"Add as Friend" : A Case Study on Facebook and its Effects on Social Capital in the Workplace

Abstract: Purpose: The purpose of this thesis is to, through a case study on a consumer electronics retailer in Jönköping, provide an empirical analysis of the link between the use of Facebook and social capital within the workplace. Background: The existing research on how employees’ Facebook usage affects social capital in the work place is far from extensive. Moreover, previous research focuses on large international organizations with their own internal social network site, and how this usage affects the organization’s social capital as an entity. Therefore, the authors of this thesis identified a need to examine only a single unit’s social capital within an organization and its link to the employees’ Facebook usage. Method: In order to answer the purpose of this thesis, a case study was performed on a consumer electronics retailer in Jönköping, Sweden. A mixed method, sequential explanatory design was applied in this thesis by; quantitative data collection in the form of questionnaires and then qualitative data collection in the form of semi-structured interviews. The questionnaires provided an overall insight to the situation at Electronicum, but also a guideline on where to focus when collecting the qualitative data. Eight employees were interviewed. Conclusion: The results indicate that Facebook affected the social capital mainly through its ability to quickly spread information and attitudes, but also to a large extent by its ability to extend social interaction, both offline and online. Trust was affected through Facebook’s ability to create bridging and bonding activities between employees. Moreover, the social capital components of shared norms and citizenship were influenced by Facebook. However, the most distinct link was between Facebook and knowledge sharing. There was a link between the use of Facebook and the increase in off-work activities which indirectly influenced the social capital at the work premises.