An investigation on the strategic use of online social networks to enhance nonprofits’ value chain thriving for a better world

Abstract

The aim of this investigation on the strategic use of online social networks to enhance nonprofits’ value chain thriving for a better world, is to bring together two different fields of study, the third sector and online social networks. In order to perform this analysis the methodology starts by understanding the relevant topics, online social networks and the value chain. This understanding provides the background for answering the research question, which nonprofits’ value chain activities can be positively affected by online social network’s use? The model is built evaluating the third sector in Portugal followed by a comparison between the nonprofit and for profit sectors. As a result of this analysis a value chain for the nonprofit sector is built. Based on research and six interviews with nonprofits it is created a model of how online social networks impact each nonprofit’s value chain activity. From this impact analysis nine hypotheses are drawn and tested through a survey made to 42 nonprofits and further evaluated by another survey made to 206 online social network users. From the survey analysis it is concluded that online social networks have a positive impact on every value chain primary activity. From the users’ perspective, the publication of information about assistance programs and social awareness and engagement campaigns are the activities most benefiting from the use of online social networks. As final conclusions from the opinions shown during the interviews it is concluded that gathering management information, recruiting volunteers and staff and creating partnerships are online social network functionalities that nonprofits should explore. Nevertheless, from the survey analysis these same functionalities appear as not used by the majority of nonprofits.