</strong> country’s overall development strategy)<br />

• Public governance & <strong>in</strong>stitutions (with all stakeholders)<br />

4-7<br />

• Dynamic policymak<strong>in</strong>g (regularly reviewed)<br />

• Balanced rights & obligations (states& <strong>in</strong>vestors).<br />

• Right to regulate for foreign <strong>in</strong>vestment ( subject to <strong>in</strong>ternational commitments).<br />

• Openness to <strong>in</strong>vestment (predictable entry conditions for <strong>in</strong>vestment).<br />

8-11<br />

• Investment protection & treatment (non-discrim<strong>in</strong>atory treatment).<br />

• Investment promotion & facilitation (aligned with susta<strong>in</strong>able development).<br />

• Corporate governance & responsibility (based on <strong>in</strong>ternational practices).<br />

• International cooperation (shared <strong>in</strong>vestment-for development & avoidance <strong>of</strong> protectionism).<br />

Investment promotion is an <strong>in</strong>tegral component <strong>of</strong> <strong>the</strong> core pr<strong>in</strong>ciples that are <strong>in</strong><br />

l<strong>in</strong>e with this pronounced policy focus. Countries are respond<strong>in</strong>g differently to this<br />

<strong>in</strong>itiative, which is becom<strong>in</strong>g <strong>the</strong> ma<strong>in</strong>stream amongst <strong>the</strong> <strong>in</strong>ternational community. This<br />

will play a crucial part <strong>in</strong> shap<strong>in</strong>g <strong>the</strong> universe <strong>of</strong> IPAs and <strong>the</strong>ir future <strong>role</strong>, with <strong>social</strong><br />

<strong>media</strong>.<br />

1 http://<strong>in</strong>vestmentpolicyhub.unctad.org/Views/Public/IndexIPFSD.aspx<br />

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2.4 Investment Promotion Rational and Effectiveness:<br />

T<br />

heoretical and academic literature extensively provided <strong>the</strong> rationale for <strong>the</strong><br />

establishment <strong>of</strong> IPAs, as public policy vehicles to address <strong>in</strong>formation<br />

asymmetry caused by market failure, and perception gaps on <strong>the</strong> country’s<br />

<strong>in</strong>vestment climate.<br />

IPAs are considered an “<strong>in</strong>terface” between private and public sectors (Wells &<br />

W<strong>in</strong>t, 2000, p. 4), which makes <strong>in</strong>vestment promotion a “public good” (Wells & W<strong>in</strong>t,<br />

2000, p. 164).<br />

This is reiterated by MIGA, which, supported by empirical evidence, suggested<br />

that IPAs with good quality <strong>in</strong>vestor <strong>in</strong>formation, can <strong>in</strong>fluence <strong>in</strong>vestors’ location<br />

decisions, especially <strong>in</strong> <strong>the</strong> long list<strong>in</strong>g stage (MIGA, 2006, p. 1).<br />

In <strong>the</strong> same token, UNCTAD def<strong>in</strong>ed IPAs as <strong>the</strong> <strong>in</strong>stitutions <strong>in</strong> charge <strong>of</strong><br />

deliver<strong>in</strong>g <strong>in</strong>creased levels <strong>of</strong> “welfare” through <strong>the</strong> attraction <strong>of</strong> FDI. They are<br />

established to address issues <strong>of</strong> market failure <strong>of</strong> public goods and services, impact <strong>of</strong><br />

externalities, <strong>in</strong>formation and coord<strong>in</strong>ation problems (UNCTAD, 2008, pp. 1, 11).<br />

A study confirmed that IPAs are <strong>in</strong>strumental <strong>in</strong> enhanc<strong>in</strong>g public sector<br />

competitiveness because <strong>the</strong>y conduct location market<strong>in</strong>g (dest<strong>in</strong>ation/place market<strong>in</strong>g),<br />

which implies <strong>the</strong> use <strong>of</strong> market<strong>in</strong>g pr<strong>in</strong>ciples to attract foreign <strong>in</strong>vestors <strong>in</strong>to <strong>the</strong>ir host<br />

countries (Kachwamba, 2011, p. 79).<br />

Philip Kotler and David Gerner (2002) discussed brand<strong>in</strong>g a country, and <strong>the</strong> <strong>role</strong><br />

<strong>of</strong> strategic place market<strong>in</strong>g management <strong>in</strong> promot<strong>in</strong>g <strong>the</strong> country’s image <strong>in</strong> <strong>the</strong> global<br />

market-place. They concluded that <strong>the</strong> country’s image is likely to <strong>in</strong>fluence decisions<br />

related to purchas<strong>in</strong>g, <strong>in</strong>vest<strong>in</strong>g, resid<strong>in</strong>g or travell<strong>in</strong>g. Therefore, brand<strong>in</strong>g <strong>the</strong> country<br />

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must be based on a “shared vision” by governments, citizens and bus<strong>in</strong>esses. The<br />

country marketers (promoters) must understand how companies make <strong>the</strong>ir <strong>in</strong>vestment<br />

decision, and <strong>the</strong>ir location site selection. They reiterated that, based on numerous<br />

cases, <strong>the</strong> <strong>in</strong>vestment decision is highly <strong>in</strong>fluenced by <strong>the</strong> market performance <strong>of</strong> <strong>the</strong><br />

IPA, and <strong>the</strong> commitment government support (Kotler & Gerne, 2002, pp. 250,254,257-<br />

258).<br />

It was important to review a host <strong>of</strong> scholarly work that tackles <strong>the</strong> issue <strong>of</strong> <strong>the</strong><br />

effectiveness <strong>of</strong> IPAs, determ<strong>in</strong><strong>in</strong>g different variables, and us<strong>in</strong>g alternative econometric<br />

and statistical methods; a summary <strong>of</strong> <strong>the</strong> f<strong>in</strong>d<strong>in</strong>gs is presented <strong>in</strong> Table 2.3 to facilitate<br />

comparisons.<br />

Table 2.3 Summary <strong>of</strong> Research on IPAs Effectiveness<br />

Author<br />

Wells & W<strong>in</strong>t<br />

(Wells & W<strong>in</strong>t,<br />

1990, p. 57)<br />

Wells & W<strong>in</strong>t<br />

(Wells & W<strong>in</strong>t,<br />

2000)<br />

Morisset &<br />

Johnson, (Morriset<br />

& Andrews-<br />

Johnson, 2004, pp.<br />

ix, xi,101)<br />

Charlton & Davis<br />

(Charlton & Davis,<br />

2007)<br />

Hard<strong>in</strong>g &<br />

Javorcik (Hard<strong>in</strong>g<br />

& Javorcik, 2011,<br />

F<strong>in</strong>d<strong>in</strong>gs<br />

For every <strong>in</strong>crease <strong>of</strong> 10% <strong>in</strong> promotion expenditures it could yield<br />

on average a 2.5% <strong>in</strong>crease <strong>in</strong> FDI i.e. an expenditure <strong>of</strong> US$<br />

60,000 on promotion could yield around US$ 5 million <strong>in</strong>crease <strong>in</strong><br />

FDI.<br />

Total promotional cost (for both image build<strong>in</strong>g and <strong>in</strong>vestment<br />

generation) for attract<strong>in</strong>g one job from FDI is around US$ 570 but it<br />

yields a benefit <strong>of</strong> US$ 1,917 (<strong>in</strong> present value terms) to <strong>the</strong> country.<br />

IPA effectiveness is positively correlated with <strong>the</strong> quality <strong>of</strong><br />

<strong>in</strong>vestment climate, and level <strong>of</strong> development <strong>of</strong> <strong>the</strong> country.<br />

The cost <strong>of</strong> promotion per job created is estimated around US$400–<br />

600.<br />

Expenditure on policy advocacy produces <strong>the</strong> highest returns per<br />

dollar spent, followed by image build<strong>in</strong>g, <strong>in</strong>vestor services, and <strong>the</strong><br />

last is <strong>in</strong>vestment-generat<strong>in</strong>g activities.<br />

A dollar spent on <strong>in</strong>vestment promotion could yield a better return<br />

than a dollar provided as a subsidy or a dollar given up through a tax<br />

<strong>in</strong>centive program.<br />

Focus<strong>in</strong>g on target<strong>in</strong>g sectors by IPAs attract more FDI than those<br />

perform<strong>in</strong>g general promotion, this is even more significant <strong>in</strong><br />

develop<strong>in</strong>g countries than advanced countries.<br />

Sector-target<strong>in</strong>g had <strong>in</strong>creased <strong>the</strong> FDI <strong>in</strong>flows growth rate by 41%<br />

<strong>in</strong>to that specific sector.<br />

In develop<strong>in</strong>g countries, targeted sectors received 155% more FDI<br />

than <strong>the</strong> non-targeted sectors.<br />

For an IPA spend<strong>in</strong>g <strong>of</strong> US$90,000 per sector targeted, a dollar<br />

spent on <strong>in</strong>vestment promotion leads to US $189 <strong>of</strong> FDI <strong>in</strong>flows,<br />

br<strong>in</strong>g<strong>in</strong>g a dollar <strong>of</strong> FDI <strong>in</strong>flows costs half a cent <strong>in</strong> <strong>in</strong>vestment<br />

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pp. 1446-7, 1472-<br />

3)<br />

promotion expenditures.<br />

Targeted sectors showed 68% <strong>in</strong>crease <strong>in</strong> <strong>the</strong>ir employment with an<br />

estimated additional 1,159 jobs created on average <strong>in</strong> this sector , at<br />

an equivalent cost <strong>of</strong> US $78 per job created.<br />

These calculations capture only <strong>the</strong> effect <strong>of</strong> target<strong>in</strong>g FDI from <strong>the</strong><br />

USA <strong>in</strong>to <strong>the</strong> develop<strong>in</strong>g countries.<br />

They referred to <strong>the</strong> value <strong>of</strong> productivity spillovers from FDI as cited<br />

by Haskel et al. (2007), to be equal to US$4,300 (<strong>in</strong> 2000 prices) per<br />

job created by foreign affiliate.<br />

I tend to agree with <strong>the</strong> f<strong>in</strong>d<strong>in</strong>gs that IPAs promotional efforts are more effective,<br />

when target<strong>in</strong>g sectors, ra<strong>the</strong>r than general promotion, and more so <strong>in</strong> develop<strong>in</strong>g<br />

countries that usually have weaker <strong>in</strong>formation asymmetry and perception gaps, and<br />

that IPAs are <strong>in</strong>strumental <strong>in</strong> mitigat<strong>in</strong>g this risk. However, <strong>the</strong> cost-benefit analysis or<br />

dollar value per job created <strong>in</strong> <strong>the</strong>se studies is open to scrut<strong>in</strong>y as it seems casespecific,<br />

and cannot be generalized; but it preserves its demonstrative evidence worth.<br />

2.5 The Role <strong>of</strong> <strong>the</strong> Internet and Websites:<br />

A<br />

no<strong>the</strong>r milestone f<strong>in</strong>d<strong>in</strong>g <strong>in</strong> <strong>the</strong> UNCTAD (2001) “basel<strong>in</strong>e” survey, is<br />

that IPAs which were <strong>the</strong> first to adopt modern technology hardware and<br />

s<strong>of</strong>tware programs, <strong>in</strong> addition to <strong>the</strong> use <strong>of</strong> <strong>the</strong> <strong>in</strong>ternet, at <strong>the</strong> time <strong>of</strong><br />

<strong>the</strong> survey:<br />

“…brought significant changes <strong>in</strong> how <strong>in</strong>vestment promotion is<br />

done. It can be expected that agencies, which moved <strong>in</strong> <strong>the</strong><br />

forefront <strong>of</strong> <strong>the</strong>se technological changes have managed to benefit<br />

from <strong>the</strong>ir lead, but it is an area <strong>in</strong> which IPAs cont<strong>in</strong>uously need to<br />

upgrade <strong>the</strong>mselves to stay ahead <strong>of</strong> <strong>the</strong> competition”.<br />

[(UNCTAD, 2001, p. 9)]<br />

Therefore, while <strong>the</strong> rise <strong>of</strong> <strong>the</strong> <strong>in</strong>ternet has made <strong>the</strong> IPAs websites ano<strong>the</strong>r<br />

crucial channel <strong>of</strong> promotion, it also accorded more divergence. When IPAs <strong>in</strong> <strong>the</strong><br />

OECD countries were us<strong>in</strong>g <strong>the</strong>ir websites as a functional research and market<strong>in</strong>g tool,<br />

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IPAs <strong>in</strong> most develop<strong>in</strong>g groups were merely us<strong>in</strong>g <strong>the</strong>ir websites as “display w<strong>in</strong>dows”<br />

with static <strong>in</strong>formation; whereas <strong>in</strong> some o<strong>the</strong>r least develop<strong>in</strong>g countries <strong>the</strong>re were still<br />

IPAs with no access to nei<strong>the</strong>r <strong>the</strong> <strong>in</strong>ternet, nor have websites (UNCTAD, 2001, pp. 9 -<br />

10).<br />

IPAs websites are considered to be a source <strong>of</strong> key <strong>in</strong>vestment <strong>in</strong>formation,<br />

<strong>in</strong>clud<strong>in</strong>g: FDI law <strong>in</strong>centives and guarantees, open sectors for FDI; services <strong>of</strong>fered to<br />

potential <strong>in</strong>vestors, events and news, bus<strong>in</strong>ess environment, factor costs,<br />

macroeconomic data, and legal and regulatory framework.<br />

In this regard, and based on <strong>the</strong> survey f<strong>in</strong>d<strong>in</strong>gs (UNCTAD, 2001), and <strong>the</strong><br />

technological advancement recorded over <strong>the</strong> last decade, <strong>the</strong> development path <strong>of</strong> <strong>the</strong><br />

<strong>in</strong>ternet and websites utilization amongst various economic groups was divided <strong>in</strong>to<br />

three generations as seen <strong>in</strong> Table 2.4, with <strong>the</strong> fourth added later on.<br />

Table 2.4 IPAs Websites Development<br />

First generation<br />

Passive use <strong>of</strong> Internet facilities and options.<br />

Second Generation<br />

Third Generation<br />

Fourth Generation<br />

Demonstrate more proactive uses <strong>of</strong> <strong>the</strong> Internet, both <strong>in</strong> terms <strong>of</strong><br />

market<strong>in</strong>g outreach and research on potential <strong>in</strong>vestors.<br />

Provide more <strong>in</strong>-depth <strong>in</strong>formation and analysis, detailed comparisons <strong>of</strong><br />

factor costs (labor, utilities) update and add new content cont<strong>in</strong>uously.<br />

Offer <strong>in</strong>formation sorted for <strong>the</strong> user based on personal preferences as<br />

users could create a personalized, customized experience <strong>of</strong> <strong>the</strong> site.<br />

(TheBus<strong>in</strong>essReview, 2012)<br />

This is concomitant with <strong>the</strong> Web tools evolution path: Web 1.0 (1990-2000)<br />

newsletters, archives, alerts, and events list<strong>in</strong>gs; Web 2.0 (2000 – 2010) utilization <strong>of</strong><br />

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Search Eng<strong>in</strong>e Optimization (SEO), <strong>social</strong> <strong>media</strong>, and smart Mobile phones<br />

applications. The next step will be towards Web 3.0 (2010-2020), and Web 4.0 (2020-<br />

2030), as seen <strong>in</strong> Figure 2.3, with <strong>the</strong> Web becom<strong>in</strong>g more:<br />

“…connected, open, and <strong>in</strong>telligent, with semantic Web technologies,<br />

distributed databases, natural language process<strong>in</strong>g, mach<strong>in</strong>e learn<strong>in</strong>g,<br />

mach<strong>in</strong>e reason<strong>in</strong>g, and autonomous agents.”<br />

[ (Spivack, 2006)]<br />

Figure 2.3 Spivack Web Graph<br />

Lozada & Fishler (2005), launched an <strong>in</strong>vestigation to study <strong>the</strong> impact <strong>of</strong> <strong>the</strong><br />

content and design <strong>of</strong> IPAs website on <strong>the</strong>ir efforts to attract <strong>in</strong>vestors or promote<br />

<strong>in</strong>vestment opportunities to <strong>in</strong>crease FDI <strong>in</strong>flows. They also attempted to detect to what<br />

extent <strong>the</strong> noted differences <strong>in</strong> <strong>the</strong> websites (attributes, content, and appearance) could<br />

be related to cultural differences. They used a comb<strong>in</strong>ed scheme based on four cross-<br />

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cultural dimensions from H<strong>of</strong>stadter’s 2 (<strong>in</strong>dividualism /collectivism; high/low power<br />

distance; uncerta<strong>in</strong>ty avoidance; mascul<strong>in</strong>ity/fem<strong>in</strong><strong>in</strong>ity), and Hall’s one dimension<br />

(high/low context) 3 (Lozada & Fishler, 2005, p. 29).<br />

The results were confirmed by Lozada & Kritz (2007) who concluded that<br />

countries at a higher level <strong>of</strong> economic development tended to demonstrate better<br />

website functionality and communicability. They also found a Western <strong>in</strong>fluence<br />

convergence and homogenization <strong>in</strong> <strong>the</strong> content <strong>of</strong> IPAs websites, regardless <strong>of</strong> <strong>the</strong><br />

country’s <strong>in</strong>come group. They acknowledged that more future study is required on <strong>the</strong><br />

cultural dimensions <strong>of</strong> IPAs websites (Lozada & Kritz, 2007, p. 17).<br />

The <strong>in</strong>ternet and <strong>the</strong> websites have been <strong>in</strong>creas<strong>in</strong>gly seen to ga<strong>in</strong> prom<strong>in</strong>ence<br />

amongst various market<strong>in</strong>g mix tools, as perceived by corporate executives and location<br />

advisors <strong>in</strong> USA and Canada work<strong>in</strong>g with Economic Development Organizations<br />

(EDOs), which have similar tasks to IPAs. The results were reported by <strong>the</strong><br />

Development Counselors International (DCI), <strong>in</strong> its last annual survey, which revealed<br />

that <strong>the</strong> <strong>in</strong>ternet/website effectiveness has risen from 18% <strong>in</strong> 1996 to 55% <strong>in</strong> 2011;<br />

whereas <strong>the</strong> top most effective market<strong>in</strong>g technique rema<strong>in</strong>ed planned visits to<br />

corporate executives(57% <strong>in</strong> 2011, 53% <strong>in</strong> 1996), as seen <strong>in</strong> <strong>the</strong> Table 2.5. (DCI, 2011,<br />

p. 13).<br />

2 Geert H<strong>of</strong>stadter developed cultural dimensions <strong>the</strong>ory <strong>in</strong>1967; cont<strong>in</strong>ued to add more dimensions to <strong>in</strong>clude a long term/short<br />

term orientation <strong>in</strong> 2002 and <strong>in</strong> 2010 a sixth dimension: <strong>in</strong>dulgence versus restra<strong>in</strong>t His f<strong>in</strong>d<strong>in</strong>gs helped <strong>in</strong> better understand<strong>in</strong>g <strong>the</strong><br />

<strong>in</strong>tercultural differences with<strong>in</strong> regions and between countries.<br />

3 Edward Hall an anthropologist who contribution to key cultural factors s<strong>in</strong>ce 1959; known for his high and low context cultural<br />

factors.<br />

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Table 2.5 DCI Most Effective Market<strong>in</strong>g Tools<br />

This encouraged IPAs to <strong>in</strong>crease <strong>the</strong>ir onl<strong>in</strong>e <strong>in</strong>vestment promotion through <strong>the</strong>ir<br />

websites. The <strong>in</strong>formation collected by <strong>the</strong> World Bank <strong>in</strong> its flagship Global Investment<br />

Promotion Benchmark<strong>in</strong>g (GIPB) Reports (2006, 2009, and 2012), revealed that out <strong>of</strong><br />

189 IPAs assessed <strong>in</strong> GIPB 2012, <strong>the</strong>re were 8 with no websites from <strong>the</strong> least<br />

developed countries; compared to 16 IPAs out <strong>of</strong> 181 (GIPB 2009), and 5 out 125<br />

IPAs (GIPB 2006).<br />

In <strong>the</strong>se reports, two facilitation functions <strong>of</strong> <strong>the</strong> IPAs were benchmarked, with<br />

equal weight <strong>in</strong> <strong>the</strong> overall score, but not with<strong>in</strong> <strong>the</strong> elements <strong>of</strong> each: website (content<br />

50%, promotional effectiveness 30%, <strong>in</strong>formation architecture 10%, and design 10%),<br />

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and handl<strong>in</strong>g <strong>in</strong>vestors <strong>in</strong>quiries (response 55%, customer care 20%, responsiveness &<br />

handl<strong>in</strong>g 15%, availability & contactability 10%) (WBG, 2012, pp. 17-18, 41-42).<br />

A recent study by Hard<strong>in</strong>g & Javorcik utiliz<strong>in</strong>g <strong>the</strong> GIPB Reports is noteworthy<br />

because <strong>of</strong> its well structured methodology, crucial conclusions, and pioneer<strong>in</strong>g policy<br />

implications (Hard<strong>in</strong>g & Javorcik, 2011, first draft). The data for <strong>the</strong> study was chosen<br />

from <strong>the</strong> published scores <strong>of</strong> <strong>the</strong> two facilitation functions for 156 IPAs.<br />

The study <strong>of</strong>fered what I believe is a fundamental f<strong>in</strong>d<strong>in</strong>g, that, controll<strong>in</strong>g for<br />

country-specific characteristics, a country with an IPA overall score <strong>of</strong> 60% received on<br />

average 25% more FDI <strong>in</strong>flows than a country with an IPA overall score <strong>of</strong> 45%; this<br />

means a one unit <strong>in</strong>crease <strong>in</strong> <strong>the</strong> GIPB’s overall score is associated with a 1.5%<br />

<strong>in</strong>crease <strong>in</strong> FDI <strong>in</strong>flows, statistically significant at both 1% and 5% levels.<br />

This is associated with serious policy implications for IPAs to pay attention to<br />

<strong>the</strong>ir websites content and <strong>in</strong> handl<strong>in</strong>g <strong>in</strong>quiries that will eventually support <strong>the</strong> <strong>in</strong>vestor’s<br />

decision process to achieve more FDI <strong>in</strong>flows (Hard<strong>in</strong>g & Javorcik, 2011, pp. 10 , 11).<br />

Figure 2.4 compares regional scores <strong>in</strong> GIPB reports (2006, 2009, 2012). Dur<strong>in</strong>g<br />

this period, <strong>the</strong> OECD countries have ma<strong>in</strong>ta<strong>in</strong>ed <strong>the</strong> lead amongst o<strong>the</strong>r groups (64%<br />

<strong>in</strong> GIPB2012); <strong>the</strong> MENA region showed <strong>the</strong> most improvement (42% compared to 31%<br />

<strong>in</strong> GIPB 2006), and <strong>the</strong> weakest region rema<strong>in</strong>ed sub-Saharan Africa (25%).<br />

Figure 2.4 The World Bank GIPB Scores by Region<br />

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3 Chapter Three: Literature Review on Social Media<br />

3.1 Social Media Def<strong>in</strong>ition:<br />

M<br />

angold & Faulds (2009) cited Blackshaw & Nazzaro (2004) def<strong>in</strong>ition <strong>of</strong><br />

<strong>social</strong> <strong>media</strong>, which describes it as:<br />

“ a variety <strong>of</strong> new sources <strong>of</strong> onl<strong>in</strong>e <strong>in</strong>formation that are created,<br />

<strong>in</strong>itiated, circulated and used by consumers <strong>in</strong>tent on educat<strong>in</strong>g<br />

each o<strong>the</strong>r about products, brands, services, personalities, and<br />

issues’’.<br />

[(Mangold & Faulds, 2009, p. 358)]<br />

Kaplan & Haenle<strong>in</strong> (2010) tried to establish a more encompass<strong>in</strong>g def<strong>in</strong>ition <strong>of</strong><br />

<strong>social</strong> <strong>media</strong> to address cont<strong>in</strong>uous technological advances as be<strong>in</strong>g:<br />

"…a group <strong>of</strong> Internet-based applications that build on <strong>the</strong><br />

ideological and technological foundations <strong>of</strong> <strong>the</strong> Web 2.0 that allow<br />

<strong>the</strong> creation and exchange <strong>of</strong> user generated content”.<br />

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Low<br />

Self presentation /<br />

Self disclosure<br />

High<br />

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[(Kaplan & Haenle<strong>in</strong>, 2010, pp. 61-62)]<br />

They def<strong>in</strong>ed six categories <strong>of</strong> <strong>social</strong> <strong>media</strong>, by creat<strong>in</strong>g a classification scheme<br />

that <strong>in</strong>corporates <strong>the</strong> relevance and strength <strong>of</strong> <strong>social</strong> <strong>media</strong>, based on cross-cutt<strong>in</strong>g<br />

<strong>the</strong>ories <strong>of</strong> <strong>media</strong> research (<strong>social</strong> presence, <strong>media</strong> richness) and <strong>social</strong> processes<br />

(self-presentation, self-disclosure). The result<strong>in</strong>g classification matrix, seen <strong>in</strong> Table 3.1,<br />

is <strong>in</strong>tended to equally apply to exist<strong>in</strong>g as well as <strong>the</strong> upcom<strong>in</strong>g new <strong>social</strong> <strong>media</strong><br />

(Kaplan & Haenle<strong>in</strong>, 2010, pp. 60-61).<br />

Table 3.1 Kaplan & Haenle<strong>in</strong> Classification Scheme <strong>of</strong> Social Media Types<br />

Social presence / Media richness<br />

Low Medium High<br />

Blogs<br />

Social Network<strong>in</strong>g<br />

Sites<br />

Virtual Social<br />

Worlds<br />

Collaborative<br />

Projects<br />

Content Communities<br />

Virtual game<br />

worlds<br />

Ano<strong>the</strong>r <strong>in</strong>terest<strong>in</strong>g def<strong>in</strong>ition from Anthony J. Bradley 4 , who reviewed 400 cases,<br />

and analyzed 200 successful implementation with<strong>in</strong> <strong>the</strong>m over a span <strong>of</strong> n<strong>in</strong>e months <strong>in</strong><br />

2009, came up with a def<strong>in</strong>ition that <strong>social</strong> <strong>media</strong> is:<br />

“A set <strong>of</strong> technologies and channels targeted at form<strong>in</strong>g and<br />

enabl<strong>in</strong>g a potentially massive community <strong>of</strong> participants to<br />

productively collaborate”.<br />

[ (Bradley, 2010 a)]<br />

4 IT expert and a group vice president <strong>in</strong> Gartner Research, which is is <strong>the</strong> lead<strong>in</strong>g global provider <strong>of</strong> <strong>in</strong>dependent and objective ,<br />

technology related research and advice with followers at Twitter <strong>of</strong> 114,492.<br />

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Bradley (2010 a) also identified six core pr<strong>in</strong>ciples for <strong>social</strong> <strong>media</strong> that<br />

dist<strong>in</strong>guishes it from o<strong>the</strong>r forms <strong>of</strong> communication or collaboration, namely:<br />

participation, collectiveness, transparency, <strong>in</strong>dependence, persistency, and emergence.<br />

In ano<strong>the</strong>r article, Bradley (2010 b) added that <strong>the</strong> ma<strong>in</strong> philosophy that applies<br />

to all <strong>social</strong> <strong>media</strong> is to be “true to <strong>the</strong> community” and that <strong>the</strong>re is no risk to community<br />

participation”, which is <strong>the</strong> core <strong>of</strong> <strong>social</strong> <strong>media</strong> engagement (Bradley, 2010 b).<br />

David Armano 5 , an <strong>in</strong>fluential expert on <strong>the</strong> subject, referred to <strong>social</strong> <strong>media</strong><br />

as <strong>the</strong> “construction <strong>of</strong> connectivness”; he differentiated between digital and <strong>social</strong>,<br />

thus he described <strong>the</strong> current situation as <strong>the</strong> “Digital Social Revolution”.<br />

He also believes that <strong>the</strong> age <strong>of</strong> “<strong>social</strong> bus<strong>in</strong>ess” is about to come. Figure 3.1<br />

shows <strong>the</strong> evolution path towards that <strong>social</strong> bus<strong>in</strong>ess model, where “new connections”<br />

are formed based on new advances and are successfully realized through connected,<br />

adaptive, and <strong>in</strong>telligent systems, to <strong>the</strong> mutual benefit <strong>of</strong> all stakeholders: bus<strong>in</strong>esses,<br />

customers, employees and shareholders. (Armano, 2012)<br />

Figure 3.1 Armano’s Evolution <strong>of</strong> Social Bus<strong>in</strong>ess<br />

5 Manag<strong>in</strong>g Director <strong>of</strong> Edelman Digital Chicago. This is his personal digital property where he shares <strong>in</strong>sights, ideas and op<strong>in</strong>ions<br />

on do<strong>in</strong>g bus<strong>in</strong>ess <strong>in</strong> a connected age. His Klout score is 78.<br />

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Solis (2011), a lead<strong>in</strong>g blogger, def<strong>in</strong>ed <strong>social</strong> <strong>media</strong> to be an onl<strong>in</strong>e tool that<br />

serves as platform for “<strong>social</strong>ization” <strong>of</strong> <strong>media</strong>; it facilitates conversations, connections,<br />

collaboration, re-distribution <strong>of</strong> <strong>in</strong>fluence, and humaniz<strong>in</strong>g “personas” and audiences; it<br />

is both an “opportunity” and a “privilege”; it created an “ecosystem” that supports fullfledged<br />

cultures and lifestyles.<br />

He added that <strong>social</strong> <strong>media</strong> allowed for <strong>the</strong> “democratization” <strong>of</strong> <strong>in</strong>formation, as<br />

people become “content creators”, through engag<strong>in</strong>g <strong>in</strong> conversations on various<br />

network<strong>in</strong>g channels. He considers “crowd sourc<strong>in</strong>g” as <strong>the</strong> factor that determ<strong>in</strong>es <strong>the</strong><br />

onl<strong>in</strong>e visibility and popularity <strong>of</strong> <strong>social</strong> <strong>media</strong>.<br />

However, he expla<strong>in</strong>ed that <strong>social</strong> <strong>media</strong> is more than technology; it is sociology,<br />

anthropology, and ethnography; this is so because it has <strong>in</strong>creas<strong>in</strong>gly <strong>in</strong>volved<br />

psychometrics (<strong>in</strong>terests, activities, op<strong>in</strong>ions, tastes, preferences, passions) over<br />

demographics (age, gender, location) (Solis, 2011, pp. 20-21, 33).<br />

Consider<strong>in</strong>g <strong>the</strong> impact <strong>of</strong> such upcom<strong>in</strong>g changes like “Social Bus<strong>in</strong>ess”<br />

illustrates, br<strong>in</strong>gs to m<strong>in</strong>d Thomas Friedman’s epic book where he astutely identified <strong>the</strong><br />

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ten flatteners, listed <strong>in</strong> Table 3.2, which, <strong>in</strong> his view, re<strong>in</strong>forced each o<strong>the</strong>r especially<br />

after <strong>the</strong> year 2000 (Y2K) land<strong>in</strong>g <strong>the</strong> third generation <strong>of</strong> globalization (G 3.0) with webenabled<br />

platforms <strong>in</strong> multiple forms, connect<strong>in</strong>g people regardless <strong>of</strong> distance, time, or<br />

language (Friedman, 2005, pp. 52-199).<br />

Table 3.2 Friedman’s Ten Flatteners<br />

Flattener #1 11/9/89 The fall <strong>of</strong> <strong>the</strong> Berl<strong>in</strong> wall: liberalization.<br />

Flattener #2 8/9/95 Netscape went public: shift from PC-based to Internet-based platform.<br />

Flattener #3<br />

Work Flow S<strong>of</strong>tware platforms enabl<strong>in</strong>g <strong>the</strong> creation <strong>of</strong> virtual global <strong>of</strong>fices.<br />

