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DOI 10.1007/s12398-016-0173-8
Z Energiewirtsch (2016) 40:89–96
The rise of Facebook-based communication in the energy sector
A longitudinal analysis of German and Austrian utility companies
Sebastian Martin1
Published online: 3 June 2016
© The Author(s) 2016. This article is available at SpringerLink with Open Access
Abstract In the case of public utilities, the development
of stakeholder communication through Facebook is not fo-
cused in the existing body of literature. Yet, it is especially
these developments that are essential for scholars and prac-
titioners as they highlight the way stakeholder communi-
cation in the energy sector will change. The aim of this
paper is to contribute to this lack of research by inves-
tigating developments in the ways German and Austrian
public utilities use Facebook to communicate. Responding
to the research objectives, two empirical studies were con-
ducted. In 2014 as well as 2015 an online survey was sent
to 850 German and 30 Austrian utilities. The results high-
light the rising importance of Facebook in the energy sector.
The share of public utilities using Facebook is constantly
increasing. Additionally, during the twelve months inves-
tigated, the interactivity and frequency of Facebook-based
communication rose. Utilities are progressively willing to
invest more personnel and monetary resources to administer
their accounts. As the numbers of fans increase, users seem
to value the information provided by utilities on Facebook.
Keywords Communication development · Facebook ·
Public utilities · Social media · Stakeholder dialog
Die Entwicklung Facebook-basierter
Kommunikation in der Energiewirtschaft
Eine Längsschnittstudie Deutscher und Österreichischer
Energieversorger
Prof. Dr. Sebastian Martin
Sebastian.Martin@fh-linz.at
1University of Applied Sciences Upper Austria,
Garnisonstrasse 21, 4020 Linz, Austria
Zusammenfassung Zunehmend nutzen öffentliche Un-
ternehmen Facebook zur gezielten Stakeholder-Kommuni-
kation. Hierzu zählen auch öffentliche Energieversorger.
Bislang gibt es jedoch nur wenige Untersuchungen, die
eine Facebook-basierte Kommunikation von Energieverso-
gern thematisieren. Keine der Untersuchungen fokussiert
mögliche Veränderungen der Facebook-Kommunikation im
Zeitverlauf. Ziel dieser Studie ist es Erkenntnisse zur Ent-
wicklung der Facebook-Kommunikationin der Energiewirt-
schaft zu generieren. Hierzu wurden zwei Befragungen mit
jeweils 850 deutschen und 30 österreichischen Energiever-
sorgern im zeitlichen Abstand von 12 Monaten durchge-
führt. Als Ergebnis der Untersuchung kann eine steigende
Bedeutung von Facebook in der Energiewirtschaft festge-
stellt werden. Im beobachteten Zeitraum hat sich der An-
teil von Unternehmen die Facebook für ihre Stakeholder-
Kommunikation verwenden erhöht. Zudem ist eine Zunah-
me in der Häufigkeit und Interaktivität der Kommunikati-
on erkennbar. Auch Investitionen in Form von personellen
und monetären Ressourcen, welche für den Facebook-Auf-
tritt aufgewendet werden, nehmen zu. Steigende Fanzahlen
scheinen ein Hinweis darauf sein, dass die Facebook-Nutzer
das Kommunikationsangebot zunehmend annehmen.
1 Introduction
Facebook offers individuals as well as companies a way to
connect and interact virtually. As far as the private sector is
concerned, a large amount of literature examines the poten-
tial benefits as well as risks of Facebook activity (Pietsch
2012; Wingenter 2013; Haigh et al. 2013). As well as for
the public sector, the relevance of Facebook is increasing
(Oliveira and Welch 2013;Mossbergeretal.2013; Meijer
and Thaens 2013). “Agencies and departments on all lev-
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90 Z Energiewirtsch (2016) 40:89–96
els of government are adding Facebook [...] buttons to their
otherwise static – infrequently updated – websites” (Mergel
2010, p. 7). Regarding the public sector, current Facebook
studies mainly focus on government agencies (Hofmann
et al. 2013;Mergel2013a; Vicente and Novo 2014). The
use of Facebook in other public organizations has barely
been investigated (Criado et al. 2013).
