Information Technology Management: Media Richness Theory Research Paper

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Updated: Mar 1st, 2024

Introduction

Background

In the current competitive business environment, companies are struggling to meet the needs of their clients in the best ways possible to help them create a pool of loyal customers. The field of information technology has emerged as one of the most important ones due to the increasing relevance of information flow and management. In the past, large multinational companies did not have to worry about competition in the market because they dominated their respective industries. However, that is no longer the case. Firms are currently faced with numerous challenges, the top of which is stiff competition. As such, they need to mine information about changing customer needs, emerging market trends, and how to manage these new forces. Information is critical in such an environment. An organization needs a system that would facilitate the efficient collection, processing, management, and sharing of data among the relevant stakeholders. The information should help the stakeholders in making the right decision on how to handle issues that the firm faces in its operations.

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Scholars have come up with various models and theories to help different organizations manage various forces in the market. The models are meant to provide different that can be used to address specific issues in an organizational context. Media richness theory is one of the models that have gained popularity in the recent past. This model was developed in 1986 by Richard Daft and Robert Lengel (Gyamfi & Williams, 2017). The theory was developed to help individual organizations rank communication media and choose the most appropriate ones. Using this theory, a firm can rank the appropriateness of phone calls, e-mails, video conferencing, and various other communication platforms that exist. The goal is to select the richest medium that would yield the most desirable outcome. The model explains how the top management should choose the most appropriate medium of communicating with important clients, strategic partners, suppliers, and employees assigned very important tasks. In this paper, the researcher will evaluate the appropriateness of media richness theory in helping an organization to achieve information goals.

Research Problem

According to Dainton and Zelley (2014), many organizations are currently struggling to come up with effective platforms through which they can maintain effective communication with their customers, employees, and other strategic partners. Advancement in the field of information technology has seen an emergence of various media through which information can be shared. Traditional media such as radio, television, newspapers, phone calls, and e-mails are still commonly used in modern society. However, new approaches are emerging which are more effective and very popular. The emergence of video-conferencing technologies was transformational, especially for multinational companies. It made it possible for regional managers in different countries around the world to have conferences without having to travel to the headquarters. The social media platform is another major milestone in the field of communication that is shifting the way companies are reaching out to their customers.

Facebook currently has close to 2 billion regular users while YouTube and Twitter have close to 1 billion users each (Cohen, 2012). The social media platforms have become popular means of reaching customers. This is informed by the fact that many teenagers, young adults, and middle-aged people spend a lot of time on social media. It means that companies can reach out to them through these platforms. The problem that companies face is choosing the most appropriate media to reach different stakeholders. Social media may be an appropriate platform to reach out to the customers, but Albadri (2013) says that it is not the best strategy when top managers need to share sensitive information. The top management unit needs to understand how to choose the appropriate platform based on the existing needs and the individuals involved in the communication.

Scope and Objectives

It is important to define the scope and objectives of this research. This research majorly relied on data collected from both primary and secondary sources. The scope of primary data collection was limited to the United Arab Emirates’ city of Dubai. It was necessary to interview a few managers or employees in strategic positions at a specific company in the city to understand their choice of communication media and how their chosen media enables them to achieve specific goals. Limiting the scope of data collection to Dubai was informed by the limited time available for the study. Secondary data was collected from a wide range of sources published in various countries around the world, especially in North America and Europe. The following are the specific objectives that the researcher seeks to achieve through this study:

  • To determine the relevance of media richness theory in modern organizations within the United Arab Emirates
  • To determine how companies choose the appropriate media to use when dealing with various stakeholders.
  • To explain the effectiveness of various media platforms that a firm should embrace when communicating with different stakeholders.

Methodology

It is important to explain how data was collected to inform the conclusion and recommendations made in this study. As mentioned above, data was collected from primary and secondary data. Secondary data provided the basis upon which this research was based. Journal articles, books, and reliable online sources were used to gather relevant information in the study. Primary data was collected from a sample of respondents who agreed to participate in this study. The two sources of data helped in providing an insight into the issue under investigation.

Sampling and Sample Size

When conducting academic research, one of the most important factors that one must consider is time. It is always important to ensure that a research project is completed within a specified for it to earn marks. This study was no exception. The time available for the study was very short. However, the researcher considered it critical to talk to a few industry experts to understand how they use various communication media to reach out to their targeted audience. A simple random sampling was used to identify a small group of people to help in the collection of primary data. A sample of only twenty participants was developed from a specific banking institution in Dubai city. For the purpose of protecting the company and individuals interviewed, the institution is referred to as ABC Company.

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The instrument of Data Collection

Time was an issue in this study, and as such, it was important to develop an instrument of data collection that is efficient, simple, and accurate. It was also necessary to ensure that the instrument facilitated a uniform approach to collecting data. As such, the researcher developed a questionnaire. The questionnaire was considered appropriate because of the uniformity with which it allows data to be collected.