Flattener #4<br />

Upload<strong>in</strong>g Community Developed Open-source S<strong>of</strong>tware<br />

Flattener #5 31/12/1999 Outsourc<strong>in</strong>g enabled by Y2K problem <strong>of</strong> <strong>the</strong> millennium bug.<br />

Flattener #6 12/11/2000 Off shor<strong>in</strong>g: Ch<strong>in</strong>a <strong>in</strong> WTO<br />

Flattener #7<br />

Supply-Cha<strong>in</strong><strong>in</strong>g: horizontal collaboration to create value<br />

Flattener #8<br />

In sourc<strong>in</strong>g: synchroniz<strong>in</strong>g global supply cha<strong>in</strong>s<br />

Flattener #9<br />

In-Form<strong>in</strong>g: Google, Yahoo!, and MSN Web Search<br />

Flattener #10<br />

The Steroids: Digital, Mobile, Personal, and Virtual<br />

Friedman concluded by <strong>in</strong>dicat<strong>in</strong>g that “steroids” made it possible for all forms <strong>of</strong><br />

collaboration (outsourc<strong>in</strong>g, <strong>of</strong>f shor<strong>in</strong>g, <strong>in</strong>-sourc<strong>in</strong>g, open-sourc<strong>in</strong>g, supply-cha<strong>in</strong><strong>in</strong>g, and<br />

<strong>in</strong>-form<strong>in</strong>g) to come toge<strong>the</strong>r; however he warned from risks aris<strong>in</strong>g o<strong>the</strong>r than<br />

technology, if <strong>the</strong>y were not dealt with properly, like terrorism (Friedman, 2005, pp. 634-<br />

5).<br />

In <strong>the</strong> book that followed “Flat, Hot and Crowded” (2008), Friedman tackled<br />

fur<strong>the</strong>r <strong>the</strong> issue <strong>of</strong> technology <strong>in</strong> relevance to energy, say<strong>in</strong>g that both will equally have<br />

transformative and disruptive effects; with ris<strong>in</strong>g concerns on environment, he believes<br />

<strong>the</strong> USA will be lead<strong>in</strong>g with a Green New Deal. (Friedman, 2008)<br />

A more relevant reference he made specifically to <strong>social</strong> <strong>media</strong>, <strong>in</strong> an article he<br />

published <strong>in</strong> New York Times (2011), was:<br />

” I wrote about <strong>the</strong> connected world <strong>in</strong> 2004, argu<strong>in</strong>g that <strong>the</strong> world<br />

had gotten ‘flat.’ When I made that argument, though, Facebook<br />

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barely existed — and Twitter, cloud comput<strong>in</strong>g, iPhones, L<strong>in</strong>kedIn,<br />

iPods, <strong>the</strong> ‘applications’ <strong>in</strong>dustry and Skype had ei<strong>the</strong>r not been<br />

<strong>in</strong>vented or were <strong>in</strong> <strong>the</strong>ir <strong>in</strong>fancy. Now <strong>the</strong>y are explod<strong>in</strong>g, tak<strong>in</strong>g us<br />

from connected to hyper-connected.” (Friedman, 2011)<br />

Social <strong>media</strong> <strong>in</strong>cludes various channels for network<strong>in</strong>g platforms (Six Degrees,<br />

L<strong>in</strong>kedIn, My space, Facebook), content shar<strong>in</strong>g <strong>of</strong> <strong>in</strong>formation (blogg<strong>in</strong>g, micro<br />

blogg<strong>in</strong>g, slide share), photos (Flickr, Instigram), videos (YouTube, podcasts, slide<br />

casts), news/bookmark<strong>in</strong>g (Delicious, Digg, and Reddit), <strong>social</strong> games <strong>in</strong>teraction<br />

(World <strong>of</strong> War Craft, Sims, Star Craft, Second Life), real time updates (Twitter), o<strong>the</strong>r life<br />

stream<strong>in</strong>g (dedicated blog plug- <strong>in</strong>s, Ustream.tv, Just<strong>in</strong>.tv), iPhone <strong>social</strong> networks<br />

(iRovr) (webdesignerdepot, 2009).<br />

3.1.1 Social Media Usage:<br />

The global use <strong>of</strong> <strong>social</strong> <strong>media</strong> is steadily <strong>in</strong>creas<strong>in</strong>g, as seen <strong>in</strong> Figure 3.2, ris<strong>in</strong>g<br />

from 1.2 billion users to 1.85 billion by 2014, though at a decl<strong>in</strong><strong>in</strong>g rate. (eMarketer,<br />

2012)<br />

Figure 3.2 eMarketer Forecast for Social Media Growth<br />

(In billions and %)<br />

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A view on global and regional performance <strong>in</strong> <strong>social</strong> network use showed that<br />

<strong>the</strong> Middle East and Africa region had led <strong>the</strong> growth <strong>in</strong> 2011 (at a rate <strong>of</strong> 33.9%) ;<br />

followed by <strong>the</strong> Asia-Pacific region, with <strong>social</strong> network user growth record<strong>in</strong>g on<br />

average 27.5%.<br />

Both regions are expected to cont<strong>in</strong>ue to see double-digit percentage ga<strong>in</strong> till<br />

2014. By contrast, North America’s growth rate was subsid<strong>in</strong>g around 9.5% <strong>in</strong> 2011 and<br />

is expected to fall to 4% by 2014. Table 3.3 depicts this decl<strong>in</strong>e (eMarketer, 2012).<br />

Table 3.3 eMarketer Social Network User Growth (%) 2011-2014<br />

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As a <strong>social</strong> <strong>media</strong> platform, Facebook is one <strong>of</strong> <strong>the</strong> important <strong>social</strong> networks. Its<br />

penetration, <strong>in</strong> terms <strong>of</strong> total <strong>in</strong>ternet audience, has been steadily <strong>in</strong>creas<strong>in</strong>g <strong>in</strong> all<br />

geographic regions, as seen <strong>in</strong> Figure 3.3, with a global average ris<strong>in</strong>g from 12% <strong>in</strong><br />

December 2007 to 55% <strong>in</strong> December 2011. Two regions, MENA and Lat<strong>in</strong> America are<br />

close to North America score; however <strong>the</strong> low penetration <strong>in</strong> Asia Pacific could be<br />

attributed to homegrown adaptations (Qzon and S<strong>in</strong>a Weibo <strong>in</strong> Ch<strong>in</strong>a) (Comscorea,<br />

2012).<br />

Figure 3.3 ComScore Facebook Global Penetration Rate 2007-2011<br />

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Through <strong>the</strong> ComScore 6 Census Network, more than one trillion digital<br />

<strong>in</strong>teractions are collected and analyzed monthly <strong>in</strong> 172 countries across all k<strong>in</strong>ds <strong>of</strong><br />

platforms and devices, for ga<strong>the</strong>r<strong>in</strong>g metrics and <strong>in</strong>sight for leverag<strong>in</strong>g digital bus<strong>in</strong>ess.<br />

ComScore also launched <strong>the</strong> Digital Analytix ® Monetization module for assess<strong>in</strong>g<br />

viewable impressions as <strong>the</strong> onl<strong>in</strong>e advertis<strong>in</strong>g <strong>in</strong>dustry is advanc<strong>in</strong>g very fast <strong>in</strong> us<strong>in</strong>g<br />

<strong>social</strong> <strong>media</strong> tools and metrics (Comscoreb, 2012).<br />

Confirm<strong>in</strong>g this, <strong>the</strong> top 10 <strong>social</strong> <strong>media</strong> websites and forums <strong>in</strong> <strong>the</strong> USA market<br />

share by visits 7 , is led by Facebook, which rema<strong>in</strong>ed on top position <strong>in</strong> <strong>the</strong> USA at a<br />

6 Lead<strong>in</strong>g company <strong>in</strong> digital bus<strong>in</strong>ess analytics.<br />

7 The data featured is based on US market share <strong>of</strong> visits as def<strong>in</strong>ed by <strong>the</strong> Interactive Advertis<strong>in</strong>g Bureau (IAB) which is<br />

comprised <strong>of</strong> more than 500 lead<strong>in</strong>g <strong>media</strong> and technology companies that are responsible for sell<strong>in</strong>g 86% <strong>of</strong> onl<strong>in</strong>e advertis<strong>in</strong>g <strong>in</strong><br />

<strong>the</strong> United States. http://www.iab.net/about_<strong>the</strong>_iab<br />

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share <strong>of</strong> 63.4% <strong>in</strong> September 2012, as compared to September 2010, followed by<br />

YouTube (20.0% and 16.61%), and Twitter (1. 85% and 1.08%). The picture looked<br />

markedly different compared to results <strong>in</strong> September 2010, Figure 3.4, <strong>in</strong> terms <strong>of</strong><br />

volume <strong>of</strong> visits and k<strong>in</strong>d <strong>of</strong> <strong>social</strong> <strong>media</strong> that are <strong>in</strong> top places; Google+ was not even<br />

part <strong>of</strong> top ten <strong>in</strong> 2010. L<strong>in</strong>kedIn came <strong>in</strong> 8 th position at 0.69% rate, up from 10 th position<br />

<strong>in</strong> 2010 with a rate <strong>of</strong> 0.25%; it should be noted that if measurement <strong>of</strong> <strong>social</strong> <strong>media</strong> was<br />

done for o<strong>the</strong>r regions <strong>the</strong> results might be different, reflect<strong>in</strong>g different preferences<br />

(Market<strong>in</strong>gCharts, 2012).<br />

Figure 3.4 Market<strong>in</strong>g Charts Comparison <strong>of</strong> Top 10 Social Network<strong>in</strong>g Websites & Forums <strong>in</strong> <strong>the</strong> USA<br />

3.1.2 Corporate Social Media:<br />

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Companies have been leverag<strong>in</strong>g technology and digital tools to enhance<br />

productivity and returns; <strong>the</strong>y are now <strong>in</strong>creas<strong>in</strong>gly embrac<strong>in</strong>g <strong>social</strong> <strong>media</strong> to reach<br />

audiences and <strong>in</strong> perform<strong>in</strong>g several core activities, enhanced by application<br />

programm<strong>in</strong>g <strong>in</strong>terface (API) protocols that allows s<strong>of</strong>tware components to<br />

communicate with each o<strong>the</strong>r.<br />

The companies listen to <strong>the</strong> message: “It’s <strong>the</strong> NOW revolution. Speed W<strong>in</strong>s. Or<br />

kills”, as expressed by Jay Baer, Social Media Guru, who published <strong>the</strong> NOW<br />

Revolution book, on how to re-tool organizations to focus on real-time bus<strong>in</strong>ess flood<strong>in</strong>g<br />

through <strong>the</strong> various <strong>social</strong> <strong>media</strong> channels. He argued that companies must become<br />

faster and smarter and <strong>of</strong> course more “<strong>social</strong>” to succeed (conv<strong>in</strong>ceandconvert, 2012).<br />

Accord<strong>in</strong>g to a survey conducted by McK<strong>in</strong>sey <strong>in</strong> October 2011, <strong>the</strong> corporate<br />

use <strong>of</strong> digital tools to reach consumers favors website (78%) and e-mail communication<br />

(60%), while <strong>social</strong> <strong>media</strong> platforms ranked third (39%). 8 Never<strong>the</strong>less, look<strong>in</strong>g at <strong>the</strong><br />

next 2- 4 years forecast, digital tools will be more diffused, but with dist<strong>in</strong>ct supremacy<br />

for <strong>the</strong> <strong>social</strong> <strong>media</strong>, as its share is expected to rise to 47%, but expected to be second<br />

to mobile applications (Mob Apps), which are expected to witness a massive jump<br />

(48%), as seen <strong>in</strong> Figure 3.5 (McK<strong>in</strong>seyQuarterly, 2011).<br />

Figure 3.5 Mck<strong>in</strong>sey Digital Tools 2011 and Next 2 - 4 years<br />

8 The survey was conducted dur<strong>in</strong>g October 11-21, 2011 and received responses from 792 market<strong>in</strong>g executives <strong>in</strong> various sectors.<br />

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To measure engagement and assess how corporations are manag<strong>in</strong>g <strong>the</strong>ir <strong>social</strong><br />

<strong>media</strong>, Spredfast 9 , <strong>in</strong> cooperation with M<strong>in</strong>dwave Research 10 , launched <strong>the</strong> first Social<br />

Engagement Index Benchmark Report, on September, 2012. The <strong>in</strong>dex is based on<br />

seven key <strong>in</strong>dicators: number <strong>of</strong> users, groups, and messages; total activity, reach and<br />

engagements; and current network size (Fans, Followers, Connections or Subscribers a<br />

company has across all <strong>social</strong> network accounts). The key f<strong>in</strong>d<strong>in</strong>gs are:<br />

Companies total reach is expand<strong>in</strong>g through <strong>social</strong> <strong>media</strong> publish<strong>in</strong>g and<br />

activity estimated at 47 million impressions per quarter;<br />

Facebook experienced 10 times more engagement than Twitter;<br />

9 A lead<strong>in</strong>g <strong>social</strong> bus<strong>in</strong>ess s<strong>of</strong>tware provider for corporate <strong>social</strong> <strong>media</strong> management.<br />

10 An <strong>in</strong>novative company <strong>in</strong> research for quantitative and qualitative methodologies.<br />

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Twitter witnessed 3 times more company’s activities than Facebook;<br />

The Facebook fan base is 3 times bigger than Twitter fan base for large<br />

companies;<br />

Social <strong>media</strong> is not one person’s job but works better with<strong>in</strong> a <strong>social</strong> <strong>media</strong><br />

management system (SMMS);<br />

Social <strong>media</strong> is allow<strong>in</strong>g companies to better communicate with audiences;<br />

Jim Rudden, Spredfast CMO said about <strong>the</strong> Social Engagement Report:<br />

“As <strong>social</strong> programs become more strategic and complex, this<br />

report aims to track not only <strong>the</strong> trend towards centrally manag<strong>in</strong>g a<br />

company’s <strong>social</strong> presence, but also <strong>the</strong> most effective ways to<br />

engage <strong>social</strong> audiences….this report shows that <strong>the</strong>re is still work<br />

to be done <strong>in</strong> this area.”<br />

[ (SpredfastBloga, 2012)]<br />

Figure 3.4 displays an <strong>in</strong>fographic presentation <strong>of</strong> <strong>the</strong> Report data.<br />

(SpredfasBlogb, 2012)<br />

Table 3.4 Spredfast Infographic Presentation <strong>of</strong> Corporate Social Engagement<br />

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3.1.3 Social Media Actors:<br />

Social <strong>media</strong> networks have created new classes <strong>of</strong> actors classified accord<strong>in</strong>g<br />

to <strong>the</strong> <strong>in</strong>tensity and frequency <strong>of</strong> <strong>the</strong>ir <strong>social</strong> <strong>media</strong> engagement and collaboration.<br />

There are several classifications, but one <strong>of</strong> <strong>the</strong> most used is Forrester’s “Social<br />

Technographics®” ladder; it describes seven classes <strong>of</strong> actors depend<strong>in</strong>g on <strong>the</strong><br />

propensity to use <strong>social</strong> <strong>media</strong> platforms <strong>in</strong> various activities, thus mak<strong>in</strong>g <strong>the</strong>se<br />

classifications descriptive ra<strong>the</strong>r than for rat<strong>in</strong>g users. Table 3.5 and Figure 3.6<br />

respectively show ma<strong>in</strong> pr<strong>of</strong>ile <strong>of</strong> <strong>the</strong>se actors and <strong>the</strong>ir percentage <strong>of</strong> total users <strong>in</strong> <strong>the</strong><br />

USA (Forrester, 2011).<br />

Table 3.5 Forrester’s Social Technographics®<br />

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Creators<br />

Publish blogs;<br />

upload created<br />

videos or<br />

music or<br />

photos; writes<br />

and posts<br />

articles<br />

Blogs, forums,<br />

wikis, videos<br />

Power<br />

<strong>in</strong>fluencers<br />

Conversa-<br />

Tionalists<br />

Updates status<br />

on <strong>social</strong><br />

networks and<br />

posts on<br />

Twitter.<br />

Facebook,<br />

L<strong>in</strong>kedIn,<br />

Twitter<br />

Critics Collectors Jo<strong>in</strong>ers Spectators Inactives<br />

Comments on<br />

blogs;<br />

contributes to<br />

wikis;<br />

Provides rat<strong>in</strong>gs<br />

for products &<br />

services.<br />

Blogs, forums,<br />

twitter,<br />

Use RSS feeds;<br />

votes onl<strong>in</strong>e;<br />

tag photos or<br />

posts.<br />

Delicious, dig,<br />

stumbleupon,<br />

RSS<br />

Ma<strong>in</strong>ta<strong>in</strong> pr<strong>of</strong>ile<br />

on <strong>social</strong><br />

networks;<br />

Visit <strong>social</strong><br />

sites.<br />

Facebook,<br />

MySpace,<br />

L<strong>in</strong>kedIn,<br />

forums,<br />

message<br />

boards<br />

N<strong>in</strong>g platform<br />

Surf along Active & vocal Power users Share<br />

experience<br />

Read blogs and<br />

onl<strong>in</strong>e forums ;<br />

listen to music<br />

and watch<br />

videos created<br />

by o<strong>the</strong>rs; read<br />

rat<strong>in</strong>gs; read<br />

tweets.<br />

Blogs twitter<br />

Passionate<br />

readers<br />

None <strong>of</strong> <strong>the</strong><br />

above<br />

n.a.<br />

n.a.<br />

Figure 3.6 Forrester's Social Technographics® 2011<br />

0.8<br />

0.7<br />

0.6<br />

0.5<br />

68%<br />

73%<br />

0.4<br />

36% 36%<br />

0.3<br />

0.2<br />

0.1<br />

24%<br />

23%<br />

13%<br />

0<br />

Creators Conversa- Critics Collectors Jo<strong>in</strong>ers Spectators Inactives.<br />

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3.1.4 Social Media Term<strong>in</strong>ology and Tools:<br />

A new set <strong>of</strong> words have emerged to capture <strong>the</strong> essence <strong>of</strong> <strong>social</strong> <strong>media</strong>:<br />

engagement, communications, <strong>social</strong> graph, <strong>social</strong> comput<strong>in</strong>g, <strong>social</strong> design,<br />

convergence, collaboration, curation, and audiences; <strong>the</strong>se are but a few <strong>of</strong> <strong>the</strong> new<br />

term<strong>in</strong>ology “Buzz” words that pervade <strong>the</strong> <strong>social</strong> <strong>media</strong> universe.<br />

Curation is one <strong>of</strong> those key words <strong>in</strong> <strong>social</strong> <strong>media</strong> that is def<strong>in</strong>ed as:<br />

“… <strong>the</strong> selection, preservation, ma<strong>in</strong>tenance, collection, and<br />

archiv<strong>in</strong>g <strong>of</strong> digital assets.”<br />

[ (Curry, et al., 2010, p. 26) ]<br />

It is expected that content consumption and <strong>social</strong> network<strong>in</strong>g will converge <strong>in</strong>to<br />

a s<strong>in</strong>gle, parallel activity. Consumption <strong>of</strong> all types <strong>of</strong> content will be driven by <strong>social</strong><br />

<strong>media</strong> (Chawla, et al., 2011, p. 5).<br />

“Return on Conversation” (RoC) is <strong>the</strong> <strong>social</strong> <strong>media</strong> term used <strong>in</strong> addition to <strong>the</strong><br />

known bus<strong>in</strong>ess KPI Return on Investment (RoI). RoC measures how to be active <strong>in</strong><br />

conversations on several onl<strong>in</strong>e platforms (chats, videos, forums, comments, rat<strong>in</strong>g). It<br />

precludes users to first understand <strong>the</strong> norms, <strong>the</strong>n respond, engage, observe, look,<br />

listen, learn, share and create fans. This leads also to develop and use Social Client<br />

Relationship Management (SCRM) which is also based on listen<strong>in</strong>g, respond<strong>in</strong>g,<br />

connect<strong>in</strong>g, and collaborat<strong>in</strong>g (Evans, 2010, pp. 34-40, 235).<br />

The <strong>social</strong> graph is <strong>the</strong> collection <strong>of</strong> l<strong>in</strong>ks, relationships, <strong>in</strong>teractions and o<strong>the</strong>r<br />

connections that comprise <strong>social</strong> networks. The Facebook Open Graph provides<br />

developers with <strong>the</strong> opportunity to deeply <strong>in</strong>tegrate <strong>the</strong>ir applications <strong>in</strong>to <strong>the</strong> core<br />

Facebook experience, which enables distribution and growth (Facebook, 2012).<br />

Social Design def<strong>in</strong>es how users understand <strong>the</strong>mselves and each o<strong>the</strong>r; it is<br />

divided <strong>in</strong>to three core elements: identity (refers to user’s own sense <strong>of</strong> self and how<br />

seen by communities), conversation (refers to <strong>the</strong> person’s various <strong>in</strong>teractions with<br />

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communities), and community (refers to <strong>the</strong> people user’s know and trust and who help<br />

<strong>in</strong> mak<strong>in</strong>g decisions) (Facebook, 2012).<br />

An <strong>in</strong>terest<strong>in</strong>g addition to this subject was brought by two <strong>social</strong> <strong>media</strong> experts,<br />

Chris Brogan and Julien Smith, <strong>in</strong> <strong>the</strong>ir recently published book The Impact Equation:<br />

Are You Mak<strong>in</strong>g Th<strong>in</strong>gs Happen or Just Mak<strong>in</strong>g Noise?, <strong>in</strong> which <strong>the</strong>y suggested <strong>the</strong><br />

use <strong>of</strong> “simpler” words for <strong>the</strong> <strong>social</strong> <strong>media</strong> activities to replace overused Buzz words,<br />

so as not to lose <strong>in</strong>tegrity, substance, and <strong>in</strong>sight, and to build mean<strong>in</strong>gful <strong>in</strong>teractions.<br />

They suggested an “impact formula” to be:<br />

“Impact = CREATE= Contrast x (Reach + Exposure + Articulation +<br />

Trust + Echo).” [(ClarkBlog, 2012)]<br />

Content is considered “k<strong>in</strong>g” <strong>in</strong> ma<strong>in</strong>stream <strong>social</strong> <strong>media</strong>, and, <strong>in</strong> <strong>the</strong>ir op<strong>in</strong>ion,<br />

“community” rules. Ano<strong>the</strong>r emerg<strong>in</strong>g change is <strong>the</strong> surg<strong>in</strong>g importance <strong>of</strong> mobility <strong>in</strong><br />

<strong>social</strong> <strong>media</strong>, which is affect<strong>in</strong>g how content is created and consumed; <strong>in</strong> this sense<br />

mobility is nei<strong>the</strong>r <strong>the</strong> operat<strong>in</strong>g systems (iOS, Android) nor applications (Apps) which<br />

are only enablers, but:<br />

“...hav<strong>in</strong>g access to any and all content, delivered <strong>in</strong><br />

real time, with capabilities cont<strong>in</strong>uously improved and<br />

functionality available anytime, anywhere.”<br />

[ (Chawla, et al., 2011, p. 4)]<br />

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3.1.5 Social Media Metrics:<br />

Amongst several attempts to come up with metrics for measur<strong>in</strong>g <strong>social</strong> <strong>media</strong>,<br />

Evans (2010) <strong>in</strong>dicated that Wikis are tough to measure as <strong>the</strong>y do not <strong>of</strong>fer rat<strong>in</strong>gs,<br />

comments, or vot<strong>in</strong>g; and that <strong>the</strong> next important development is <strong>in</strong>creased use <strong>of</strong> open<br />

APIs under Web 2.0 enables technologies that allows <strong>social</strong> <strong>media</strong>l channels to <strong>in</strong>teract<br />

with each o<strong>the</strong>r. She suggested <strong>the</strong> follow<strong>in</strong>g metrics <strong>in</strong> Table 3. 6 (Evans, 2010, pp. 26-<br />

32).<br />

Table 3.6 Metrics for Social Media<br />

# Type Metrics<br />

1 Social news sites<br />

Digg, Reddit, Stumbleupon.<br />

Drive traffic <strong>in</strong>to website<br />

Allows members to submit news & posts<br />

No. <strong>of</strong> + or – votes, sentiments, No. <strong>of</strong> comments,<br />

No. <strong>of</strong> pages visited, No. <strong>of</strong> l<strong>in</strong>ks acquired<br />

No. <strong>of</strong> o<strong>the</strong>r news sites submitted to<br />

Speed <strong>of</strong> vot<strong>in</strong>g, duration <strong>of</strong> time spent.<br />

2 Social network<strong>in</strong>g sites<br />

Myspace, Facebook<br />

L<strong>in</strong>kedIn, Migentre, Blackplanet.<br />

Offers platforms for network<strong>in</strong>g communities<br />

Have a lot <strong>of</strong> features: upload photos, tag,<br />

post on walls, create groups, fans, <strong>in</strong>vite to<br />

events, <strong>in</strong>tegrate applications.<br />

3 Social bookmark<strong>in</strong>g sites<br />

Delicious, Magnolia, Diigo<br />

Powerful research tool and knowledge shar<strong>in</strong>g<br />

communities.<br />

Can drive traffic to website <strong>of</strong> qualified<br />

audience.<br />

Allows bookmark and share favorite websites.<br />

4 Social shar<strong>in</strong>g sites<br />

YouTube, Flickr<br />

Focus on videos and photos<br />

5 Micro blogg<strong>in</strong>g<br />

Twitter , Plurk<br />

Abbreviated blog with 140 characters sent to<br />

followers by mobile or laptop with short URL.<br />

Creat<strong>in</strong>g tweet<strong>in</strong>g streams.<br />

Huge power to promote bus<strong>in</strong>ess.<br />

No. <strong>of</strong> fans, No. <strong>of</strong> comments, No. <strong>of</strong> photos or<br />

videos tagged, No. <strong>of</strong> discussions started<br />

No. <strong>of</strong> responses , No. <strong>of</strong> referrals from <strong>social</strong><br />

<strong>media</strong> land<strong>in</strong>g to website, No. <strong>of</strong> pages visited, No.<br />

<strong>of</strong> downloads or <strong>in</strong>stalls<br />

Duration <strong>of</strong> Time spent.<br />

No <strong>of</strong> bookmarks, No <strong>of</strong> tags/No <strong>of</strong> unique tags<br />

No <strong>of</strong> times tags used, No <strong>of</strong> pages visited<br />

No. <strong>of</strong> l<strong>in</strong>ks acquired, No <strong>of</strong> <strong>social</strong> bookmark<strong>in</strong>g<br />

above target.<br />

Speed <strong>of</strong> vote to popular page<br />

Traffic brought <strong>in</strong><br />

Duration <strong>of</strong> Time spent<br />

No. <strong>of</strong> view<strong>in</strong>g times o video or photo, No <strong>of</strong><br />

comments, + or – sentiment, No <strong>of</strong> l<strong>in</strong>ks or embeds<br />

No <strong>of</strong> favorite score, No <strong>of</strong> subscribers/friends<br />

No <strong>of</strong> times added to a group/submitted to o<strong>the</strong>r<br />

<strong>social</strong> <strong>media</strong> sites.<br />

Level <strong>of</strong> rat<strong>in</strong>g <strong>of</strong> downloads<br />

No. <strong>of</strong> followers, No <strong>of</strong> followers who hold<br />

conversations, No <strong>of</strong> replies to tweets<br />

No. <strong>of</strong> tweets on conversation, + or – conversations<br />

No. <strong>of</strong> hash tags (#), conversations saved as Pdf<br />

files, No. <strong>of</strong> traffic generated by tweets.<br />

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Social <strong>media</strong> KPIs <strong>in</strong>clude engagement score, <strong>social</strong> <strong>in</strong>teractions, traffic scores,<br />

cost per lead, conversion metrics, funnel visualization, end action rate, SEO rank<strong>in</strong>g<br />

(Klipfolio, 2012).<br />

K.D. Pa<strong>in</strong>e, a PR Guru who is placed with<strong>in</strong> <strong>the</strong> top 25 women who “rock” <strong>social</strong><br />

<strong>media</strong>, 11 suggested seven basic steps for measur<strong>in</strong>g <strong>social</strong> <strong>media</strong> campaigns. Table<br />

3.7; tak<strong>in</strong>g note <strong>of</strong> outputs (results <strong>of</strong> publicity efforts, like video clips or <strong>media</strong> citations),<br />

outtakes (what people th<strong>in</strong>k after <strong>the</strong>y experience outputs), and outcomes (how people’s<br />

behavior changes) (Chumley, 2011).<br />

Table 3.7 Social Media Campaign Measurement<br />

Identify <strong>the</strong> audiences with whom you have relationships.<br />

Def<strong>in</strong>e objectives for each audience ( build<strong>in</strong>g awareness, generat<strong>in</strong>g leads, <strong>in</strong>creas<strong>in</strong>g sales)<br />

Def<strong>in</strong>e measurement criteria. (Example <strong>in</strong>creas<strong>in</strong>g news headl<strong>in</strong>es that mention <strong>the</strong> company by 25%).<br />

Def<strong>in</strong>e your benchmark (based on def<strong>in</strong>able past performance level).<br />

Select a measurement tool (press clips, primary research, blogger mentions or comparative m<strong>in</strong>dshare).<br />

Analyze data, draw actionable conclusions and make recommendations (Focus on controlled factors).<br />

Make changes and measure aga<strong>in</strong> as good measurement should be an ongo<strong>in</strong>g process.<br />

One <strong>of</strong> <strong>the</strong> tools developed to measure and analyze “<strong>in</strong>fluence” <strong>in</strong> <strong>the</strong> <strong>in</strong>ternet is<br />

“Klout”, to benchmark performance across various <strong>social</strong> <strong>media</strong> channels for <strong>in</strong>dividuals<br />

and at a corporate level, to assess <strong>social</strong> <strong>media</strong> market<strong>in</strong>g strategies impact.<br />

On a personal level, I followed my <strong>in</strong>fluence <strong>in</strong> various <strong>social</strong> <strong>media</strong> platforms I<br />

subscribe to: my <strong>in</strong>itial Klout score was 12%, <strong>in</strong> six months it rose to 24%; and now it is<br />

41%. See Figure 3.7. Therefore, active and mean<strong>in</strong>gful engagement on several <strong>social</strong><br />

<strong>media</strong> platforms is key to create <strong>in</strong>fluence.<br />

Figure 3.7 Klout Score for Mona Bseiso<br />

11 Accord<strong>in</strong>g to Top Rank website by Lee Odden http://www.toprankblog.com/2010/01/25-women-that-rock-<strong>social</strong>-<strong>media</strong>/<br />

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3.2 The “Facebook” Economy:<br />

3.2.1 Social Media <strong>in</strong> Bus<strong>in</strong>ess and Community<br />

“Most <strong>in</strong>dustries do not beg<strong>in</strong> on a s<strong>in</strong>gle day, but it is easy to see Facebook CEO Mark<br />

Zuckerberg's presentation on May 24, 2007, as <strong>the</strong> start<strong>in</strong>g gun <strong>in</strong> an entrepreneurial race that some<br />

have dubbed ‘<strong>the</strong> Facebook Economy’." (Knowledge@Wharton, 2008)<br />

The <strong>social</strong> network<strong>in</strong>g site Facebook was founded <strong>in</strong> 2004 by Mark Zuckerberg;<br />

<strong>in</strong> 2007 it was transferred <strong>in</strong>to a platform open to third-party developers. From that day<br />

on, Facebook was tak<strong>in</strong>g <strong>the</strong> lead as a <strong>social</strong> network<strong>in</strong>g platform for “a great deal <strong>of</strong><br />

<strong>in</strong>novation and bus<strong>in</strong>ess opportunity," and creat<strong>in</strong>g "<strong>in</strong>teroperability" with <strong>social</strong><br />

platforms (Knowledge@warton, 2008).<br />

The expression ”Facebook Economy” is meant to categorically assess leverag<strong>in</strong>g<br />