In Germany and Austria, public utilities in particular are
being confronted with far-reaching socio-political changes,
such as the departure from nuclear and fossil-fuel energy
sources (Witt 2013; Dechange and Friedrich 2013; Federal
Ministry of Education and Research 2014). In this challeng-
ing environment, stakeholder theory emphasizes the impor-
tance of communication between the utilities and their var-
ious stakeholders (Freeman 1984; Pedersen et al. 2013).
Such a communication process might be supported by the
use of Facebook. However, the existing body of literature
insufficiently reflects stakeholder communication of pub-
lic utilities through Facebook. None of the studies focuses
on developments of Facebook based communication. Yet,
especially these developments are essential for scholars as
well as practitioners, as they highlight the way stakeholder
communication might change in the energy sector. The
aim of this paper is to contribute to this lack of research by
providing data about the engagement of German and Aus-
trian public utilities in Facebook over a period of one year.
Special focus is put on developments regarding:
●the share of utilities which use Facebook for stakeholder
communication,
●the interactivity and frequency of Facebook communica-
tion,
●the monetary and personnel resources deployed for Face-
book communication,
●communication outcomes.
Research results will illustrate essential communication de-
velopments in the energy sector as well as highlight impli-
cations for both researchers and practitioners. To address
the research objectives, the paper is structured as follows:
After the introduction (Sect. 1), Section 2 introduces stake-
holder theory as the theoretical framework for the study.
The theoretical basis highlights the importance of stake-
holder communication in the context of the energy sector.
The methodological approach is described in Section 3,
and the empirical results are illustrated in Section 4. A dis-
cussion, the conclusion, limitations, and implications for
further research are presented in Section 5 and 6.
2 Stakeholder theory in the context of the energy
sector
According to stakeholder theory, utilities should actively
manage relationships with a wide variety of stakeholders
(Freeman 1984) as these stakeholders may strongly impact
the company and its objectives (Donaldson and Preston
1995; Wall and Greiling 2011). Stakeholder theory rec-
ommends collecting the relevant stakeholder information
and integrating this knowledge into the corporate decision
making process (Freeman and Evan 1990). A stakeholder
dialog can be seen as an appropriate form of such data col-
lection. On the basis of a dialog, insights into stakeholders’
expectations and criticism might be gained. Additionally,
a dialog offers the company an opportunity to explain its
objectives and behavior to the various groups of stakehold-
ers (Schulten 2012; Pedersen et al. 2013).
As the most popular social network in 2014, Facebook
counted around 28 million German and about three mil-
lion Austrian users (statista 2014a, 2014b). The social net-
work offers a way for direct and indirect communication
(Kreutzer and Hinz 2010;YangandLin2013; Spillecke
2013;Mergel2013b). Organizations as well as single on-
line users are able to reach a broad community of Face-
book users by highlighting specific aspects, ideas or con-
cerns (Wallsten 2007; Merilainen and Vos 2011). “[W]e
all tend to pay closer attention to those things our friends
and trusted colleagues point to as being interesting, use-
ful, or otherwise noteworthy.” (Mergel and Greeves 2012,
p. 38). The spread of recommendations through Facebook
is not limited to direct contacts. Indirect contacts, mean-
ing the contacts linked to the direct contacts but not to
the companies’ Facebook page, might as well be informed.
This tremendously expands the number of possible recipi-
ents (Mergel 2010;MergelandGreeves2012). In this way
Facebook provides a platform which might be used to influ-
ence public and political opinions (Wallsten 2007; Fieseler
et al. 2010; Merilainen and Vos 2011;LaRosa2014).
