Social Media Effect on Organizational Performance in Selected, Star Rated Hotels in Addis Ababa, Ethiopia

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The purpose of this paper is to see the effect of social media usage on organizational performance. This paper analyzed the data obtained from selected Five and Four -star rated hotels located in Addis Ababa, Ethiopia using a quantitative approach to evaluate the usage of social media for marketing, social media for customer’s relations and services and social media for information accessibility. The emergence of internet mainly social media has shifted the business practice in the world; this recent development has been playing an increasing role in hospitality and tourism industry as well. The Study employed explanatory and descriptive research design to understand the extent of social media practice, using both primary and secondary data. According to the Ministry of Culture and Tourism, 2018 the total number of 4- and 5-star hotels in Addis Ababa was 20 and census survey was made in these hotels in Addis Ababa. The questionnaire was adopted from a similar study and it passes a reliability test with a Cronbach's Alpha result of 0.767. The quantitative data was analyzed through descriptive statistics, Pearson correlation coefficient and multiple regression analysis by Statistical Packages for Social Scientists (SPSS version 20.0). The finding revealed that there is a positive effect and significant relationship between social media for marketing, social media for customer relation, social media for information accessibility and organizational performance. The researcher recommended that the owners/mangers of the hotel need to understand the benefit of using social media and enhance the usage by allocating necessary resource and budget to effectively practice social media platforms for much better competitive advantage. Key words: social media, organizational performance, marketing, information accessibility and customer relation



Marketing, Information Accessibility and Customer Relation, Social Media, Organizational Performance