<strong>the</strong> whole spectrum <strong>of</strong> <strong>social</strong> <strong>media</strong> and how it has re<strong>in</strong>vented <strong>the</strong> way bus<strong>in</strong>ess is<br />

done, and <strong>the</strong> potential that it transpires to achieve tangible economic goals, like<br />

employment, productivity, and growth; <strong>social</strong> <strong>media</strong> real economic impact is still ahead<br />

as companies are still learn<strong>in</strong>g how to harness "<strong>social</strong> bus<strong>in</strong>ess" tools. (USAToday,<br />

2012)<br />

It is said that <strong>the</strong> current era <strong>of</strong> Web 3.0 is significantly def<strong>in</strong>ed by Facebook,<br />

whereas Web 2.0 was def<strong>in</strong>ed by Google; <strong>the</strong>re is a shift go<strong>in</strong>g from “an economy <strong>of</strong><br />

l<strong>in</strong>ks to an economy <strong>of</strong> likes” ,which makes it <strong>in</strong>creas<strong>in</strong>gly a “reputation” economy<br />

(Keens, 2012).<br />

In such an economy, <strong>the</strong> importance <strong>of</strong> word <strong>of</strong> mouth (WoM), has <strong>in</strong>creased <strong>in</strong><br />

all k<strong>in</strong>ds <strong>of</strong> market<strong>in</strong>g that focuses on consumer-generated content and <strong>social</strong> <strong>media</strong><br />

platforms. An association (WOMMA) was founded <strong>in</strong> 2004, to re<strong>in</strong>force WoM services<br />

and technologies, and track practitioners experience <strong>of</strong>fl<strong>in</strong>e and onl<strong>in</strong>e (WOMMA,<br />

2012).<br />

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Facebook research estimated that <strong>the</strong> distance between one person and one<br />

million is four steps, so with an average <strong>of</strong> 130 friends on Facebook, it is estimated that<br />

it takes four people shar<strong>in</strong>g content from a brand to reach one million users. Facebook’s<br />

COO described it as:<br />

“This is word <strong>of</strong> mouth at scale,”<br />

(Gannes, 2012)<br />

Ano<strong>the</strong>r phenomenon to be considered <strong>in</strong> <strong>the</strong> Facebook economy is <strong>the</strong> rise <strong>of</strong><br />

<strong>the</strong> “weightless economy”. In <strong>the</strong> weightless economy, which is <strong>the</strong> fastest grow<strong>in</strong>g and<br />

most pr<strong>of</strong>itable sectors <strong>of</strong> bus<strong>in</strong>ess, wealth is created from knowledge without significant<br />

economic resources, like <strong>the</strong> success stories <strong>of</strong> Apple and Micros<strong>of</strong>t (Investopedia,<br />

2012) .<br />

Also, this is <strong>the</strong> era <strong>of</strong> <strong>the</strong> “Connected Consumer”, where <strong>social</strong> and mobile<br />

communications, <strong>in</strong>creas<strong>in</strong>gly and with rapid pace, are plac<strong>in</strong>g more power <strong>in</strong> <strong>the</strong> hands<br />

<strong>of</strong> <strong>in</strong>dividuals that are <strong>in</strong>terconnected <strong>in</strong> every po<strong>in</strong>t <strong>of</strong> <strong>the</strong> process, build<strong>in</strong>g dynamic<br />

bus<strong>in</strong>ess networks that span human, digital, <strong>social</strong>, and mobile access modes and<br />

<strong>in</strong>teractions (Luongo, 2011).<br />

The major drivers <strong>of</strong> <strong>the</strong> new economy are: digitalization and connectivity<br />

(<strong>in</strong>ternet, <strong>in</strong>tranet, and extranet); dis<strong>in</strong>ter<strong>media</strong>tion and re-<strong>in</strong>ter<strong>media</strong>tion; customization,<br />

customerization; and <strong>in</strong>dustry convergence. The market<strong>in</strong>g practices are chang<strong>in</strong>g<br />

towards e-bus<strong>in</strong>ess (e-commerce, e-purchas<strong>in</strong>g, and e-market<strong>in</strong>g components), and<br />

adoption <strong>of</strong> market<strong>in</strong>g relationship management. The <strong>in</strong>teractions will be B2B, B2C,<br />

C2C, C2B.<br />

The known 4 Ps <strong>of</strong> market<strong>in</strong>g (place, people, promotion, price) differ <strong>in</strong> <strong>the</strong><br />

“Facebook economy” ; Shaefer (2010) def<strong>in</strong>ed it to be: People, Presence,<br />

Pervasiveness, and Publish<strong>in</strong>g; <strong>in</strong> his blog someone suggested add<strong>in</strong>g <strong>the</strong> 5 th P:<br />

Permission; ano<strong>the</strong>r commentator said <strong>the</strong> 5 Ps need two Cs: Commitment and<br />

Creativity (Schaefer, 2010).<br />

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3.2.2 Social Media Critics:<br />

An astute critic <strong>of</strong> <strong>social</strong> <strong>media</strong> and what it has brought to our lives is Andrew<br />

Keen, who said <strong>the</strong> law <strong>of</strong> “Digital Darw<strong>in</strong>ism”, and “<strong>the</strong> survival <strong>of</strong> <strong>the</strong> loudest and most<br />

op<strong>in</strong>ionated” are govern<strong>in</strong>g <strong>the</strong> <strong>in</strong>ternet, <strong>in</strong> criticiz<strong>in</strong>g Web 2.0 <strong>in</strong> his book The Cult <strong>of</strong> <strong>the</strong><br />

Amateur (2007). He also criticized Web 3.0 <strong>in</strong> his new book Digital Vertigo (2012), as<br />

mak<strong>in</strong>g us ”an economy driven by personal data”. He warned <strong>of</strong> destroy<strong>in</strong>g privacy, and<br />

turn<strong>in</strong>g users <strong>in</strong>to “mach<strong>in</strong>es <strong>of</strong> ones and zeros”. The hope l<strong>in</strong>gers <strong>in</strong> his belief that<br />

technology does not change culture, but culture changes technology. Sarcastically,<br />

Keen established a website:”Unlike Us” to utilize <strong>social</strong> <strong>media</strong> to spread <strong>the</strong> criticism<br />

(Keens, 2012). See Figure 3.8.<br />

Figure 3.8 Website Unlike Us<br />

3.2.3 Social <strong>media</strong> risks<br />

To balance <strong>the</strong> review <strong>of</strong> this research paper, it is important to reflect on issues<br />

that beleaguered utilization <strong>of</strong> <strong>social</strong> <strong>media</strong>, and posed a greater risk. The ma<strong>in</strong> risk<br />

stems from <strong>in</strong>fr<strong>in</strong>gement <strong>of</strong> privacy, giv<strong>in</strong>g rise to <strong>the</strong> “privacy paradox”, because <strong>of</strong> <strong>the</strong><br />

special public nature <strong>of</strong> <strong>the</strong> <strong>in</strong>ternet; and <strong>the</strong> creation <strong>of</strong> “marketplace confusion”<br />

because <strong>of</strong> <strong>the</strong> potential <strong>of</strong> <strong>the</strong> appearance <strong>of</strong> fake accounts on <strong>social</strong> <strong>media</strong> (Barnes,<br />

2006).<br />

A major threat can occur if proper archiv<strong>in</strong>g <strong>of</strong> <strong>the</strong> data shared on <strong>social</strong> <strong>media</strong> is<br />

not processed or not kept properly; this is especially important <strong>in</strong> sensitive sectors like<br />

health care, f<strong>in</strong>ancial services and bank<strong>in</strong>g <strong>in</strong>dustries (Ernst & Young, 2012).<br />

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O<strong>the</strong>r expected risks <strong>in</strong>clude:<br />

Leak<strong>in</strong>g sensitive company <strong>in</strong>formation;<br />

Abuse <strong>of</strong> <strong>social</strong> applications at work;<br />

Mak<strong>in</strong>g hack<strong>in</strong>g easier to <strong>the</strong> organization account through <strong>the</strong><br />

personal accounts <strong>of</strong> its employees;<br />

More platforms might create more access for viruses and malware;<br />

Damage to <strong>the</strong> organization name or reputation from negative, or<br />

embarrass<strong>in</strong>g comments (Ernst & Young, 2012).<br />

Accord<strong>in</strong>g to a survey conducted by <strong>the</strong> Altimeter Group, 35% <strong>of</strong> 52 executives<br />

<strong>in</strong>volved <strong>in</strong> <strong>social</strong> <strong>media</strong> risk management identified damage to <strong>the</strong> reputation <strong>the</strong> most<br />

critical risk; followed by release <strong>of</strong> confidential <strong>in</strong>formation (15%); loss <strong>of</strong> <strong>in</strong>tellectual<br />

property, o<strong>the</strong>r legal, regulatory and compliance issues (13%); disclosure <strong>of</strong> personal<br />

data (13%); and identity <strong>the</strong>ft and/or high jack<strong>in</strong>g (12%) (Krigsman, 2012).<br />

The magnitude <strong>of</strong> damage is greater from receiv<strong>in</strong>g negative feedback <strong>in</strong> <strong>the</strong><br />

<strong>social</strong> <strong>media</strong>. Under conventional market<strong>in</strong>g, it was said one unhappy customer will tell<br />

10 people; but <strong>in</strong> <strong>the</strong> age <strong>of</strong> <strong>social</strong> <strong>media</strong>, this customer can go “viral” to reach 10 million<br />

(Innovation Watch, 2007).<br />

2008).<br />

Also <strong>social</strong> networks are seen as “<strong>in</strong>herently unstable” (Knowledge@Wharton,<br />

Market<strong>in</strong>g specialists consider calculat<strong>in</strong>g return on <strong>in</strong>vestment (RoI) on <strong>social</strong><br />

<strong>media</strong> campaigns effectively is a major challenge (eMarketters, 2011).<br />

Time zone differences have an impact on posts, so does <strong>the</strong> day and time to get<br />

<strong>the</strong> attention. A US company found that Twitter and Facebook post<strong>in</strong>g between 1 - 4<br />

pm from Monday till Thursday showed <strong>the</strong> best chance to achieve a high click count,<br />

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with <strong>the</strong> peak on Wednesday at 3 pm, and Friday even<strong>in</strong>g <strong>the</strong> slowest time<br />

(Market<strong>in</strong>gcharts, 2012).<br />

Use or possible abuse <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>in</strong> <strong>the</strong> work place might cause a company<br />

to fire an employee because <strong>of</strong> an <strong>in</strong>appropriate post<strong>in</strong>g, or unsuitable “like button”. This<br />

puts <strong>the</strong> company’s credibility at stake too. Some companies warn <strong>the</strong>ir employees to<br />

use good judgment <strong>in</strong> <strong>social</strong> <strong>media</strong> networks or set a <strong>social</strong>-<strong>media</strong> policy (Mantell,<br />

2012).<br />

In this regard, an Australian company posted for its staff on May 14, 2009 an<br />

<strong>in</strong>ternal policy for <strong>social</strong> <strong>media</strong> use focus<strong>in</strong>g on “Representation, Responsibility, and<br />

Respect”, with consequences for breach <strong>of</strong> this policy. See Figure 3.9. (Telstra, 2009).<br />

Figure 3.9 Telstra's 3Rs<br />

Accord<strong>in</strong>g to Econsultancy 12 , <strong>social</strong> <strong>media</strong> holds its own risk because all <strong>the</strong><br />

available platforms are not proprietary to <strong>the</strong> user, ei<strong>the</strong>r <strong>in</strong>dividual or a bus<strong>in</strong>ess;<br />

organizations do not own <strong>the</strong>ir audiences nor <strong>the</strong> data, which requires conscious<br />

choices about which <strong>social</strong> <strong>media</strong> platform to work with and for what purpose (Njau,<br />

2012).<br />

12 An <strong>in</strong>ternational consultancy for develop<strong>in</strong>g digital strategies, UK.<br />

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3.2.4 Social Media Governance<br />

Social comput<strong>in</strong>g policies are essential to def<strong>in</strong>e governance <strong>in</strong> <strong>the</strong> use <strong>of</strong> <strong>social</strong><br />

<strong>media</strong> with<strong>in</strong> a bus<strong>in</strong>ess or government entities. Such policies will help identify and<br />

mitigate risks; set codes <strong>of</strong> conduct, and degree <strong>of</strong> content management and control; a<br />

good example <strong>of</strong> an onl<strong>in</strong>e database has more than 218 onl<strong>in</strong>e <strong>social</strong> <strong>media</strong> policies<br />

s<strong>in</strong>ce 2009 at http://<strong>social</strong><strong>media</strong>governance.com/policies.php (Boudreaux, 2012).<br />

One good example is UAE guidel<strong>in</strong>es for use <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>in</strong> government<br />

entities published onl<strong>in</strong>e at https://www.box.com/shared/5zy4sx3x40, whereby it is open<br />

for cont<strong>in</strong>uous edit<strong>in</strong>g to accommodate updates.<br />

This is complimented with <strong>the</strong> need to have “<strong>social</strong> <strong>media</strong> audit”, to ensure<br />

cont<strong>in</strong>ued engagement and <strong>in</strong>fluence, while mitigat<strong>in</strong>g risks.<br />

Examples <strong>of</strong> companies or public entities that perform <strong>social</strong> <strong>media</strong> audit are<br />

illustrated <strong>in</strong> Figure 3.10.<br />

Figure 3.10 Examples <strong>of</strong> Social Media Audit<br />

Grant Thornton’s has an Internet Intelligence team that<br />

handles <strong>the</strong> task <strong>of</strong> <strong>in</strong>ternet review for corporations or<br />

organizations; <strong>the</strong>y search how <strong>the</strong>y organizations are<br />

perceived onl<strong>in</strong>e and to identify if brand or logo used<br />

<strong>in</strong>appropriately or without permission, or for fraud, or<br />

damag<strong>in</strong>g material. Internet <strong>in</strong>telligence can also be useful for<br />

bus<strong>in</strong>ess processes, like new acquisitions, or to engage with<br />

a partner bus<strong>in</strong>ess so it will aid due diligence.<br />

Asset trac<strong>in</strong>g<br />

Brand protection<br />

Compliance issues<br />

Corporate fraud<br />

Counterfeit<strong>in</strong>g<br />

Crisis management<br />

Market <strong>in</strong>telligence<br />

Reputation management<br />

Reputational due diligence<br />

To explore new forms <strong>of</strong> engagement and to try and understand<br />

how digital <strong>social</strong> technologies are fundamentally chang<strong>in</strong>g <strong>the</strong><br />

relationship between citizen and state. We also provide<br />

research services and strategic th<strong>in</strong>k<strong>in</strong>g that can help you make<br />

sense <strong>of</strong> this <strong>in</strong> <strong>the</strong> face <strong>of</strong> your own unique challenges.<br />

The <strong>social</strong> <strong>media</strong> audit for <strong>the</strong> organizations provide value <strong>in</strong><br />

several ways:<br />

Know<strong>in</strong>g <strong>the</strong> community & relations; collect<strong>in</strong>g & analyz<strong>in</strong>g <strong>the</strong><br />

<strong>social</strong> <strong>media</strong> numbers; provid<strong>in</strong>g better <strong>in</strong>sight on conversations<br />

about organization; help<strong>in</strong>g <strong>of</strong>fl<strong>in</strong>e engagement; and suggest<strong>in</strong>g<br />

better conversations by <strong>the</strong> organization team. (Public-i-Blog,<br />

2012)<br />

Trademark <strong>in</strong>fr<strong>in</strong>gement. (Grant Thornton, 2012)<br />

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3.2.5 The Next Practice:<br />

Holmes, CEO <strong>of</strong> HootSuite 13 po<strong>in</strong>ted out ma<strong>in</strong> trends <strong>in</strong> 2013: <strong>social</strong> <strong>media</strong> will be<br />

go<strong>in</strong>g company-wide; email use will decl<strong>in</strong>e replaced by better communication channels,<br />

and <strong>social</strong> <strong>media</strong> “dedicated command centers” will become ma<strong>in</strong>stream; however, he<br />

cautioned that <strong>in</strong>ternational and niche <strong>social</strong> networks will present new challenges,<br />

mak<strong>in</strong>g <strong>social</strong> <strong>media</strong> compliance a priority (Holmes, 2012).<br />

Atos, 14 CEO declared a ban on e-mails with<strong>in</strong> 18 months, call<strong>in</strong>g <strong>the</strong> volume <strong>of</strong> its<br />

e-mail "unsusta<strong>in</strong>able". Orig<strong>in</strong> 15 plans to ban <strong>in</strong>ternal e-mail from its communications<br />

with<strong>in</strong> two years. Employees will communicate through <strong>in</strong>stant-messag<strong>in</strong>g and work on<br />

multiple user “wiki-like” documents (CNNTech, 2011).<br />

Social Media Command Centers are already be<strong>in</strong>g established, equipped with<br />

giant flat panel screens to monitor comments and respond to <strong>in</strong>quiries from various<br />

channels. Dell has a command centre <strong>in</strong> Texas, with 70 employees monitor<strong>in</strong>g <strong>social</strong><br />

conversations from around <strong>the</strong> globe; <strong>the</strong> team processes 25,000 daily <strong>social</strong> <strong>media</strong><br />

events <strong>in</strong> 11 different languages, and responds to most queries and compla<strong>in</strong>ts with<strong>in</strong><br />

24 hours.<br />

An <strong>in</strong>terest<strong>in</strong>g com<strong>in</strong>g development, is <strong>the</strong> emerg<strong>in</strong>g Mobile Content landscape,<br />

abbreviated “MobCon”, through convergence <strong>of</strong> <strong>the</strong> <strong>media</strong>, <strong>in</strong>formation technology, and<br />

telecommunications; this will <strong>in</strong>evitably lead to new convergence value cha<strong>in</strong> whereby<br />

consumers benefit from free wireless devices <strong>of</strong>fer<strong>in</strong>g free <strong>media</strong>, enriched by<br />

applications across wireless networks (Excapite, 2009).<br />

13 A Canadian <strong>social</strong> <strong>media</strong> management company with 5 million global users <strong>of</strong> its 30+ Apps; its CEO Ryan Holmes was selected<br />

amongst 150 <strong>in</strong>fluential lum<strong>in</strong>aries by L<strong>in</strong>kedIn for 2012.<br />

14 An <strong>in</strong>ternational <strong>in</strong>formation technology services company with annual revenues <strong>of</strong> EUR 8.5 billion and 74000 employees <strong>in</strong> 48<br />

countries.<br />

15 Electronic Arts (EA) is an American onl<strong>in</strong>e gam<strong>in</strong>g company.<br />

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4 Chapter Four: Literature Review on Theory and Social Media<br />

Market<strong>in</strong>g Strategy<br />

4.1 Literature review on <strong>the</strong>ory:<br />

A<br />

vast literature exists on <strong>the</strong> topic <strong>of</strong> <strong>social</strong> <strong>media</strong> and <strong>in</strong>vestment promotion<br />

<strong>the</strong>ories, and each category <strong>in</strong> its own right has a plethora <strong>of</strong> relevant crossdiscipl<strong>in</strong>ary<br />

<strong>the</strong>ories. However, for <strong>the</strong> purposes <strong>of</strong> this research paper, <strong>the</strong><br />

focus will be on select cross-cutt<strong>in</strong>g <strong>the</strong>ories with direct relevance to streng<strong>the</strong>n <strong>the</strong><br />

understand<strong>in</strong>g <strong>of</strong> <strong>the</strong> research hypo<strong>the</strong>sis. As <strong>social</strong> <strong>media</strong> is a relatively new field <strong>in</strong> <strong>the</strong><br />

academic arena, <strong>the</strong>ories relat<strong>in</strong>g to <strong>social</strong> <strong>media</strong> arises from a comb<strong>in</strong>ation <strong>of</strong> multiple<br />

discipl<strong>in</strong>es; and by <strong>the</strong> nature <strong>of</strong> its constant evolution, it is a dynamic field under<br />

cont<strong>in</strong>uous debate and discussions, <strong>the</strong>reby constantly extend<strong>in</strong>g <strong>the</strong> realms <strong>of</strong> analysis<br />

<strong>in</strong>to even more complex narrative structures.<br />

Theories are divided <strong>in</strong>to four <strong>the</strong>matic fields: microeconomics, <strong>social</strong> network,<br />

<strong>in</strong>tegrated market<strong>in</strong>g, and communications.<br />

4.1.1 Market Failure<br />

The microeconomic <strong>the</strong>ory justified <strong>in</strong>terventions to address market failure,<br />

aris<strong>in</strong>g from asymmetry <strong>of</strong> <strong>in</strong>formation, externalities, agent-pr<strong>in</strong>cipal dilemma, or public<br />

goods; market failure has been centre <strong>of</strong> debate s<strong>in</strong>ce 1950s. Dwell<strong>in</strong>g on <strong>the</strong> public<br />

policy measures like <strong>in</strong>vestment promotion and <strong>in</strong>centives, market failure rema<strong>in</strong>s one<br />

<strong>of</strong> <strong>the</strong> most <strong>in</strong>fluential arguments justify<strong>in</strong>g government <strong>in</strong>tervention.<br />

The <strong>the</strong>ory was affected by changes brought by <strong>the</strong> advent <strong>of</strong> new technologies,<br />

exemplified by <strong>the</strong> <strong>in</strong>ternet, e-commerce, mobile phones, and <strong>social</strong> networks; which <strong>in</strong><br />

turn elevated <strong>the</strong> debate to a new level to improve “<strong>the</strong> <strong>in</strong>formational state” <strong>in</strong> which<br />

choices can be made (Cowen & Crampton, 2003).<br />

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It was <strong>in</strong>terest<strong>in</strong>g to look <strong>in</strong>to <strong>the</strong> new wave <strong>of</strong> market failure ideas particularly<br />

Stieglitz’s “efficiency wage” hypo<strong>the</strong>sis, Akerl<strong>of</strong>’s “market for lemons” model,<br />

Williamson's “lock-<strong>in</strong> effects”, Hayek's “markets and knowledge” <strong>in</strong>sights. A good po<strong>in</strong>t<br />

<strong>in</strong> this regard that encourages <strong>the</strong> support for establish<strong>in</strong>g IPAs, is <strong>the</strong> say<strong>in</strong>g that if:<br />

“…<strong>in</strong>stitutions and "rules <strong>of</strong> <strong>the</strong> game" are set up correctly,<br />

decentralized knowledge has enormous power. Prices and<br />

This is sufficient for <strong>the</strong> sake <strong>of</strong> this research paper to imply that even at <strong>the</strong> age<br />

<strong>of</strong> massive “<strong>in</strong>formation” flow through <strong>social</strong> <strong>media</strong>, and <strong>the</strong> rise <strong>of</strong> <strong>the</strong> “knowledge”<br />

economy, <strong>the</strong> neo-classists belief <strong>in</strong> government <strong>in</strong>tervention, rema<strong>in</strong>s valid through<br />

regulations, expenditure allocation, as well as fiscal <strong>in</strong>centives, ei<strong>the</strong>r provided for<br />

encourag<strong>in</strong>g foreign <strong>in</strong>vestment through IPAs, or to <strong>in</strong>voke certa<strong>in</strong> actions, like reduc<strong>in</strong>g<br />

CO2 emissions, or <strong>the</strong> more creative approach <strong>of</strong> grant<strong>in</strong>g special f<strong>in</strong>ancial schemes<br />

for susta<strong>in</strong>able entrepreneurship.<br />

4.1.2 Social network <strong>the</strong>ory (SNT)<br />

The <strong>the</strong>oretical basis <strong>of</strong> <strong>the</strong> <strong>social</strong> <strong>media</strong> networks takes its roots <strong>in</strong> <strong>the</strong><br />

sociological Social Network Theory (SNT), which long existed before <strong>the</strong> <strong>in</strong>ternet was<br />

launched. SNT uses nodes, as <strong>in</strong>dividual actors, and ties as <strong>the</strong> relationships between<br />

<strong>the</strong> actors, to depict <strong>social</strong> relationships. The <strong>social</strong> network diagram uses po<strong>in</strong>ts to be<br />

<strong>the</strong> nodes, and l<strong>in</strong>es to be <strong>the</strong> ties, produc<strong>in</strong>g endless choices for study and analysis<br />

(Glenn, 2004).<br />

Social network <strong>the</strong>ory succeeded <strong>in</strong> expla<strong>in</strong><strong>in</strong>g real phenomena and determ<strong>in</strong><strong>in</strong>g<br />

<strong>the</strong> “<strong>social</strong> capital”, which is <strong>the</strong> expected benefits stemm<strong>in</strong>g from <strong>the</strong> cooperation<br />

16 The source here is published as a book already <strong>in</strong> 2004 but I had access to <strong>the</strong> <strong>in</strong>troduction only (when it was forthcom<strong>in</strong>g).<br />

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between <strong>in</strong>dividuals and groups. It is useful <strong>in</strong> analyz<strong>in</strong>g <strong>in</strong>teractions, connections, and<br />

associations. These networks provide ways for companies to ga<strong>the</strong>r <strong>in</strong>formation, deter<br />

competition, and even collude <strong>in</strong> sett<strong>in</strong>g prices or policies. This is where I see IPAs can<br />

benefit (BYU, 2011).<br />

4.1.3 Micro Disruption Theory<br />

This is one <strong>of</strong> <strong>the</strong> new age <strong>the</strong>ories, borrowed from ma<strong>in</strong> disruptive <strong>the</strong>ory, to<br />

show how” resonance” is created based on <strong>the</strong> belief that it is when people who share<br />

same <strong>in</strong>terests add value through context and dialogue <strong>in</strong> various <strong>social</strong> <strong>media</strong><br />

networks.<br />

Solis (2009), hold<strong>in</strong>g top rank <strong>in</strong> 2012 for thought leaders <strong>in</strong> <strong>social</strong> <strong>media</strong>,<br />

developed an equation to understand <strong>the</strong> diffusion power <strong>of</strong> <strong>social</strong> <strong>media</strong>, not only <strong>in</strong><br />

nodes and ties relations expla<strong>in</strong>ed <strong>in</strong> <strong>the</strong> SNT, but develop<strong>in</strong>g what he named “micro”<br />

disruption <strong>the</strong>ory (MDT) to ultimately gauge <strong>the</strong> “<strong>social</strong> effect” that connects people and<br />

content across “<strong>social</strong> graphs” <strong>of</strong> <strong>the</strong> <strong>in</strong>ternet users <strong>in</strong> <strong>the</strong> “<strong>social</strong> economy”. This could<br />

broadens <strong>the</strong> scope <strong>of</strong> <strong>the</strong>oretical analysis for <strong>role</strong> <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>in</strong> IPAs (Solis, 2009).<br />

The MDT suggests a measure <strong>of</strong> <strong>the</strong> resonance <strong>of</strong> connections with friends and<br />

followers, and <strong>the</strong> friends <strong>of</strong> friends (FoF) through shared <strong>in</strong>terests and cont<strong>in</strong>ued<br />

participation, that creates a constant “unique” shifts, which produces “unique<br />

impressions” such that:<br />

Unique Impressions (Update/Time + Aperture <strong>of</strong> Attention lens 17 ) x FoF shar<strong>in</strong>g<br />

= Extended unique impressions and FoF resonance.<br />

It is <strong>in</strong>terest<strong>in</strong>g to see how this works <strong>in</strong> <strong>social</strong> <strong>media</strong> networks, especially Twitter,<br />

where time does not matter nor place to participate <strong>in</strong> constant curation <strong>of</strong> content,<br />

engag<strong>in</strong>g <strong>in</strong> dialogue to <strong>in</strong>crease resonance potential. Figure 4.1.<br />

17 Aperture is a term <strong>in</strong> photography mean<strong>in</strong>g a hole or a slit.<br />

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Figure 4.1 Micro Disruption Theory & <strong>the</strong> Social Effect<br />

Though this conceptual framework seems genu<strong>in</strong>e, I could not f<strong>in</strong>d “resonance”<br />

on it elsewhere.<br />

4.1.4 Communication Theory<br />

The <strong>social</strong> <strong>media</strong> is believed to be an important but different aspect <strong>of</strong> <strong>the</strong><br />

conventional communication <strong>the</strong>ory; it did not change but “illum<strong>in</strong>ated” it, and <strong>in</strong> this<br />

aspect, <strong>social</strong> <strong>media</strong> <strong>role</strong> should not be “denied”, but “understood” (My Web Writers,<br />

2012).<br />

This is well expla<strong>in</strong>ed by <strong>the</strong> famous quotation from Clay Shirky 18 , which<br />

summons <strong>the</strong> real power <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>in</strong> communication:<br />

“When we change <strong>the</strong> way we communicate, we change society.”<br />

[(Coy, 2008)]<br />

18 An American writer, consultant and teacher on <strong>the</strong> <strong>social</strong> and economic effects <strong>of</strong> <strong>the</strong> <strong>in</strong>ternet technologies.<br />

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4.1.5 Integrated Market<strong>in</strong>g Communication IMC<br />

The Integrated Market<strong>in</strong>g Communication (IMC) lays better conceptual framework<br />

that supports effective market<strong>in</strong>g and promotion <strong>in</strong> <strong>the</strong> Web 2.0 <strong>social</strong> <strong>media</strong> network<strong>in</strong>g<br />

channels, and beyond it <strong>in</strong>to Web 3.0.<br />

The IMC concept has been characterized as both a “relational process” and a<br />

“bus<strong>in</strong>ess competency”. Its goals and outcomes are <strong>of</strong>ten l<strong>in</strong>ked to build<strong>in</strong>g relationships<br />

not only with customers, but with all o<strong>the</strong>r stakeholders, through ongo<strong>in</strong>g dialogue to<br />

yield <strong>the</strong> expected effect on sales and pr<strong>of</strong>its; as a bus<strong>in</strong>ess competency, <strong>the</strong> approach<br />

<strong>of</strong> <strong>in</strong>tegrated management <strong>of</strong> “multiple <strong>media</strong>” is adopted to achieve superior outcomes<br />

(Smith, et al., 2006).<br />

IMC itself is considered “a promotional” tool along with o<strong>the</strong>r market<strong>in</strong>g mix<br />

components to ga<strong>in</strong> advantage over competitors to reach consumer satisfaction us<strong>in</strong>g<br />

both onl<strong>in</strong>e and <strong>of</strong>fl<strong>in</strong>e channel strategy to develop a stronger brand-consumer<br />

relationship cited <strong>in</strong> Surrender &Telrandhe( 2010). The IMC process <strong>in</strong>clud<strong>in</strong>g def<strong>in</strong><strong>in</strong>g:<br />

target audience; objective; message; <strong>media</strong> channel; budget; market<strong>in</strong>g mix;<br />

measurement; management, and coord<strong>in</strong>ation (Ul-Rehman & Ibrahim, 2011).<br />

I consider IMC provides <strong>the</strong> needed conceptual framework for conduct<strong>in</strong>g effective<br />

promotional and market<strong>in</strong>g <strong>role</strong> <strong>of</strong> IPAs <strong>in</strong> <strong>the</strong> age <strong>of</strong> <strong>social</strong> <strong>media</strong>, which opened <strong>the</strong><br />

doors for <strong>the</strong> first time to access to real-time, <strong>in</strong>stantaneous, two-way, global<br />

communication, allow<strong>in</strong>g an organization to have “one voice” and “one look” cited <strong>in</strong><br />

Fitzerpatrik (2005) (Ul-Rehman & Ibrahim, 2011).<br />

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4.2 Literature review on Social Media Market<strong>in</strong>g Strategy<br />

N<br />

ot<strong>in</strong>g <strong>the</strong> current era <strong>of</strong> accelerated change and “hyper- competition”, Smith &<br />

Zook (2011) foresaw <strong>the</strong> advent <strong>of</strong> <strong>social</strong> <strong>media</strong> as a “market<strong>in</strong>g revolution”,<br />