The technique of Data Collection

Data was collected from the sampled participants using the questionnaires that were sent to them through e-mails. First, the researcher reached out to these participants through phone calls. They were informed about this study and the need for them to participate in it. The level of urgency of the study was explained and what they were expected to do once they received the questionnaires. They were informed about the commitment of the researcher to protect their identity and the identity of their organization. They were instructed on how to answer the questions, which only needed less than ten minutes of their time.

Data Analysis

Data collected from the secondary was analyzed both qualitatively and quantitatively. Quantitative data analysis enabled the researcher to determine the magnitude of the impact of various communication media on the success of a firm. The qualitative method of analysis was used to explain the relevance of various communication media in different organizational contexts. The following are the research questions that will be analyzed using data collected from primary sources:

  1. What is the relevance of media richness theory in modern organizations within the United Arab Emirates?
  2. How can companies choose the appropriate media to use when dealing with various stakeholders?
  3. What is the effectiveness of various media platforms that a firm should embrace when communicating with different stakeholders?

Ethical Considerations

It was important to observe various ethical considerations when conducting the research project. One of the most important ethical concerns in this study was to observe high levels of integrity at every stage of the study. The researcher avoided any form of plagiarism in this paper. Any information obtained from secondary sources was properly referenced. Albadri (2013) says that it is an academic offense to reproduce the work of others, and that is why such mistakes were avoided. The researcher also ensured that the identity of the respondents who agreed to take part in the study was protected. The project was completed within the set deadline as per the school guidelines.

Analysis

In this section, the researcher seeks to answer the research questions set and to address the research problems identified in the introduction section. Media richness theory was developed over three decades ago. However, Dainton and Zelley (2014) argue that it has never been more relevant than it is today. Companies currently face challenges when it comes to managing information. On the one hand, the need to have an internal communication system where sharing of sensitive information can be facilitated without exposing vital data to external members is growing. On the other hand, these organizations also find it necessary to engage their customers regularly to understand the changing market tastes and preferences. Other stakeholders such as suppliers and strategic partners also need an effective platform where they can receive and give information as would be appropriate. That is why this theory is seen as very important. The researcher will analyze each of these questions based on the data that was collected from the respondents.

What is the relevance of media richness theory in modern organizations within the United Arab Emirates?

The first question focused on determining the relevance of media richness theory in modern organizations. The respondents were asked to give their views based on their personal or shared experiences within their workplace. The responses obtained from these participants were analyzed mathematically (calculating the modal) to determine their views towards the issue. The figure below shows the outcome that was received from the analysis.

Relevance of Media Richness Model.
Figure 1: Relevance of Media Richness Model.

As shown in the figure above, the majority of the respondents (19 out of 20) believe that the media richness theory is very relevant to modern organizations in the United Arab Emirates. Only one person had a contrary opinion to that of the majority. The respondents stated that in the current business environment, entities need effective communication systems to reach out to their customers. This theory also explains how these companies can make a critical decision when selecting appropriate internal communication strategies. It eliminates doubt and justifies reasons why sometimes it is appropriate to select a given strategy of communication over others.

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How can companies choose the appropriate media to use when dealing with various stakeholders?

Choosing an appropriate medium of communication within an organizational setting depends on various factors based on the information received from the respondents. One of the most important factors that must be considered is the target audience. The approach used when targeting customers may not be the same used when engaging the employee. Each group may need different platforms. Another important factor is the urgency with which the information needs to be passed to the targeted audience. When an immediate response is needed, then letters may not be appropriate because of the time it might take to get the response. In such cases, phone calls become more reliable. The respondents also noted that the sensitivity of the information might also define the platform that a firm uses. Highly sensitive information and confidential should be communicated using very secure systems that cannot be accessed by third parties. One of the respondents noted that sensitive information in the company is passed through face-to-face communication among the top managers. That approach ensures that secrecy is maintained when sharing confidential information.

What is the effectiveness of various media platforms that a firm should embrace when communicating with different stakeholders?

When choosing media platforms to use when sharing information, the respondents stated that a number of factors have to be considered to ensure that they are appropriate, as discussed above. As emerging technologies change communication platforms, new communication systems are becoming more popular than traditional communication systems. In this question, the researcher identified some of the most popular platforms of communication in the modern business environment. When told to rate various media strategies used in passing information to various stakeholders, the respondents identified the six most popular platforms. Figure 2 below shows these platforms.

Popular Media Platforms in the Organization.
Figure 2: Popular Media Platforms in the Organization.

