Eight-four percent of Fortune Global 100 companies worldwide now utilize at least one social media platform (SMP), indicates a recent study by the public relations firm Burson-Marsteller.

Numerous statistical studies such as this exist, but how do we understand the numbers in terms of the actual impact of SMPs on business?

Despite the growing adoption of SMPs as a business tool, this is still a relatively new and under-studied area of technology—even in Silicon Valley where many SMP innovations originate, says Rafiq Dossani, a senior research scholar at Stanford University’s Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC). Dossani defines SMPs as “information and communications technology platforms designed for interaction among participants.” He and other academic and industry experts convened at Stanford on May 25 for a discussion of SMP business trends, especially in the areas of recruitment and business development in Silicon Valley.

Their goal? To begin developing a theoretical framework for the study of SMPs as a tool in today’s global business environment. Findings presented during the conference suggest that SMPs serve as another tool for doing business, but do not supplant existing systems and practices. In addition, a great deal of future research is needed on the subject.

Organized by Shorenstein APARC’s Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE), the conference was the sixth in an annual series dedicated to examining the globalization of business services. Previous conferences have addressed topics including outsourcing, system integrators, international recruitment, and clean technologies.

Opening the first session about social media trends among Silicon Valley employers, Philip Jordan and Stephen Jordan of Green LMI Consulting presented findings from a recent survey they conducted of over three hundred firms, especially of larger and technology-related companies. Their study found that over half of Silicon Valley firms surveyed are utilizing social media for external communication and/or for the recruitment and evaluation of new employees, pointing to the utility for job seekers to maintain a professional-looking online presence. Nonetheless, they emphasized that “real” skills and expertise still matter the most to employers.

Manuel Serapio, faculty director and associate professor of international business at the University of Colorado Denver (UC Denver) moderated the panel discussion that followed. Panelists Rahim Fazal, CEO and co-founder of Involver, and Tuomo Nikulainen, a researcher at ETLA, the Research Institute of the Finnish Economy, provided commentary during the session.

Dossani led the second session about social media in the workplace with a presentation summarizing a study he conducted on the value of SMPs to business organizations. Surveying employees at twenty Silicon Valley companies, Dossani tested the hypothesis that a SMP has value “only if it improves the reliability of existing information or enables the generation of new information.” SMPs do not automatically generate such information, he stated. Some SMPs are better at generating reliable information (eg., a CEO’s blog) and others enable the generation of new information (eg., a discussion forum). Dossani categorized SMPs in the study by the extent of collaboration they permitted among participants in the creation of new information, as well as the control that was possible over the flow of information. Depending on how the usage of an SMP is organized—who participates and its governance structure—information of potential value to corporates is generated. Dossani noted the difference between individual SMPs, such as Twitter, and websites, such as YouTube, that integrate a number of different social media functions, including video and discussion forums.

In the study, Dossani proposed a theoretical framework for research on SMP business trends, informed by work about strong and weak “ties” conducted by Stanford sociologist Mark Granovetter. The survey results indicated that SMPs are found useful for project management (low control/high collaboration SMPs) and building employee and consumer awareness (high control/low collaboration SMPs). While this provided support for the hypothesis, said Dossani, other evidence did not support it, such as the limited use of SMPs for human resource functions and strategic planning. This might be due to the nascency of technologies, lack of diversity of platforms, or limited familiarity with the potential of SMPs—clearly, exciting subjects for future research, he concluded.

Henry S. Rowen, co-director of SPRIE, moderated the panel discussion that accompanied Dossani’s presentation. Panelists included Matt Ceniceros, director of global media relations at Applied Materials; Ankit Jain, a software engineer at Google; Don McCullough, vice president of marketing for IP and broadband at Ericsson; and Saurabh Mittal, head of customer experience practice at Wipro.

Emerging from the conference is the understanding that companies are increasingly embracing SMPs as a tool to enhance their current business practices, but not uniformly. To understand the role of SMPs in business—both in Silicon Valley and worldwide—a theoretical framework, such as Dossani suggested, and further studies are needed.

Papers and slides from the two main presentations are now available online, with full audio from the event to be added soon.

