Transcript Seminar 5 - Department of Information Systems

Web 2.0 for Work in Chinese
Professional Service Firms
Robert M Davison: City University of Hong Kong
Carol XJ Ou: Tilburg University
Maris G Martinsons: City University of Hong Kong
Angela Ying Zhao: Sichuan University
Xiaoqing Hua: Renmin University
Rong Du: Xidian University
1
Introduction & Background

Web 2.0 is fast becoming ubiquitous
Socially, it is almost universal
 At work, its presence is growing fast



Through Web 2.0, each of us is “present and
accessible to every other person in the world”
(McLuhan, 1964).
However, there is some scepticism

Is Web 2.0 more than a vast chatting application?
2
Workplace Web 2.0 Contexts

Internal Communication
Knowledge sharing
 Coordination & Collaboration
 Problem Solving


External Communication
E-marketing
 PR
 CRM

3
Research Question


But detailed investigations/analyses of how
corporate Web 2.0 applications generate value
are rare, so…
“How do Chinese professional service firms
engage with Web 2.0 technologies in order to
create value at work?”
4
Communicative Ecology Framework

CE is used in media and communication studies to
analyse relationships among social groups, interactions,
and media.


Foth and Hearn, 2007
The CEF connects the communication media,
people and the social environment (including
guanxi), as well as the communication content
into an ecological system.
5
Extended Communication Ecology
Framework
Social
Environment
Culture
Guanxi
Individuals
Content
Communication Media
Roles &
Identities
Created by Louie HM Wong, 2014
6
Media Applications

Multiple media are often used
People find it more convenient to choose from a
portfolio of media applications
 Different tools can be used in different contexts
 Some people like ‘richer’ tools with video and audio,
others are happy with ‘poorer’ tools with only text.
 Tools can be used in combination – linearly or
sequentially
 This is consistent with Media Synchronicity Theory
(Dennis et al., 2008)

7
Web 2.0 Applications


A wide variety of Web 2.0 tools are encountered
in the workplace
These include (but are not limited to)
Microblogging – e.g. Twitter, Yammer, Weibo
 Instant Messengers – MSN, QQ, Skype, WangWang,
G-Talk, WeChat, WhatsApp, LINE, etc.
 Wikis & other platforms, e.g. RTX


All Web 2.0 applications are characterised by the
role of users as content creators
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Microblogging

‘Life updates’ among colleagues


Team- task coordination


Zhao and Rosson, 2009
Riemer et al., 2010
Enhancing brand awareness

Jansen et al., 2009
9
IM

IM is often used to compensate for the absence of FTF
interaction for immediate questions, clarifications,
coordination, scheduling


Use as a complementary communication channel for
distributed teams


Avrahami and Hudson, 2006
Quan-Haase et al., 2005
Concerns about work interruption

Nardi et al., 2000; Ou et al., 2010
10
Wikis


A “collaboratively created and iteratively improved set
of web pages” (Wagner 2004)
Corporate KM initiatives


Work Facilitation and Process Improvement in the
Organisation


Wagner, 2004; Wagner & Bolloju, 2005
Majchrzak et al., 2006
Knowledge Reuse for Organisational Improvement

Majchrzak et al. forthcoming.
11
Web 2.0 Research in China

Weibo for Viral Marketing in Vancl


Exploratory study of commercial potential of 22
Weibo sites


Zhang, 2011
Li et al., 2011
IM use, paradoxically, leads to both interruption
and enhanced communication quality

Ou et al. 2010; Chang & Ian, 2012
12
Corporate Concerns about Web 2.0
Use in the Workplace

Fear of misuse, with an excess of chatting


Low levels of useful content


Nardi et al., 2000
Gunther et al., 2009
Risks of cyber vandalism, queries about quality
control, fit with organisational culture

Stocker and Tochtermann, 2009
13
Methods

Qualitative Case-Based Approach
Interviews and observation of key personnel at work
 Identify ways in which Web 2.0 applications are used
– and how value is derived
 Identify operational and strategic issues/ problems
that may complicate Web 2.0 use
 Identify opportunities for innovation in Web 2.0 use
in the Chinese environment

14
Context

Four Professional Service Firms in Software
Development
 Beijing
– Mercury, Beech
 Chengdu – Silver
 Xi’an - Parana
One hotel chain - Ravine
 PSFs tend to be characterised by high levels
of knowledge intensity, a highly
professionalised workforce and low levels of
capital intensity

 Nordenflycht,
2010
15
Mercury - Beijing


12,000 employees; US-educated founders
A restrictive IT culture
Most applications are blocked to most people
 Senior people can use anything


MSN & QQ are used for internal
communications
QQ is popular for large file transfer
 MSN is used for communication with industry
experts, former colleagues, clients, external agencies

