Social media and SMEs’ performance in developing countries: effects of technological-organizational-environmental factors on the adoption of social media

Qalati, Sikandar Ali and Ostic, Dragana and Sulaiman, Mohammad Ali Bait Ali and Gopang, Aamir Ali and Khan, Asadullah (2022) Social media and SMEs’ performance in developing countries: effects of technological-organizational-environmental factors on the adoption of social media. SAGE Open, 12 (2). pp. 1-13. ISSN 2158-2440. (Published)

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Abstract

Increasing globalization and rapid digitization across industries have led to greater international competition. Furthermore, the emergence of new innovation has created both challenges and opportunities for small and medium-sized enterprises (SMEs). SMEs have recently been attracted to social media applications to reach a larger audience, improve their relationship with potential customers, and retain existing customers. However, the scant focus has been devoted to comprehensively understanding the adoption of social media in the SME context in developing countries. This study investigates the effects of technological-organizational-environmental (TOE) factors on social media adoption and its effect on SME performance. Data was collected by generating online survey link. SmartPLS 3.3 was used for the path analysis of 381 SMEs. The findings revealed a significant effect of relative advantage, cost-effectiveness, compatibility, interactivity (technological), entrepreneurial orientation (organizational), and customer pressure (environmental) factors, and an insignificant effect of top management support (organizational) and competitive pressure (environmental) determinants on social media adoption. The study found a significant influence of social media on SME performance. This paper offers several implications for decision-makers, policy-makers, and scholars interested in social media and its use. It builds an empirical, integrated framework for SMEs in developing countries.

Item Type: Article
Additional Information: Indexed by Scopus
Uncontrolled Keywords: Developing countries; SME performance; Social media adoption; TOE framework
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
T Technology > T Technology (General)
Faculty/Division: Faculty of Industrial Management
Depositing User: Mr Muhamad Firdaus Janih@Jaini
Date Deposited: 10 Nov 2022 01:26
Last Modified: 10 Nov 2022 01:26
URI: http://umpir.ump.edu.my/id/eprint/34655
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