Social Media Usage and Firm Performance: An Empirical Study of Small-and Medium-Sized Enterprises (original) (raw)
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Sri Lanka Journal of Social Sciences
Social media plays as an advertising mechanism an integral part in enabling business organisations to reach new horisons in the modern world. Inspired by the rapid penetration of clienteles made possible by social media platforms, organisations across the globe embark on exploring opportunities available for them to strengthen their brand relationships and promote their goods and services in new territories. Against this background, this paper aims to identify the impact of social media on the marketing aspect of small and medium-scale enterprises (SMEs) in Sri Lanka. It involves conducting empirical research to test the hypothesised relationships between SMEs and social media based on the conceptual framework developed after reviewing the relevant literature. The data were gathered by distributing a structured questionnaire among a sample of 101 respondents from the Western Province of Sri Lanka who operate their businesses along with an established social media presence. In the course of analysing the data, the hypotheses were tested using the method of multiple regression analysis. The results reveal that the incorporation of social media in advertising helps SMEs boost their awareness of customer perspectives and strengthen their customer relations and thereby having a significant impact on their business performance. The study also explains the implications and benefits of social media in developing the marketing aspect of SMEs.
Factors influencing the use of social media by SMEs and its performance outcomes
Industrial Management & Data Systems, 2015
Purpose -The purpose of this paper is to investigate the factors that influence Facebook usage among small and medium enterprises (SMEs). In addition, it examines the impact of Facebook usage on financial and non-financial performance of the SMEs. Design/methodology/approach -Using integrated model, this study examined the influence of compatibility, cost effectiveness, interactivity and trust on Facebook usage and its subsequent impact on organizations performance. Statistical analyses were based on the data collected, through survey questionnaire from 259 SMEs in Malaysia. Partial Least Square (PLS) method was used to test the hypotheses. Findings -The study revealed that Facebook usage has a strong positive impact on financial performance of SMEs; similarly it was also found that Facebook usage positively impacts the nonfinancial performance of SMEs in terms of cost reduction on marketing and customer service, improved customer relations and improved information accessibility. Additionally, factors such as compatibility, cost effectiveness and interactivity was identified as factors that influence Facebook usage among SMEs. Research limitations/implications -This study is limited in selection of samples. The sample only covered one community of SME in Malaysia which limits generalizability of the findings. This study provided a clearer idea on the real importance of Facebook and its benefits. The results would motivate and guide organizations in the adoption of Facebook for business activities. The study also has various theoretical and practical contributions. Originality/value -Very few empirical studies investigated the actual impact of Facebook usage among organizations. This study investigated the effect of Facebook usage on the financial performance of the organizations which is really important to study as it reveals the exact value of using Facebook for business activities.
Social Media and Marketing Performance of Small and Medium Enterprises
2020
The main purpose of the study was to analyse how social media impact on performance of Small and Medium Enterprises (SMEs) in Zimbabwe. SMEs are facing a number of growth and survival challenges leading to dismal failures and closure because of shrinking sales and low customer base There is need for SMEs to adopt the use social media since it is arguably the most trending technology in the 21 century that can help businesses in their market share boosting and customer loyalty. The issue of social media and how it relates to firm`s performance and especially SMEs is therefore yet to be exhaustively explored. Fifty-four (54) respondents in Zimbabwean Harare Metropolitan Province were used as research subjects. The study adopted a quantitative method approach rooted in the positivist paradigm. A cross sectional survey research design was used and the sample was randomly selected from the population. Questionnaires were data collection instrument used in this study. Data was analysed us...
2017
The purpose of this paper is to identify the social media marketing strategies adopted by the small- and medium-sized enterprises (SMEs) in Malaysia. In addition, it also investigates the impacts of the implemented social media marketing strategies on the business performance. The social media comes with a new marketing platform and create more opportunities for business practitioners. However, most of the SMEs faced challenges in developing their marketing strategies. For this study, the technology, organization, and environment model by Tornatzky and Fleischer (1990) are used as a theoretical framework with some minor alterations. Thirty-six interviews were conducted with SME owners in Malaysia. The thematic and content analyses were used in analyzing the data. Findings from the study revealed that social media marketing has positive impacts on business performance; both in the financial and the non-financial aspects. It was also found that the SMEs have different marketing strate...
Kontigensi: Jurnal Ilmiah Manajemen, 2023
The extensive use of social media has prompted research on factors influencing its adoption for marketing among SMEs in Bandung and its impact on business performance. Social media has become pervasive and significantly shapes marketing strategies in the digital era. This study investigates factors influencing social media adoption and its effect on business performance. Key variables include perceived usefulness, ease of use, compatibility, cost, social media for marketing, and business performance. Quantitative data selected from 100 SMEs in Bandung. Data were collected via a survey and analyzed using SEM-PLS constructed by 26 questionaire items. A theoretical model has been created by combining elements from TAM and UTAUT2, with certain adaptations, to examine how this impact relates to business performance. Findings reveal that perceived usefulness, ease of use, compatibility, and cost positively influence SMEs' adoption of social media for marketing activities. The study also demonstrates that using social media for marketing positively impacts business performance. Ultimately, promoting sincerity in raising awareness about the benefits of SMM to Indonesian SMEs can encourage its adoption for their overall advantage.
