Internet: Benefits For Business Development

Introduction

There has been increasing in the popularity and economic relevance of social media over recent years as it enables users to share data, information, and media products. There are different social media websites such as Facebook, Instagram, Twitter, etc. that provide technology platforms to establish and multiply relationships between users and organizations through social networks. Social media and video conferencing are the most preferred methods of communication used by organizations. Social media is internal mode of interaction adopted by managers as it strengthens two-way sharing of information and ideas and reduce power distance. It is more interactive, participative and cooperative as compared to face-to-face communication. The Internet enables organizations to understand and respond to customer needs in an efficient manner (Farzana et al. 2016). The Internet plays an important role in the growth of the market as it enables organizations to understand the demand of consumers and produce accordingly. There is increasing trend of online shopping sites such as eBay, wish and amazon that helps the customers to find products at reasonable prices leading to successful marketing. The role of stakeholders has changed over a period of time. With advancement of technology, the organizational behavior of stakeholders has changed from a traditional mechanism to an emerging view leading to the growth of the business. The internet has the advantage of low cost, time-saving, and increased productivity as it enables stakeholders to attend meetings online through various applications. It enables the stakeholders to have better access to timely information and various means to share views to international audiences and a greater capacity to form alliances (Khan and Soliman,2009).

Organization stakeholders are any group or individuals who can affect or are affected by a firm (Greenwood, 2001) and without them, the organization could not exist (Freeman, 1984; Evan & Freeman, 1988). The companies may have different sets of stakeholders, usually, companies respond to six stakeholder groups such as customers, employees, suppliers (of goods and/or services), owners (shareholders), government, and social groups (for example, communities and/or societies, as a whole). Atkinson, et al. (1997) classified stakeholders into two groups such as environmental stakeholders and the process stakeholders. The environmental stakeholders consist of customers, owners, competition, government, and environmentalists who define a company’s strategies. The process stakeholders include employees and suppliers that plan, design, implement, and operate the processes to make and deliver the company’s product to its customers. Stakeholders have an influence on company product management and related decisions (Recklies, 2001) so it is the duty of an organization to communicate stakeholders by various means regarding its operations. There is tremendous increase in users of internet over a period of time. The traditional approaches to communicate and consult stakeholders were inadequate and thus not helped stakeholders to build shared understanding, knowledge from which sustainable solutions can be generated. There is increasing use of internet in all aspects of commerce and there is change in role and influence of stakeholders on service management decisions over a period of time. Technology enables individuals and small groups with few resources to become known, share information, influence others, and create communities of interest in a very short time. Companies prefer to build networks to ensure their own benefit as well as to create social value. Companies by strengthening stakeholders’ networks clarify social responsibilities, develop new knowledge, innovative solutions to complex problems, increase mutual understanding, trust, and commitment required for collaborative action. The young generation is attracted to internet and online media as they provide new outlets or tools for issues engagement beyond established institutions. The effect of internet on stakeholder participation can be observed from emergence of new forms of activism and participation. Businesses have to take care of developments in online activism and must be ready to expand stakeholder engagement efforts beyond traditional channels and forums.

Conclusion

The internet has touched every aspect of business today. There is increasing use of internet in all aspects of commerce. It enables open communication that helps organisations to understand and respond to customer needs in better way. Internet has also changed face of marketing that impact growth of business. Initially, convening stakeholder networks take more time, and may seem to require greater resources and levels of commitment when compared with organization-centric forms of engagement. Advancement in computer and web based technology over past two decades supports communication across the divide of time, place, language, culture, and organization. The Internet has increased the involvement of stakeholders leading to the growth of the business. The new interwoven and complex reality of the 21st century with technological advancements requires organisations to develop new ways of thinking, being, and engaging with stakeholders.