IT Governance in Corporate Social Media

A Case Study

Miia kkinen, Aalto University School of Economics, Finland,

miia.akkinen@aalto.fi
Meri Kuikka, Aalto University School of Economics, Finland,
meri.kuikka@aalto.fi
Virpi Kristiina Tuunainen, Aalto University School of Economics, Finland,
virpi.tuunainen@aalto.fi

Abstract. Organizations are increasingly using social media for business

purposes such as marketing, internal and external communication as well as
crowdsourcing ideas for product and service development. Relatively few of
these organizations have, however, established guidelines for restricting,
controlling or encouraging desirable behavior in the use of social media, and
aligning its strategic objectives with those of the organization. The concept of
corporate governance of information technology (IT) has yet to be applied to
the specific case of social media, and there is a need for establishing guidelines
for creating policies and guidelines for its alignment with business strategy.
Based on earlier literature on social media services, IT governance, and
strategic IT alignment, we introduce a Social Media Governance framework.
This framework is then used to analyze an exploratory case study in a Finnish
industrial corporation, and we outline the emergent issues related to corporate
social media governance and strategic alignment.

Keywords: Social media, IT governance

1 Introduction
Initially a tool for communication among private users, social media has increasingly
been taken into use among corporations for business purposes, such as internal and
external communication, marketing, and crowdsourcing ideas for product and service
development, e.g. [1], [2], [3], [4]. The adoption of social media in organizations is
not necessarily a straightforward process, and its novelty means that guidelines for its
successful adoption and strategic alignment have yet to be established. As a result,
many organizations using social media for the first time have relied on experimental,
ad hoc processes for its adoption, and while they recognize the importance of

integrating social media into their business, they are finding it difficult to move from
experimenting with social media services to integrating it with business goals.
One of the reasons behind why social media adoption is difficult for organizations
is the fact that Web 2.0 technologies bring about a cultural shift related to the
openness and empowerment of customers and employees [5]. Traditional businesses
that do not have a history of open internal and external dialogue are having
difficulties accepting the fact that social media empowers direct and very public
communication with unprecedented numbers of people, which forces a change in the
established patterns of communication. In similar cases (electronic integrated
channels such as e-commerce) it has been suggested that established business
processes need to be re-engineered, as they are no longer appropriate in the new
environments [6].
Our earlier research [7] established challenges related to organizational social
media adoption and use in a case organization. The biggest challenges encountered in
the study were internal: a lack of social media ownership and authorization. The study
found that confusion related to who within the organization is authorized to engage
customers in discussion is a potential challenge for organizations, and that
organizational users are struggling with aligning their personal social media identities
with their corporate ones. [7]
IT governance, on the other hand, is an established organizational function aiming
to control the formation and implementation of IT strategy and provide direction to
achieve competitive advantages for the corporation [8]. IT and business alignment
plays an important role in IT governance, as it aims to integrate IT within the
organization [9]. This alignment is highly relevant in the context of social media as
well, as it often deals directly with end customers, and therefore has an even greater
impact on business than administrative IT such as payroll or accounting systems.
The aim of this study is to focus on the use of social media from an IT governance
perspective, and to answer the research question How should social media be
governed in an organization? This is done by first reviewing literature on the use of
social media from an IT governance perspective [10], [11], [12], [8], and business and
IT alignment [9], [13]. Later on, these will be compared to issues reported in our case
organization. Based on these findings, the study will conclude with a categorization of
governance issues that need to be considered when debating the adoption of a social
media service. As this is a research-in-progress paper, the case study, discussion and
conclusions of this paper will be extended upon their completion.

2 Related Literature
In the following sections we review two major areas that are central to our analysis of
the case company and the associated framework: definitions of the central terms used
throughout this study, and the applicability of IT governance and strategic alignment
to corporate social media use.