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Mercury

Weibo sees extensive use for marketing and
external communication purposes




But most followers are employees!
Mercury is developing a short term strategic plan
around Weibo for marketing
In general, Mercury is rather conservative
The corporate IT infrastructure is out of date

They are not confident that they can fix security
loopholes nor support the growing number of
employees >> 40,000
17
Beech - Beijing


9,000 employees; local management
More relaxed attitude towards IT

Fewer restrictions


E.g. RenRen and Kaixin are blocked, but others are OK
They have an internally developed wiki that they
use for customer support
After sales service, online updates, e-marketing,
discussion forums
 The wiki serves as a medium for communication
with and between customers

18
Beech

They have also developed an internal IM platform




So few people use MSN or QQ, excecpt for external
communications
The internal platform also functions as a corporate
directory
It is mostly used for 1-1 communications, not group
discussions
Weibo is not much used except for internal social
communication
19
Silver - Chengdu


This is a state-owned software firm, with most work on
long-term retainers
Very relaxed IT culture


There is an internal wiki, but it is little used by
programmers


Anything is allowed as long as it is work related
It is used by HR staff as a repository for formal documents
Weibo is primarily used for social purposes
20
Silver



RTX is the most widely used platform
RTX has IM functions, as well as an internal directory
and group chats
It has well developed archiving functions, so as to store
conversations



It acts as a form of corporate memory and enables
asynchronous work
RTX facilitates communication between the Chengdu
HQ and all other sales offices
The major limitation is that RTX needs PC/notebook
support – not accessible by smart phones (except with
wifi)
21
Parana - Xi’an

3,000 employees globally, 250 in China



Beijing, Shanghai, Xi’an, Chengdu
Chicago headquartered, operating globally
Strong corporate ethos to do good
Quality software
 Sustainable business
 Socioeconomic justice


Pro-diversity, pro-equality, green IT
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Parana


Most applications are Google related, though
Skype is used extensively for video conferencing
Corporate policy is very open



Any application is OK if it helps
Weibo is used at corporate and inividual levels,
but for thought leadership, not for marketing
Corporate wikis and blogs are also used to
publish information ‘for the good of society’
23
Ravine


Ravine is a global hotel management services
company, operating over 100 hotels in China
Ravine blocks all access to Web 2.0 technologies


Yet, many Ravine employees need to use Web
2.0 for their work


“It is not part of Ravine’s corporate culture”
Communication, problem solving, marketing, CRM
And they do so with bricolage, finding creative
solutions
24
Ravine

Some employees
Use mobile devices secretly to access networks
reserved for hotel guests
 Persuade their managers to allow them to use private
networks, including guest networks


Some managers equally break the rules – so as to
get work done


Using multiple devices for multiple purposes
Corporate HQ seems unaware…
25
Ravine





VP-IT: “Security is paramount. No hotel has direct connectivity to the
Internet. All hotel communications are routed via a firewall located in
corporate headquarters. Further, all Ravine hotels operate standard software,
globally. There is zero tolerance for malware and the risks that malware
would bring”.
FOM: “I am not allowed to use MSN at work, and my guanxi network has
suffered: I have lost some of my contacts. It is harder to work effectively.
Why not trust everyone to be sensible instead of being suspicious of
everyone?”.
PRM: “Without QQ I cannot work. I use QQ to contact many external parties,
who don’t use other applications. They refuse to use email and it is very hard
to get hold of them on the telephone. Therefore I must be able to use QQ”.
MCM: “A one minute task, like sending an email with attachments to
corporate clients, can take two to four hours”.
MCM: “My job is to communicate, but there are no tools to accomplish this”
26
The Multiple Layers of the CEF


Foth & Hearn (2007) suggest that the multiple
layers of the CEF are intricately interwoven.
We experienced this dynamic interweaving in
each of the firms described above.
Web 2.0 applications cross all four layers and enable
a variety of organisational functions
 Most of the communication that takes place is
horizontal

27
Extended Communication Ecology
Framework
Social
Environment
Culture
Guanxi
Individuals
Content
Communication Media
Roles &
Identities
Created by Louie HM Wong, 2014
28
Web 2.0 & Organisational
Communication Model:
Simplified Version
Use of Web 2.0
Media
Organisational
Communication
(Internal and
External; Vertical
& Horizontal)
External Factors:
•Managerial Support
•Client Preference
Communication
Outcomes
29
Vertical Communication


Vertical communication – across levels in a hierarchy –
is common in many organisations, with instructions and
directives ‘from above’ being disseminated downwards.
We found relatively little evidence of vertical
communication – perhaps because most of the firms
we studied exhibit more relaxed managerial control
systems


Some Web 2.0 liberated managers use IMs, wikis, blogs, but
email is more common.
Weibo can be used to control corporate image with followers
(the public) and to engage in digital marketing
30
Proposition 1

Proposition 1: The use of Web 2.0 applications
can enhance vertical communication in
organizations (with internal and external
stakeholders), thereby establishing and
strengthening corporate norms.
31
Horizontal Communication

Many different Web 2.0 applications can be used
for different types of horizontal communication
that involve
Internal (peer-peer), e.g. problem solving, knowledge
exchange, social interactions
 External (client-focused), such as e-sales &
marketing, thought leadership, recruiting, brand
management, after sales service.