<strong>in</strong>dicat<strong>in</strong>g a new era <strong>of</strong> “collaborative co-creation” through engag<strong>in</strong>g <strong>in</strong><br />

“trialogues” among op<strong>in</strong>ion formers (trend setters or <strong>in</strong>fluencers), customers, and<br />

bus<strong>in</strong>esses, that ultimately feeds <strong>in</strong>to new product development, distribution channels,<br />

and pric<strong>in</strong>g. The new “jo<strong>in</strong>ed-up market<strong>in</strong>g” method <strong>in</strong>tegrates <strong>the</strong> traditional “outbound<br />

market<strong>in</strong>g” <strong>of</strong> advertis<strong>in</strong>g, direct mail, telemarket<strong>in</strong>g, etc, with <strong>the</strong> <strong>social</strong> <strong>media</strong> “<strong>in</strong>bound<br />

market<strong>in</strong>g”; it will deliver higher impact model, that is more cost-effective, with more<br />

consistent view <strong>of</strong> <strong>the</strong> “precious” customer (Smith & Zook, 2011, pp. 4-5).<br />

Empirical evidence depicted “consolidated” <strong>in</strong>bound market<strong>in</strong>g method to cost<br />

less by around 69% compared to outbound market<strong>in</strong>g. This is truly concomitant with <strong>the</strong><br />

changes <strong>in</strong> <strong>the</strong> m<strong>in</strong>dset from “tell<strong>in</strong>g and sell<strong>in</strong>g”, to “build<strong>in</strong>g relationships and earn<strong>in</strong>g<br />

people’s <strong>in</strong>terest” (Exhibitoronl<strong>in</strong>e, 2011).<br />

Klous (2012) noted <strong>the</strong> “shift <strong>in</strong> power” that <strong>social</strong> <strong>media</strong> has brought by<br />

enhanc<strong>in</strong>g “consumers” <strong>in</strong>fluence over advertisers. With <strong>the</strong> Open Graph on Facebook,<br />

for example, consumers are made to engage across “owned” <strong>media</strong> (websites, blogs,<br />

<strong>social</strong> networks), to foster creation <strong>of</strong> “earned” <strong>media</strong> (stories), which is fur<strong>the</strong>r amplified<br />

by “bought” <strong>media</strong> (sponsored stories) (Klous, 2012).<br />

Lev<strong>in</strong>e & Wakefield reiterated benefits from bought, owned and earned <strong>media</strong>;<br />

<strong>the</strong> latter is where <strong>social</strong> <strong>media</strong> evolved to gradually become <strong>the</strong> “core” <strong>of</strong> <strong>in</strong>tegrated<br />

market<strong>in</strong>g and promotional mix. Table 4.1 shows comparison (Lev<strong>in</strong>e & Wakefield,<br />

2012).<br />

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Table 4.1 Compar<strong>in</strong>g Bought, Owned, and earned Market<strong>in</strong>g<br />

Bought Owned Earned<br />

Advertis<strong>in</strong>g (pr<strong>in</strong>t, broadcast,<br />

onl<strong>in</strong>e)<br />

Paid search eng<strong>in</strong>e and<br />

market <strong>in</strong>telligence<br />

Website<br />

Sales literature<br />

Email market<strong>in</strong>g<br />

Newsletters<br />

Special events<br />

Blogg<strong>in</strong>g & micro-blogg<strong>in</strong>g<br />

Editorial placements<br />

(pr<strong>in</strong>t, broadcast, onl<strong>in</strong>e)<br />

Search eng<strong>in</strong>e optimization<br />

SEO<br />

Social <strong>media</strong> cultivat<strong>in</strong>g<br />

<strong>in</strong>fluencers<br />

Bates, <strong>in</strong> his version <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>the</strong>ory, perceived markets to become <strong>the</strong><br />

“conversations”; <strong>social</strong> <strong>media</strong> will be all about “sell<strong>in</strong>g those conversations”; <strong>the</strong> process<br />

is simple by:<br />

“us<strong>in</strong>g freely available Social Network<strong>in</strong>g tools such as Facebook, Twitter<br />

and L<strong>in</strong>kedIn, essentially any bus<strong>in</strong>ess can “bolt on” <strong>the</strong> mechanism to<br />

promote mean<strong>in</strong>gful “conversations” about <strong>the</strong>ir products – that eventually<br />

lead to sales. “<br />

[(Bates, 2011)]<br />

O<strong>the</strong>r oversimplified views limited <strong>social</strong> <strong>media</strong> market<strong>in</strong>g to be merely a “choice”<br />

issue from a host <strong>of</strong> customer acquisition tools (SEO, paid search), and customer<br />

engagement channels (Facebook, YouTube, etc) (econsultancy, 2012).<br />

Accord<strong>in</strong>g to Solis 19 <strong>the</strong>re is not yet a “standard” for draft<strong>in</strong>g a <strong>social</strong> <strong>media</strong><br />

market<strong>in</strong>g strategy and plan. This is attributed to <strong>the</strong> fact that <strong>social</strong> <strong>media</strong> is based on<br />

content and this is “unique” to each brand or location. To develop a <strong>social</strong> <strong>media</strong><br />

market<strong>in</strong>g plan it should start from data collection and documentation (from relevant<br />

networks, sentiments, perceptions, reach, concerned departments, share <strong>of</strong> voice,<br />

trends, <strong>the</strong>mes), state <strong>of</strong> <strong>social</strong> affairs (current accounts and <strong>the</strong>ir activity), and build<strong>in</strong>g<br />

competitive <strong>in</strong>telligence (Solis, 2011, p. 216).<br />

19 Brian Solis book Engage! is regarded as <strong>the</strong> <strong>in</strong>dustry reference guide for bus<strong>in</strong>esses to build and measure success <strong>in</strong> <strong>the</strong> <strong>social</strong><br />

web.<br />

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Qualman (2010) went fur<strong>the</strong>r to describe a “paradigm shift” elicited by <strong>the</strong> ease<br />

and speed <strong>of</strong> flow <strong>of</strong> <strong>in</strong>formation amongst <strong>the</strong> <strong>social</strong> graph, creat<strong>in</strong>g “collective<br />

<strong>in</strong>telligence”; this impels bus<strong>in</strong>ess models to fully” transform” to address <strong>the</strong> impact and<br />

demand <strong>of</strong> <strong>social</strong> <strong>media</strong>. He named it <strong>the</strong> rise <strong>of</strong> <strong>social</strong>nomics, which def<strong>in</strong>es <strong>the</strong> value<br />

created and shared by <strong>social</strong> <strong>media</strong> and its cross-cutt<strong>in</strong>g <strong>in</strong>fluence on economic,<br />

political, and relational outcomes. The perceived power <strong>of</strong> <strong>social</strong>nomics is not just<br />

onl<strong>in</strong>e, but it can drive activity to <strong>the</strong> <strong>of</strong>fl<strong>in</strong>e world, where everyone could become a<br />

w<strong>in</strong>ner: consumers and bus<strong>in</strong>esses alike. One valid cautionary remark that he<br />

addressed is for organizations to keep up with fast pace <strong>of</strong> changes <strong>in</strong> <strong>social</strong> <strong>media</strong> or<br />

will be left beh<strong>in</strong>d. He separated W<strong>in</strong>ners from Losers as shown <strong>in</strong> Table 4.2 (Qualman,<br />

2011, p. 181).<br />

Table 4.2 Socialeconomics W<strong>in</strong>ners & Losers<br />

W<strong>in</strong>ners<br />

Good companies that deliver products <strong>of</strong> great<br />

value.<br />

Team players (employees).<br />

Society<br />

Democracy<br />

Referral programs<br />

Good talent<br />

Entrepreneurial talent<br />

Consumers<br />

Losers<br />

Companies rely<strong>in</strong>g on market<strong>in</strong>g sizzle.<br />

Undiscipl<strong>in</strong>ed <strong>in</strong>dividuals.<br />

Companies that deliberate but not do.<br />

Middlemen.<br />

Search eng<strong>in</strong>es if <strong>the</strong>y fail to <strong>in</strong>tegrate with <strong>social</strong><br />

<strong>media</strong><br />

Traditional advertis<strong>in</strong>g agencies<br />

Talents that lack talents.<br />

Traditional <strong>media</strong>.<br />

Bus<strong>in</strong>ess that does not listen or react.<br />

Armano (2009) <strong>in</strong> his turn, observed “market<strong>in</strong>g shifts” between <strong>the</strong> traditional<br />

lower engagement “Push” market<strong>in</strong>g, and <strong>the</strong> emerg<strong>in</strong>g higher engagement “Pull”<br />

<strong>social</strong> <strong>media</strong>, creat<strong>in</strong>g a hybrid Tradigital market<strong>in</strong>g. Table 4.3 shows <strong>the</strong><br />

characteristics <strong>of</strong> Tradigital market<strong>in</strong>g (Armano, 2009).<br />

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Table 4.3 Tradigital Market<strong>in</strong>g<br />

Traditional Market<strong>in</strong>g<br />

Lower engagement<br />

Push messag<strong>in</strong>g<br />

Broadcast<br />

Formal<br />

Message oriented<br />

Authoritative<br />

Mass market<strong>in</strong>g<br />

Tradigital Market<strong>in</strong>g<br />

Push & Pull messag<strong>in</strong>g<br />

Interactive<br />

Automated<br />

Technology dependent<br />

Mass & niche market<strong>in</strong>g<br />

Social Media Market<strong>in</strong>g<br />

Higher engagement<br />

Pull messag<strong>in</strong>g<br />

Dialogue<br />

Interactive<br />

Informal<br />

People & technology<br />

dependant<br />

Niche market<strong>in</strong>g<br />

Evans & Mckee (2010) suggested that Web 2.0 technologies act toge<strong>the</strong>r to<br />

“equalize” <strong>the</strong> market positions <strong>of</strong> suppliers, manufacturers, bus<strong>in</strong>esses, organizational<br />

leaders, customers, and stakeholders. They perceived a “shift” from <strong>social</strong> <strong>media</strong><br />

market<strong>in</strong>g towards “<strong>social</strong> bus<strong>in</strong>ess” that will enhance <strong>the</strong> “<strong>in</strong>novation cycle”, result<strong>in</strong>g<br />

from shar<strong>in</strong>g <strong>of</strong> <strong>in</strong>formation and its use <strong>in</strong>side <strong>the</strong> organizations. This very much depicts,<br />

<strong>in</strong> my view, <strong>the</strong> challenges that will be fac<strong>in</strong>g IPAs to ensure <strong>the</strong>y are well equipped <strong>in</strong> a<br />

world that is advertent to becom<strong>in</strong>g “<strong>in</strong>novation-oriented” (Evans & Mckee, 2010).<br />

Nicole Cohen (2008), a critical voice <strong>of</strong> <strong>the</strong> impact <strong>of</strong> Web 2.0 on new bus<strong>in</strong>ess<br />

models, acclaimed <strong>the</strong> consumer has become an unpaid producer. In this new<br />

environment, <strong>the</strong> consumer turned <strong>in</strong>to producer, described as “prosumer” 20 ,<br />

cont<strong>in</strong>uously provides content through upload<strong>in</strong>g, post<strong>in</strong>g l<strong>in</strong>ks, <strong>in</strong>putt<strong>in</strong>g <strong>in</strong>formation<br />

that generates traffic, which is leveraged <strong>in</strong>to advertis<strong>in</strong>g sales. (Cohen, 2008, pp. 7-<br />

10).<br />

She cited Terranova’s (2004) depict<strong>in</strong>g new bus<strong>in</strong>ess models to be dependent on<br />

<strong>the</strong> performance <strong>of</strong> “free” labor, without which <strong>the</strong>re would be “no content and <strong>the</strong>refore<br />

no pr<strong>of</strong>it”. In <strong>the</strong> same context, she cited Huws (2003) analysis that Web 2.0<br />

encourages <strong>the</strong> tendency to “<strong>of</strong>fload” labor costs onto consumers. She also cited<br />

O’Reilly (2005) who saw Web 2.0 applications built on <strong>the</strong> basis <strong>of</strong> “architecture <strong>of</strong><br />

participation,” that cont<strong>in</strong>uously grows <strong>in</strong>to “massive databases” <strong>of</strong> user <strong>in</strong>formation with<br />

each new participant add<strong>in</strong>g content, unknow<strong>in</strong>gly add<strong>in</strong>g value to <strong>the</strong> site. I found her<br />

20 A term first co<strong>in</strong>ed by Alv<strong>in</strong> T<strong>of</strong>fler, author <strong>of</strong> <strong>the</strong> book: Future Shock <strong>in</strong> 1972.<br />

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dissonant analysis <strong>in</strong>trigu<strong>in</strong>g <strong>in</strong> depict<strong>in</strong>g how <strong>the</strong> division between onl<strong>in</strong>e consumer and<br />

producer has been blurred, an aspect that could convulse fur<strong>the</strong>r discussions (Cohen,<br />

2008, pp. 7-10).<br />

5 Chapter Five: Investment Promotion & Social Media<br />

5.1 How Social Media fit <strong>in</strong>to IPAs Work:<br />

I<br />

PAs are <strong>in</strong>creas<strong>in</strong>gly mak<strong>in</strong>g <strong>the</strong> decision to <strong>in</strong>tegrate <strong>social</strong> <strong>media</strong> as a” hybrid”<br />

element <strong>of</strong> <strong>the</strong>ir regular promotional mix to more effectively perform functions <strong>of</strong><br />

image build<strong>in</strong>g, <strong>in</strong>vestor/sector target<strong>in</strong>g, <strong>in</strong>vestors servic<strong>in</strong>g, and policy advocacy,<br />

as well as address new types <strong>of</strong> <strong>in</strong>vestment, become more “solution providers” ra<strong>the</strong>r<br />

than “location promoters”, while progress<strong>in</strong>g along <strong>the</strong>ir learn<strong>in</strong>g curve.<br />

Mangold & Faulds (2009) confirmed that <strong>social</strong> <strong>media</strong> is <strong>in</strong>creas<strong>in</strong>gly becom<strong>in</strong>g a<br />

“hybrid element” <strong>of</strong> <strong>the</strong> promotion mix, to enable more B2C engagement and cater<strong>in</strong>g<br />

for <strong>the</strong> emergence <strong>of</strong> C2C communication. They noted that <strong>the</strong> content, tim<strong>in</strong>g, and<br />

frequency <strong>of</strong> <strong>the</strong> <strong>social</strong> <strong>media</strong> based “conversations”, occur outside <strong>the</strong> direct control <strong>of</strong><br />

management. Therefore, <strong>the</strong> <strong>role</strong> <strong>of</strong> “promoters” will become crucial <strong>in</strong> shap<strong>in</strong>g<br />

consumers’ discussions <strong>in</strong> l<strong>in</strong>e with <strong>the</strong>ir mission and performance goals (Mangold &<br />

Faulds, 2009).<br />

This is <strong>the</strong> right move for IPAs, as it is no longer traditional versus digital<br />

market<strong>in</strong>g, as Evans (2010) reiterated, but <strong>the</strong> adoption <strong>of</strong> an “<strong>in</strong>tegrated approach” to<br />

align <strong>of</strong>fl<strong>in</strong>e and onl<strong>in</strong>e market<strong>in</strong>g, a view I fully endorse (Evans, 2010).<br />

Evans cautioned aga<strong>in</strong>st handl<strong>in</strong>g <strong>social</strong> <strong>media</strong> market<strong>in</strong>g as a quick, easy or<br />

cheap tool; on <strong>the</strong> contrary, it needs ultimate dedication, sufficient and adequate<br />

sources and time, and full understand<strong>in</strong>g <strong>of</strong> potential legal ramifications (Evans, 2010).<br />

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For IPAs to pr<strong>of</strong>essionalize <strong>social</strong> <strong>media</strong> utilization and ensure success, Deloitte<br />

(2011) proposed to develop an <strong>in</strong>ternal and external <strong>social</strong> <strong>media</strong> market<strong>in</strong>g strategy. It<br />

starts, like any strategy, with determ<strong>in</strong><strong>in</strong>g <strong>the</strong> IPA’s objective (rais<strong>in</strong>g awareness <strong>of</strong> <strong>the</strong><br />

agency services, optimize <strong>the</strong> land<strong>in</strong>g page on <strong>the</strong> IPA’s Web site, driv<strong>in</strong>g visitors to <strong>the</strong><br />

IPA website, generat<strong>in</strong>g new customers); identify<strong>in</strong>g its target audiences (potential<br />

<strong>in</strong>vestors, location selectors, op<strong>in</strong>ion leaders); and quantify<strong>in</strong>g <strong>the</strong> needed resources<br />

(f<strong>in</strong>ancial and human capital). Internally, <strong>the</strong>y must develop “competitive FDI<br />

<strong>in</strong>telligence”, which is a primary area for apply<strong>in</strong>g <strong>social</strong> <strong>media</strong>, enabl<strong>in</strong>g IPA to glean<br />

<strong>in</strong>sights, track target <strong>in</strong>vestors, and to identify emerg<strong>in</strong>g developments; this will<br />

enhance IPA’s s ability to cope with new requirements for country brand<strong>in</strong>g, creat<strong>in</strong>g<br />

partnerships to support cluster formulation, pursu<strong>in</strong>g <strong>in</strong>ter-territorial collaboration, and<br />

cater<strong>in</strong>g to ris<strong>in</strong>g “footpr<strong>in</strong>t optimization” 21 strategies that companies are undertak<strong>in</strong>g to<br />

reduce costs and enhance efficiency. See Figure 5.1 (Deloitte, 2011).<br />

Figure 5.1 Deloitte on IPAs and Social Media<br />

Deloitte Global Location and Facility Services' views<br />

on <strong>the</strong> new activities <strong>of</strong> IPAs recently published <strong>in</strong><br />

fDiMagaz<strong>in</strong>e, noted, that although <strong>the</strong> use <strong>of</strong> <strong>social</strong><br />

<strong>media</strong> is <strong>in</strong>creas<strong>in</strong>g by IPAs, as part <strong>of</strong> <strong>the</strong>ir endeavors to<br />

adapt to ris<strong>in</strong>g competition, not so many IPAs have<br />

developed well-structured <strong>social</strong> <strong>media</strong> market<strong>in</strong>g<br />

strategies.<br />

Social <strong>media</strong> has redef<strong>in</strong>ed <strong>social</strong> consumers (<strong>in</strong>vestors) engagement and<br />

created a new breed <strong>of</strong> brand advocates (Deloitte, 2010).<br />

21 footpr<strong>in</strong>t optimization is a holistic method that helps companies reduce <strong>the</strong>ir costs while improv<strong>in</strong>g <strong>the</strong>ir operat<strong>in</strong>g efficiency,<br />

<strong>in</strong>crease <strong>the</strong>ir access to global talent, position <strong>the</strong>mselves strategically <strong>in</strong> key geographic markets, <strong>in</strong>crease a company’s operat<strong>in</strong>g<br />

flexibility <strong>in</strong> respond to chang<strong>in</strong>g market conditions.<br />

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A good advice <strong>in</strong> this regard by Evans (2010) is to start by educat<strong>in</strong>g and tra<strong>in</strong><strong>in</strong>g<br />

employees about <strong>social</strong> <strong>media</strong> and how to engage with onl<strong>in</strong>e communities to position<br />

<strong>the</strong> organization as a “thought leader”, while ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g <strong>the</strong> consistency <strong>in</strong> <strong>the</strong><br />

“brand<strong>in</strong>g message” across all <strong>social</strong> <strong>media</strong> (Evans, 2010).<br />

Under <strong>the</strong> evolv<strong>in</strong>g “hybrid” market<strong>in</strong>g mix, content is stressed as <strong>the</strong> most<br />

crucial element to trigger <strong>the</strong> required promotional BUZZ, and create <strong>the</strong> stream <strong>of</strong><br />

op<strong>in</strong>ions and responses that can reach targeted audiences, with cont<strong>in</strong>ued content<br />

repurpos<strong>in</strong>g that is needed across various <strong>social</strong> <strong>media</strong> channels. 22<br />

Accord<strong>in</strong>g to Social Media Exam<strong>in</strong>er 23 , 85% <strong>of</strong> marketers surveyed reported <strong>the</strong><br />

top advantage <strong>of</strong> <strong>social</strong> <strong>media</strong> is to generate brand exposure, while 52% ma<strong>in</strong>ta<strong>in</strong>ed<br />

that <strong>the</strong>y used it to generate qualified leads (Deloitte, 2011).<br />

This is particularly important for <strong>in</strong>vestment facilitation stage <strong>of</strong> <strong>in</strong>vestment<br />

promotion, which seeks to convert <strong>in</strong>vestor <strong>in</strong>terest generated through location brand<strong>in</strong>g<br />

or “<strong>in</strong>vestor outreach,” <strong>in</strong>to an <strong>in</strong>vestment decision, which seeks to qualify <strong>the</strong> <strong>in</strong>terest.<br />

Facilitation provides a strong proxy for IPAs performance. Best practice facilitation<br />

demands prompt provision <strong>of</strong> high-quality bus<strong>in</strong>ess <strong>in</strong>formation to <strong>in</strong>vestors dur<strong>in</strong>g <strong>the</strong><br />

site selection process, an area where <strong>social</strong> <strong>media</strong> is highly relevant (WBG, 2011).<br />

Social <strong>media</strong> opens new channels for <strong>in</strong>vestor facilitation like us<strong>in</strong>g Twitter-based<br />

customer service, or Facebook news feeds (Mck<strong>in</strong>sey, 2012).<br />

5.2 Measur<strong>in</strong>g IPAS Digital Market<strong>in</strong>g<br />

F<br />

or <strong>the</strong> first time, fDi Magaz<strong>in</strong>e, <strong>the</strong> <strong>in</strong>vestment promotion <strong>in</strong>dustry magaz<strong>in</strong>e,<br />

launched its Digital Market<strong>in</strong>g Awards for 2012, based on assess<strong>in</strong>g entrants<br />

IPAs <strong>in</strong> use <strong>of</strong> digital means to promote <strong>the</strong>ir locations. The IPAs websites and<br />

22 content repurpos<strong>in</strong>g mean restyl<strong>in</strong>g or expand<strong>in</strong>g on an orig<strong>in</strong>al piece <strong>of</strong> content so that it is useful and valuable <strong>in</strong> a different<br />

way across <strong>social</strong> <strong>media</strong> channels (blog turned <strong>in</strong>to video or Instigram).<br />

23 <strong>social</strong> <strong>media</strong> magaz<strong>in</strong>e.<br />

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<strong>social</strong> <strong>media</strong> pr<strong>of</strong>iles were assessed. The criteria <strong>of</strong> excellence is that <strong>the</strong> website must<br />

be attractive, <strong>in</strong>formative, and usable; for <strong>the</strong> <strong>social</strong> <strong>media</strong> tools: to be creative,<br />

proactive approach to multi<strong>media</strong> platforms, well-thought-out ideas that maximise onl<strong>in</strong>e<br />

brand<strong>in</strong>g. (fDiMagaz<strong>in</strong>e , 2012)<br />

Results were announced on December 7, 2012. Table 5.1 shows list<strong>in</strong>gs.<br />

Table 5.1 fDi Magaz<strong>in</strong>e Digital Market<strong>in</strong>g Rank<strong>in</strong>gs 2012<br />

Global Rank<strong>in</strong>gs for Digital Market<strong>in</strong>g<br />

Best Use <strong>of</strong> Social Media Rank<strong>in</strong>gs2012<br />

The ma<strong>in</strong> f<strong>in</strong>d<strong>in</strong>g is that IDA Ireland ma<strong>in</strong>ta<strong>in</strong>ed its lead position as a <strong>role</strong> model<br />

IPA; also economic development agencies (EDAs) have outperformed national IPAs <strong>in</strong><br />

creatively and effectively utiliz<strong>in</strong>g digital market<strong>in</strong>g, especially <strong>in</strong> North America (USA<br />

and Canada). iBT Partners 24 judged <strong>in</strong>dependently <strong>the</strong> IPAs/EDAs. They noted that:<br />

“...<strong>the</strong>re exists great disparity between <strong>the</strong><br />

participat<strong>in</strong>g IPAs, <strong>in</strong>dicat<strong>in</strong>g how recent <strong>the</strong> realisation <strong>of</strong> <strong>the</strong><br />

immense importance <strong>of</strong> <strong>the</strong> onl<strong>in</strong>e world has been and <strong>the</strong> vary<strong>in</strong>g<br />

extents to which <strong>in</strong>dividual IPAs have been able to react to this<br />

realisation.”<br />

[(fDimagaz<strong>in</strong>e, 2012)]<br />

24 <strong>in</strong>ternational consult<strong>in</strong>g firm for FDI and onl<strong>in</strong>e market<strong>in</strong>g located <strong>in</strong> London and 4 o<strong>the</strong>r capitals.<br />

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However, <strong>the</strong>y expected this disparity to lessen as more IPAs realise <strong>the</strong><br />

effectiveness and importance <strong>of</strong> digital market<strong>in</strong>g strategy, and how to harness its<br />

potential optimally.<br />

Earlier <strong>in</strong> 2009, Intelegia developed and released <strong>the</strong> first <strong>in</strong>dex for onl<strong>in</strong>e<br />

market<strong>in</strong>g apply<strong>in</strong>g to Canadian economic development agencies (EDOs), which<br />

perform similar tasks <strong>of</strong> IPAs but with regional/prov<strong>in</strong>cial/city focus. The <strong>in</strong>dex<br />

benchmarked <strong>the</strong> level <strong>of</strong> engagement and content relevance <strong>in</strong> <strong>the</strong>ir onl<strong>in</strong>e brand<strong>in</strong>g<br />

and market<strong>in</strong>g activities us<strong>in</strong>g Web 2.0 tools (Intelegia, 2012).<br />

The third edition <strong>of</strong> <strong>the</strong> Canadian Cities Onl<strong>in</strong>e Market<strong>in</strong>g Index© 2011<br />

(CCOMI), results listed <strong>the</strong> follow<strong>in</strong>g top five w<strong>in</strong>ners <strong>in</strong> order:<br />

o Greater Halifax Partnership;<br />

o Hamilton economic Development;<br />

o Edmonton Economic Development Corporation ,<br />

o Ottawa Centre for Regional Innovation;<br />

o Reg<strong>in</strong>a Regional Opportunities Commission; and London<br />

(Ontario) Economic Development Corporation. (shar<strong>in</strong>g 5 th<br />

rank)<br />

In 2012 Intelegia launched <strong>the</strong> first Canadian American Onl<strong>in</strong>e Market<strong>in</strong>g<br />

Index© 2012, (CAOMI) add<strong>in</strong>g American EDOs. The w<strong>in</strong>ners <strong>of</strong> best practices <strong>of</strong> <strong>the</strong><br />

benchmark<strong>in</strong>g results amongst 41 agencies assessed are summarized <strong>in</strong> Figure 5.2.<br />

.<br />

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Figure 5.2 W<strong>in</strong>ners <strong>of</strong> CAOMI 2012<br />

Canadian W<strong>in</strong>ners & Scores<br />

American W<strong>in</strong>ners & Scores<br />

It was an eye open<strong>in</strong>g read<strong>in</strong>g <strong>the</strong> results <strong>of</strong> <strong>the</strong> benchmark<strong>in</strong>g results <strong>of</strong> <strong>the</strong>se<br />

<strong>in</strong>dices. Please see Table 5.4 for a summary <strong>of</strong> <strong>the</strong> ma<strong>in</strong> f<strong>in</strong>d<strong>in</strong>gs.<br />

Table 5.2 Ma<strong>in</strong> F<strong>in</strong>d<strong>in</strong>gs <strong>of</strong> CCOMI 2011<br />

Roadmap to onl<strong>in</strong>e Web 2.0 Market<strong>in</strong>g for EDAs/IPAs from CCOMI 2011 benchmark<strong>in</strong>g report<br />

Web 2.0 provides free tools;<br />

Integrated use <strong>of</strong> new earned market<strong>in</strong>g through <strong>social</strong> <strong>media</strong> tools, along with conventional<br />

owned and bought market<strong>in</strong>g tools;<br />

Web 1.0 website rema<strong>in</strong>s crucial, a ma<strong>in</strong> w<strong>in</strong>dow for effective onl<strong>in</strong>e market<strong>in</strong>g <strong>in</strong>terface with<br />

<strong>social</strong> <strong>media</strong>, ma<strong>in</strong> source <strong>of</strong> provid<strong>in</strong>g <strong>in</strong>formation for decision makers; designed differently,<br />

easily download<strong>in</strong>g documents; use <strong>of</strong> testimonias;<br />

Mobile apps versions <strong>of</strong> <strong>the</strong> website is a must, although still weak now;<br />

It is a new feature used by EDAs pr<strong>of</strong>essional promoters;<br />

A <strong>social</strong> <strong>media</strong> strategy is a must but it has to be on an ongo<strong>in</strong>g basis to accommodate for<br />

cont<strong>in</strong>ued changes;<br />

There must be also a content strategy with ongo<strong>in</strong>g content repurpos<strong>in</strong>g management for<br />

publish<strong>in</strong>g reliable and timely content;<br />

A <strong>social</strong> <strong>media</strong> calendar is needed when launch<strong>in</strong>g a <strong>social</strong> <strong>media</strong> strategy to ensure effective<br />

management;<br />

Social <strong>media</strong> market<strong>in</strong>g must have a clear and consistent message and well def<strong>in</strong>ed targeted<br />

audiences;<br />

High level <strong>of</strong> engagement across all <strong>social</strong> <strong>media</strong> tools must be susta<strong>in</strong>ed to be able to<br />

achieve objectives;<br />

Social <strong>media</strong> is an effective tool for location brand<strong>in</strong>g with consistent message;<br />

Social <strong>media</strong> presence plays <strong>in</strong>tegral <strong>role</strong> <strong>in</strong> promotional activities to attract <strong>in</strong>vestors and<br />

reta<strong>in</strong><strong>in</strong>g <strong>the</strong>m;<br />

The <strong>social</strong> capital sp<strong>in</strong><strong>of</strong>fs, which is <strong>the</strong> expected collective or economic benefits derived from<br />

communications through <strong>social</strong> <strong>media</strong>, are important but not easy to measure; <strong>social</strong> <strong>media</strong><br />

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<strong>in</strong>fluencers play an important <strong>role</strong> <strong>in</strong> creat<strong>in</strong>g <strong>social</strong> capital ;<br />

Ma<strong>in</strong> <strong>social</strong> <strong>media</strong> tools used extensively are: Facebook, Twitter, YouTube, Blogs;<br />

Enhance Search Eng<strong>in</strong>e Optimization (SEO) <strong>in</strong> Google and o<strong>the</strong>r search eng<strong>in</strong>es;<br />

There is no limit to <strong>in</strong>novation under Web 2.0 and more convergence will be witnessed under<br />

Web 3.0;<br />

Recommendations for Social Media Tools Use:<br />

o Facebook (pages, likes): most popular tool useful for <strong>in</strong>novative brand<strong>in</strong>g and build<strong>in</strong>g audiences;<br />

o Twitter (micro-blogg<strong>in</strong>g, hashtags, shortened URLs): powerful took for send<strong>in</strong>g brand<strong>in</strong>g<br />

messages, engag<strong>in</strong>g hugely with audiences, respond<strong>in</strong>g to <strong>in</strong>quiries, provid<strong>in</strong>g key location<br />