2.1 Web 2.0, Social Media and Enterprise 2.0

Several definitions exist for the concept of Web 2.0. For example, Web 2.0 can be
defined as a revolution in the computer industry caused by the move to the internet as
a platform [14], a paradigm shift in which users create content [15], and more
practically as a personalized, communicative form of the Internet that emphasizes
active participation, connectivity, collaboration and sharing of knowledge and ideas
among users [16]. The ambiguity of these definitions reflects the relative newness of
the concept, as definitions evolve with its continuing development.
Social media, on the other hand, is often defined as a group of Internet-based
applications that build on the ideological and technological foundations of Web 2.0,
and that allow the creation and exchange of user generated content [4]. Web 2.0 is
often described as a platform while social media typically refers more directly to the
content created by users. The prefix social or the suffix 2.0 is often tacked onto
more traditional business terms to imply that companies use Web 2.0 technologies or
social media in their business, as is the case with social business or Enterprise
2.0.
Finally, Enterprise 2.0 can be defined as Web 2.0 technologies being used in an
organizational context [17]. Enterprise 2.0 applications explicitly exclude many of the
platforms typically associated with Web 2.0 and social media (Facebook, Wikipedia
and YouTube for example), as they are aimed primarily at individuals rather than
organizations. In organizational use, some companies prefer to use the term social
business in order to show that they use social media not only for dialogue with
customers but also inside the organization, in business partner co-operation,
stakeholder communication and recruiting.
2.2 IT Governance
There is a lack of consensus on the exact definition of IT governance. For example
the IT Governance Institute [11] states that IT governance is an integral part of
enterprise governance that consists of the leadership and organizational structures and
processes that ensure that the organization sustains and extends its strategy and
objectives in relation to IT. On the other hand, IT governance specifies the decision
rights and accountability framework that encourages desirable behavior in the use of
IT [10]. IT governance is also defined as the organizational capacity to control the
formation and implementation of IT strategy and provide direction to achieve
competitive advantages for the corporation [8]. Finally, IT governance is defined as
structures, processes and relational mechanisms enterprises that aim to secure that IT
delivers business value to business in a transparent manner [12]. Most definitions
agree that IT governance involves decision-making regarding IT assets (hardware and
software), the processes employed, personnel and the strategic IT goals of the
organization.
Several frameworks exist for the implementation of IT governance in practice. For
example Cobit provides best practices for the processes of the IT organization and
how they are assessed and monitored, but offers little support for the division of
decision rights within the enterprise [11]. The IT Infrastructure Library (ITIL), on the

other hand, provides best practices in the field of service management and delivery,
but does not cover the strategic impact of IT and the relationship between IT and
business. The information security standard BS 7799/ISO 17799 is also often linked
with IT governance [18].
2.3 Strategic IT Alignment
The concept of strategic IT alignment can be looked at from many perspectives.
According to one, strategic alignment stems from two main relations: the strategic fit
between the external and internal scopes of the firm and the functional integration of
information technology within the organization [9]. This definition encompasses four
elements: business strategy, infrastructures and processes, and IT strategy,
infrastructures and processes. Similarly, strategic IT alignment is a continuous and
iterative tuning between business strategy, value creation, processes and IT within
and between organizations [19]. Strategic alignment can be divided into four areas:
internal and external drivers, and operational and strategic focuses [8]. Extrapolating
on this, it is considered that strategic IT alignment from an e-business perspective,
stating that strategic alignment simultaneously needs to consider the relationships
between strategies, structure and technology [13].
2.4 IT Governance and Strategic Alignment in Social Media
Due to the relative newness of the topic, very little academic research exists on the
exact topic of IT governance and strategic alignment in social media. For this reason,
we have chosen to review IT governance and strategic alignment in practitioner
literature, as well as academic research on IT governance and strategic alignment in
other electronic channels, such as e-commerce and discussion forums.
Successful investment in social media requires the alignment of social media
strategy to the business strategy of the organization [20], and as the importance of
social media in organizations grows, social media governance should be included in
their IT governance plans. Extrapolating on this, it has been argued that IT strategy
should not be considered separately from business strategy, reducing the need for
alignment [21]. This sentiment is echoed by thoughts that elements of social media
strategy should be embedded in business strategies directly [22].
There is also a strong push for writing separate social media strategies. The current
trend in social media practitioner literature is to recommend that companies beginning
to use social media write social media strategies first, and only then follow this up by
selecting the platform to be used [3], [23].
It has been argued that organizations must consider how they wish to leverage
social media by identifying areas in which social media can help achieve existing
goals, as well as emphasizing the importance of defining clear rules and
responsibilities for the people involved [24].
Social media governance is also discussed in practitioner literature. For example it
has been stated that social media governance starts from strategy issues such as
developing a social media strategy or identifying corporate social media objectives

[25]. The role of risk assessment in social media governance is emphasized, as is the
need to create policies, procedures and guidelines and technical controls. The
importance of implementing a monitoring and reviewing framework has also been
highlighted [25]. Similarly, it is believed that organizations need to create metrics for
measuring the impact of social media [24].
Concepts of strategic alignment have successfully been applied to e-business [13],
and it is our belief that these concepts can be extrapolated to cover the specific needs
of social media as well. Applying the IT governance framework [8], we have created
the following framework for social media governance as depicted in Figure 1. This
framework provides a continuum from our earlier research where challenges in the
corporate social media adoption were divided into internal and external issues.
Focus
Driver
External