Stakeholder theory highlights the importance of stake-
holder communication (Freeman 1984). German and
Austrian public utilities may communicate with their var-
ious groups of stakeholders through Facebook (Oliveira
and Welch 2013; Mossberger et al. 2013). As the number
of Facebook users in both countries has constantly been
increasing over the years (statista 2014a, 2014b), these
media have been gaining importance as a potential instru-
ment which can be used for stakeholder communication.
Utility companies might increasingly become aware of
such communication opportunities associated with Face-
book. Therefore more and more utilities might actively be
engaged in Facebook based stakeholder communication.
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Z Energiewirtsch (2016) 40:89–96 91
Fig. 1 Ownership and number
of employees (indicator of com-
pany size) of the participating
utilities
Ownership
2014
2015
number of
utilities
percentage
number of
utilities
percentage
entirely
public
39
44 %
78
52 %
completely in private
ownership
11
13 %
23
15 %
at least to some extent public
36
41 %
48
32 %
public share > 50 %
25
70 %
27
56 %
public share < 50 %
7
19 %
9
19 %
public share = 50 %
3
8 %
3
6 %
not specified
1
3 %
9
19 %
not specified
2
2 %
0
0 %
total
88
100 %
100 %
149
100
100 %
Number of employees
2014
2015
number of
utilities
percentage
number of
utilities
percentage
1-49 employees
59
67 %
30
20 %
50-249 employees
38
26 %
250-599 employees
21
14 %
600-1200 employees
13
15 %
25
17 %
>1200 employees
16
18 %
35
23 %
total
88
100 %
149
100 %
3 Methodological approach
Responding to the research objectives, two empirical stud-
ies were conducted. In February 2014 an online survey was
sent to 850 German utilities which are members of the Ger-
man Association of Energy and Water Industries (BDEW).
Additionally, the survey was distributed to 30 Austrian util-
ity companies which are members of the Austrian Energy
Association (Österreichs Energie e. V.). In order to acquire
reliable data regarding the deployment of Facebook-based
communication in the energy sector, the same companies
were asked to complete the survey again after a period of
twelve months, in February 2015. Ten percent of the util-
ities completed the survey in 2014, including 80 German
and eight Austrian companies. In 2015 the response rate
grew to around 17 percent, consisting of 130 German and
19 Austrian utilities. Regarding ownership, in both years
around half of the companies were entirely public. In 2014
two fifths and in 2015 one third of the companies described
themselves as at least to some extent public. The majority
of the companies with such mixed ownership specified their
public share at more than 50 percent. Therefore most of the
companies surveyed were entirely or for the most part pub-
lic. In contrast, only 13 percent of the utilities in 2014 and
15 percent in 2015 indicated complete private ownership. In
addition to ownership, the number of employees is used as
an indicator of company size. In both years about 65 per-
cent of the utilities have up to 600 employees, whereas
around 15 percent list a workforce between 600 and 1200
employees. Only nearly 20 percent of the companies have
more than 1200 employees. The above specifications of the
participating utilities are summarized in Fig. 1. Concerning
the proportional shares of the utilities’ nationalities, own-
ership types and company sizes, the results of both online
surveys are similar, allowing a longitudinal analysis of de-
velopments in Facebook-based communication over a one-
year period.
Bauer et al. (2012) point out that access to information is
a key reason for Facebook users to become a fan of a site.
Following this idea, the amount of fans was used as an
indicator of communication outcomes. If the information
provided is perceived as interesting, the utilities are likely
to gain fans. On the other hand, if the information is not
perceived as noteworthy, Facebook users might not want
to become fans of a page. In this context, Pedersen et al.
(2013) emphasize the importance of a stakeholder dialog.