<strong>in</strong>formation, <strong>in</strong>crease shar<strong>in</strong>g through # and shortened URLs);<br />

o YouTube (keywords, tags): strong means to place videos <strong>in</strong> <strong>the</strong> <strong>in</strong>ternet, must have clear and<br />

consistent brand<strong>in</strong>g, registered channel for video series;<br />

o L<strong>in</strong>kedIn: presence <strong>of</strong> agency and <strong>in</strong>dividual staff is crucial; significant pr<strong>of</strong>essional and bus<strong>in</strong>ess<br />

platform to <strong>in</strong>itiate bus<strong>in</strong>ess relations, expands pool <strong>of</strong> connections, useful for <strong>in</strong>telligence<br />

ga<strong>the</strong>r<strong>in</strong>g on pr<strong>of</strong>essional pr<strong>of</strong>iles <strong>in</strong> various fields;<br />

o Blogs: useful <strong>in</strong> content strategy;<br />

o Klout: very useful to measure and track <strong>in</strong>fluence across all <strong>social</strong> <strong>media</strong> platforms, tells which<br />

are user subjects <strong>of</strong> <strong>in</strong>fluence; <strong>social</strong> <strong>media</strong> channels <strong>of</strong> most <strong>in</strong>fluence; records scores based on<br />

variables(listen<strong>in</strong>g/casual, shar<strong>in</strong>g/participat<strong>in</strong>g, focused/consistent, creat<strong>in</strong>g/broad); classify<strong>in</strong>g<br />

scores (16 classes <strong>of</strong> which curator, celebrity, broadcaster, conversationalist), compar<strong>in</strong>g<br />

<strong>in</strong>dividuals and agencies scores;<br />

o Mobile Smartphone’s’ Applicationsapps for website) enables access to <strong>in</strong>formation, useful for<br />

location selectors research.<br />

5.3 O<strong>the</strong>r Examples <strong>of</strong> Current Social Media <strong>in</strong> IPAs:<br />

A good example <strong>of</strong> <strong>in</strong>vestment promotion us<strong>in</strong>g both traditional <strong>media</strong> and <strong>the</strong><br />

new <strong>social</strong> <strong>media</strong> channels is <strong>the</strong> promotional campaign ”Say Qui to France – Say Oui<br />

to Innovation” launched on October 25, 2012. Campaign cost is 7 million euro. It will<br />

target Ch<strong>in</strong>a, India, Brazil, and <strong>the</strong> United States. It is a jo<strong>in</strong>t campaign between Invest<br />

<strong>in</strong> France Agency (IFA) and <strong>the</strong> French Patent and Trademark Office (INPI)<br />

(Invest<strong>in</strong>France, 2012). See Figure 5.3.<br />

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Figure 5.3 IFA New Communications Campaign 2012<br />

Before that <strong>in</strong> 2010 France launched ano<strong>the</strong>r major communications campaign<br />

“France: Expect More”. The campaign focused on target<strong>in</strong>g bus<strong>in</strong>ess leaders <strong>in</strong> Ch<strong>in</strong>a,<br />

India, Brazil, Turkey, Russia, and <strong>the</strong> Gulf countries. It adopted a well-structured, paced,<br />

multi-<strong>media</strong> approach with traditional <strong>media</strong> (70% <strong>of</strong> campaign budget) for press<br />

advertiz<strong>in</strong>g space, and special TV program with CNN; and digital <strong>media</strong> (rema<strong>in</strong><strong>in</strong>g<br />

30%). The digital <strong>media</strong> campaign <strong>in</strong>cluded send<strong>in</strong>g 133 million advertis<strong>in</strong>g banners<br />

redirect<strong>in</strong>g to <strong>the</strong> IFA website special land<strong>in</strong>g page with key facts about France, and<br />

testimonials; a dedicated m<strong>in</strong>i website on Wall Street Journal website; a l<strong>in</strong>k to F<strong>in</strong>ancial<br />

Times (FT) website; mobile phone applications (iPhone and Blackberry); a dedicated<br />

blog titled “Invest <strong>in</strong> France Agency blog”; an IFA’s bloggers group from op<strong>in</strong>ion leaders<br />

<strong>in</strong> targeted countries, to crossl<strong>in</strong>k with <strong>the</strong>ir <strong>social</strong> spaces; and content bureau was<br />

established to monitor and publish hot topics <strong>in</strong> <strong>social</strong> <strong>media</strong> and provide dedicated<br />

surveys and benchmarks on <strong>the</strong> relative economic attractiveness <strong>of</strong> France. IFA‘s head<br />

<strong>of</strong>fice and overseas <strong>of</strong>fices <strong>in</strong> 22 countries staffed with 160 pr<strong>of</strong>essionals executed <strong>the</strong><br />

campaign. See Figure 5.4 (Invest<strong>in</strong>France, 2012)<br />

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Figure 5.4 IFA Communications Campaign 2010<br />

Sweden has recently put on its website homepage an entry to Facebook, as its<br />

source <strong>of</strong> data. This is a noted evidence for <strong>the</strong> shift <strong>in</strong> <strong>the</strong> “Facebook economy”. See<br />

Figure 5.5 (InvestSweden, 2012).<br />

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5Figure 5.5 Invest <strong>in</strong> Sweden Facebook Entry at Home Page<br />

ConnectIreland, launched a strategic <strong>in</strong>itiative and a “unique referral model “Our<br />

Country…Your Opportunity”, aimed at creat<strong>in</strong>g a m<strong>in</strong>imum 5,000 jobs <strong>in</strong> Ireland over <strong>the</strong><br />

next five years. The approach was simple but creative and reward<strong>in</strong>g to all parties.<br />

Individuals help look for prospects with<strong>in</strong> <strong>the</strong>ir <strong>social</strong> networks to establish small<br />

bus<strong>in</strong>esses <strong>in</strong> Ireland, and connect <strong>the</strong>m to IDA; if <strong>the</strong> referred bus<strong>in</strong>ess qualified <strong>the</strong>n<br />

an award <strong>of</strong> €1,500 is paid for each job to <strong>the</strong> person suggested <strong>the</strong> prospect; subject to<br />

a m<strong>in</strong>imum <strong>of</strong> €4,500 if 3 jobs are created, and a maximum <strong>of</strong> €150,000 if 100 jobs or<br />

more are created.<br />

To promote <strong>the</strong> <strong>in</strong>itiative, <strong>the</strong> Connect Ireland created a timel<strong>in</strong>e on its website<br />

homepage start<strong>in</strong>g from March 8, 2012, date <strong>of</strong> launch<strong>in</strong>g <strong>the</strong> program. It used<br />

Facebook, Twitter, and L<strong>in</strong>kedIn; and engag<strong>in</strong>g video testimonials from celebrities<br />

(Mart<strong>in</strong> Sheen, Michael Flatley, and Saoirse Ronan). The first job announcement was<br />

made on May 24, 2012 (ConnectIreland, 2012). Please see Figure 5.6.<br />

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Figure 5.6 ConnectIreland Jobs Campag<strong>in</strong> 2012<br />

The Invest <strong>in</strong> Reims (a city <strong>in</strong> France 25 ) website is, I believe, illustrative <strong>of</strong> <strong>the</strong><br />

k<strong>in</strong>d <strong>of</strong> “new era” website. If <strong>the</strong>re is best practice and if a paradigm has shifted <strong>in</strong> how<br />

<strong>in</strong>vestment promotion has changed, it is <strong>in</strong> Reims. Figure 5.7 (Invest<strong>in</strong>Reims, 2012).<br />

This is due to <strong>the</strong> fact that a unique branded visual identity was developed, along<br />

with an orig<strong>in</strong>al design for <strong>the</strong> website optimized by <strong>the</strong> use <strong>of</strong> ergonomics 26 . A “Chic<br />

and Cheap” communications plan deployed a strategy <strong>of</strong> ”differentiation, conquest and<br />

pride”, under <strong>the</strong> <strong>the</strong>me “The decision-makers vote Reims”, us<strong>in</strong>g celebrity market<strong>in</strong>g,<br />

and a TV commercial “The sun rises <strong>in</strong> Reims”, newsletters, TV <strong>in</strong>terviews, and full<br />

power <strong>of</strong> <strong>social</strong> <strong>media</strong> networks and a dedicated blog (ANIMA, 2011).<br />

25 Reims, a city <strong>in</strong> <strong>the</strong> Champagne-Ardenne region <strong>of</strong> France, lies 129 km east-nor<strong>the</strong>ast <strong>of</strong> Paris with a population <strong>of</strong> 188,078<br />

people; it played a prom<strong>in</strong>ent ceremonial as <strong>the</strong> traditional site <strong>of</strong> <strong>the</strong> crown<strong>in</strong>g <strong>of</strong> <strong>the</strong> k<strong>in</strong>gs <strong>of</strong> France.<br />

26 a systems-oriented discipl<strong>in</strong>e, which now applies to all aspects <strong>of</strong> human activity.<br />

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Figure 5.7 Invest <strong>in</strong> Reims Communications: Shift to <strong>the</strong> New Paradigm<br />

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6 Chapter Six: Research Method and Exploration <strong>of</strong> Data<br />

6.1 Research Question:<br />

T<br />

he <strong>social</strong> <strong>media</strong> phenomenon has a far reach<strong>in</strong>g impact on <strong>the</strong> bus<strong>in</strong>ess world,<br />

and daily lives <strong>of</strong> people at home, workplace, and society at large. The<br />

hypo<strong>the</strong>sis <strong>of</strong> this research is based on <strong>the</strong> conceptual idea <strong>of</strong> whe<strong>the</strong>r <strong>the</strong><br />

adoption and appropriation <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>in</strong> IPAs is a “hybrid” element <strong>of</strong> <strong>the</strong><br />

promotional mix, or whe<strong>the</strong>r it will br<strong>in</strong>g on a shift towards a new paradigm for<br />

conduct<strong>in</strong>g <strong>in</strong>vestment promotion functions: image build<strong>in</strong>g, <strong>in</strong>vestor target<strong>in</strong>g/lead<br />

generation, facilitation/aftercare, and advocacy; and determ<strong>in</strong><strong>in</strong>g whe<strong>the</strong>r <strong>the</strong>se<br />

functions will rema<strong>in</strong> <strong>the</strong> same <strong>in</strong> face <strong>of</strong> <strong>the</strong> challenge posed by <strong>social</strong> <strong>media</strong><br />

penetration.<br />

This br<strong>in</strong>gs up ano<strong>the</strong>r relevant question, which will not be addressed but is still<br />

important to mention, and that is if <strong>the</strong> <strong>social</strong> <strong>media</strong>, which made <strong>in</strong>formation streams<br />

available <strong>in</strong> massive amounts and <strong>in</strong> cont<strong>in</strong>uum real time, with speed and transparency,<br />

will affect <strong>the</strong> rationale and justification <strong>of</strong> <strong>the</strong> IPAs’ own existence as public providers <strong>of</strong><br />

solutions to market failure <strong>in</strong> an <strong>in</strong>formation asymmetrical environment. This is<br />

essentially a concern given that this environment is overwhelm<strong>in</strong>gly becom<strong>in</strong>g more<br />

open through <strong>social</strong> <strong>media</strong> content generation, shar<strong>in</strong>g, and curation, with high levels <strong>of</strong><br />

audience engagement and collaboration – thus reduc<strong>in</strong>g <strong>the</strong> asymmetry <strong>of</strong> <strong>in</strong>formation<br />

which IPAs were orig<strong>in</strong>ally meant to address for <strong>the</strong> sake <strong>of</strong> foreign <strong>in</strong>vestors <strong>in</strong>terested<br />

<strong>in</strong> <strong>in</strong>vest<strong>in</strong>g <strong>in</strong> <strong>the</strong>ir locations. This could perhaps be a potential area for future research.<br />

6.2 Research Method:<br />

T<br />

he research method adopted is based on a qualitative approach that<br />

uses demonstrative datasets obta<strong>in</strong>ed from observations <strong>of</strong> websites to<br />

assess <strong>the</strong> current state <strong>of</strong> use <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>in</strong> <strong>the</strong> sample population<br />

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<strong>of</strong> IPAs; supported by <strong>the</strong> use <strong>of</strong> a survey as a source <strong>of</strong> obta<strong>in</strong><strong>in</strong>g primary data. The<br />

latter survey also collected comments from 14 sampled experts and <strong>in</strong>dustry leaders <strong>in</strong><br />

<strong>in</strong>vestment promotion, thus allow<strong>in</strong>g this research paper to benefit from <strong>the</strong>ir <strong>in</strong>sights.<br />

F<strong>in</strong>ally <strong>the</strong> research method employed also benefited from secondary sources from<br />

available reliable reports.<br />

The qualitative design facilitates <strong>the</strong> understand<strong>in</strong>g <strong>of</strong> <strong>the</strong> hypo<strong>the</strong>sis question<br />

specified <strong>in</strong> this research paper and <strong>the</strong> analysis <strong>of</strong> various datasets and responses, as<br />

forms <strong>of</strong> contextual <strong>in</strong>formation. It is expected to produce certa<strong>in</strong> f<strong>in</strong>d<strong>in</strong>gs that are with<br />

limited reliability and validity and reasonable generalisability, lead<strong>in</strong>g to <strong>the</strong> ensu<strong>in</strong>g<br />

conclusions with respect to <strong>the</strong> research hypo<strong>the</strong>sis and recommendations for future<br />

actions.<br />

Narrative discourse analysis was utilized to understand <strong>the</strong> essence <strong>of</strong> <strong>the</strong><br />

research topic and <strong>the</strong> conditions beh<strong>in</strong>d it. Discourse analysis would enrich <strong>the</strong> view <strong>of</strong><br />

<strong>the</strong> research and broaden its perspective.<br />

I would have liked to <strong>in</strong>clude more analysis on <strong>the</strong> “cultural” transformation effect<br />

<strong>of</strong> <strong>social</strong> <strong>media</strong> as part <strong>of</strong> <strong>the</strong> assessment, us<strong>in</strong>g ethnography, as a qualitative research<br />

design. However, it is beyond <strong>the</strong> direct scope <strong>of</strong> this research, though some aspects<br />

might be touched upon when relevant.<br />

In this regard, <strong>the</strong> research will limit its scope towards assess<strong>in</strong>g <strong>the</strong> current<br />

penetration <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>in</strong> <strong>the</strong> market<strong>in</strong>g and promotional mix <strong>of</strong> IPAs’ websites as<br />

proxies to <strong>the</strong>ir presence <strong>in</strong> various <strong>social</strong> <strong>media</strong> platforms and channels, and <strong>the</strong><br />

survey feedback. Then <strong>the</strong> research f<strong>in</strong>d<strong>in</strong>gs will determ<strong>in</strong>e whe<strong>the</strong>r or not <strong>the</strong> changes<br />

brought about by <strong>in</strong>creased <strong>social</strong> <strong>media</strong> utilization will transpire <strong>in</strong>to a transformational<br />

process, lead<strong>in</strong>g to a systemic organizational shift <strong>in</strong> <strong>the</strong> structure, tasks, time, budgets,<br />

bus<strong>in</strong>ess units, market<strong>in</strong>g plans, and staff<strong>in</strong>g <strong>of</strong> <strong>the</strong> IPAs.<br />

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6.3 Research Limitations<br />

T<br />

he limitations <strong>in</strong> this research paper relates to its methodology design,<br />

which <strong>in</strong> turn was due to <strong>the</strong> subjective, dynamic and fluid nature <strong>of</strong><br />

<strong>social</strong> <strong>media</strong>.<br />

The limitation relat<strong>in</strong>g to <strong>the</strong> design <strong>of</strong> <strong>the</strong> qualitative methodology could restrict<br />

<strong>the</strong> research f<strong>in</strong>d<strong>in</strong>gs, and <strong>in</strong>fluence <strong>the</strong> subsequent <strong>in</strong>terpretations, should be kept <strong>in</strong><br />

m<strong>in</strong>d when tak<strong>in</strong>g a position on this research paper’s f<strong>in</strong>d<strong>in</strong>gs.<br />

The presence <strong>of</strong> <strong>social</strong> <strong>media</strong> was observed and recorded, but <strong>in</strong>fluence, through<br />

known <strong>social</strong> <strong>media</strong> metrics (number <strong>of</strong> followers, likes, fans, visitors, views, etc) could<br />

not be used because it is cont<strong>in</strong>uously chang<strong>in</strong>g, thus, prevent<strong>in</strong>g a mean<strong>in</strong>gful<br />

assessment. It is also excessively time consum<strong>in</strong>g to track. This might constra<strong>in</strong> <strong>the</strong><br />

reliability <strong>of</strong> <strong>the</strong> conclusions, and to an extent might <strong>in</strong>dicate <strong>the</strong> need to establish<br />

<strong>in</strong>ternal and external validity <strong>in</strong> future follow-up research.<br />

6.4 Current State Analysis and Results<br />

P<br />

rior to construct<strong>in</strong>g <strong>the</strong> survey, <strong>the</strong> current state <strong>of</strong> utilization and<br />

application <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>of</strong> IPAs was assessed, and results collected,<br />

tabulated, and analyzed.<br />

A sample <strong>of</strong> 65 IPAS were selected as <strong>the</strong> def<strong>in</strong>ed population from <strong>the</strong><br />

members’ list <strong>of</strong> <strong>the</strong> World Association <strong>of</strong> Investment Promotion Agencies (WAIPA),<br />

whose membership currently numbers around 244 national and sub-national IPAs<br />

from162 countries, distributed throughout 11 regional directorships 27 , which provides<br />

good geographic stratification and various economic development stage. Please see<br />

Table 6.1 and Table 6.2.<br />

27 sub-Saharan Africa, Middle East and North Africa (MENA), European Union (EU); Eastern Europe, South America, Central<br />

America and <strong>the</strong> Caribbean, North America, South Asia, East Asia and South East Asia, Central Asia and South Caucasus,<br />

Oceania.<br />

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Table 6.1 Regional Classification <strong>of</strong> Survey Sample Population<br />

# Classification by WAIPA’s Regional<br />

Directorships<br />

No. <strong>of</strong> Websites <strong>in</strong><br />

Sample<br />

1. Sub-Saharan Africa 7<br />

2. Middle East and North Africa (MENA) 12<br />

3. European Union (EU) 21<br />

4. Eastern Europe 5<br />

5. South America 2<br />

6. Central America and <strong>the</strong> Caribbean 4<br />

7. North America 2<br />

8. South Asia 5<br />

9. East Asia and South East Asia 3<br />

10. Central Asia and South Caucasus 2<br />

11. Oceania 2<br />

65<br />

Table 6.2 Economic Development Group <strong>of</strong> Survey Sample Population<br />

Development level <strong>of</strong> IPAs Sample<br />

Population<br />

Based on World Bank classification<br />

Advanced<br />

economies<br />

Economies <strong>in</strong><br />

transition<br />

Develop<strong>in</strong>g<br />

economies<br />

21 11 33<br />

65<br />

The unit <strong>of</strong> analysis is <strong>the</strong> IPA’s website homepage to detect whe<strong>the</strong>r <strong>the</strong>re is any<br />

icon for <strong>social</strong> <strong>media</strong> channels listed. IPA’s website was visited, at least three times over<br />

a period <strong>of</strong> n<strong>in</strong>e months, and reported its most current updated use <strong>of</strong> <strong>social</strong> <strong>media</strong><br />

channels.<br />

The results showed that less than 39% <strong>of</strong> current members <strong>in</strong> WAIPA did not use<br />

any form <strong>of</strong> <strong>social</strong> <strong>media</strong> on <strong>the</strong>ir websites. The data identified above dur<strong>in</strong>g <strong>the</strong><br />

exploration phase was analyzed for pattern and discrepancies, and classified to explore<br />

degree <strong>of</strong> <strong>social</strong> <strong>media</strong> use <strong>in</strong> <strong>in</strong>vestment promotion activities. Table 6.3.and Figure 6.1.<br />

Table 6.3 Results <strong>of</strong> Current State <strong>of</strong> Social Media Use <strong>in</strong> Sample Population<br />

Utilization <strong>of</strong> <strong>social</strong><br />

<strong>media</strong> <strong>in</strong> sample<br />

IPAs not us<strong>in</strong>g<br />

any SM<br />

IPAs us<strong>in</strong>g<br />

one SM<br />

IPAs us<strong>in</strong>g<br />

two SM<br />

IPAs us<strong>in</strong>g three or<br />

more SM<br />

Total<br />

sample<br />

25 39% 9 14% 8 12% 23 35% 65<br />

100%<br />

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igure 6.1 Current State <strong>of</strong> Social Media Use <strong>in</strong> IPAs Sample Population<br />

8<br />

7<br />

6<br />

5<br />

4<br />

3<br />

2<br />

1<br />

12%<br />

14%<br />

35%<br />

IPAs us<strong>in</strong>g three<br />

or more SM<br />

IPAs us<strong>in</strong>g two<br />

SM<br />

IPAs us<strong>in</strong>g one<br />

SM<br />

IPAs not us<strong>in</strong>g any<br />

SM<br />

39%<br />

0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45<br />

The analysis <strong>in</strong>dicated that <strong>the</strong>re are 11 <strong>social</strong> <strong>media</strong> channels, amongst<br />

hundreds existent, that were mostly used by <strong>the</strong> IPAs sample population. The so-called<br />

Big Five <strong>in</strong>clude were dom<strong>in</strong>ant: Facebook (38%) tak<strong>in</strong>g <strong>the</strong> lead, followed by<br />

Twitter,(35%) and RSS feed (32%), L<strong>in</strong>kedIn(24%), YouTube (23%). Their comparative<br />

importance is shown <strong>in</strong> Table 6.4 and Figure 6.2.<br />

Table 6.4 Types <strong>of</strong> Social Media Used by IPAs Sample Population<br />

Social<br />

Media Type<br />

Number <strong>of</strong> IPAs us<strong>in</strong>g this<br />

type <strong>of</strong> <strong>social</strong> <strong>media</strong> & %<br />

Icon<br />

Image<br />

Social<br />

Media<br />

Type<br />

Number <strong>of</strong> IPAs us<strong>in</strong>g this<br />

type <strong>social</strong> <strong>media</strong> & %<br />

Facebook 25 38% Delicious 5 7%<br />

Icon<br />

Image<br />

Twitter 23 35% Google+ 3 4%<br />

RSS 21 32% Digg 3 4%<br />

L<strong>in</strong>kedIn 16 24% Blog 2 3%<br />

YouTube 15 23% Vimeo 1 1.5%<br />

Flickr 7 10%<br />

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Figure 6.2 Current State <strong>of</strong> Types <strong>of</strong> Social Media Used by IPAs Sample Population<br />

Vimeo<br />

Blog<br />

Dig<br />

Google+<br />

Delicious<br />

Flickr<br />

YouTube<br />

L<strong>in</strong>kedIn<br />

RSS<br />

Twitter<br />

Facebook<br />

1.50%<br />

3%<br />

4%<br />

4%<br />

8%<br />

10%<br />

23%<br />

24%<br />

32%<br />

35%<br />

38%<br />

0% 5% 10% 15% 20% 25% 30% 35% 40%<br />

Please see Appendix 1 for <strong>the</strong> complete dataset <strong>of</strong> 65 IPAs websites analysis.<br />

6.5 Onl<strong>in</strong>e Survey Primary Data Collection and Results<br />

T<br />

his analysis conducted above could have sufficed by itself to support <strong>the</strong><br />

<strong>in</strong>vestigation conducted <strong>in</strong> <strong>the</strong> research proposal. Never<strong>the</strong>less, obta<strong>in</strong><strong>in</strong>g<br />

primary data from a survey sent to <strong>the</strong> same IPAs sample population, with<br />

characteristics shown above, was considered a good support<strong>in</strong>g tool.<br />

There was no envisioned need to make a “pilot survey” <strong>in</strong> this case ahead <strong>of</strong><br />

prepar<strong>in</strong>g <strong>the</strong> actual survey because <strong>of</strong> <strong>the</strong> nature <strong>of</strong> <strong>the</strong> qualitative methodology<br />

subject matter, and <strong>the</strong> questions were straightforward.<br />

The survey was constructed <strong>in</strong> a standard format. It started with an <strong>in</strong>troduction<br />

to expla<strong>in</strong> <strong>the</strong> objective <strong>of</strong> <strong>the</strong> survey, followed by five closed-ended questions with nonnumeric,<br />

mutually exclusive, response choices, which were logically ordered.<br />

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To ensure <strong>the</strong> reliability and validity <strong>of</strong> <strong>the</strong> questions, attention was given to <strong>the</strong>ir<br />

relevance, clarity, and consistency. The closed-ended questions with multiple choices<br />

are generally a preferred option when determ<strong>in</strong><strong>in</strong>g <strong>the</strong> degree <strong>of</strong> attractiveness,<br />

satisfaction, <strong>in</strong>tensity, certa<strong>in</strong>ty, or importance <strong>of</strong> <strong>the</strong> subject matter (Scheuren, 2004).<br />

However, one open question was added only <strong>in</strong> <strong>the</strong> copy <strong>of</strong> <strong>the</strong> survey that was sent<br />

for <strong>the</strong> selected experts’ sample to benefit from <strong>the</strong>ir feedback and knowledge.<br />

In <strong>the</strong> meantime, to <strong>the</strong> extent <strong>of</strong> my knowledge, <strong>the</strong>re was no prior similar<br />

comparative data to compare to; survey results were available from o<strong>the</strong>r sources that<br />

were used and were conducive to enrich<strong>in</strong>g <strong>the</strong> analysis and recommendations.<br />

The survey was sent from my <strong>of</strong>ficial work email to enhance credibility and to<br />

prove it is not spam or fraud. I selected each IPA’s general email that appeared on <strong>the</strong>ir<br />

websites under contact us.<br />

Six months later, a second round <strong>of</strong> <strong>the</strong> same survey was sent to <strong>the</strong> nonrespond<strong>in</strong>g<br />

IPAs <strong>in</strong> <strong>the</strong> sample; this time through one or more <strong>of</strong> <strong>the</strong>ir L<strong>in</strong>kedIn, or<br />

Facebook, or Twitter accounts. For those IPAs that did not have any accounts <strong>in</strong> <strong>the</strong><br />

previously mentioned sites, I re-sent <strong>the</strong> survey to <strong>the</strong>ir email accounts.<br />

The novelty <strong>in</strong> this survey is that it was equally sent to a focused sample<br />

composed <strong>of</strong> 14 <strong>in</strong>ternational <strong>in</strong>vestment promotion experts that were k<strong>in</strong>d enough,<br />

despite <strong>the</strong>ir busy schedules, to use <strong>the</strong>ir time to respond to this survey. I contacted <strong>the</strong><br />

experts directly through <strong>the</strong>ir bus<strong>in</strong>ess emails with a l<strong>in</strong>k to <strong>the</strong> same SurveyMonkey<br />

questionnaire, with m<strong>in</strong>or customization to suit <strong>the</strong>ir respective statuses. The<br />

customization <strong>in</strong>volved add<strong>in</strong>g one open question ask<strong>in</strong>g each expert for <strong>the</strong>ir <strong>in</strong>sight on<br />

<strong>social</strong> <strong>media</strong> <strong>in</strong> <strong>the</strong> <strong>in</strong>vestment promotion <strong>in</strong>dustry. The survey was sent once only on<br />

December 22, 2011.<br />

The budget <strong>of</strong> <strong>the</strong> survey was relatively low as it only covered a monthly<br />

subscription fee to Survey Monkey which was paid for two subscription periods,<br />

December 2011until January 2012 and October 2012 until November 2012. Data<br />

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process<strong>in</strong>g was done through <strong>the</strong> SurveyMonkey and <strong>the</strong> results were represented <strong>in</strong><br />

both tabular and graphic format, which facilitated fur<strong>the</strong>r analysis and <strong>in</strong>terpretation to<br />

better detect <strong>the</strong> trends and po<strong>in</strong>t out comparables responses.<br />

The survey responses received from <strong>the</strong> 65 sampled IPAs and 14 experts were a<br />

total <strong>of</strong> 30; but 3 <strong>of</strong> <strong>the</strong>m was deleted for be<strong>in</strong>g <strong>in</strong>complete or with no correct name or<br />

address. Please see Table 6.5.<br />

Table 6.5 Summary <strong>of</strong> Responses <strong>of</strong> Survey Sample Population<br />

Q.1 Does your IPA currently utilize any form <strong>of</strong> <strong>social</strong> <strong>media</strong> Yes<br />

No<br />

networks?<br />

88.3% 11.1%<br />

If Yes: Which <strong>social</strong> <strong>media</strong> networks are used?<br />

Q.2.a Facebook Twitter L<strong>in</strong>kedIn YouTube Blog RSS Delicious Reddit Flikr O<strong>the</strong>rs 1<br />

57.7% 42.3% 80.8% 46.2% 23.1% 23.1% 0 0 0 19.2%<br />

If Yes: Please grade <strong>the</strong> level <strong>of</strong> your presence and utilization <strong>of</strong> <strong>social</strong> <strong>media</strong> networks?<br />

Q.2.b<br />

Advanced High Medium Low Beg<strong>in</strong>ner<br />

0 53.8% 26.9% 11.5% 7.7%<br />

If Yes: Please Indicate your membership method<br />

mobiles crowd sourc<strong>in</strong>g own specific General groups O<strong>the</strong>rs 2<br />

Q.3 platform space on IPA customer <strong>in</strong>terest subgroups<br />

website community<br />

11.5% 26.9% 42.3% 57.7% 26.9% 7.7%<br />

If No: Please <strong>in</strong>dicate if <strong>the</strong>re are future plans to do so.<br />

Q.4 In few months next year next 2 years Undeterm<strong>in</strong>ed O<strong>the</strong>rs 3<br />

0% 7.7% 3.8% 15.4%<br />

Please <strong>in</strong>dicate one or more targets for your use <strong>of</strong> SMNs <strong>in</strong> your <strong>in</strong>vestment promotion strategy<br />

Q.5<br />

Brand<strong>in</strong>g <strong>the</strong><br />

country<br />

location<br />

market<strong>in</strong>g<br />

Target<strong>in</strong>g<br />

<strong>in</strong>vestors<br />

or sectors<br />

Affect<strong>in</strong>g <strong>the</strong><br />

determ<strong>in</strong>ants<br />

<strong>of</strong> <strong>in</strong>vestors’<br />

decision<br />

Investor facilitation<br />

services<br />

Improv<strong>in</strong>g services<br />

Q.6<br />

57.7% 76.9% 65.4% 23.1% 53.8% 15.4%<br />

Gett<strong>in</strong>g<br />

<strong>in</strong>vestors<br />

compla<strong>in</strong>ts<br />

Fast track<strong>in</strong>g<br />

procedures<br />

Detect<strong>in</strong>g<br />

emerg<strong>in</strong>g<br />

trends<br />

Collect<strong>in</strong>g<br />

feedback on<br />

certa<strong>in</strong><br />

issues<br />

Policy advocacy O<strong>the</strong>rs 3<br />

26.0% 26.9% 46.2% 57.7% 15.4% 7.7%<br />

What does <strong>the</strong> remarks, <strong>in</strong>quiries, or comments you receive through your SMN channels focus on?<br />

<strong>in</strong>centives Guarantees sectors opportunities logistics O<strong>the</strong>rs 4<br />

11.5% 3.8% 19.2% 50.0% 11.5% 50.0%<br />

O<strong>the</strong>rs 1: web<strong>in</strong>ars; wikis; Google+, website. O<strong>the</strong>rs 2: None. O<strong>the</strong>rs 3: None. O<strong>the</strong>rs 4 company and executive<br />

research; O<strong>the</strong>r s 5: country's image; compla<strong>in</strong>ts on delays; <strong>in</strong>formation; events.<br />

Response rates:<br />

‣ From <strong>the</strong> sample population <strong>of</strong> 65 IPAs <strong>the</strong> response was very weak:<br />

7/65 = 10.8%<br />

‣ From <strong>the</strong> 14 expert selected group <strong>the</strong> response is great:<br />

14/14 = 100%.<br />

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Please see Table 6.6 for distribution <strong>of</strong> respondents from IPAs sample population.<br />