Internal

Operational

Strategic

Integration of customer
relationship
Reputation
Data protection
Privacy
Network identity
Code of ethics
Social media policy and
guidelines
Authorization
Ownership

Compliance with laws and

TOS of third party services

Benchmarking
Social media metrics
Strategic alignment

Fig. 1. Social Media Governance Framework

The first quadrant of the framework (external/operational issues) discusses

concepts such as integrated customer relationships, data protection, privacy and
network identity. Integrated customer relationships are important for companies, also
in social media governance. Social media provides companies a possibility to deepen
the customer relationship for example by having a dialogue in social media services.
Data protection and privacy are relevant because social media is typically a very
public communication platform, so revealing private customer data or sensitive
information about the organization can lead to undesirable consequences. The issue of
network identity is especially relevant, as many corporate users of social media have
established private entities in the major social media platforms (such as Facebook or
Twitter) prior to being required to use them in the organizational context, and may
with to keep their private lives and network identities separate from their work
identities.
In the internal/strategic quadrant, the governance is extended beyond routine
operational procedures to policies affecting the organizations overall performance. It
deals with compliance issues, such as compliance with the rules of the social media
platform used. Many platforms restrict the use of their services for business purposes
such as direct sales, a rule which is often forgotten by organizational users wishing to

contact their customers. This quadrant also deals with legal compliance, as laws
regulate the ways in which customer data, for example, can be shared.
The third quadrant (internal/operational issues) addresses topics such as ethical
codes, social media policies and guidelines and social media authorization and
ownership. As discussed in our literature review, there is demand for guidelines and
policies for the use of social media, as clear rules for its use have yet to be
established. Establishing authorization is also important, as organizational users don't
necessarily know who is allowed to and responsible for interacting with customer and
other stakeholders in social media. Similarly, if ownership is not established, it is
difficult to allocate costs and responsibilities related to its use. This is challenging due
to the silo-breaking nature of social media, which encompasses many of the more
traditional organizational functions: communications, sales, marketing and R&D.
The fourth and final quadrant (internal/strategic issues) discusses alignment,
benchmarking and social media metrics. The importance of aligning business with
social media was widely discussed in the literature review. If the alignment is critical
in IT government, it is even more important in the business-oriented use of social
media. Benchmarking is a common tool among companies beginning to use social
media: they wish to know what their competitors are doing. Metrics for social media
still need to be established, created so that they are connected to the business.

3 Research Method and Case Company Description

3.1 Research Method
In order to answer the research question How social media should be governed in an
organization? we use an exploratory case study. A case study examines a
phenomenon in its natural setting, employing multiple methods of data collection to
gather information from one or a few entities (people, groups or organizations), e.g.
[26], [27]. In the empirical setting, we study a case company dealing with issues
related to social media adoption and use. The following subsection introduces the case
company in more detail.
3.2 Case Company
The case organization used in this study is a multinational company specializing in
metal manufacturing and related services. The company's customers include a wide
range of businesses that use metal as part of their products or services. In 2010, it had
an operating income of 83 million, and staffed 8,100 employees.
In late 2009, the company decided to investigate potential uses of social media as
part of its strategy, particularly in relation to HR, marketing and communications. The
investigation was initiated by the company's board of directors, who were aware of
competitor presence in social media, and wanted to benchmark the company's own
presence. The findings of the study concluded that competitors in the metal industry

had found social media to varying extents, but that usage seemed to be uncertain and
somewhat aimless, with no obvious strategies or clear objectives.
Previous to the investigation, social media use had been restricted in the
organization, with access to social media websites being blocked to all employees on
company-owned computers. This policy was gradually changed during 2010, with
restrictions being lifted from groups of employees, leading up to full access for all
white collar staff. No notifications were given to employees regarding this change in
policy until the autumn of 2010.
3.2 Data Collection
Data collection began with informal discussions with company representatives to
define the research question, and continued with six expert interviews of company
employees, who were selected in collaboration with the marketing and
communications departments of the company. These were supplemented with a fullday workshop with nine company representatives, as well as text-based material such
as policies and other company documentation regarding social media.
Interviewees and workshop attendees were selected based on function in the
company and its potential relevance to social media. They were managers from HR,
marketing, communications and R&D. The reasoning behind interviewee and
workshop attendee selection was based mostly on recommendations derived from
informal discussions with company representatives. HR staff was included in the
interviews as company representatives believed that social media will play an
increasingly relevant role in recruiting in the future. Similarly, communications staff
was included as the company representatives believed that social media will become
increasingly relevant to both external and internal communications. Marketing staff
were included due to the fact that customers had been asking questions about the
company's products in various social media, and R&D staff were involved as the
company deals with the development of specialist products, and would like to see its
experts engaging more with customers through social media. Both recently hired and
more established employees were included in order to gain a well-rounded view of the
companys current state.
The interviews were recorded and later transcribed. The interviews included open
questions like describe the use of social media in your company, as well as more
specific questions related to ownership and related issues.
Interviewees based in Finland were interviewed face to face, while international
interviews were conducted using the companys videoconferencing facilities. The
majority of the interviews were conducted in Finnish and translated into English,
while non-native Finnish speakers were interviewed in English. The workshop was
conducted in English. Notes from the workshop were kept by two attendees and
reviewed by the two authors for consistency, and written material produced by the
attendees during the workshop was transcribed.