LEVERAGING ON THE POTENTIALS OF SOCIAL MEDIA FOR PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISE IN
My profound thanks goes to Almighty God, the most merciful and beneficial, for given me the strength, endurance, foresight, and thoughtfulness to embarked on this project and complete it to the satisfaction of The University of Business and International Studies. I am grateful to my supervisor, Dr. Emmanuel Orakwue, for his positive criticism, thoughts engagement, patience, diligent and enriching inputs, which made the research project a reality. I also wish to acknowledge the motivation and support I got from Mr. Chukwuemeka Uwanaka, and my dear family members who inspired me to be steadfast and remain focus in the execution of this research. I wish to specially acknowledge the contribution of my wife and colleagues who gave me total support towards my pursuit of obtaining an Executive Masters of Business Administration. Lastly, I wish to acknowledge the support of individuals that made this project a reality.
Kajongwe, C & Chinyena, E. (2020). Dynamics of Change Management Practices and Performance of Private Schools in Zimbabwe: Focus on Harare Metropolitan Province. Journal of African Interdisciplinary Studies, 4(4), 57 – 65.
The main purpose of the study was to analyse how social media impact on performance of Small and Medium Enterprises (SMEs) in Zimbabwe. SMEs are facing a number of growth and survival challenges leading to dismal failures and closure because of shrinking sales and low customer base There is need for SMEs to adopt the use social media since it is arguably the most trending technology in the 21 st century that can help businesses in their market share boosting and customer loyalty. The issue of social media and how it relates to firm`s performance and especially SMEs is therefore yet to be exhaustively explored. Fifty-four (54) respondents in Zimbabwean Harare Metropolitan Province were used as research subjects. The study adopted a quantitative method approach rooted in the positivist paradigm. A cross sectional survey research design was used and the sample was randomly selected from the population. Questionnaires were data collection instrument used in this study. Data was analysed...
European Journal of Management and Marketing Studies
Small and medium-sized enterprises (SMEs) play a vital role in the Malaysian economy. The success of SMEs is critical for Malaysia's total economic progression, both nationally and globally. Conducting business online is one of the opportunities social media has provided entrepreneurs. SMEs often lack the means to conduct in-house marketing operations or hire a skilled marketing consultant. Social media is a massive dialogue that everyone can join. With social media, businesses have the added advantage of following statements and replying instantly. While there is much literature on social media marketing methods, there is not much information on how businesses might utilize social media to enhance profits. There is little academic research into the elements that drive social media use and its impact on SMEs in Malaysia. This research aims to develop an understanding of improving the use of social media as a marketing tool in SMEs and address its relationship to brand awareness,...
https://www.ijrrjournal.com/IJRR\_Vol.6\_Issue.4\_April2019/Abstract\_IJRR0025.html, 2019
This era of globalization makes social media easily adopted by business people. Social media is currently widely used by Jabodetabek SMEs as a means of doing business in improving performance in Jabodetabek SMEs. This study looks at the effect of using Social Media on Innovation and Performance. To get the results of the research, questionnaires were distributed and interviews were conducted directly with SMEs in Jabodetabek. Distribution of questionnaires was conducted in January-March 2019 by means of online and offline deployment. The results of the respondents obtained as many as 98 respondents using the Slovin formula. The variables in this study are social media, innovation, and performance. Data analysis was carried out by qualitative and quantitative descriptive with SEM-PLS tools. The results of this study indicate that the intensity and effect of using social media on product performance innovations in SMEs in Jabodetabek show significant results.
Social Media and Performance of Micro Enterprises in Moshi Tanzania
Social media are gaining popularity and are increasingly used in regular operations of many organizations, including Micro Enterprises (MEs). Several studies have thus developed interests on investigating the impact of social media in MEs. Unfortunately most of the existing studies either did not consider performance factor of MEs or were not done in the context of developing counties like Tanzania. It is on this ground that this study explored how social media influence the MEs' performance in the context of customer's base, sales growth, profit maximization, and brand enhancement. Specifically the study focused on identifying the most used social media by MEs; influence of social media to the performance of MEs; and how MEs use social media in their business process. Data were collected in Moshi, Tanzania from a representative sample of 90 MEs. The study adopted case study research design where structured questionnaires and interview were used to collect data. Findings depict that all else being equal, the use of social media enhance business performance. WhatsApp was found to be the most, preferred social media by MEs, followed by Facebook, Instagram and Twitter. On the other hand, awareness, risks and insecurity of information, and costs was some of the observed challenges that hinder MEs from using social media. It was concluded that effective use of social media is an efficient tool for enhancing MEs performance. Among others, the study calls for further research on financial and marketing aspect of social media and relative involvement associated with the possible solution toward the challenges of social media