The respondents were able to rate a number of media platforms based on their popularity within the firm and how effective they are when it comes to disseminating information to various target groups. As shown in the figure above, Facebook was given the highest rating of all the media platforms. The United Arab Emirates has the most advanced economy in the Middle East, and the majority of people have access to regular the internet. Although the government has restricted some features of Facebook in the country, many business entities still consider it the most appropriate channel for communicating with customers. The platform makes it easy to get instant feedback from the customers, especially on the services they receive from the company. It is also an effective platform when announcing to the customers about a new product that the company has introduced in the market. Using Facebook pages, it is possible to create an organizational community for all members of the organization where they can discuss important issues that affect them in their workplaces. Members of the community can easily propose ways of addressing different challenges that the organization faces. It was given a maximum rating of 5.

Television was one of the traditional platfoin the country, many people still rely on mass media, especially television, to get reliable and verifiable news about various events within the country and around the world. Some television entertainment programs such as live football matches, soap operas, and movies are also popular among people of different groups. As such, the platform is still critical for companies keen on advertising their brand or products within the country. This platform received a high rating of 4 out of 5 among the respondents.

YouTube and Twitter are also gaining popularity in Saudi Arabia. The respondents noted that their company is currently using these two platforms to reach out to their customers with promotional messages. YouTube has significantly reduced overreliance on television marketing. One of the advantages that YouTube has over television marketing is that it can reach a wide geographical area. While most of the national television channels cannot be viewed outside the country, YouTube is not affected by such boundary restrictions. As such, it is a very appropriate platform for companies operating in the regional or global markets. Twitter is popular among the working class in the country. It is often used when targeting a specific group of customers, especially the middle-class urban dwellers in the country.

The two social media platforms received a fair rating of 3 out of 5 regarding their appropriateness. Radio and newspapers are also used in this company, as noted by the respondents, but they are not as popular as they used to be in the past. Radio was given a rating of 2 while newspapers had a rating of 1 out of five. These two mass media platforms were once the most popular means of reaching out to the customers in the market. However, that is no longer the case. Newspapers may be popular among the elderly, but very few young adults currently read newspapers. The popularity of radio as a means of entertainment and sharing information has also reduced significantly. This is caused by the emergence of social media platforms where people can choose the type of entertainment they need. The respondents admitted that in some cases their company considers using these two traditional media platforms.

Discussion

The solution to the Problem

The main problem that companies currently face in information management is choosing the most appropriate media platform that they can use to communicate with different groups of people. As Dainton and Zelley (2014) argue, one platform may be very effective when reaching out to a specific group, but it may not be relevant when handling another group of stakeholders within the firm. For instance, Facebook may be critical when communicating with customers, but it cannot be used to share sensitive information that should remain confidential. On the other hand, face-to-face communication is very reliable when sharing highly confidential information among specific individuals within a firm, but it cannot be used when handling a larger target audience. That is why the media richness theory seeks to address the problem by defining the needs and determining the most appropriate strategy that should be used. This theory holds that no single media platform can be appropriate in all contexts. The richness of the media is determined by a number of factors.

The ability of the media to simultaneously handle multiple information cues is one of the most important factors that one must consider when choosing a platform (Cohen, 2012). It is always desirable to have a platform that can facilitate both verbal and non-verbal cues. It makes the process of communication more effective. The second factor is the ability of the platform to facilitate quick feedback. Communication is considered complete when feedback is received. Depending on the prevailing forces, sometimes a firm may need a rapid feedback to determine the path that should be taken. Some media platforms can facilitate more rapid feedback than others. Media richness theory also emphasizes the need to create a personal focus when communicating with the audience. Whenever necessary, the message should be tailored to meet the specific requirements of the audience. The last factor is to establish natural language.

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Information Solution

The criteria above show how a firm should go about when selecting an appropriate platform for communication under Media Richness Theory. Albadri (2013) advises that information solution should be based on the appropriateness of the media based on the forces that a firm is facing. In Saudi Arabia, cultural forces play a significant role in defining organizational culture. Many organizations are often keen on avoiding practices that go against government policies and requirements. The government has not banned social media platforms such as Facebook, Twitter, and YouTube. However, there are some applications of these social media platforms, which are banned (Kumar, Dhiman, & Dahiya, 2015). When embracing social media solutions, it is crucial to avoid going against the law. Social media has gained massive popularity in the country, and many companies are now considering its use as a way of reaching out to a wider audience, especially the teenagers and young adults. However, organizational practices should be strictly guided by the policies set by the government.