Table 6.6 Respondents from Survey Sample Population<br />

# Regional directorships #<br />

countries<br />

Name <strong>of</strong> countries #<br />

respondents<br />

1. Sub-Saharan Africa 2 Sierra Leone, south Africa 2<br />

2. Middle East and North Africa<br />

1 Kuwait 5<br />

(MENA)<br />

3. European Union (EU) 4 Switzerland, Sweden, Ireland, UK 15<br />

4. Eastern Europe 2 Poland, Czech Republic 2<br />

5. South America 0 - 0<br />

6. Central America and <strong>the</strong><br />

0 - 0<br />

Caribbean<br />

7. North America 3 USA, Canada, Mexico 3<br />

8. South Asia 0 -- 0<br />

9. East Asia and South East Asia 0 - 0<br />

10. Central Asia and South Caucasus 0 - 0<br />

11. Oceania 0 - 0<br />

12 27<br />

Possible reasons for <strong>the</strong> survey’s weak response from IPAs could be attributed to<br />

<strong>the</strong> <strong>in</strong>ability to send rem<strong>in</strong>ders; also spam filters could have trapped <strong>the</strong> <strong>in</strong>com<strong>in</strong>g email<br />

with <strong>the</strong> survey l<strong>in</strong>k as <strong>the</strong> generic contact email was used for selected IPAs.<br />

Fur<strong>the</strong>rmore, because <strong>the</strong> survey was electronically conducted it could have appeared<br />

differently to different respondents, depend<strong>in</strong>g upon browser and computer platform.<br />

Based on some <strong>in</strong>dustry averages, for web surveys, a 30-40% response rate is<br />

common; for emailed surveys it is higher at 60-70% response rate (University <strong>of</strong><br />

WIscons<strong>in</strong>-Madison, 2010). See Table 6.9 for more details.<br />

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Table 6.7 Survey Strengths and Weaknesses<br />

Onl<strong>in</strong>e Survey + Onl<strong>in</strong>e Survey -<br />

The survey had a short but clear <strong>in</strong>troduction to <strong>in</strong>form <strong>the</strong><br />

sample respondents on what is exactly expected <strong>of</strong> <strong>the</strong>m.<br />

The survey was kept simple and straight to <strong>the</strong> po<strong>in</strong>t.<br />

The survey used 5 questions with multiple choices to speed up<br />

process <strong>of</strong> fill<strong>in</strong>g it.<br />

Built <strong>in</strong> s<strong>of</strong>tware <strong>of</strong> onl<strong>in</strong>e survey eased compilation <strong>of</strong> data and<br />

graphic presentation.<br />

It did not specify a person to respond leav<strong>in</strong>g it for IPA decision.<br />

cod<strong>in</strong>g was not needed for <strong>the</strong> results <strong>of</strong> this survey<br />

Low cost.<br />

No prior similar comparative data to compare with.<br />

The problem <strong>of</strong> weak response appeared this<br />

could exaggerate <strong>the</strong> f<strong>in</strong>d<strong>in</strong>gs <strong>of</strong> <strong>the</strong> survey.<br />

The required level <strong>of</strong> precision <strong>in</strong> <strong>the</strong> answers was<br />

not high.<br />

No cod<strong>in</strong>g for data to produce better analysis.<br />

Ra<strong>the</strong>r long response rate.<br />

Could be manipulated as it went to generic email<br />

<strong>of</strong> IPA.<br />

The ma<strong>in</strong> f<strong>in</strong>d<strong>in</strong>gs <strong>of</strong> <strong>the</strong> survey results <strong>in</strong> Table 6.7 show <strong>the</strong> follow<strong>in</strong>g:<br />

it is clear that a majority <strong>of</strong> responses (88%) confirmed <strong>the</strong>ir use <strong>of</strong> <strong>social</strong><br />

<strong>media</strong> <strong>in</strong> <strong>the</strong>ir IPAs, which supports <strong>the</strong> ris<strong>in</strong>g trend that <strong>social</strong> <strong>media</strong> experts<br />

and academics predicted and discussed <strong>in</strong> an <strong>in</strong>creas<strong>in</strong>gly connected world.<br />

The most frequently chosen <strong>social</strong> <strong>media</strong> tool was L<strong>in</strong>kedIn (80%) followed by<br />

Facebook (57%) but this is not <strong>in</strong> l<strong>in</strong>e with <strong>the</strong> observations shown <strong>in</strong> Table<br />

6.2 which <strong>in</strong>dicated that Facebook was <strong>the</strong> most frequently used <strong>social</strong> <strong>media</strong><br />

tool, followed by Twitter.<br />

The most preferred method <strong>of</strong> communication is special <strong>in</strong>terest sub-groups<br />

(57%) followed by own customer communities(42%), which is safer for IPAs<br />

to use though does not grant sufficient reach and universality.<br />

Social <strong>media</strong> is mostly used for location market<strong>in</strong>g (76%) followed by<br />

Target<strong>in</strong>g <strong>in</strong>vestors (65%) and brand<strong>in</strong>g <strong>the</strong> country (57%), which is fairly <strong>in</strong><br />

l<strong>in</strong>e with observations and read<strong>in</strong>gs.<br />

I would like to conclude with some useful po<strong>in</strong>ts raised from <strong>the</strong> <strong>in</strong>sightful<br />

feedback I received from <strong>in</strong>vestment promotion <strong>in</strong>dustry experts who were k<strong>in</strong>d enough<br />

to fill <strong>the</strong> survey and send <strong>the</strong>ir comments <strong>in</strong>clud<strong>in</strong>g Dr. George Malcotsis, who believed<br />

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<strong>in</strong> <strong>the</strong> idea <strong>of</strong> this research, and gave cont<strong>in</strong>ued direction and support for me to<br />

proceed.<br />

Each <strong>of</strong> <strong>the</strong> feedback (comments) received helped <strong>in</strong> shedd<strong>in</strong>g light on certa<strong>in</strong><br />

areas for future IPAs’ promotional activities which may be driven by <strong>social</strong> <strong>media</strong>. This<br />

makes this expert feedback even more valuable because <strong>of</strong> <strong>the</strong> limited academic and<br />

empirical literature on <strong>the</strong> subject. I would even venture to say that for IPAs at this<br />

stage, it is important to be guided by experts’ views on <strong>the</strong> exact moves to take before<br />

launch<strong>in</strong>g <strong>social</strong> <strong>media</strong> strategies and action plans.<br />

The majority <strong>of</strong> views support <strong>the</strong> utilization <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>in</strong> <strong>in</strong>vestment<br />

promotion market<strong>in</strong>g mix, with vary<strong>in</strong>g degrees <strong>of</strong> leverage and enthusiasm, but o<strong>the</strong>rs<br />

expressed concern and cautionary remarks.<br />

David Brown expects <strong>social</strong> <strong>media</strong> channels will be part <strong>of</strong> <strong>the</strong> “market<strong>in</strong>g mix”<br />

capitaliz<strong>in</strong>g on its “pull-based system” which enables potential <strong>in</strong>vestors to br<strong>in</strong>g <strong>the</strong><br />

type <strong>of</strong> <strong>in</strong>formation, content, and relationship <strong>the</strong>y want. But a stronger impact <strong>of</strong> <strong>social</strong><br />

<strong>media</strong> will eventually lead to a new paradigm <strong>in</strong> <strong>the</strong> <strong>in</strong>vestment promotion <strong>in</strong>dustry when<br />

<strong>the</strong> development <strong>of</strong> bus<strong>in</strong>ess and entrepreneurial networks that represent <strong>the</strong> “game<br />

changer” takes place.<br />

Christ<strong>in</strong>e Knussten equally believes that <strong>social</strong> <strong>media</strong> should be an <strong>in</strong>tegral part<br />

<strong>of</strong> <strong>the</strong> IPAs’ ” market<strong>in</strong>g mix”, <strong>in</strong>dicat<strong>in</strong>g that <strong>the</strong> key success factor for IPAs <strong>in</strong> this<br />

environment is to adopt a clearly def<strong>in</strong>ed <strong>social</strong> <strong>media</strong> market<strong>in</strong>g strategy and plan<br />

which takes <strong>in</strong>to account customer focus, a client knowledge base, and implement<strong>in</strong>g a<br />

customer loyalty program. This means <strong>the</strong>re will be <strong>social</strong> <strong>media</strong> sub-groups or subsectors,<br />

with l<strong>in</strong>ks to specialists. This will get real time feedback for <strong>the</strong> IPAs’<br />

country/region/city, and create an <strong>in</strong>stant “buzz” for its “product <strong>of</strong>fer<strong>in</strong>g”, with im<strong>media</strong>te<br />

monitor<strong>in</strong>g for results. She h<strong>in</strong>ted at one major drawback which is <strong>the</strong> tendency to lag <strong>in</strong><br />

updat<strong>in</strong>g <strong>social</strong> <strong>media</strong>, which needs to be clearly discipl<strong>in</strong>ed.<br />

Some experts do not see this paradigm shift, but see <strong>social</strong> <strong>media</strong> as a tool.<br />

Richard Bank, for example, believes that <strong>social</strong> <strong>media</strong> will rema<strong>in</strong> one tool <strong>in</strong> <strong>the</strong><br />

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promoters’ toolbox because personal <strong>in</strong>teraction at a strategic level will always be more<br />

effective than <strong>the</strong> impersonal world <strong>of</strong> onl<strong>in</strong>e <strong>social</strong> networks.<br />

Peter F<strong>in</strong>negand agrees that <strong>social</strong> <strong>media</strong> provides a fast and effective tool to<br />

perform bus<strong>in</strong>ess functions. Also Jacob Dencik th<strong>in</strong>ks <strong>social</strong> <strong>media</strong> will have an impact<br />

and become more important, as IPAs better figure out how to optimally use <strong>the</strong>m.<br />

O<strong>the</strong>rs foresee that <strong>social</strong> <strong>media</strong> could help IPAs to promote <strong>the</strong>ir locations and<br />

<strong>in</strong>teract with potential <strong>in</strong>vestors especially when IPAs are target<strong>in</strong>g executives <strong>in</strong> North<br />

American, European, and Asian markets, as David East said; or support IPAs’ efforts to<br />

become more focused <strong>in</strong> target<strong>in</strong>g specific sectors or clients, as Dr. John Davis said; or<br />

help IPAs to generate <strong>in</strong>vestors’ <strong>in</strong>terest <strong>in</strong> <strong>the</strong>ir locations through receiv<strong>in</strong>g and<br />

respond<strong>in</strong>g to an <strong>in</strong>creas<strong>in</strong>g number <strong>of</strong> <strong>in</strong>quiries from potential <strong>in</strong>vestors, as David O<br />

Donovan suggested; or attract<strong>in</strong>g new players tied by <strong>social</strong> <strong>media</strong> promotion as<br />

expected by Eamonn Sheehy, who sees <strong>in</strong>creased opportunities for IPAs us<strong>in</strong>g <strong>social</strong><br />

<strong>media</strong> <strong>in</strong> attract<strong>in</strong>g emerg<strong>in</strong>g companies that aim to ga<strong>in</strong> “rapid” access <strong>in</strong> <strong>in</strong>ternational<br />

markets.<br />

These companies described by Eamonn Sheehy on <strong>the</strong> o<strong>the</strong>r hand will be most<br />

<strong>in</strong>fluenced by IPAs us<strong>in</strong>g <strong>social</strong> <strong>media</strong> because <strong>in</strong> <strong>the</strong>ir selection criteria speed <strong>of</strong><br />

decision matters more than costs. Peter Lemagen emphasized importance <strong>of</strong> <strong>social</strong><br />

<strong>media</strong> as just a tool to enhance <strong>the</strong> research function <strong>of</strong> <strong>the</strong> IPA.<br />

David Lovegrove had a more reserved, yet comprehensive, view as he believes<br />

<strong>the</strong>re is a <strong>role</strong> to play for <strong>social</strong> <strong>media</strong> <strong>in</strong> <strong>in</strong>vestment promotion, but that it is currently<br />

limited. He cautions from caus<strong>in</strong>g <strong>in</strong>trusion <strong>of</strong> privacy if <strong>social</strong> <strong>media</strong> is not used<br />

properly. He added that <strong>the</strong> <strong>in</strong>volvement <strong>of</strong> <strong>social</strong> <strong>media</strong> technology <strong>in</strong> IPAs’ activities<br />

must be carefully considered and properly <strong>in</strong>tegrated <strong>in</strong>to <strong>the</strong>ir strategic approach.<br />

David Lovegrove fur<strong>the</strong>r believes that <strong>the</strong> impact <strong>of</strong> <strong>social</strong> <strong>media</strong> is more effective<br />

<strong>in</strong> <strong>the</strong> stages <strong>of</strong> rais<strong>in</strong>g awareness and comprehension <strong>of</strong> <strong>the</strong> <strong>in</strong>vestment decision<br />

process, as he stated, but becomes weaker at <strong>the</strong> conviction and decision phases,<br />

which is more dependant on personal contact. The IPAs’ advocacy function can benefit<br />

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from <strong>social</strong> <strong>media</strong> but with proper filters and follow up. Kar<strong>in</strong> Mart<strong>in</strong>ez echoed his views,<br />

that although she believes <strong>in</strong> <strong>the</strong> power <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>in</strong> various aspects <strong>of</strong> <strong>the</strong> IPAs’<br />

functions, but she warned <strong>of</strong> negative impact if not embarked on seriously <strong>in</strong> a well<br />

thought out manner. John Hanna agrees with a perceived risk to IPAs if <strong>the</strong>ir <strong>social</strong><br />

<strong>media</strong> were not sufficiently controlled and overseen.<br />

Please see Appendix 2 – Appendix for survey format, responses, and comments <strong>of</strong> <strong>the</strong><br />

experts.<br />

6.6 Op<strong>in</strong>ions from L<strong>in</strong>kedIn Discussion Group<br />

A<br />

n onl<strong>in</strong>e group <strong>of</strong> FDI executives on L<strong>in</strong>kedIn, <strong>in</strong> which I am a member,<br />

engaged <strong>in</strong> a discussion question put forth by <strong>the</strong> Group Leader: Do you use<br />

<strong>social</strong> <strong>media</strong> techniques for <strong>in</strong>vestor attraction? And if so what are your<br />

experiences? Several pr<strong>of</strong>essional and <strong>in</strong>sightful comments were made, a sample <strong>of</strong><br />

which were selected and are summarized here <strong>in</strong> Table 6.8. For fur<strong>the</strong>r details on this<br />

group discussion please see Appendix 6.<br />

Table 6.8 Summary <strong>of</strong> Views from L<strong>in</strong>kedIn Group<br />

Favorable Negative Uncerta<strong>in</strong><br />

Perceived by some IPAs as not be<strong>in</strong>g<br />

B2B enough.<br />

hard to determ<strong>in</strong>e <strong>the</strong> efficiency.<br />

Useful <strong>in</strong> times <strong>of</strong> shr<strong>in</strong>k<strong>in</strong>g budgets.<br />

us<strong>in</strong>g different <strong>social</strong> <strong>media</strong><br />

platforms for different goals.<br />

Use people that have <strong>the</strong> ability to<br />

spread <strong>the</strong> good word about <strong>the</strong><br />

town <strong>in</strong> terms <strong>of</strong> key location factors.<br />

Pay attention to o<strong>the</strong>r tools like<br />

Facebook, Google+, YouTube, and<br />

Twitter to better respond to evolv<strong>in</strong>g<br />

economic development needs for<br />

local entrepreneurship, small<br />

bus<strong>in</strong>ess assistance, and talent<br />

attraction.<br />

Importance <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>in</strong> <strong>the</strong><br />

use <strong>of</strong> YouTube videos as a lead<br />

for attract<strong>in</strong>g new FDI projects a<br />

country through sow<strong>in</strong>g its assets<br />

as an FDI dest<strong>in</strong>ation.<br />

Many launched <strong>in</strong>to <strong>social</strong> <strong>media</strong> with<br />

no strategy and little evaluation.<br />

The real issue for IPAs with <strong>social</strong><br />

<strong>media</strong> is time management,<br />

adaptability, and hav<strong>in</strong>g enough<br />

content.<br />

IPAs/EDOs have jumped on <strong>the</strong> <strong>social</strong><br />

<strong>media</strong> bandwagon without adopt<strong>in</strong>g<br />

<strong>the</strong> same rigorous<br />

management/plann<strong>in</strong>g/assessment<br />

techniques.<br />

hav<strong>in</strong>g hundreds <strong>of</strong> likes on Facebook<br />

and followers on Twitter, not sufficient<br />

if IPAs do not know who is actually<br />

are potential <strong>in</strong>vestors.<br />

Reluctant to use Facebook for<br />

<strong>in</strong>vestment promotion and<br />

attraction; Twitter, L<strong>in</strong>kedIn, You<br />

Tube and a blog to be <strong>the</strong> best<br />

<strong>social</strong> <strong>media</strong> channels for IPAs and<br />

EDOs but all starts with a good IPA<br />

website.<br />

Social <strong>media</strong> is important at <strong>the</strong><br />

early stage <strong>of</strong> attract<strong>in</strong>g <strong>in</strong>vestors,<br />

but uncerta<strong>in</strong> if so <strong>in</strong> o<strong>the</strong>r stages<br />

where direct contact is needed.<br />

electronic engagement good as a<br />

first po<strong>in</strong>t <strong>of</strong> contact but bus<strong>in</strong>esses<br />

will want to draw down on local<br />

expertise when visit<strong>in</strong>g a location<br />

<strong>social</strong> <strong>media</strong> still new for EDIS and<br />

<strong>the</strong>re is not evaluation yet for<br />

effectives learn<strong>in</strong>g process is go<strong>in</strong>g<br />

on.<br />

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7 Chapter Seven: Conclusions & Recommendations<br />

7.1 Conclusions:<br />

D<br />

educt<strong>in</strong>g from <strong>the</strong> f<strong>in</strong>d<strong>in</strong>gs <strong>of</strong> <strong>the</strong> research paper observations and survey,<br />

literature review, experts views, and future trends, I will conclude that <strong>the</strong><br />

adoption and appropriation <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>in</strong> IPAs, which is steadily ris<strong>in</strong>g<br />

amongst all geographic and economic groups, will gradually, with <strong>the</strong> advent <strong>of</strong> Web<br />

3.0+, make a shift <strong>in</strong> <strong>the</strong> <strong>in</strong>vestment promotion communications paradigm. This<br />

affirmative response to <strong>the</strong> research hypo<strong>the</strong>sis question is potentially on <strong>the</strong> verge <strong>of</strong><br />

becom<strong>in</strong>g a reality dur<strong>in</strong>g <strong>the</strong> com<strong>in</strong>g years. What I am fur<strong>the</strong>r suggest<strong>in</strong>g is that <strong>the</strong>re<br />

will potentially also be a holistic, fundamental and “revolutionary” change <strong>in</strong> how IPAs<br />

will be do<strong>in</strong>g <strong>the</strong>ir bus<strong>in</strong>ess, hir<strong>in</strong>g staff, form<strong>in</strong>g bus<strong>in</strong>ess units, develop<strong>in</strong>g processes,<br />

even provid<strong>in</strong>g services, and <strong>the</strong>ir logistics.<br />

I suggest that IPAs should, with full <strong>social</strong> <strong>media</strong> <strong>in</strong>tegration <strong>in</strong> bus<strong>in</strong>ess<br />

processes, establish <strong>the</strong>ir work as bus<strong>in</strong>ess units that do not operate as isolated “silos”<br />

but ra<strong>the</strong>r depend on “active knowledge workers”, with a driv<strong>in</strong>g passion for <strong>the</strong>ir<br />

location’s (i.e. country or city) goals to succeed <strong>in</strong> attract<strong>in</strong>g <strong>the</strong> right FDI.<br />

But, if <strong>social</strong> <strong>media</strong> is hastily applied <strong>in</strong> IPAs <strong>the</strong>re is always s possibility <strong>of</strong> more<br />

adverse effects such as those stemm<strong>in</strong>g from <strong>the</strong> <strong>in</strong>creased speed by which <strong>in</strong>formation<br />

is dissem<strong>in</strong>ated. Fur<strong>the</strong>rmore, to cope with <strong>social</strong> <strong>media</strong> demand<strong>in</strong>g content curation<br />

and updates <strong>the</strong> IPAs’ should consider 24/7 manned hours to follow up developments<br />

<strong>in</strong> various time zones <strong>in</strong> real time; IPAs’ staff should also constantly be connected and<br />

ready to respond to any <strong>of</strong> <strong>the</strong> <strong>social</strong> <strong>media</strong> channels, especially Twitter. This could<br />

present new staff<strong>in</strong>g challenges and requirements, as well as procedures for cont<strong>in</strong>uous<br />

effective <strong>social</strong> <strong>media</strong> oversight. The issue and threat <strong>of</strong> confidentiality <strong>of</strong> <strong>the</strong><br />

<strong>in</strong>vestment project could also be amplified as <strong>in</strong>creased adoption <strong>of</strong> <strong>social</strong> <strong>media</strong> tools<br />

takes place if proper measures to prevent unauthorized <strong>in</strong>formation leaks, or <strong>the</strong><br />

<strong>in</strong>correct dissem<strong>in</strong>ation <strong>of</strong> confidential <strong>in</strong>formation are not implemented.<br />

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On ano<strong>the</strong>r note, as it is commonly known <strong>in</strong> <strong>the</strong> customer service <strong>in</strong>dustry, it is<br />

said that “you can see <strong>the</strong> smile <strong>in</strong> a genu<strong>in</strong>ely pleasant phone call response”.<br />

Similarly, it is crucial that IPAs with <strong>in</strong>creased transparency and <strong>in</strong>formation<br />

dissem<strong>in</strong>ation brought on by enhanced adoption and utilization <strong>of</strong> <strong>social</strong> <strong>media</strong> ensure<br />

that it is a genu<strong>in</strong>e and au<strong>the</strong>ntic representation <strong>of</strong> <strong>the</strong>ir location’s <strong>in</strong>vestment<br />

attractiveness, and not just a generic non-customized add-on to exist<strong>in</strong>g IPA practices.<br />

Please see Figure 7.2 for my <strong>the</strong> ideal envisioned IPA pr<strong>of</strong>ile <strong>in</strong> Web 3.0+.<br />

Figure 7.1 My Model for an IPA Pr<strong>of</strong>ile <strong>in</strong> <strong>the</strong> Web 3.0 era<br />

Model IPA Pr<strong>of</strong>ile <strong>in</strong> <strong>the</strong> Facebook Economy<br />

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7.2 Recommendations<br />

A<br />

s organizations use <strong>social</strong> <strong>media</strong> to collaborate and educate differently, IPAs<br />

<strong>in</strong> particular would benefit from <strong>the</strong> real bus<strong>in</strong>ess potential <strong>of</strong>fered by <strong>social</strong><br />

<strong>media</strong>, especially <strong>in</strong> times <strong>of</strong> shr<strong>in</strong>k<strong>in</strong>g budgets; however it would require<br />

serious considerations before mov<strong>in</strong>g to implement an <strong>in</strong>tegrated, hybrid, or full <strong>social</strong><br />

<strong>media</strong> strategy.<br />

First <strong>the</strong> IPA must believe <strong>in</strong> <strong>the</strong> power <strong>of</strong> <strong>social</strong> <strong>media</strong>, and be able to unleash<br />

its potential. IPAs must be will<strong>in</strong>g to allocate time and effort to address potential users <strong>in</strong><br />

a direct way, as part <strong>of</strong> its promotion strategy. The IPA can start with def<strong>in</strong><strong>in</strong>g which<br />

<strong>social</strong> <strong>media</strong> tools to use, <strong>the</strong>n establish<strong>in</strong>g accounts like Twitter, Facebook, YouTube,<br />

blogs, Flickr, and L<strong>in</strong>kedIn, amongst o<strong>the</strong>rs, which is straightforward. What is crucial is<br />

how to set goals, content management, performance measures, and monitor<strong>in</strong>g<br />

progress. We have seen many IPAs sett<strong>in</strong>g up <strong>the</strong>ir accounts with <strong>the</strong> wrong brand<strong>in</strong>g,<br />

messages, content and lack <strong>of</strong> discipl<strong>in</strong>e beh<strong>in</strong>d it.<br />

IPAs must have a command centre to follow new developments, new market<br />

entrants, and changes <strong>in</strong>troduced <strong>in</strong> <strong>social</strong> <strong>media</strong> algorithms that will affect its search<br />

capabilities and its brand<strong>in</strong>g. In this regard, <strong>of</strong>ficers who do brand<strong>in</strong>g for <strong>the</strong> location or<br />

image build<strong>in</strong>g must watch out for changes Facebook makes <strong>in</strong> its logarithm to<br />

<strong>in</strong>troduce changes <strong>in</strong> its <strong>social</strong> graph because this will affect <strong>the</strong>ir access, post<strong>in</strong>g,<br />

engagement level, and cost for paid promotions.<br />

One <strong>of</strong> <strong>the</strong> recent changes Facebook did was to make brands shift to creat<strong>in</strong>g<br />

<strong>social</strong> content “as engag<strong>in</strong>g as <strong>the</strong> posts ...from friends and family”. It allowed brands to<br />

target <strong>the</strong>ir page posts to specific segments <strong>of</strong> <strong>the</strong>ir fans; and allowed <strong>the</strong>ir promoted<br />

posts to be seen by target fans or subset <strong>of</strong> fans. Facebook is act<strong>in</strong>g more like an<br />

advertis<strong>in</strong>g agency unleash<strong>in</strong>g its potential; its new strategy is to cont<strong>in</strong>ue optimiz<strong>in</strong>g <strong>the</strong><br />

news feed to show <strong>the</strong> posts that people are most likely to engage with and be<br />

<strong>in</strong>terested <strong>in</strong> (AdWeek, 2012).<br />

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This reflects how Facebook’s ad strategy is focus<strong>in</strong>g on tailored ads, launch<strong>in</strong>g<br />

new ad products, and <strong>in</strong>troduc<strong>in</strong>g mobile-ad formats, which has enhanced its mobile<br />

advertis<strong>in</strong>g revenue to reach US $153 million this year (WSJ, 2012).<br />

In <strong>the</strong> same token, Google makes around 600 m<strong>in</strong>or changes every year <strong>in</strong> its<br />

search algorithm; but once every month makes a “major” algorithmic update, which<br />

creates significant effect on search results. This affects SEO for IPAs so <strong>the</strong> search<br />

marketers must keep an eye on <strong>the</strong> dates <strong>of</strong> <strong>the</strong>se Google updates to understand <strong>the</strong><br />

result<strong>in</strong>g changes <strong>in</strong> <strong>the</strong> rank<strong>in</strong>gs, and <strong>the</strong> website traffic, and take due action(SEOMoz,<br />

2012).<br />

Twitter had before adopted <strong>the</strong> <strong>media</strong> company model for deliver<strong>in</strong>g ads to all<br />

Twitter users <strong>in</strong> <strong>the</strong> form <strong>of</strong> "promoted tweets”, which is a useful channel for IPA <strong>of</strong>fices<br />

to take advantage <strong>of</strong> <strong>in</strong> order to reach as many Twitter users as possible (Advertisng<br />

Age, 2010).<br />

To be able to plan how to deal with <strong>social</strong> <strong>media</strong> <strong>in</strong> IPAs, it will be <strong>in</strong>terest<strong>in</strong>g to<br />

know first how <strong>the</strong> world will look like <strong>in</strong> <strong>the</strong> com<strong>in</strong>g few years. The Centre for<br />

Communities for <strong>the</strong> Future 28 noted that <strong>the</strong> world is currently <strong>in</strong> a “transitional phase”<br />

cross<strong>in</strong>g from <strong>the</strong> Industrial Society towards a Transformational Society, on its way to<br />

become what <strong>the</strong>y named a “Creative Molecular Economy”; this shift is challeng<strong>in</strong>g <strong>the</strong><br />

fundamental pr<strong>in</strong>ciples <strong>of</strong> economic development th<strong>in</strong>k<strong>in</strong>g over <strong>the</strong> next 20 years. The<br />

economic developers, and likely <strong>in</strong>vestment promoters, will become “Master Capacity<br />

Builders”, or “Transformational Leaders”. The citizens <strong>the</strong>mselves will become a “Future<br />

Forward Workforce”, mean<strong>in</strong>g more agile and entrepreneurial <strong>in</strong>dividuals, who can<br />

adapt to a constantly chang<strong>in</strong>g economy based on creativity, deep collaboration, and<br />

connectivity (Center for Communities <strong>of</strong> <strong>the</strong> Future, 2012).<br />

28 The Center for Communities <strong>of</strong> <strong>the</strong> Future is a global network <strong>of</strong> <strong>in</strong>dividuals and community organizations collaborat<strong>in</strong>g to<br />

develop new tools for governance, economic development, education and learn<strong>in</strong>g, and leadership to improve citizens’ ability to<br />

cope with a rapidly chang<strong>in</strong>g world. For more <strong>in</strong>formation.<br />

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It is time to look at our <strong>social</strong> <strong>media</strong> calendar and start engag<strong>in</strong>g!!<br />

8 Appendices<br />

8.1 Appendix 1 – List <strong>of</strong> IPAs Sample Population Websites<br />

A total <strong>of</strong> 65 IPAs’ websites were visited to detect <strong>the</strong> presence <strong>of</strong> <strong>social</strong> <strong>media</strong> channels. The table<br />

summarizes <strong>the</strong> collected f<strong>in</strong>d<strong>in</strong>gs. Last accessed was December 10, 2012.<br />

# IPA website langua<br />

ge<br />

Logo /Theme<br />

Social <strong>media</strong><br />

channels on website<br />

1 Afghanistan http://www.aisa.org.af/ E None<br />

2 Albania http://www.alb<strong>in</strong>vest.gov.al/<br />

A/E<br />

None<br />

3 Algeria http://www.andi.gov.dz/en/<br />

A/E/F<br />

None<br />

4 Australia http://www.austrade.gov.au/<br />

E<br />

5 Austria http://www.aba.gv.at<br />

E+<br />

6 o<strong>the</strong>r<br />

s<br />

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6 Bahra<strong>in</strong> http://www.bahra<strong>in</strong>edb.com/EDBHome.aspx<br />

A /E + 5<br />

o<strong>the</strong>rs<br />

7 Brazil http://www.apexbrasil.com.br<br />

P/E<br />

None<br />

8 Canada http://<strong>in</strong>vest<strong>in</strong>canada.gc.ca/eng/default.aspx<br />

E/F<br />

9 Costa<br />

Rica<br />

http://www.c<strong>in</strong>de.org/<br />

S/E<br />

10 Czech<br />

Republic<br />

http://www.czech<strong>in</strong>vest.org/<br />

E +3<br />

o<strong>the</strong>rs<br />

11 Denmark http://www.<strong>in</strong>vest<strong>in</strong>dk.com/<br />

12 Estonia http://www.<strong>in</strong>vest<strong>in</strong>estonia.com/<br />

E + 2<br />

o<strong>the</strong>rs<br />

E<br />

13 Fiji http://www.<strong>in</strong>vestmentfiji.org.fj/pages.cfm/for<br />

-<strong>in</strong>vestors/ E+ 3<br />

o<strong>the</strong>rs<br />

None<br />

14 F<strong>in</strong>land http://www.<strong>in</strong>vest<strong>in</strong>f<strong>in</strong>land.fi/events_new/en_<br />

GB/events/ E + 5<br />

o<strong>the</strong>rs<br />

15 France http://www.<strong>in</strong>vest-<strong>in</strong>-france.org/us<br />

E=F+ 9<br />

<strong>in</strong>clud<strong>in</strong>g<br />

Arabic<br />

(A)<br />

16 Gabon http://www.<strong>in</strong>vest-gabon.com/<br />

E<br />

17 Gambia http://www.gipfza.gm/<br />

E<br />

None<br />

18 Germany http://www.gtai.de/<br />

E + 2<br />

o<strong>the</strong>rs<br />

19 Greece http://www.<strong>in</strong>vest<strong>in</strong>greece.gov.gr/<br />

E +<br />

Arabic +<br />

6 o<strong>the</strong>rs<br />

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20 Guyana http://www.go<strong>in</strong>vest.gov.gy/<br />

