Social Media and SMEs’ Performance in Developing Countries: Effects of Technological-Organizational-Environmental Factors on the Adoption of Social Media
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...
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| Published in: | SAGE open Vol. 12; no. 2 |
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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. |
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| AbstractList | 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. |
| Author | Sulaiman, Mohammad Ali Bait Ali Ostic, Dragana Qalati, Sikandar Ali Khan, Asadullah Gopang, Aamir Ali |
| Author_xml | – sequence: 1 givenname: Sikandar Ali orcidid: 0000-0001-7235-6098 surname: Qalati fullname: Qalati, Sikandar Ali email: sidqalati@gmail.com – sequence: 2 givenname: Dragana surname: Ostic fullname: Ostic, Dragana – sequence: 3 givenname: Mohammad Ali Bait Ali surname: Sulaiman fullname: Sulaiman, Mohammad Ali Bait Ali – sequence: 4 givenname: Aamir Ali surname: Gopang fullname: Gopang, Aamir Ali – sequence: 5 givenname: Asadullah orcidid: 0000-0003-1423-6439 surname: Khan fullname: Khan, Asadullah |
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| Keywords | TOE framework social media adoption SME performance developing countries |
| Language | English |
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| SubjectTerms | Developing countries LDCs Small & medium sized enterprises-SME Social networks |
| Title | Social Media and SMEs’ Performance in Developing Countries: Effects of Technological-Organizational-Environmental Factors on the Adoption of Social Media |
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