The impact of social media to value added in knowledge-based industries

Purpose - The purpose of this paper is to investigate the significance of Web 2.0 and social media for organizational development and adaptation to an ever-changing business environment and its successful managing. A model is proposed based on the concepts of innovative economy, knowledge management and social media for value creation in knowledge-based industries. Design/methodology/approach - The paper examines critical factors that influence the role of social media in organizational change and value creation in knowledge-based industries. Findings - The paper contributes to discussion about the increasingly important role of social media in the value added chain in knowledge-based industries. Research limitations/implications - Social media are still an emerging phenomenon and further studies are required to investigate these relationships over a longer period of time. Practical implications - The topic is relevant for designing corporate strategies in knowledge-based companies becoming a part of global networks. Better understanding of the impact of social media on value added could significantly enhance both the top and bottom lines. Originality/value - The paper explores when and why the inexpensive, but increasingly wider, use of social media in knowledge-based industries is preferred to traditional media. This paper intends to give executives practical hands-on advice for using social media in business campaigns.