21 Honduras http://www.honduras<strong>in</strong>fo.hn/<br />

E<br />

E/ S<br />

22 Hungary http://www.hita.hu/en/Default.aspx<br />

E + 7<br />

o<strong>the</strong>rs<br />

23 Iceland http://www.<strong>in</strong>vest.is/<br />

E + 5<br />

o<strong>the</strong>rs<br />

24 India http://www.<strong>in</strong>vest<strong>in</strong>dia.gov.<strong>in</strong>/<br />

E/ I<br />

None<br />

25 Indonesia http://www.bkpm.go.id/<br />

E +<br />

Arabic +<br />

4 o<strong>the</strong>rs<br />

26 Iran http://www.<strong>in</strong>vest<strong>in</strong>iran.ir/home-en.html E +<br />

Arabic +<br />

4<br />

o<strong>the</strong>rs<br />

27 Iraq http://www.<strong>in</strong>vestpromo.gov.iq/<br />

E<br />

None<br />

None<br />

28 Italy http://www.<strong>in</strong>vitalia.it/ I/E None<br />

29 Ireland http://www.idaireland.com/<br />

E<br />

30 Jamaica http://www.jamaicatradeand<strong>in</strong>vest.org/<br />

31 Japan http://www.jetro.go.jp/en/<strong>in</strong>vest/<br />

E<br />

E<br />

None<br />

None<br />

32 Jordan http://www.jordan<strong>in</strong>vestment.com/<br />

E/Arabic<br />

None<br />

33 Kazakhstan http://www.kaznex<strong>in</strong>vest.kz/en/ E + 2<br />

languag<br />

es<br />

34 Korea http://english.kotra.or.kr/<br />

E + 3<br />

o<strong>the</strong>rs<br />

35 Kosovo http://www.<strong>in</strong>vest-ks.org/<br />

E<br />

None<br />

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36 Kuwait http://www.kfib.com.kw/html/<strong>in</strong>dex.html<br />

37 Latvia http://www.liaa.gov.lv/eng/home/news<br />

38 Lebanon http://www.idal.com.lb/<br />

E/Arabic<br />

E + 3<br />

o<strong>the</strong>rs<br />

E/A<br />

None*<br />

39 Lithuania http://www.<strong>in</strong>vestlithuania.com/<br />

E/Lt<br />

40 Lesotho http://www.lndc.org.ls/home/<br />

E/F<br />

None<br />

41 Madagascar http://www.edbm.gov.mg/<br />

42 Malaysia http://www.mida.gov.my/<br />

43 Maldives http://www.<strong>in</strong>vestmaldives.org/<br />

E<br />

E/Arabic<br />

+4<br />

o<strong>the</strong>rs<br />

E<br />

None<br />

44 Mauritius http://www.boimauritius.com/<br />

E<br />

45 Mexico http://www.promexico.gob.mx/en_us<br />

E/S<br />

46 Nepal http://www.<strong>in</strong>vestment<strong>in</strong>nepal.com/<br />

E<br />

47<br />

Ne<strong>the</strong>rlands<br />

http://www.nfia.nl/<br />

E/<br />

48 Nicaragua http://www.pronicaragua.org/<br />

49 Oman http://www.oc<strong>iped</strong>.com/D<br />

E/S<br />

A/E<br />

None<br />

50 Pakistan http://www.pakboi.gov.pk/<br />

E<br />

51<br />

Paraguay<br />

http://www.rediex.gov.py/<br />

S/E<br />

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52 Poland http://www.paiz.gov.pl/en<br />

E + 7<br />

o<strong>the</strong>rs<br />

53 Portugal http://www.portugalglobal.pt/EN/<br />

54 Qatar http://www.<strong>in</strong>vest<strong>in</strong>qatar.com.qa/English/<br />

E/P<br />

E/Arabic<br />

None<br />

None<br />

55 Russia http://www.napi.ru/enabout<br />

E/Russi<br />

an<br />

None<br />

56 Saudi<br />

Arabia<br />

http://www.sagia.gov.sa/en/<br />

E/Arabic<br />

None<br />

57 Sierra<br />

Leone<br />

http://www.<strong>in</strong>vestsierraleone.biz/<br />

E<br />

58 Spa<strong>in</strong> http://www.<strong>in</strong>vest<strong>in</strong>spa<strong>in</strong>.org/<br />

S/ E<br />

None<br />

59 Sweden http://www.<strong>in</strong>vestsweden.se/world/<br />

60 Switzerland http://aboutus.osec.ch/de<br />

E +<br />

Arabic +<br />

5 o<strong>the</strong>rs<br />

E + 11<br />

o<strong>the</strong>rs<br />

None<br />

61 South<br />

Africa*<br />

http://www.geda.co.za/<br />

E<br />

62 Turkey http://www.<strong>in</strong>vest.gov.tr/en-<br />

US/Pages/Home.aspx<br />

E + T<br />

63 United<br />

Arab<br />

Emirates<br />

(Dubai)**<br />

http://www.dubaided.gov.ae/english/pages/d<br />

efault.aspx<br />

E + A<br />

64 United<br />

K<strong>in</strong>gdom<br />

UK<br />

http://www.ukti.gov.uk/<br />

E + 6<br />

o<strong>the</strong>rs<br />

65 United<br />

States <strong>of</strong><br />

America<br />

(USA)<br />

http://selectusa.commerce.gov/<br />

E<br />

None<br />

Source: website l<strong>in</strong>ks through www.WAIPA.org. * regional; ** state. ***IDAL has <strong>of</strong>ficial Twitter account but not<br />

shown on website so I did not <strong>in</strong>clude it.<br />

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8.2 Appendix 2 – Onl<strong>in</strong>e Survey Template<br />

Please note that <strong>the</strong> questions <strong>in</strong> red were rephrased for <strong>the</strong> selected experts. In reality, two separate questionnaires<br />

were sent but to save space, it was comb<strong>in</strong>ed here <strong>in</strong> one form. The duration time for respond<strong>in</strong>g was <strong>the</strong> same for<br />

both and <strong>the</strong> feedback was comb<strong>in</strong>ed. Experts only were asked to <strong>in</strong>clude an overall comment, a compendium <strong>of</strong><br />

which is listed <strong>in</strong> Appendix 3, and Appendix 4 has list <strong>of</strong> 65 IPAS that were contacted through <strong>the</strong>ir generic email to<br />

fill <strong>in</strong> <strong>the</strong> survey, with analysis <strong>of</strong> <strong>the</strong>ir <strong>social</strong> <strong>media</strong> utilization judg<strong>in</strong>g form <strong>the</strong>ir website dur<strong>in</strong>g <strong>the</strong> month <strong>of</strong> January<br />

2012 to support survey conclusions as <strong>in</strong>sufficient number responded.<br />

INTRODUCTION:<br />

1. Survey on Utiliz<strong>in</strong>g Social Media Networks (SMNs) at IPAS<br />

2. Date: December 19, 2011 (Pilot survey sent - closed January 18, 2012)<br />

3. Date: October 1, 2012 (Survey resent - closed October 31, 2012)<br />

4. http://www.surveymonkey.com/s/DBM6732<br />

5. This Survey is conducted to support research work performed by Mona S. Bseiso, Economic Consultant, at<br />

Kuwait Foreign Investment Bureau (KFIB), Kuwait, <strong>in</strong> partial fulfillment <strong>of</strong> a MSC onl<strong>in</strong>e degree <strong>in</strong><br />

Investment Promotion & Economic Development, at Ed<strong>in</strong>burgh Napier University <strong>in</strong> Scotland.<br />

6. The approved topic <strong>of</strong> this research paper is titled: "<strong>Investigat<strong>in</strong>g</strong> <strong>the</strong> Role <strong>of</strong> Social Media <strong>in</strong> Develop<strong>in</strong>g a<br />

New Investment Promotion Paradigm <strong>in</strong> <strong>the</strong> Evolv<strong>in</strong>g Facebook Economy".<br />

7. The researcher will attempt to detect how a new generation <strong>of</strong> <strong>in</strong>vestment promotion <strong>in</strong>dustry will evolve,<br />

affected by <strong>the</strong> great potential unleashed by <strong>the</strong> advent <strong>of</strong> <strong>social</strong> <strong>media</strong> networks (SMN), which has become<br />

an <strong>in</strong>tegral part <strong>of</strong> bus<strong>in</strong>ess strategies. This suggested new paradigm should utilize <strong>the</strong> <strong>in</strong>teractive usergenerated<br />

content to secure more focused w<strong>in</strong>-w<strong>in</strong> results, attract<strong>in</strong>g quality FDI, provid<strong>in</strong>g better services<br />

for <strong>the</strong> <strong>in</strong>vestors, respond<strong>in</strong>g faster and more efficiently to <strong>the</strong>ir needs, and consolidat<strong>in</strong>g <strong>the</strong> economic and<br />

developmental impact <strong>of</strong> FDI especially on SMEs and its positive sp<strong>in</strong><strong>of</strong>fs.<br />

8. The survey is directed to Investment Promotion Agencies (IPAs) or Economic Development Boards (EDBs),<br />

regardless <strong>of</strong> <strong>the</strong>ir geographic region.<br />

9. The aim <strong>of</strong> <strong>the</strong> survey is to collect <strong>in</strong>formation on IPAs views and expectations on SMNs utilization and<br />

<strong>in</strong>tegration <strong>in</strong> <strong>the</strong> IPA <strong>in</strong>vestment promotion functions to achieve targeted goals.<br />

10. The respondents’ feedback is hoped to provide evidence to support <strong>the</strong> qualitative research method, and<br />

outcome <strong>of</strong> academic f<strong>in</strong>d<strong>in</strong>gs and specialized reports.<br />

11. Responses confidentiality will be preserved as analytical results will be tackled commutatively.<br />

12. There will be adequate acknowledgment <strong>of</strong> all respondents IPAs/EDBs <strong>in</strong> <strong>the</strong> f<strong>in</strong>al research paper.<br />

13. Please answer <strong>the</strong> listed questions <strong>in</strong> <strong>the</strong> l<strong>in</strong>k provided which will be open till January 18, 2012 (resent<br />

October 1 st to close by October 31, 2012).<br />

14. I appreciate your cooperation.<br />

Survey Questions<br />

Name <strong>of</strong> IPA (Name <strong>of</strong> Expert)……………………………………………………………………………<br />

Respondent Position:…………………………………………………………………..<br />

Please use (√) for your selection.<br />

Q1. Does your IPA currently utilize any form <strong>of</strong> <strong>social</strong> <strong>media</strong> networks (SMNs) channels, technologies, or platforms<br />

with<strong>in</strong> its strategic promotional and market<strong>in</strong>g plans?<br />

Q.1 Do you believe that SMN channels, technologies, or platforms will revolutionize <strong>in</strong>vestment promotion strategies<br />

and market<strong>in</strong>g tools lead<strong>in</strong>g to a new paradigm <strong>in</strong> this <strong>in</strong>dustry, and why?<br />

Yes<br />

No<br />

Q2. If Yes:<br />

a) Please <strong>in</strong>dicate which SMNs are used:<br />

Q.2 Please <strong>in</strong>dicate which one <strong>of</strong> <strong>the</strong> current SMNs you believe would have <strong>the</strong> most impact <strong>in</strong> <strong>the</strong> near future, and<br />

why<br />

Facebook L<strong>in</strong>kedIn Twitter Flickr YouTube RSS Delicious Reddit Blog O<strong>the</strong>rs<br />

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b)Please grade <strong>the</strong> level <strong>of</strong> your presence and utilization <strong>of</strong> SMNs:<br />

Q.3 Please assess your expected impact level <strong>of</strong> full utilization <strong>of</strong> SMNs <strong>in</strong> <strong>the</strong> near future:<br />

Advanced<br />

High<br />

Medium<br />

Low<br />

Beg<strong>in</strong>ner<br />

c) Please <strong>in</strong>dicate your membership method:<br />

Q.4 Please <strong>in</strong>dicate your preferred membership method <strong>in</strong> SMNs:<br />

Mobile Platforms Crowd sourc<strong>in</strong>g space Own customer<br />

on IPA website community<br />

Specific <strong>in</strong>terest<br />

sub-groups<br />

General<br />

groups<br />

O<strong>the</strong>rs<br />

Q3.If No: Please <strong>in</strong>dicate if <strong>the</strong>re are future plans to do so.<br />

In few months<br />

Next year<br />

Next 2 years<br />

Undeterm<strong>in</strong>ed<br />

O<strong>the</strong>rs<br />

Q4.Please <strong>in</strong>dicate one or more targets for your use <strong>of</strong> SMNs <strong>in</strong> your <strong>in</strong>vestment promotion strategy:<br />

Q5.Please <strong>in</strong>dicate one or multiple targets for impact <strong>of</strong> SMNs <strong>in</strong> <strong>the</strong> <strong>in</strong>vestment promotion strategy:<br />

Target<br />

Feedback<br />

brand<strong>in</strong>g <strong>the</strong> country favorably<br />

location market<strong>in</strong>g<br />

Target<strong>in</strong>g efforts for <strong>in</strong>vestors or sectors.<br />

affect<strong>in</strong>g <strong>the</strong> determ<strong>in</strong>ants <strong>of</strong> <strong>in</strong>vestors’ decision<br />

<strong>in</strong>vestor facilitation services<br />

improv<strong>in</strong>g services<br />

gett<strong>in</strong>g <strong>in</strong>vestors compla<strong>in</strong>ts<br />

fast track<strong>in</strong>g procedures<br />

detect<strong>in</strong>g emerg<strong>in</strong>g trends<br />

collect<strong>in</strong>g feedback on certa<strong>in</strong> issues<br />

Policy advocacy<br />

o<strong>the</strong>rs: specify<br />

Q.5 What does <strong>the</strong> remarks, <strong>in</strong>quiries, or comments you receive through your SMN channels focus on:<br />

Incentives Guarantees Sectors Opportunities Logistics<br />

O<strong>the</strong>rs<br />

Comment: (only requested from <strong>the</strong> 14 selected IP <strong>in</strong>ternational experts)<br />

THANK YOU.<br />

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8.3 Appendix 3 - List <strong>of</strong> Respondents to Onl<strong>in</strong>e Survey<br />

# Name Position Company/agency Country<br />

IP Experts<br />

1 Jacob Dencik regional director IBM Location<br />

2 John Hanna partner GDP Global<br />

3 Peter Lemagnen manag<strong>in</strong>g director Oxford Intelligence<br />

4 Richard Banks consultant &<br />

RMB Consult<strong>in</strong>g<br />

UK<br />

communications expert<br />

5 David East Director FDI <strong>in</strong>telligence<br />

6 Dr. George Malcotsis EX- Manag<strong>in</strong>g Director SOFI - Swiss Organization for<br />

Facilitat<strong>in</strong>g Investments<br />

Switzerland<br />

7 Dr. John Adams Expert / economist DIAS<br />

8 Kar<strong>in</strong>e Mart<strong>in</strong>ez Ex WAIPA executive IIIP<br />

9 Peter F<strong>in</strong>negan Ex IDA executive Communiqué<br />

10 David Lovegrove consultant IDA<br />

11 Eamonn Sheehy consultant IDI<br />

12 David O’Donovan Ex director IDA<br />

Ireland<br />

13 David Brown consultant Czech Invest Czech<br />

Republic<br />

14 Christ<strong>in</strong>a Knutsson Ex director Invest <strong>in</strong> Sweden Sweden<br />

IPAs<br />

6 CEO Gateway to London UK<br />

16 Director Västerbotten Investment Agency Sweden<br />

17 Head <strong>of</strong> PR Section Polish Information and Foreign<br />

Poland<br />

Investment Agency<br />

18 European<br />

Ontario M<strong>in</strong>istry <strong>of</strong> Economic<br />

Canada<br />

Representative<br />

Development & Innovation<br />

19 Country Manager New York State Trade and Investment USA<br />

Germany<br />

20 High Technology<br />

Industries/<br />

International<br />

Promotion Director<br />

Secretariat <strong>of</strong> Economic Promotion,<br />

State <strong>of</strong> Jalisco<br />

Mexico<br />

21 Manager Gauteng Economic Development South Africa<br />

Agency - Johannesburg<br />

22 CEO SLIEPA Sierra Leone<br />

23 R. Termos communications and<br />

PR specialist<br />

TRACKS<br />

24 N. Arada Head <strong>of</strong> Market<strong>in</strong>g<br />

section<br />

Kuwait<br />

25 S. Q. Saatchi IT Consultant<br />

26 K. Jaser Adm<strong>in</strong>istrative<br />

Coord<strong>in</strong>ator<br />

Kuwait Foreign Investment Bureau<br />

27 Y. A. Raheem Head <strong>of</strong> Statistic and<br />

Data section<br />

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8.4 Appendix 4 - Summary Results <strong>of</strong> Onl<strong>in</strong>e Survey<br />

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Q.3 o<strong>the</strong>r: web<strong>in</strong>ars; wikis; Google+;website.<br />

Q.5 none<br />

Q.6 none<br />

Q.7 company and executive research;<br />

Q.8 o<strong>the</strong>r: country's image; compla<strong>in</strong>ts on delays; <strong>in</strong>formation; events.<br />

8.5 Appendix 5 – Comments <strong>of</strong> International IP Experts<br />

Please note that 14 renowned IP experts and practitioners <strong>in</strong> <strong>the</strong> field <strong>of</strong> <strong>in</strong>vestment promotion were<br />

approached by direct email, ask<strong>in</strong>g <strong>the</strong>m to respond to <strong>the</strong> questionnaire and to add an overall comment<br />

on utilization <strong>of</strong> <strong>social</strong> <strong>media</strong> <strong>in</strong> <strong>in</strong>vestment promotion. The table summarizes <strong>the</strong>ir <strong>in</strong>dividual orig<strong>in</strong>al<br />

comments, us<strong>in</strong>g <strong>the</strong>ir <strong>in</strong>itials.<br />

#<br />

1<br />

RT<br />

2<br />

RB<br />

Do you believe that <strong>social</strong> <strong>media</strong> networks SMN<br />

channels, technologies, or platforms will<br />

revolutionize <strong>in</strong>vestment promotion strategies<br />

and market<strong>in</strong>g tools lead<strong>in</strong>g to a new paradigm<br />

<strong>in</strong> this <strong>in</strong>dustry, and why?<br />

The SMN channels nowadays are considered as<br />

<strong>the</strong> revolution and <strong>the</strong> evolution <strong>of</strong><br />

communications. They have proved to be<br />

efficient and convenient as market<strong>in</strong>g reliable<br />

tools that could reach <strong>the</strong> target segments by a<br />

simple click. I strongly believe that SMN will<br />

revolutionize <strong>in</strong>vestment promotion strategies<br />

lead<strong>in</strong>g to a new paradigm <strong>in</strong> this <strong>in</strong>dustry s<strong>in</strong>ce<br />

<strong>the</strong>y are capable to maximize <strong>the</strong> awareness<br />

and knowledge among target audience <strong>in</strong><br />

different markets<br />

They will provide additional communication<br />

channels but will not fundamentally change <strong>the</strong><br />

O<strong>the</strong>r comment<br />

The SMN has helped <strong>in</strong> chang<strong>in</strong>g regimes and enhanc<strong>in</strong>g<br />

policies <strong>the</strong>refore <strong>the</strong> effect <strong>of</strong> <strong>the</strong>se mediums are limitless<br />

and with <strong>the</strong> <strong>media</strong> and communication revolution that<br />

<strong>in</strong>vade <strong>the</strong> world today, <strong>the</strong>se onl<strong>in</strong>e mediums cannot be<br />

avoided s<strong>in</strong>ce <strong>the</strong>y are <strong>the</strong> trend <strong>of</strong> <strong>the</strong> century and play a<br />

major <strong>role</strong> <strong>in</strong> successful market<strong>in</strong>g strategies as reliable<br />

platforms<br />

Whilst important, SMN will not replace <strong>the</strong> core discipl<strong>in</strong>es<br />

and practices <strong>of</strong> FDI promotion. They will rema<strong>in</strong> one tool<br />

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3<br />

PL<br />

4<br />

PF<br />

5<br />

KM<br />

6<br />

JH<br />

7<br />

JA<br />

8<br />

JD<br />

9<br />

ESH<br />

10<br />

DO<br />

primarily face-to-face communication methods<br />

now used.<br />

most bus<strong>in</strong>ess executives have a a lot <strong>of</strong> <strong>in</strong>ternal<br />

bus<strong>in</strong>ess to focus on – <strong>social</strong> <strong>media</strong> is outside <strong>of</strong><br />

<strong>the</strong>ir normal daily rout<strong>in</strong>e. Companies will<br />

<strong>in</strong>creas<strong>in</strong>gly control <strong>the</strong> external public access<br />

from mach<strong>in</strong>es <strong>in</strong> <strong>the</strong> <strong>of</strong>fice. That said use <strong>of</strong><br />

<strong>the</strong>se medium will become much more important<br />

– just do not believe <strong>the</strong>y will be <strong>the</strong> be al and<br />

end all to solve all agency issues<br />

Social <strong>media</strong> streng<strong>the</strong>n <strong>the</strong> capacity to<br />

communicate widely or narrowly <strong>in</strong> a fast and<br />

flexible way<br />

Yes & No, depend<strong>in</strong>g on <strong>the</strong> “strength” <strong>of</strong> <strong>the</strong><br />

degree <strong>of</strong> affiliation, <strong>of</strong> <strong>the</strong> feel<strong>in</strong>g <strong>of</strong> belong<strong>in</strong>g to<br />

<strong>the</strong> network and <strong>the</strong> activities generated by it.<br />

SMNs are market<strong>in</strong>g tools <strong>the</strong>mselves,<br />

appeal<strong>in</strong>g members <strong>of</strong> <strong>the</strong>se said networks.<br />

Depend<strong>in</strong>g on <strong>the</strong> degree <strong>of</strong> members' affiliation<br />

with<strong>in</strong> <strong>the</strong> particular SMN (do <strong>the</strong>y really feel<br />

engage <strong>in</strong> <strong>the</strong> network, tak<strong>in</strong>g <strong>in</strong>to account all <strong>the</strong><br />

consequences?) , <strong>the</strong> latter can only be a<br />

w<strong>in</strong>dow without any concrete results or, at <strong>the</strong><br />

o<strong>the</strong>r extreme <strong>of</strong> <strong>the</strong> spectrum, can generate a<br />

real concretization <strong>of</strong> partnerships. The question<br />

<strong>of</strong> “nature”, “quality” and “strength” <strong>of</strong> <strong>the</strong><br />

particular SMN is raised.<br />

The question <strong>of</strong> credibility should be raised here.<br />

Can we really work ignor<strong>in</strong>g <strong>the</strong>se powerful<br />

means <strong>of</strong> communication or how can <strong>the</strong>y be<br />

used properly without hav<strong>in</strong>g a negative impact ?<br />

SM cannot be sufficiently controlled by <strong>the</strong> IPA<br />

so it presents a big risk to <strong>the</strong>m, as <strong>the</strong>y perceive<br />

it<br />

It is possible but it will depend on very focused<br />

market<strong>in</strong>g so that IPA’s can target specific<br />

clients. This is likely to be more effective if <strong>the</strong><br />

messages are tailored to specific clients<br />

Partly. I th<strong>in</strong>k it will have an impact and become<br />

more important. But lots <strong>of</strong> <strong>in</strong>vestment promotion<br />

agencies are still struggl<strong>in</strong>g to figure out how to<br />

use it. Similarly, companies are not at present<br />

us<strong>in</strong>g it as a prime source <strong>of</strong> <strong>in</strong>formation. But<br />

should become more important as <strong>the</strong><br />

technologies mature and people become more<br />

accustomed to <strong>the</strong>m<br />

New SMN channels are enabl<strong>in</strong>g emerg<strong>in</strong>g<br />

companies to ga<strong>in</strong> rapid <strong>in</strong>ternational market<br />

access which <strong>in</strong> turn is creat<strong>in</strong>g new<br />

opportunities for IPAs to attract <strong>in</strong>vestment-from<br />

smaller emerg<strong>in</strong>g companies<br />

L<strong>in</strong>kedIn now world’ largest network for<br />

pr<strong>of</strong>essionals with over 120 million members--<br />

Facebook now world’s largest <strong>social</strong> network<br />

with over 800 million users--Successful<br />

<strong>in</strong>vestment promotion is all about client<br />

relationship management and SMNs greatly<br />

<strong>in</strong> <strong>the</strong> promoter’s toolbox. In that sense <strong>the</strong>y will make<br />

communication more challeng<strong>in</strong>g as <strong>the</strong> channels and<br />

methods will need to be expanded not supplanted.<br />

SMN WILL BE AN IMPORTANT TOOL ESPECIALLY IN<br />

RESEARCH POTENTIAL FOR COPMANIES AND<br />

EXECUTIVES. IT MAY BE A TOOL FOR SPECIFIC<br />

INTEREST GROUPS – BUT IT IS JUST THAT A TOOL –<br />

YOU STILL HAVE TO BE AN ATTRACTIVE AND<br />

RELEVANT LOCATION FOR AN INVESTORS.<br />

-<br />

SMN <strong>in</strong> <strong>in</strong>vestment strategy is extremely important but<br />

can't replace <strong>the</strong> energy to create and generate actions. It<br />

can't replace a potential lack <strong>of</strong> seriousness ei<strong>the</strong>r.<br />

Abus<strong>in</strong>g such a mean <strong>of</strong> communication could also be<br />

negative. Every action to use any SMN should be thought<br />

and discussed<br />

-<br />

-<br />

-<br />

New emerg<strong>in</strong>g companies are focus<strong>in</strong>g <strong>the</strong>ir <strong>in</strong>vestment<br />

decisions on open economies where speed <strong>of</strong> decision<br />

mak<strong>in</strong>g ra<strong>the</strong>r than costs are key selection criteria – <strong>the</strong>se<br />

are <strong>the</strong> companies who will be most <strong>in</strong>fluenced by SMNs.<br />

L<strong>in</strong>kedIn is used by pr<strong>of</strong>essionals and has a number <strong>of</strong><br />

FDI related group<strong>in</strong>gs which would attract executives <strong>in</strong><br />

mult<strong>in</strong>ationals charged with f<strong>in</strong>d<strong>in</strong>g new locations for <strong>the</strong>ir<br />

corporations (for example, IDA-Ireland now has 2000<br />

followers on L<strong>in</strong>kedIn (Dec 18 2012 became 7399).<br />

YouTube would be second as many IPAs now use it for<br />

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11<br />

DL<br />

12<br />

DE<br />

13<br />

DB<br />

14<br />

CK<br />

facilitate this process. Used creatively, <strong>the</strong>se<br />

networks can have a powerful and positive<br />

impact on a country’s ability to attract <strong>in</strong>vestor<br />

attention and <strong>the</strong>n later to manage <strong>the</strong><br />

relationship with <strong>the</strong> client on an one-to-one<br />

basis with <strong>the</strong> client executive<br />

The <strong>in</strong>volvement <strong>of</strong> SNM technology has to be<br />

carefully considered and properly <strong>in</strong>tegrated <strong>in</strong>to<br />

a strategic approach to work<strong>in</strong>g with a company<br />

so as to manage its progression to <strong>the</strong> po<strong>in</strong>t<br />

where it makes an <strong>in</strong>vestment decision. It has a<br />

<strong>role</strong> to play, but it is currently only a limited <strong>role</strong>.<br />

In addition, it is necessary not to be <strong>in</strong>trusive <strong>in</strong><br />

communication via SNM technology. Given that<br />

it is impersonal, it is very easy for <strong>the</strong> recipient <strong>of</strong><br />

technology messages etc. To feel that <strong>the</strong>ir<br />

privacy is be<strong>in</strong>g <strong>in</strong>vaded if <strong>the</strong>y receive<br />

<strong>in</strong>formation at a time that is not suitable for <strong>the</strong>m<br />

SMN will have an impact on Investment<br />

Promotion Strategies over <strong>the</strong> com<strong>in</strong>g years as<br />

more organizations adopt SMN to promote <strong>the</strong>ir<br />

locations and <strong>in</strong>teract with potential <strong>in</strong>vestors.<br />

Fur<strong>the</strong>rmore, SMN are <strong>in</strong>creas<strong>in</strong>gly be<strong>in</strong>g<br />

adopted be<strong>in</strong>g bus<strong>in</strong>ess leaders as a key part <strong>of</strong><br />

<strong>the</strong>ir strategy<br />

Allow me to qualify my selection – ‘revolutionize’<br />

is ra<strong>the</strong>r a strong term – I see SMN channels<br />

accelerat<strong>in</strong>g <strong>the</strong> evolution <strong>of</strong> <strong>in</strong>vestment<br />

promotion strategies. E-commerce is<br />

<strong>in</strong>terdiscipl<strong>in</strong>ary and I view SMN channels as<br />

be<strong>in</strong>g an <strong>in</strong>tegral component <strong>of</strong> E-commerce.<br />

Initially I see <strong>the</strong> major potential impact <strong>of</strong> SMN<br />

on <strong>the</strong> country brand and this, <strong>in</strong> my op<strong>in</strong>ion, will<br />

help lead to a new paradigm <strong>in</strong> <strong>the</strong> <strong>in</strong>dustry<br />

My belief and view on <strong>social</strong> <strong>media</strong>, is that <strong>the</strong>se<br />

are channels <strong>of</strong> communication (some will be<br />

more powerful than o<strong>the</strong>rs), <strong>the</strong>refore form<strong>in</strong>g an<br />

<strong>in</strong>tegrated part <strong>of</strong> <strong>the</strong> market<strong>in</strong>g mix. Any agency<br />

that is actively market<strong>in</strong>g as part <strong>of</strong> its strategy<br />

must use <strong>the</strong>se channels. s. The agencies that<br />

will be most successful, will be those adapt<strong>in</strong>g a<br />

very customer focused communication and to<br />

learn about its client – <strong>the</strong> <strong>in</strong>vestor. Build<strong>in</strong>g up<br />

promotional videos (for example, IDA-Ireland now has<br />

l<strong>in</strong>ks on its website to 15 YouTube promotional videos<br />

(Dec 18, 2012, 23 videos, 110 subscribers, 23,732 video<br />

views)<br />

SMNs are a rapidly grow<strong>in</strong>g area for contact between<br />

people and especially via L<strong>in</strong>kedIn’s premium service for<br />

bus<strong>in</strong>ess pr<strong>of</strong>essionals.<br />

IDA-Ireland now us<strong>in</strong>g Twitter (6000 followers) (Dec 18,<br />

2012 , 11,049) and YouTube extensively and report that<br />

<strong>the</strong>se generate <strong>in</strong>creas<strong>in</strong>g levels <strong>of</strong> <strong>in</strong>quiries from potential<br />

<strong>in</strong>vestors. Huge potential <strong>in</strong> <strong>the</strong> future for IPA’s to use<br />

<strong>the</strong>se platforms creatively to generate <strong>in</strong>vestor <strong>in</strong>terest <strong>in</strong><br />

<strong>the</strong>ir location<br />

While I th<strong>in</strong>k <strong>the</strong>re is a future for <strong>the</strong> use <strong>of</strong> SNM<br />

technology, I feel that its <strong>in</strong>tegration will be gradual and its<br />

<strong>in</strong>fluence <strong>in</strong> determ<strong>in</strong><strong>in</strong>g an <strong>in</strong>vestment decision will be<br />

limited.<br />

It must be remembered that <strong>the</strong> development <strong>of</strong> such<br />

technologies is relatively recent and it will take time for<br />

<strong>the</strong>m to become accepted as valid <strong>media</strong> channels for<br />

<strong>in</strong>vestment decision mak<strong>in</strong>g. Certa<strong>in</strong>ly L<strong>in</strong>kedIn has<br />

become a valuable mechanism <strong>of</strong> mak<strong>in</strong>g and reta<strong>in</strong><strong>in</strong>g<br />

contacts and a network <strong>of</strong> contacts can certa<strong>in</strong>ly be<br />

helpful <strong>in</strong> progress<strong>in</strong>g a project. However, <strong>the</strong> f<strong>in</strong>al<br />

decision will almost always be made by a group <strong>of</strong> people<br />

sitt<strong>in</strong>g down around a table and decid<strong>in</strong>g on one location,<br />

