Digital Governance and Social Media Engagement

Abstract

Social media and online brand communities are important factors in today's business environment (Fuchs, 2014; King, 2013; KPMG, 2012). This chapter presents an in-depth qualitative analysis in the sector of financial services companies; additionally, it provides some indications for the adaption to other services and to general industry companies. In itself, communication in the digital social network provides no value for companies, but it may help to create value (Piwinger & Porák, 2005; Zerfaß, 2006). Social media is already naturally integrated within many areas of everyday work, according to the interviewed experts. However, many companies still have deficits in their governance structures for social media. Used properly, digital social networks might be a cost-effective component in communication between the company and its partners and customers. Social media networks can contribute in the medium- or long-term to gain the trust of customers and business partners.