As this is an exploratory study, data collected from the interviews and workshop
was analyzed by the two authors for emergent issues. Emergent issues were defined
as findings related to the strategic alignment and corporate governance needs of social
media. Appendix 1 contains a list of interviewees and case study participants as well
as their functions in the organization.

3 Corporate Social Media in the Case Company

We will next analyze the qualitative data gathered from the case organization. The
structure of our analyses follows the Social Media Governance Framework. As
expected for a company new to the use and utilization of social media services, the
interviewees were mostly concerned with internal operational issues. Also external
operational issues have been given thought in the company. Strategic questions, so
far, has been considered mainly from internal perspective.
Internal/Operational issues. Even though the company had lifted the restrictions
related to the use of social media websites by the employees, the associated policies
still seem to be largely unclear. One of the biggest questions is related to the overall
control of the companys presence in social media, particularly as to the
responsibilities connected to this presence.
How we take control has to be managed somehow, who is responsible, what is
the target for main channels. VP of External Communications
The employees in the organization want structure and a there is a need to get
organized. VP of External Communications
Ownership has not been defined here. // If ownership was to be defined and the
existing Facebook profiles and YouTubes and Twitters and so on were defined,
what is done with them and why, we could we could really benefit from them. As
they are, I dont believe that they are useful at all. HR Officer
Particularly uncertainty surrounds the policies related to dealing with customers:
what can be told them in the social media and by whom, who has the authority to be
the public voice of the company?
We have to know what are the target groups we need to reach. And what can we
say there? - VP of External Communications
What answers to give employees: who can answer customer inquiries? Internal
Communications Officer

It has been argued that people dont have the authority to do stuff: oh, we didnt
know we could comment on some of these social media forums and places like
LinkedIn. We didnt realize that we were allowed to do that. General Manager
of Cluster Marketing
These people [experts in product development] dont know that forums exist.
They dont come in. If they do know that they exist, were not authorized, its not
my job. General Manager of Cluster Marketing
A key internal operational issue is related to the view of social media use to be
more recreational rather than productive work, something that can by genuinely
useful for the company:
Working time needs to be concretely reserved [for social media use], so far it has
perhaps been seen as having fun and has not been understood as work...." HR
Officer
Well, thats not really work is it, its not really something we should be doing,
and if my boss looks over my shoulder and sees me reading such and such a forum
its not proper work General Manager of Cluster Marketing
Roots of this kind of culture are deeply embedded in the tradition of old,
hierarchical organization:
[We are dealing with] the remnants of a hierarchical organization, where control
is quite dominant. We have lots of managers and people who have lived with this
culture for decades, and for them its just incomprehensible that people could be
given the freedom to produce content for the organizations own channels
- SVP of Communications and Investor Relations
Internal/Strategic issues. It is, however, realized in some parts of the
organization, that corporate social media could offer tools in reaching the strategic
goals of the company, even if it is not yet quite clear how:
The vision of the company is to be the undisputed number one in own industry
branch. How can social media help us make this happen? VP of External
Communications
It is further understood, that commitment to corporate social media services as an
additional tool to communicate with customers is a long term effort, requiring time
and resources:
I see it as a downside or threat that, if we decide to enter social media, we cant
[try it and then decide to] leave just like that. We should internally resource it so
that somebody is responsible for it, maybe not full-time but so that it is a clear part
of somebodys job description HR Officer