<strong>the</strong> f<strong>in</strong>al decision will also almost always be <strong>in</strong>fluenced by<br />

personal contact.<br />

for IPAs target<strong>in</strong>g <strong>the</strong> European and North American<br />

companies and <strong>in</strong>creas<strong>in</strong>gly Asian companies, senior<br />

executives <strong>of</strong>ten have pr<strong>of</strong>iles enabl<strong>in</strong>g quicker and more<br />

efficient target<strong>in</strong>g<br />

FDI promotion predom<strong>in</strong>antly relates to bus<strong>in</strong>ess-tobus<strong>in</strong>ess<br />

promotional activities and solutions and <strong>the</strong><br />

emphasis thus far has been on <strong>the</strong> ‘<strong>social</strong>’ element <strong>of</strong> <strong>the</strong><br />

network <strong>in</strong> relation to view<strong>in</strong>g <strong>social</strong> relationships <strong>in</strong> terms<br />

<strong>of</strong> ‘nodes’ and ‘ties’ – nodes be<strong>in</strong>g <strong>the</strong> <strong>in</strong>dividual actors<br />

and ties be<strong>in</strong>g <strong>the</strong>ir respective relationships. However, it is<br />

<strong>the</strong> development <strong>of</strong> bus<strong>in</strong>ess and entrepreneurial<br />

networks that represent <strong>the</strong> ‘game changer’ which br<strong>in</strong>gs<br />

SMN channels <strong>in</strong>to <strong>the</strong> <strong>in</strong>vestment promotion doma<strong>in</strong>.<br />

SMN channels should be part <strong>of</strong> <strong>the</strong> “market<strong>in</strong>g mix” as it<br />

is a “pull-based system” – i.e. it enables potential<br />

<strong>in</strong>vestors to br<strong>in</strong>g <strong>the</strong> type <strong>of</strong> <strong>in</strong>formation, content and<br />

relationship <strong>the</strong>y want – <strong>in</strong> o<strong>the</strong>r works <strong>the</strong> IPI is not<br />

‘push<strong>in</strong>g’ a product or service which <strong>the</strong> <strong>in</strong>vestor has no<br />

<strong>in</strong>terest <strong>in</strong>.<br />

FB: Established and proven, track record, mega-wide<br />

audience, loyalty. Challenges: To manage<br />

“homogeneous” <strong>in</strong>terest groups, to keep bus<strong>in</strong>ess<br />

separate from personal. High impact<br />

L<strong>in</strong>kedIn: Dedicated to bus<strong>in</strong>ess network<strong>in</strong>g over boarders<br />

and across <strong>in</strong>dustries. Has a pr<strong>of</strong>essional focus, which<br />

aligns it well to IPA/<strong>in</strong>vestor <strong>in</strong>terests. High impact.<br />

Twitter <strong>in</strong>forms about <strong>the</strong> latest <strong>in</strong>dustry developments,<br />

follow<strong>in</strong>g latest trends and <strong>in</strong>dustry news becomes<br />

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client knowledge is key to success (equal to any<br />

commercial company) and to establish loyalty<br />

and manage it! IPAs can use SMN <strong>in</strong> many<br />

different ways by creat<strong>in</strong>g subgroups by<br />

subsectors, and l<strong>in</strong>k<strong>in</strong>g <strong>in</strong> specialists/experts.<br />

IPAs that provide sufficient resources to its allover<br />

market<strong>in</strong>g efforts, <strong>in</strong>clud<strong>in</strong>g a clearly<br />

def<strong>in</strong>ed Social Media market<strong>in</strong>g strategy and<br />

plan, will allow to share <strong>the</strong> voice <strong>of</strong> <strong>the</strong><br />

organization, get real time feedback for <strong>the</strong><br />

country/region/city, create an <strong>in</strong>stant buzz for <strong>the</strong><br />

“product <strong>of</strong>fer<strong>in</strong>g” i.e. subsectors and/or <strong>in</strong>vestor<br />

ready projects, build customer loyalty, and reach<br />

an <strong>in</strong>formed target audience. An added benefit is<br />

<strong>the</strong> ability to monitor results im<strong>media</strong>tely. The<br />

drawback – IPAs <strong>in</strong> general, have a tendency<br />

not to update <strong>the</strong>ir websites, with this <strong>in</strong> m<strong>in</strong>d, to<br />

handle Social <strong>media</strong> will require a lot <strong>of</strong><br />

discipl<strong>in</strong>e.<br />

easier, and especially shorter! Medium impact<br />

You Tube: Underestimated tool for IPAs. Provides<br />

credibility Eg. “See” <strong>the</strong> location and <strong>the</strong> real estate<br />

(<strong>in</strong>dustrial/bus<strong>in</strong>ess/science parks and/or EFZs, SEZ’s,<br />

etc, and “hear/see” <strong>the</strong> <strong>in</strong>vestor testimonials. Some good<br />

examples from IPAs. High impact<br />

RSS: keep<strong>in</strong>g <strong>in</strong>formation and <strong>in</strong>telligence flow<strong>in</strong>g. Align<br />

and customize <strong>in</strong>fo – appreciated <strong>in</strong> <strong>the</strong> overflow and <strong>in</strong>fo<br />

abuse that exists. Low impact<br />

Wiki: Wiki’s strength should not be underestimated….“If<br />

it’s not on Wiki – it doesn’t exist<br />

8.6 Appendix 6 – Tabulat<strong>in</strong>g Discussion on L<strong>in</strong>kedIn Group (fDiExecutives)<br />

Please note that <strong>the</strong> Discussion started on January 18, 2012 L<strong>in</strong>kedIn Group – fDiexecutives, and<br />

went on for days engag<strong>in</strong>g several respondents <strong>in</strong>clud<strong>in</strong>g myself. The Questions asked by leader <strong>of</strong> this<br />

Group.<br />

Douglas van den Berghe<br />

Do you use <strong>social</strong> <strong>media</strong> techniques for <strong>in</strong>vestor attraction? And if so what are<br />

your experiences?<br />

1 Jerome Solia I would just like to focus on a few <strong>of</strong> <strong>the</strong> issues that IPAs are currently fac<strong>in</strong>g when<br />

want<strong>in</strong>g to implement a <strong>social</strong> <strong>media</strong> strategy. First it depends on your size, <strong>the</strong> size <strong>of</strong><br />

<strong>the</strong> territory, its objectives, long term, short term and whe<strong>the</strong>r <strong>the</strong> IPA already has a<br />

brand or promotes an exist<strong>in</strong>g, established brand as it is a question <strong>of</strong> resources. It is<br />

easier as an FDI pr<strong>of</strong>essional to <strong>in</strong>tervene <strong>in</strong> a pr<strong>of</strong>essional and personal capacity on<br />

particular subject matters, or to do a bit <strong>of</strong> promotion <strong>in</strong> <strong>the</strong>ir own time than for an IPA to<br />

do it properly as a whole as this would mean creat<strong>in</strong>g a whole new set <strong>of</strong> habits and<br />

adjust<strong>in</strong>g its time management. Naturally IPAs are already present, particularly on twitter<br />

and here but <strong>the</strong>re seems all too <strong>of</strong>ten not to be a susta<strong>in</strong>ed effort. And for good reason.<br />

I agree that <strong>the</strong> potential is huge and very much grow<strong>in</strong>g. If an IPA fully believes <strong>in</strong> a<br />

<strong>social</strong> <strong>media</strong> effort and is will<strong>in</strong>g to not be discouraged by <strong>the</strong> fact that <strong>the</strong>y will need to<br />

spend a lot <strong>of</strong> time implement<strong>in</strong>g and communicat<strong>in</strong>g, <strong>the</strong>y will be able to address<br />

potential users <strong>in</strong> a very direct way, complement <strong>the</strong>ir promotion and communication<br />

strategy and benefit from <strong>the</strong> natural SEO <strong>of</strong>fered by <strong>the</strong> sites cited above. Of course,<br />

<strong>social</strong> <strong>media</strong> might also be perceived by some IPAs as not be<strong>in</strong>g B2B enough and <strong>the</strong>y<br />

could still favor a good old fashioned commercial campaign where <strong>the</strong>y will have a nice<br />

look<strong>in</strong>g website, <strong>of</strong>ten with disappo<strong>in</strong>t<strong>in</strong>g traffic figures, and press and advertorial (such<br />

as FDI magaz<strong>in</strong>e features) campaigns throughout <strong>the</strong> year on <strong>the</strong> one hand and leave it<br />

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to sales consultants or <strong>the</strong>ir own bus<strong>in</strong>ess development team to go get new bus<strong>in</strong>ess.<br />

Social <strong>media</strong> however does have a very large and grow<strong>in</strong>g B2B potential that can help<br />

IPAS, <strong>in</strong> times <strong>of</strong> shr<strong>in</strong>k<strong>in</strong>g budgets especially <strong>in</strong> Europe to be ever present <strong>in</strong> <strong>the</strong><br />

networks <strong>of</strong> <strong>the</strong>ir choice and present <strong>the</strong>mselves <strong>in</strong> complete control.<br />

This year we have started to <strong>of</strong>fer to do <strong>social</strong> <strong>media</strong> on behalf <strong>of</strong> some clients (IPAs) on<br />

<strong>the</strong> basis that time and implementation are real issues for <strong>the</strong>m. So far <strong>the</strong> response to<br />

use this new service has been overwhelm<strong>in</strong>g, which would tend to show <strong>the</strong> desire to<br />

attract <strong>in</strong>vestor, at early stages <strong>of</strong> <strong>the</strong>ir location study for <strong>in</strong>stance, and <strong>the</strong> importance <strong>of</strong><br />

be<strong>in</strong>g <strong>the</strong>re, be<strong>in</strong>g active, present<strong>in</strong>g constructive potential solutions to <strong>the</strong>m etc. This<br />

also shows <strong>the</strong> recognition shown by agencies <strong>of</strong> <strong>the</strong> real bus<strong>in</strong>ess potential <strong>of</strong>fered by<br />

<strong>social</strong> <strong>media</strong> and <strong>the</strong> need to tap <strong>in</strong>to it. But <strong>the</strong>re is still so much work and figur<strong>in</strong>g out to<br />

do...<br />

It's a fasc<strong>in</strong>at<strong>in</strong>g subject. Thanks for open<strong>in</strong>g a discussion group about it!<br />

Thank you everyone for <strong>the</strong>ir <strong>in</strong>sight and contributions. I would like to add to it by ask<strong>in</strong>g<br />

a couple <strong>of</strong> questions:<br />

In order <strong>of</strong> importance and from and from an IPA's perspective, which are <strong>the</strong> most<br />

important platforms: Twitter, L<strong>in</strong>ked<strong>in</strong>, Facebook?<br />

Where do you see it go <strong>in</strong> future, and do you believe <strong>in</strong> new platforms like Google + or<br />

are we already star<strong>in</strong>g saturation <strong>in</strong> <strong>the</strong> face?<br />

What do you th<strong>in</strong>k <strong>of</strong> closed networks like <strong>the</strong> Lyon Ambassadors network? And how can<br />

it be beneficial to <strong>the</strong> IPA/EDO over <strong>the</strong> long term?<br />

I have an op<strong>in</strong>ion on all <strong>the</strong> above questions but it would be great to share views on this.<br />

I believe <strong>the</strong>re is room for Google + and that, as po<strong>in</strong>ted out by Ian, <strong>the</strong> right tools must<br />

be selected. Therefore adaptability as well as a susta<strong>in</strong>ed effort over time and hav<strong>in</strong>g<br />

enough content are key. But when efforts should be redirected, IPAs should th<strong>in</strong>k fast.<br />

2 Douglas van den<br />

Berghe<br />

I also strongly believe <strong>in</strong> ambassadors network <strong>in</strong> <strong>the</strong> same ve<strong>in</strong> as Lyon, for o<strong>the</strong>r<br />

places, as it is a fantastic tool for engag<strong>in</strong>g cross sections <strong>of</strong> B2B users. <strong>the</strong>y are close<br />

to 8,000 users today.<br />

Thank you for your comments. In fact <strong>the</strong>re are a number <strong>of</strong> steps with <strong>social</strong> <strong>media</strong> that<br />

should be taken <strong>in</strong>to account and that are crucial for its success. We have highlighted<br />

<strong>the</strong>m <strong>in</strong> numerous workshops around <strong>the</strong> world. Sett<strong>in</strong>g up your <strong>social</strong> <strong>media</strong> accounts<br />

like Twitter, L<strong>in</strong>kedIn etc. is very easy and straightforward. What is crucial is that you<br />

def<strong>in</strong>e what you would like to achieve with <strong>the</strong> tools and which <strong>social</strong> <strong>media</strong> tools you<br />

use, how you monitor progress, performance, who is responsible <strong>in</strong> your organization,<br />

plann<strong>in</strong>g <strong>in</strong> terms <strong>of</strong> content you post. We have seen many IPAs sett<strong>in</strong>g up <strong>the</strong>ir<br />

accounts with <strong>the</strong> wrong brand<strong>in</strong>g, messages, content and lack <strong>of</strong> discipl<strong>in</strong>e beh<strong>in</strong>d it. As<br />

<strong>in</strong> traditional market<strong>in</strong>g <strong>the</strong> tactics and techniques beh<strong>in</strong>d it are very important.<br />

Great <strong>in</strong>put Ian. Thanks. Toge<strong>the</strong>r with our partner <strong>in</strong> <strong>the</strong> US, Atlas Advertis<strong>in</strong>g, we have<br />

recently done some web reviews and ranked various IPAs <strong>in</strong> <strong>the</strong> Caribbean us<strong>in</strong>g a<br />

scor<strong>in</strong>g model for <strong>the</strong> content, structure, <strong>social</strong> <strong>media</strong> and design <strong>of</strong> IPA/EDO websites.<br />

We are still reluctant to use Facebook for Investment Promotion and attraction. I th<strong>in</strong>k<br />

Twitter, L<strong>in</strong>kedIn, You Tube and a blog are still <strong>the</strong> best <strong>social</strong> <strong>media</strong> channels for IPAs<br />

and EDOs. However, it all starts with your IPA website!<br />

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3 Dany Rottiers Weekly use <strong>of</strong> LINKEDIN and monthly visitor analysis <strong>of</strong> our own website are <strong>the</strong> ma<strong>in</strong><br />

two sources <strong>of</strong> all our latest new <strong>in</strong>vestors want<strong>in</strong>g to start <strong>in</strong> CEE with us. We clearly<br />

focus on our direct approach with <strong>the</strong>m <strong>in</strong> <strong>of</strong>fer<strong>in</strong>g clear services that SME´s need <strong>in</strong><br />

case <strong>of</strong> an FDI start-up. LINKEDIN is very useful as former customers prefer to be on<br />

our connection list<strong>in</strong>g <strong>the</strong>se days than actual references on <strong>the</strong> website.<br />

4 Mat<strong>the</strong>w Hobbs Douglas - I totally agree with your comments. Many organisations <strong>in</strong>clud<strong>in</strong>g IPAs/EDOs<br />

have jumped on <strong>the</strong> <strong>social</strong> <strong>media</strong> bandwagon without adopt<strong>in</strong>g <strong>the</strong> same rigorous<br />

management/plann<strong>in</strong>g/assessment techniques <strong>the</strong>y would do for o<strong>the</strong>r market<strong>in</strong>g efforts.<br />

This may be because it appears to be free (but not <strong>in</strong> terms <strong>of</strong> <strong>the</strong> time you need to<br />

devote to it) and perhaps because <strong>the</strong>y don't fully appreciate its potential.<br />

In terms <strong>of</strong> your question as to whe<strong>the</strong>r electronic engagements will take over <strong>the</strong> human<br />

factor - my view is it will cont<strong>in</strong>ue to change/enhance <strong>the</strong> engagement but not replace.<br />

Social Media has its place along with websites, direct mail, lead generation efforts etc as<br />

part <strong>of</strong> <strong>the</strong> market<strong>in</strong>g mix.<br />

However ultimately people will still prefer to meet people particularly if <strong>the</strong> cont<strong>in</strong>ued<br />

expansion <strong>of</strong> <strong>the</strong>ir bus<strong>in</strong>ess depends on it. Electronic engagement may be <strong>the</strong> first po<strong>in</strong>t<br />

<strong>of</strong> contact but bus<strong>in</strong>esses will want to draw down on local expertise when visit<strong>in</strong>g a<br />

location. A positive response from a local EDO/IPA comb<strong>in</strong>ed with good follow up and<br />

customer care may make <strong>the</strong> difference <strong>in</strong> terms <strong>of</strong> land<strong>in</strong>g a project even when<br />

compet<strong>in</strong>g with someone who spends twice as much time and effort on Social Media.<br />

Unlike <strong>in</strong> some <strong>in</strong>dustries I can't see IPAs/EDOs be<strong>in</strong>g replaced by mach<strong>in</strong>es!<br />

it would be <strong>in</strong>terest<strong>in</strong>g to know whe<strong>the</strong>r EDOs <strong>in</strong> <strong>the</strong> US are gett<strong>in</strong>g bus<strong>in</strong>ess from <strong>social</strong><br />

<strong>media</strong> or are just follow<strong>in</strong>g <strong>the</strong> herd. I would be amazed if <strong>the</strong>y were gett<strong>in</strong>g more from<br />

Facebook than L<strong>in</strong>kedIn but perhaps that is just my experience.<br />

I believe that many organizations (certa<strong>in</strong>ly not just EDOs) have launched <strong>in</strong>to <strong>social</strong><br />

<strong>media</strong> with no strategy and little evaluation.<br />

5 Ian Smith Very <strong>in</strong>terest<strong>in</strong>g to read <strong>the</strong> different po<strong>in</strong>ts <strong>of</strong> view on <strong>the</strong> subject. Intelegia has been<br />

track<strong>in</strong>g <strong>the</strong> use <strong>of</strong> <strong>social</strong> <strong>media</strong> for IP for <strong>the</strong> past 3 years. We have documented <strong>the</strong>m<br />

on our blog. (When you visit <strong>the</strong> website - www.<strong>in</strong>telegia.com just click on <strong>the</strong><br />

"<strong>in</strong>vestment attraction" cloud tag. - http://t<strong>in</strong>yurl.com/7fojjez - )<br />

Along with <strong>the</strong> blog, you will f<strong>in</strong>d <strong>the</strong> recent edition <strong>of</strong> <strong>the</strong> Canadian Cities Onl<strong>in</strong>e<br />

Market<strong>in</strong>g Index - http://t<strong>in</strong>yurl.com/7oy4jbz - where <strong>the</strong> top Canadian agencies are<br />

benchmarked on <strong>the</strong> basis <strong>of</strong> <strong>the</strong> use <strong>of</strong> <strong>social</strong> <strong>media</strong> for IP. There are abstracts <strong>of</strong><br />

<strong>in</strong>terviews with EDOs which may be <strong>in</strong>terest<strong>in</strong>g to look at if you wish to learn about <strong>the</strong><br />

experiences <strong>in</strong> Canada.<br />

For agencies to be successful on <strong>social</strong> <strong>media</strong> for <strong>in</strong>vestment attraction, I th<strong>in</strong>k <strong>the</strong>re are<br />

a few important th<strong>in</strong>gs to remember:<br />

* Social <strong>media</strong> should be used to deliver a brand message, thus a need for a content<br />

strategy.<br />

1. - Select <strong>the</strong> right tools to push <strong>in</strong>formation to potential <strong>in</strong>vestors / site selectors.<br />

Facebook has become more challeng<strong>in</strong>g to use s<strong>in</strong>ce <strong>the</strong>y have changed to algorithm<br />

for <strong>the</strong> appearance <strong>of</strong> post<strong>in</strong>gs from fan pages on news feeds .<br />

3 - Always seek to engage your audience on <strong>the</strong> platforms that you select to use.<br />

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One th<strong>in</strong>g that I omitted from my list is <strong>the</strong> ability to build your audience with <strong>the</strong> right<br />

<strong>in</strong>dividuals. Although it is nice to have hundreds <strong>of</strong> <strong>in</strong>dividuals lik<strong>in</strong>g you on Facebook<br />

and follow<strong>in</strong>g on Twitter, how many <strong>in</strong>dividuals are potential <strong>in</strong>vestors or have a <strong>role</strong> <strong>in</strong><br />

br<strong>in</strong>g<strong>in</strong>g <strong>in</strong>vestment dollars to town? Citizens are nice to have on your lists; however,<br />

you should be look<strong>in</strong>g to have people that have <strong>the</strong> ability to spread <strong>the</strong> good word about<br />

<strong>the</strong> town <strong>in</strong> terms <strong>of</strong> key location factors.<br />

In <strong>the</strong> end, all deals re: <strong>in</strong>vestment projects are signed beh<strong>in</strong>d closed doors; however;<br />

you can pick up some weak signals on SMN <strong>in</strong> terms <strong>of</strong> potential deals and <strong>in</strong>vestors.<br />

Any confirmed deals announced via <strong>social</strong> <strong>media</strong> will be down after <strong>the</strong> shovels are <strong>in</strong><br />

<strong>the</strong> ground.<br />

With all this buzz about Google Plus, I am ponder<strong>in</strong>g how long will economic development<br />

agencies wait to adopt <strong>the</strong> new <strong>social</strong> network <strong>in</strong>to <strong>the</strong>ir <strong>social</strong> <strong>media</strong> market<strong>in</strong>g mix for<br />

<strong>in</strong>vestment attraction and bus<strong>in</strong>ess retention.<br />

Accord<strong>in</strong>g to <strong>social</strong> <strong>media</strong> guru, Chris Brogan, Google Plus will change “EVERYTHING”<br />

when it comes to <strong>social</strong> network<strong>in</strong>g. He cites <strong>the</strong> follow<strong>in</strong>g two reasons <strong>in</strong> his book,<br />

“Google+ for Bus<strong>in</strong>ess: How Google’s Social Network Changes Everyth<strong>in</strong>g”<br />

<br />

<br />

Search capabilities<br />

The way <strong>in</strong>formation is shared on <strong>the</strong> web<br />

Economic development <strong>of</strong>ficers that utilize <strong>the</strong> web to efficiently promote <strong>the</strong>ir region for<br />

<strong>in</strong>vestment and talent attraction <strong>in</strong>itiatives must take notice <strong>of</strong> <strong>the</strong>se two realities.<br />

Agencies that use content market<strong>in</strong>g to re<strong>in</strong>force <strong>the</strong>ir brand should start build<strong>in</strong>g <strong>the</strong>ir<br />

Google Plus page, NOW!!!. The network <strong>of</strong>fer opportunities for agencies to push <strong>the</strong>ir<br />

content via <strong>the</strong>ir page which will enhance search eng<strong>in</strong>e optimatization on Google.<br />

Consider <strong>the</strong> follow<strong>in</strong>g scenario.<br />

Your economic development agency’s Google Plus page is followed by 10 site selectors.<br />

Of <strong>the</strong>se 10 <strong>in</strong>dividuals, 5 <strong>of</strong> <strong>the</strong>m specialize <strong>in</strong> identify<strong>in</strong>g regions and real estate<br />

opportunities for alternative energy production plants. (Such details are available on <strong>the</strong><br />

selectors’ Google Pr<strong>of</strong>ile).<br />

With Google Plus, your agency can:<br />

Add <strong>the</strong>se 5 <strong>in</strong>dividuals to circles <strong>of</strong> representatives<br />

Create and share relevant content regard<strong>in</strong>g location factors for alternative<br />

energy sector<br />

Appear <strong>the</strong> Personal Results <strong>of</strong> <strong>the</strong> 5 <strong>in</strong>dividuals when <strong>the</strong>y perform a query<br />

with <strong>the</strong> search term, “alternative energy”.<br />

SMN can be used <strong>in</strong> "long list" stage <strong>in</strong> terms <strong>of</strong> target<strong>in</strong>g. This is under <strong>the</strong> assumption<br />

that your agency have built an audience to push your content to (regardless <strong>of</strong> <strong>the</strong><br />

SMN).<br />

Putt<strong>in</strong>g SMN channels aside for a m<strong>in</strong>ute, I noted always that dur<strong>in</strong>g world economic<br />

forum <strong>in</strong> Davos, <strong>the</strong>re were a series <strong>of</strong> concomitant ads to WEF events aired some<br />

country promotional ads (<strong>in</strong>vest <strong>in</strong>…..) on CNN, Bloomberg, CNBC Europe among<br />

o<strong>the</strong>rs...do you th<strong>in</strong>k <strong>the</strong>se ads are useful for attract<strong>in</strong>g targeted <strong>in</strong>vestors given <strong>the</strong> huge<br />

money paid...<br />

6 Anatalio Ubalde My sense is that EDOs are us<strong>in</strong>g different <strong>social</strong> <strong>media</strong> platforms for different goals.<br />

They are likely us<strong>in</strong>g some for <strong>in</strong>ternal/local audiences, o<strong>the</strong>rs for external audiences,<br />

and some for both. Economic development is chang<strong>in</strong>g and <strong>the</strong>refore <strong>the</strong> audiencetargets<br />

are broaden<strong>in</strong>g and evolv<strong>in</strong>g. Us<strong>in</strong>g a traditional focus on corporate decisionmakers<br />

for bus<strong>in</strong>ess attraction, I could see how EDOs might put all <strong>the</strong>ir efforts <strong>in</strong>to<br />

L<strong>in</strong>ked<strong>in</strong>. But with a grow<strong>in</strong>g emphasis on local entrepreneurship, small bus<strong>in</strong>ess<br />

assistance, and talent attraction, tools like Facebook, Google+, YouTube, and Twitter<br />

may make a lot <strong>of</strong> sense.<br />

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In terms <strong>of</strong> whe<strong>the</strong>r <strong>the</strong>y are gett<strong>in</strong>g bus<strong>in</strong>ess or follow<strong>in</strong>g a trend, it's probably both. I'm<br />

a strong believer <strong>in</strong> measur<strong>in</strong>g for evaluation. However, <strong>social</strong> <strong>media</strong> for economic<br />

development is still new for most EDpros. So it's healthy to try th<strong>in</strong>gs out, just to try<br />

<strong>the</strong>m, or try th<strong>in</strong>gs out and fail so that <strong>the</strong> experiment may be more successful <strong>the</strong> next<br />

time. We're all learn<strong>in</strong>g and teach<strong>in</strong>g toge<strong>the</strong>r<br />

Based on a national survey, <strong>the</strong> top 3 <strong>social</strong> <strong>media</strong> platforms used by USA economic<br />

development organizations are, <strong>in</strong> order, 1. Facebook, 2. Twitter, and 3. L<strong>in</strong>ked<strong>in</strong>. We<br />

are compil<strong>in</strong>g <strong>the</strong> more comprehensive results <strong>of</strong> <strong>the</strong> survey and plan to share <strong>the</strong><br />

results soon. EDOs are us<strong>in</strong>g different <strong>social</strong> <strong>media</strong> platforms for different goals. They<br />

are likely us<strong>in</strong>g some for <strong>in</strong>ternal/local audiences, o<strong>the</strong>rs for external audiences, and<br />

some for both. Economic development is chang<strong>in</strong>g and <strong>the</strong>refore <strong>the</strong> audiences are<br />

broaden<strong>in</strong>g and evolv<strong>in</strong>g. Us<strong>in</strong>g a traditional focus on corporate decision-makers for<br />

bus<strong>in</strong>ess attraction, I could see how EDOs might put all <strong>the</strong>ir efforts <strong>in</strong>to L<strong>in</strong>ked<strong>in</strong>. But<br />

with a grow<strong>in</strong>g emphasis on local entrepreneurship, small bus<strong>in</strong>ess assistance, and<br />

talent attraction, tools like Facebook, Google+, YouTube, and Twitter may make a lot <strong>of</strong><br />

sense.<br />

7 Mona Salim<br />

Bseiso<br />

In terms <strong>of</strong> whe<strong>the</strong>r <strong>the</strong>y are gett<strong>in</strong>g bus<strong>in</strong>ess or follow<strong>in</strong>g a trend, it's probably both. I'm<br />

a strong believer <strong>in</strong> measur<strong>in</strong>g for evaluation. However, <strong>social</strong> <strong>media</strong> for economic<br />

development is still new to many EDOs pros. So it's healthy to try th<strong>in</strong>gs out, just to try<br />

<strong>the</strong>m, or try th<strong>in</strong>gs out and fail so that <strong>the</strong> experiment may be more successful <strong>the</strong> next<br />

time. We're all learn<strong>in</strong>g and teach<strong>in</strong>g toge<strong>the</strong>r.<br />

Douglas thank you for start<strong>in</strong>g discussion on this topic. I appreciate your analysis <strong>of</strong><br />

SMN, Jerome comment, <strong>the</strong> video l<strong>in</strong>k by Anatalio, Danny's comment and I would like to<br />

ask Ma<strong>the</strong>w if he can provide any good examples <strong>of</strong> SMN use <strong>in</strong> IPAs he mentioned, if<br />

he can name one or more. I am particularly concerned if <strong>in</strong> <strong>the</strong> near to medium term <strong>the</strong><br />

direct contact with <strong>in</strong>vestors (facilitation and aftercare) will give way to electronic virtual<br />

engagements, and thus gradually overshadow <strong>the</strong> personal human factor and<br />

"<strong>in</strong>tellectual capital" <strong>of</strong> IPAS. In a so-called Facebook economy will <strong>in</strong>vestment promotion<br />

techniques (image build<strong>in</strong>g, <strong>in</strong>vestor target<strong>in</strong>g, <strong>in</strong>vestor services, and advocacy) still<br />

make up <strong>the</strong> IP paradigm?<br />

In response to Jerome 3 questions:<br />

1. Twitter, Facebook, L<strong>in</strong>kedIn<br />

2. chang<strong>in</strong>g <strong>the</strong> communications paradigm for <strong>in</strong>vestment promotion as we know it today<br />

(4th generation), Google+ is only beg<strong>in</strong>n<strong>in</strong>g <strong>of</strong> even more creative additions and<br />

supplementary services mushroom<strong>in</strong>g one from <strong>the</strong> o<strong>the</strong>r to improve communication and<br />

<strong>in</strong>creased convergence.<br />

3.I loved idea <strong>of</strong> <strong>the</strong> Lyon Ambassadors network I believe this is a live example <strong>of</strong> <strong>social</strong><br />

<strong>media</strong> networks creativity and focused <strong>in</strong>tegrated <strong>in</strong>vestment brand<strong>in</strong>g and target<strong>in</strong>g. All<br />

po<strong>in</strong>ts are <strong>in</strong> <strong>the</strong> right direction...but what worries me is <strong>the</strong> speed decisions should be<br />

made and <strong>in</strong>formation dissem<strong>in</strong>ated...<strong>the</strong> <strong>of</strong>fice hours should be 24/7 <strong>in</strong> real<br />

time..mean<strong>in</strong>g even if you are home or <strong>in</strong> <strong>the</strong> gym you should stay connected and<br />

respond by any <strong>of</strong> SMN channels especially twitter.<br />

Will this make <strong>the</strong> <strong>in</strong>vestment promotion <strong>of</strong>ficers or practitioners <strong>in</strong> <strong>the</strong> decade to come<br />

mere channels for <strong>the</strong> pipel<strong>in</strong>e <strong>of</strong> deals...I th<strong>in</strong>k Diego is right about issue <strong>of</strong> project<br />

confidentiality and thus can SMN like Facebook be used for <strong>in</strong>vestor target<strong>in</strong>g? if it was<br />

restricted access <strong>the</strong>n not very effective and if it is more public <strong>the</strong>n <strong>the</strong> strategy is out<br />

<strong>the</strong>re for competitors...<br />

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FACEBOOK ECONOMY"<br />

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