Closely related to the argument about allocating functionally focused SMM roles (Section 6.2.3) and using specialized SMM tools (Section 6.2.6), this section argues that the decentralization of the SMM capability across various business units is likely to encourage the utilization of social media data towards a broader range of business functions. Evidence from the case organizations suggested that while the development of the SMM capability was often initiated in one business unit (i.e. centralized structure), it progressed toward a more decentralized structure as more business units developed the capability. More importantly, this transition from a centralized to a decentralized SMM
capability was associated to the utilization of social media data in a broader range of functions in more business units.
For example, TechCo initially began developing an SMM capability in the Digital team and then progressed toward a decentralized SMM capability across most of the departments within the Marketing and Communications unit. The Digital Leader noted:
We have certainly transitioned over time from having more of that centralized digital team into a model where digital is more pervasive across all of the roles [in marketing and communications unit]. That has been a really great transition for us.
The Digital Leader at TechCo also conveyed an intention to further decentralize the SMM capability by replicating it in other business units:
What we are trying to do now is cast the net quite wide, and then break it down into different areas… We haven’t quite figured that out yet; getting it beyond just Marketing and Communications into the rest of the organization...
InsuranceCo also managed to decentralize their SMM capability at two business units. The Senior Manager, VPD at InsuranceCo provided the rationale for the decentralization:
I think you dictate it by how you decentralize it. If the core team are responsible for, say, brand, competitive intelligence and responsible for customer service, as an example, then one of the decentralized teams is responsible for marketing and leads and competitive intelligence from a different lens. As you decentralize further and you get closer to the decentralized functions, they should then drive back….
If I decentralize into customer service, their audience will be very much customer service. If I decentralize into sales, I will be looking for leads and marketing opportunity. If I keep it at our PR team, they will be looking at brand and reputation issues.
The Digital Communication Advisor at InsuranceCo conveyed the intention to further decentralize the SMM capability:
In the long term eventually big picture, eventually these people who would need to engage with them would end up having this tool …
Similar to TechCo, the Senior Manager, VPD at InsuranceCo noted their long-term desire to expand the SMM capability beyond the current two business units and to replicate the capability in other business units:
In our aspirations, we would be able to centralize that [SMM capability] further, so [we] will be able to centrally outsource to product guys and outsource to claims guys and outsource to sales guys.
The Digital Communication Advisor at InsuranceCo also emphasized that the decentralized roles need to have access to the SMM tools:
In the long term eventually big picture, these people who would need to engage with them [social media users] would end up having this tool...
Moreover, at EduConsultCo, SMM capability was centralized at the Branding department; however, as highlighted in the comment below, the Brand Marketing Coordinator believed further decentralization would improve the utilization of social media data across the organization:
Having someone in each department tapped into that already and having a [tool] where you can very easily allocate things to certain people into one thing to respond … that would be a much more seamless way to do it.
At CarCo, the Digital Marketing Manager also indicated her/his intention to decentralize the SMM capability to other business units in the future. However, as reflected in the comment below, this decentralization was not likely to happen in the near future.
[We intend to decentralize SMM in the future], how long that will be I’m not sure yet, but yes that has always been on the radar to go further and further out but at this stage we’re still finding that there’s issues and so we’re managing it.
The above insights have been supported in recent studies of social media. For example, Culnan et al. (2010) suggested that in order to process customer communications received via social media, organizations need to build processes and expertise in different business areas such as public relations, customer service and product development. Moreover, Kleindienst et al. (2015) suggested that efforts in social media analytics should be aligned with specific objectives of different business units and, therefore, social media monitoring efforts should not be centralized. In a similar vein, the findings of a recent study conducted by MIT Sloan Management Review (Kane et al., 2014) concluded that to realize the full potential of social media data, the utilization needs to move beyond the marketing area.
In the literature on strategic management, Helfat and Peteraf (2003) described this structural progression of the capability as replicating or branching, which occurs in a typical organizational capability development life-cycle. According to them, this progression is also associated with the outcomes of the capability, so that a more enterprise-wide capability is expected to generate more business value. Similarly, in the literature on external intelligence, Moorman (1995) emphasized that “market information refers to external information that cuts across all functional areas of the firm rather than the more delimited 'marketing information' that suggests it applies only to marketing departments” (p. 319).
In addition, Peppard (2013) stressed that failure to generate value from IS is related to organizations’ IS structure. Peppard et al. (2000) also suggested that to leverage value from IS “organizations must recognize and develop information competencies and that the elements of these competencies are distributed throughout the organization and not solely resident in the IS function” (p. 291). Peppard and Ward (2004) suggested establishing, developing and nurturing IS competencies within the existing functional structure of the organization. Moreover, Peppard (2013) introduced the concept of a pervasive IS organization and argued that generating value from IT is not only about managing the technical artifacts but harnessing knowledge that is essentially distributed across the organization as well as external parties, such as suppliers and customers. As such, this study suggested that in order to utilize the full potential of an SMM capability, the capability development needs to occur in each of the relevant business units. In other words, by establishing SMM processes and allocating functionally focused roles and specialized SMM tools within different business units, the utilization of social media data could occur in a broader range of functions at the operational level.
Thus, based on the above argument and evidence in the case organizations, the following proposition is suggested:
Proposition 7: A decentralized structure of the SMM capability is likely to lead to the utilization of social media data across a broader range of business functions.