A question preoccupying the marketing manager of our case company, as

undoubtedly managers in all companies engaged or considering presence in social
media, is the question of measuring the usefulness of the these services:
"I wouldnt know what success looks like as far as [the company] on Facebook is
concerned.... what would we define success as?/.../ You want to know what success
looks like? 570 (members in the company Facebook group)! General Manager
of Cluster Marketing
External/Operational issues. The key external operational issue from the HR
managers perspective is related to the network identity and privacy of the employees
operating on the social media on behalf of the company:
I dont want to appear under my own name. If my boss asked me to administer the
companys Facebook page using my own [privately established] profile, I would
say no. If it was for internal use only, I might consider it.- HR Officer
Another common issue is the fear of possible damages to the reputation of the
company:
One obvious threat is on the reputation management side. One threat could be
that, for example in this group on Facebook a few disgruntled customers turn up
and start complaining about late deliveries or stuff like that General Manager
of Cluster Marketing
There is a threat that the discussion topics are out of our control, not in own
hands. People are afraid of what will happen in social media if you go there. There
are reputational risks related to negative talks. Managers of Communications
Also matters related to the use of third party services in general are far from being
clear. A communications consultant facilitating the workshop suggested the company
to think what do the functionalities of third party services offer for company. Do they
want to have conversations with customer, for example, or share documents?
External/Strategic issues. The external strategic issues being considered are first
and foremost related to laws and regulations, that have an impact on what can and
cannot be publicly discussed:
[We are] listed on the stock exchange, and as such are regulated by laws and
rules. There are things which we cannot discuss outside the company, and sensitive
information might get leaked because not everybody necessarily understands what
can be said [publicly in social media]- HR Officer

4 Summary and Conclusions

In this study, we introduce a Social Media Governance Framework, which is built on
the earlier research on social media, IT governance and strategic IT and business
alignment In the empirical setting, we analyzed qualitative interview data collected in
a multinational company specializing in metal manufacturing and related services.
The Social Media Governance Framework proved to be a valuable tool in the
empirical analysis, helping us categorize the rich interview data into internal and
external, as well as operational and strategic issues.
Our findings indicate a clear need for guidelines at the operational level. Very
often the guidelines have an echo of denying things but more than not allowing
things, the guidelines are creating the structure and framework how to operate in a
new environment. The employees need to know if they are allowed to use social
media services or not, know who can represent the company in social media channels,
know what they can discuss with stakeholders in social media and what not. There is
a huge difference if the employees have to excuse or hide their Facebook use
compared with the situation where using social media services has become an
established way of working.
As expected in the early stages of corporate social media use, the case company is
mostly preoccupied with internal questions, with external matters being still distant.
Similarly, the focus is still on operational issues,with strategic issues being more of a
concern in the future.
At a strategic level, company management has to pay special attention to the
integration of social media with business objectives. When experimenting with social
media, many companies begin the adoption process by experimenting with social
media tools, but if the companies want business value from them, the use of social
media needs to be integrated with business strategy. It is rational to start from
business objectives, and think how social media can help in achieving them.
However, in some cases, the use of new tools may provide companies a significant
competitive edge. As depicted in the Strategic Alignment Model [9], business value
can be created from the strategic or technological perspective. The metrics of social
media need also be connected with business objectives. It may be nice to know how
many people like the Facebook page of the company, but it may not be the most
relevant objective from the strategic point of view.
This study contributes to theory by introducing a new framework that consists of
traditional information systems elements of alignment and governance embedded in a
modern environment of social media. The practical contribution of this study is in
offering companies considering or developing corporate social media an analytical
tool for adopting social media in a corporate environment. In the beginning, the focus
of the social media in the organizations is very operational and internal of nature.
With the social media governance framework, the organizations can look further in
their social media use, as well as paying attention to strategic and external issues.
In the next phase of our research, we will further analyze the interview data. An
interesting way to continue our research would be to study the use of social media in
an organization where social media services have been used for a long time, and
where it is a natural part of a business strategy. This way we could see if the social
media governance framework was valid also in a more advanced of environment.

Another research avenue would be comparing the social media governance in large
and small companies.

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Appendix 1
Table 1. List of interviewees by function and location
Function
HR
HR
Communications
Marketing
Marketing
R&D

Interviewee title
Executive Vice President of HR
HR Officer
Senior Vice President of
Communications and Investor
Relations
General Manager of Cluster
Marketing
Segment Solutions Manager
Manager Technical Market
Development

Location
Finland
Finland
Finland
Finland
Sweden
Sweden

Table 2. List of workshop attendees and location

Function
HR
Communications
Communications
Communications
Communications
Communications
Communications
Marketing
Marketing

Interviewee title
Human Resources Development
Specialist
Communications and Investor
Relations
Vice President of External
Communications
Communications Manager
Communications Officer
Communications Officer
Internal Communications Officer
Web Manager
Sales & Marketing Trainee

Location
Finland
Finland
Finland
Sweden
Finland
Finland
Finland
Brussels
Brussels