In addition to longtime Globalization of Business Services conference co-sponsors Wipro, UC Denver, and ETLA, Adobe and Ericsson also provided co-sponsorship for this year’s event.

Takeshi Kondo was undergoing training as a new Mitsubishi Electric systems engineer in Kobe, Japan when the massive 7.2-magnitude Great Hanshin earthquake struck in 1995. When Japan was hit by the double disaster of an 8.9-magnitude earthquake and a tsunami in March 2011, Kondo was at Stanford University participating in the Corporate Affiliates Visiting Fellows Program at the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC). The March tragedy called to mind the 1995 Kobe earthquake and underscored for him the strength of the U.S.-Japan relationship in the face of adversity.

Kondo, currently a manager for the Strategic IT Business Planning Department of Mitsubishi Electric, is a Corporate Affiliates Visiting Fellow for the 2010–2011 academic year. During this rigorous and stimulating year, he has conducted research on non-entertainment applications for augmented reality (AR) technology, audited entrepreneurship classes, and participated in site visits to numerous Bay Area companies. He will present his research findings during a public seminar at the end of May before concluding the program and returning to his position at Mitsubishi Electric's corporate headquarters in Tokyo.

A graduate of Waseda University with BS and MS degrees in industrial and management systems engineering, Kondo majored in combinatorial optimization—the analysis of numerous finite possibilities in order to arrive at the most efficient solution to a problem. He has applied his expertise for the past seventeen years at Mitsubishi Electric, a corporation with five major divisions and approximately one hundred thousand employees worldwide, including the United States. Mitsubishi Electric manufactures products ranging from common home appliances like refrigerators to sophisticated electronic devices such as semiconductor lasers. Its Diamond Vision display system graces San Francisco's AT&T Park and Oakland's Oracle Arena.

Prior to taking up his current position at Mitsubishi Electric, Kondo designed systems related to road operations and management, including traffic information and radio communications systems, and he also took part in a joint government and private sector study of a toll collection system similar to FasTrak. The study group made important technology- and policy-related recommendations to the Japanese government when it was preparing to implement the system throughout the country. Kondo is now engaged in finding ways to develop the IT-side of Mitsubishi Electric's business, testing new systems in-house before putting them on the market.

Kondo is excited about the possible manufacturing applications of AR technology, which to date has mostly been utilized in entertainment. A commonly seen use of the technology is with the throw-distance markings that are digitally overlaid on a field during a television football broadcast. When he returns to Mitsubishi Electric this summer, Kondo plans to advocate the use of AR technology and to explore new ways of implementing it with their manufacturing. His Shorenstein APARC research project advisor has been Henry S. Rowen, co-director of the Stanford Program on Regions of Innovation and Entrepreneurship and a specialist on high-tech industries in the United States and Asia. "He is brilliant," emphasizes Kondo.

During his year with the Corporate Affiliates Visiting Fellows Program, Kondo has audited several entrepreneurship classes in the Department of Management Science and Engineering, noting the profusion of such classes at Stanford University. It has led him to develop an interest in the Bay Area venture capital firms that the Fellows have visited, his first encounters with businesses of this kind. The group has also toured a number of high-tech companies, of which Cisco Systems holds a special attraction for Kondo because of his interest in AR technology.

Of all of his experiences this past year, Kondo has perhaps been most struck by the overwhelming U.S. response to Japan's recovery efforts after the March 11 earthquake and tsunami. "It has been very confusing," he says, "but the American people have shown support for us." Japan too demonstrated its friendship when Hurricane Katrina devastated New Orleans in 2005—an unprecedented disaster in U.S. history. The Japanese government and private citizens sent significant funds and supplies for relief efforts.

When Kondo returns to Japan in June, he will take with him not only the academic and business expertise that he has gained while participating in the Corporate Affiliates Visiting Fellows Program but also the memory of the friendship that he has experienced. Building strong ties between the United States and Asia is a core component of Shorenstein APARC's mission. Kondo will join the Corporate Affiliates Visiting Fellows Program's ever-growing alumni network, connecting him to colleagues throughout Asia and to Shorenstein APARC and Stanford scholars for many years to come.