Such a dialog on Facebook requires interactivity with the
various stakeholders as well as a certain frequency of com-
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92 Z Energiewirtsch (2016) 40:89–96
Fig. 2 Addressed stakeholder
(multiple choices possible)
10 %
8 %
10 %
13 %
15 %
18 %
26 %
28 %
41 %
46 %
62 %
64 %
69 %
69 %
69 %
74 %
79 %
1 %
7 %
7 %
7 %
7 %
16 %
21 %
22 %
33 %
43 %
48 %
52 %
82 %
43 %
49 %
54 %
85 %
0 % 20 % 40 % 60 % 80 % 100 %
other stakeholders
shareholders and investors
sustainability experts
current suppliers and business partners
p
otential suppliers and business partners
nongovernmental organizations
potential business customers
current business customers
local authorities
residents
current apprentices and interns
current employees
potential private customers
potential employees
potential apprentices and interns
public and media
current private customers
2015 (n=67) 2014 (n=39)
munication. Therefore, interactivity and frequency seem
to be adequate indicators for the intensity of a stakeholder
dialog. Both indicators are variable and can change over
time. Such change could depend on the available monetary
and personnel resources deployed.
4 Empirical findings
In 2014, out of the participating 88 utilites, a minority of
44 percent possesed a Facebook account. During the pe-
riod investigated this share significantly increased to 58 per-
cent of the 149 companies which completed the survey in
2015. Therefore, since 2015 the majority of utility com-
panies have begun to use Facebook for stakeholder com-
munication. In 2014, the 49 companies without an account
explained their absence was due to insufficient control of
the medium (55 percent), excessive workload (49 percent),
insufficient knowledge of Facebook (20 percent) and ex-
cessive costs (2 percent). In 2015, the percentage of utili-
ties which feared insufficient control sharply decreased to
38 percent of the responding 74 entities. Likewise, the
share of companies which are concerned about insufficient
knowledge of Facebook declined about 40 percent. In both
years, excessive workload was constantly mentioned by
nearly half of the entities without an account. In contrast,
the share of utilities which explained their Facebook ab-
sence on account of excessive costs increased more than
five times to 11 percent in 2015.
In 2014, the majority of the 39 utilities with an account
used Facebook to reach current and potential private cus-
tomers, current and potential employees, current and po-
tential apprentices and interns as well as the general public
and media. Slightly fewer than half of the companies con-
centrated on local authorities or residents, whereas only
a minority emphasized current and potential business cus-
tomers, non-governmental organizations, current and po-
tential business partners or sustainability experts. The de-
scribed stakeholder focus changed during the period inves-
tigated. In 2015, the share of utilities targeting current and
potential private customers increased to more than 80 per-
cent. In contrast, the share of companies that seek attention
at other stakeholder groups sharply declined. The described
developments are shown in Fig. 2.
Concerning the average frequency of postings, in 2014,
17 percent of the utilities provided information once a day,
nearly half of the companies publicized information several
times a week, a share of 14 percent at least once a week
and 17 percent provided information several times a month.
Overall the average frequency of information grew in 2015
as, for example, a higher share of companies publicized
information several times a week, and even five percent of
the companies provided information several times a day.
Fig. 3below illustrates the increases.
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Z Energiewirtsch (2016) 40:89–96 93
Fig. 3 Average frequency of
the provided information
0 %
3 %
17 %
14 %
49 %
17 %
0 %
3 %
2 %
13 %
5 %
60 %
13 %
5 %
0 % 10 % 20 % 30 % 40 % 50 % 60 % 70 %
less than once a month
once a month
several times a month
least once a week
several times a week
once a day
several times a day
2015 (n=63)
2014 (n=35)
Fig. 4 Degree of interactive
communication on Facebook
3 %
12 %
54 %
31 %
3 %
8 %
51 %
38 %
0 % 20 % 40 % 60 %
Passive(observation of communication)
Reactive (reaction to significant events)
Active (provide information on their page without
external impetus)
Interactive (strong interaction between the company
and the single user)
2015 (n=63)
2014 (n=35)
Additionally, the companies were asked to give more de-
tailed insights into how they communicate on Facebook. In
both years, most companies described their communication
as interactive or active. Only a minority of utilities called
their communication reactive or passive. During the period
of twelve months, the share of companies with active ap-
proach to communication, which means companies that act
without external impetus to provide information on their
page, slightly declined from 54 to 51 percent. At the same
time the share of companies using interactive communica-
tion, meaning a strong interaction between the company
and the single users, rose from 31 to 38 percent. Figure 4
summarizes these findings.