The analysis of primary data also strongly suggests that in many cases, a firm may be forced to embrace a multi-modal approach of communicating with various stakeholders. For instance, when informing customers about the introduction of a new product or promoting a brand, social media may be the best platform that should be used. However, sensitive internal messages should not be communicated in such a platform. Dainton and Zelley (2014) strongly recommend face-to-face communication that guarantees privacy. When it is not possible to facilitate physical interaction, the use of video-conferencing technologies or phone calls may be appropriate. The media facilitate sharing of information without allowing access to third parties. Internal memos are popular when passing general messages to the internal stakeholders, especially employees. However, it should not be the primary means of communicating with internal stakeholders, especially when passing urgent and important information, because not all often read the notices.

Business Implications

The findings of this study have implications to the business, especially those operating within the United Arab Emirates. The primary data used in this research was collected within the country. The participants are employees of a local company within the city of Dubai. The findings, conclusion, and recommendations made are, therefore, based on the local forces within the country. As Cohen (2012) observes, the city of Dubai is becoming a major global business hub. Companies from North America, Europe, Far East (especially China and Japan), and many other parts of the world are moving into the local market because of the growing relevance of the city. The trend means that local companies must learn to operate in a highly competitive market.

Managing stiff competition brought about by the existence of large international companies in the local market is not easy. Most of them are financially strong and more experienced in the market. They often come having surveyed the market and determined that they can acquire a niche if they use the right strategies. In such a highly competitive environment, one of the critical success factors is information management. Knowing how to mine and process data is not enough. The processed data must be made available to the relevant stakeholders at the right time and in the right manner. Local companies need to know how to choose the right methods of communicating with the relevant stakeholders. Media richness theory defines how a firm should choose the appropriate model based on a number of factors.

Management Applications

The findings of this study are crucial to people in management positions. They inform management practices when it comes to selecting communication strategies that should be used. The study reminds managers that no single media can meet all communication needs in an organizational setting. As such, managers need to embrace a multi-modal approach of communicating to its stakeholders. The approach that suits customers may not be appropriate when communicating with the government, shareholders, or employees. The primary goal of managers should be to ensure that communication needs are met in the most effective manner.

Contributions of the Research

According to Cohen (2012), when conducting research, one of the cardinal rules is to ensure that outcome introduces new knowledge or expands the existing ones. It is not appropriate to duplicate already existing information. The findings of this research can be used by other scholars who may be interested in conducting further research on this theory. It is important to note that in this study, primary data was collected within the United Arab Emirates. Most of the books and journal articles available in the library focus on the issue in contexts outside the country. Most of them focus on American or European business environment. However, this research paper is primarily based on the Emirati context. As such, scholars interested in developing further knowledge in this field from a local market perspective will benefit a lot from the document.

Conclusion

The city of Dubai is currently one of the fastest growing business hubs in the world. Many local and international companies consider this city strategic transit route to African and the rest of the world, which is one of the reasons why it has been growing rapidly. The local firms are forced to deal with stiff competition in the market using various strategies. One of the most important management concepts that define the ability of a firm to achieve success in such a competitive business environment is information management. In this information age, organizations are keen on understanding emerging market trends and how they can align their operations with the changing market forces. Once data is collected and processed, it is critical to ensure that the information is passed to the relevant individuals using appropriate channels. Social media has become very popular, especially among the teenagers, young adults, and middle-aged people. It means that this new platform cannot be ignored when a firm is selecting appropriate media to reach its customers. Mass media is also important, especially the television or radio.

Recommendations

Choosing an appropriate media when communicating with various stakeholders may be a challenge to the management. Selecting an appropriate mix of media platforms require a deep understanding of organizational needs, nature of the message being delivered, time within which the message should reach the audience, and the speed with which feedback is needed. The following recommendations should be considered by companies operating in the local Emirati market, especially in the city of Dubai:

  • A firm should consider using a multi-modal approach of communicating with different stakeholders. Social media may be necessary when communicating with customers while video-conferencing can be used among managers when discussing strategies of the firm.
  • The choice of the media should be based on the nature of the message, the time factor, the audience targeted, and the nature of feedback expected from the audience.
  • When choosing the appropriate media, the cost is another factor that should not be ignored. The cost of the chosen platform should be within the set budget.

References

Albadri, F. (2013). Information systems applications in the Arab education sector. Hershey, PA: Information Science Reference.

Cohen, E. (2012). Issues in informing science and information technology (vol. 12.), Santa Rosa, CA: Informing Science Press.

Dainton, M. & Zelley, D. (2014). Applying communication theory for professional life: A practical introduction (3rd ed.). Thousand Oaks, CA: SAGE Publications.

Gyamfi, A., & Williams, I. (2017). Evaluating media richness in organizational learning. Hershey, PA: IGI Global.

Kumar, S., Dhiman, M., & Dahiya, A. (2015). International tourism and hospitality in the digital age. Hershey, PA: Business Science Reference.

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IvyPanda. 2024. "Information Technology Management: Media Richness Theory." March 1, 2024. https://ivypanda.com/essays/information-technology-management-media-richness-theory/.

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