32
Proposition 2

The use of Web 2.0 applications enhances
horizontal communication for a variety of
internal and external purposes related to
Internal communication: problem solving,
knowledge exchange, social relationship
development
 External communication: e-sales & marketing,
thought leadership, recruiting, brand management,
after sales service.

33
The Contingent Role of
Organizational and External Factors





A variety of external factors also influence
communication practices
Managerial scepticism
Managerial concern for the potential for security
breaches
Corporate restrictions, requirements and culture
Client preferences
34
Proposition 3

The effects of Web 2.0 applications on
enhancing vertical and horizontal
communication are contingent on a)
management support and b) partner’s medium
use, suggesting its moderating role in Web 2.0supported communication processes.
35
Communication Outcomes: Vertical




Corporate norms can be communicated
effectively through technology
Over time, these norms coalesce into a
corporate culture
We saw evidence in particular of email, blogs
and instant messengers
The outcomes include: corporate performance
and consistency, team satisfaction and efficacy,
individual productivity and efficacy
36
Proposition 4

The vertical communication of corporate norms
exerts a positive influence on work-related
processes at the corporate, team and individual
levels
37
Communication Outcomes:
Horizontal



A variety of work processes are facilitated by
horizontal communication
These work processes operate at individual (e.g.
knowledge exchange), team (e.g. client
interactions) and corporate (e.g. e-marketing)
levels
Outcomes cover productivity, satisfaction, profit
and assurance of corporate values
38
Proposition 5

The engagement in such horizontal
communication activities as knowledge
exchange, digital marketing and social
relationship building will exert a positive
influence on work-related processes at the
corporate, team and individual levels.
39
Web 2.0 & Organisational Communication
Model: Detailed Version
P1
Use of Web
2.0 Media:
IM, μblogs,
Wikis
Vertical Communication:
Establish and Maintain
Corporate Norms
P3
Organisational and
External Factors:
Mgt Support;
Medium Choices
P2
P4
P5
Communication
Outcomes:
Individual, Team,
Organization
Horizontal Communication:
Knowledge exchange; eMarketing; Social
Relationships; Problem
Solving; Thought Leadership
40
Study 2 – A Simplified Model
Vertical
Communication
Company Norms
H1
The Use of
Web 2.0
Applications
for Work
H2
Horizontal
Communication
• Information
Exchange
• Social Relationship
Building
41
H3
H4
Communication
Performance
• Individual
• Team
• Organization
Hypotheses




H1: The use of Web 2.0 technology at work can enhance vertical communication,
specifically for establishing company norms, across an organization.
H2: The use of Web 2.0 technology at work can enhance horizontal
communication, including information sharing and social relationship building,
across an organization.
H3: Vertical communication that is undertaken in order to support company
norms contributes to individual performance (H3a), team performance (H3b) and
organizational performance (H3c).
H4: Horizontal communication, covering information exchange and social
relationship building, contributes to individual performance (H4a), team
performance (H4b) and organizational performance (H4c).
42
Methods

We surveyed 3000 employees (from a 3rd party
database)





30RMB offered as an incentive
2873 people successfully contacted, 253 replies received (9%),
179 valid replies (6%) after cleaning
No sig diff between early and late responders
We used existing items where possible, modified
for the context
SPSS + Partial Least Squares
43
Results
Vertical
Communication
Company Norms
0.07
Individual
Pe rformance
2
R =46 %
0.18***
2
R =12 %
0.34 ***
0. 17 *
The Use of Web
2.0 at Work
0. 64 ***
0.41 ***
Horizontal
Communication
2
R =17 %
Team
Performance
2
R =54 %
0.62 ***
0. 47 ***
0. 37 ***
Information
Exchange
Organizational
Performance
2
R =34 %
0. 73 ***
Social Relationship
Building
44
Discussion Questions




What are the technological barriers to and enablers of
vertical and horizontal communication?
How to balance the conflict between the need for
Management Support and Partner Preference for a
particular medium?
What kind of investments are needed for Web 2.0 to
add value at work? How can the ROI be measured?
What are the advantages of the CEF as an
organising/analytical tool? How could the CEF be
improved
45
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