As shown in figure 5, in 2014, the utilities estimated
an average of 8.9 staff hours per week to administer the
Facebook account. The maintenance process was mostly
carried out by in-company full time personnel. In 2015, the
total time deployed for the Facebook account grew about
50 percent to 13.5 staff hours per week. The time spent by
companies’ part-time personnel and apprentices or interns
increased. Even so, most of the time was spent by in-
company full-time personnel.
Concerning the financial resources, in both years, the
vast majority of companies spent up to 15,000 euros an-
nually on their Facebook account. A development can be
detected as the share of companies that spend more than
15,000 euros annually grew between the years 2014 and
2015. Such increases can especially be seen for the share
of utilities which invest between 45,000 and 60,000 euros
(increase of 7 percent) and the companies spending more
than 75,000 euros (increase of 4 percent). Figure 6sum-
marizes these findings.
According to Bauer et al. (2012), the amount of Face-
book fans was used as an indicator for communication out-
comes. This implies the idea that stakeholders only become
and stay fans of a Facebook site if the utility company con-
stantly offers interesting information and/or the possibility
of a stakeholder dialog. As highlighted in figure 7, during
the year under observation the median of fans increased
about 19 percent and the arithmetic average about 17 per-
cent. When the previous consideration is applied, this could
indicate that stakeholders to some extent value how utilities
communicate on Facebook.
5 Discussion
Stakeholder theory highlights the importance of actively
managing stakeholder relationships (Freeman 1984). The
number of German and Austrian Facebook users is grow-
ing constantly (statista 2014a, 2014b). Utility companies
seem to be aware of this relatively new opportunity for
stakeholder communication as the share of utilities engaged
in Facebook is increasing. The reasons for not using this
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94 Z Energiewirtsch (2016) 40:89–96
Fig. 5 Deployed time resources
for Facebook (hours/week)
time
ressources
2014
2015
Ø Facebook-
working
hours/ week
number
of
utilities
hours/utilities
Ø Facebook-
working
hours/ week
number of
utilities
hours/utilities
minimum
maximum
minimum
maximum
full-time
personnel
9.0
25
1
30
13.4
44
0.25
80
part-time
personnel
2.0
1
2
2
9.1
10
0.25
35
apprentices/
interns
7.0
1
4
4
5.3
3
7
2
total time for
the whole
utility
8.9
26
1
30
13.5
51
0.25
80
Fig. 6 Financial resources
spent for the Facebook account
65 %
15 %
9 %
0 %
3 %
9 %
57 %
16 %
4 %
7 %
4 %
13 %
0 % 10 % 20 % 30 % 4 0 % 50 % 60 % 70 %
0 – 15,000 euro
> 15,000 – 30,000 euro
> 30,000 – 45,000 euro
> 45,000 – 60,000 euro
> 60,000 – 75,000 euro
> 75,000 euro 2015 (n=56)
2014 (n=34)
instrument, like insufficient control or insufficient knowl-
edge, are on the decline. Still, the utilities realize that
Facebook, as an instrument for stakeholder communica-
tion, is associated with workload and costs. Stakeholder
theory emphasizes the communication with various groups
of stakeholder. Utilities seem not to be following this rec-
ommendation as, during the period investigated, more and
more companies were focusing on current and potential
customers. In contrast, the share of utilities that concen-
trated on other groups of stakeholders, such as potential
and current employees, apprentices or interns, sharply de-
creased. The theory especially points out the importance of
a stakeholder dialog as a form of communication. A dialog
depends on the frequency and interactivity of communi-
cation. Both, frequency and interactivity of the Facebook
communication increased during the twelve months under
observation. By doing so, a substantial share of companies
does not seem to use Facebook as a substitute for a ‘one-
way’ oriented form of communication such as a company
website. Rather, consistent with stakeholder theory, the
possibly of Facebook as an instrument for stakeholder dia-
log is being used actively. It is assumed that an increase of
frequency and interactivity would lead to a rise of mone-
tary and personnel resources deployed. The empirical find-
ings seem to confirm this assumption. During the twelve
months, the devoted time resources for Facebook increased
about 50 percent and the share of companies spending more
than 15,000 euros annually on the Facebook account more
than 20 percent. These results emphasize the idea that
more and more utilities acknowledge the increasing im-
portance of Facebook for stakeholder communication and
are willing to invest in this medium. In both years, the
Facebook account is commonly supported by a company’s
full time employees. Only one-fourth of the companies
outsourced a part of the Facebook-related work to external
service providers. A reason for this could be that the stake-
holder dialog might be more authentically and effectively
handled by internal personnel. Bauer et al. (2012) point
out that access to information is a major reason for Face-
book users to become fans of a page. During the period
investigated the number of fans rose. Maybe such a strong
development is a consequence of an intensified stakeholder
dialog, which is recommended by stakeholder theory and
empirically indicated by higher information frequency and
interactivity.
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Z Energiewirtsch (2016) 40:89–96 95
Fig. 7 Amount of fans on Face-
book
6 Conclusion: Progress and prospects
This article explores developments regarding the use of
Facebook by German and Austrian utility companies. The
findings reveal that more and more utilities are using
Facebook to communicate with their stakeholders. Dur-
ing the twelve months investigated, utilities strengthened
their communication efforts towards current and potential
customers. Such a narrow focus is in contradiction to
stakeholder theory, which recommends communication to
a wide variety of stakeholders. Additionally, the theory
emphasizes the importance of stakeholder dialog. As fre-
quency and interactivity of communication grow, utilities
seem to be following this advice. It is assumed that such
communication efforts are somehow connected to the re-
vealed increase of the invested resources and might lead
to the rising amount of fans documented. Overall, the
described developments indicate the growing importance
of Facebook as a form of stakeholder communication.
Still, this study only focusses on utility companies which
are members of the German Association of Energy and
Water Industries (BDEW) or the Austrian Energy Associ-
ation (Österreichs Energie e.V.). The associations provide
various services, such as information, to its members and
therefore affect their behaviour. Companies without such
memberships were not included. Consequently this study
does not represent all utilities and it is only to a limited
extent possible to generalize the study results for the whole
energy sector. In order to generalize findings, future studies
should also integrate utilities which are not members of
the focused associations. Moreover, this study is limited to
a period of twelve months. To more precisely determine
development in communication, future studies should ex-
tend the period of investigation. The stakeholder dialog
seems to be an essential aspect of Facebook communica-
tion. Future studies should more deeply focus on dialog-
related aspects. In particular interactivity seems to be an
important characteristic which needs to be observed in
a more differentiated way. Additional interviews with the
marketing managers of utilities or surveys of the various
stakeholders could generate new communication insights.
It could be also interesting to look in more detail at the
relationship between aspects of stakeholder dialog, such as
communication frequency and interactivity, the resources
invested and the communication outcome. As communica-
tion might differ in an international context, future studies
could additionally focus on countries other than Germany
and Austria.
Acknowledgements The author is grateful to Linda Tuttle Weidinger,
B.A., instructor of English, University of Applied Sciences and Uni-
versity of Education, Linz, Austria, for her language assistance and
proofreading.
Conflictofinterest S. Martin states that there are no conflicts of in-
terest.
Open Access This article is distributed under the terms of the
Creative Commons Attribution 4.0 International License (http://
creativecommons.org/licenses/by/4.0/), which permits unrestricted
use, distribution, and reproduction in any medium, provided you give
appropriate credit to the original author(s) and the source, provide a
link to the Creative Commons license, and indicate if changes were
made.
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96 Z Energiewirtsch (2016) 40:89–96
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