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Why do small and medium enterprises use social media marketing and what is the impact: Empirical insights from India

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  • Chatterjee, Sheshadri
  • Kumar Kar, Arpan

Abstract

Increasingly firms are looking to use social media to connect with different stakeholders as plans on building presence on such platforms are becoming part of top-level strategy. The purpose of this study is to identify the factors that would help the Small and Medium Enterprises (SMEs) of India to adopt Social Media Marketing (SMM) mechanisms for improving their business impact. Adoption of SMM by SMEs has considerable impact on the improvement of business outcome of the SMEs. A theoretical model has been developed with the help of theory borrowed from TAM and UTAUT2 with some modifications to explore this impact through business performance, sales, connect with customers, identify customer' needs and creativity of the employees. The theoretical model has been validated empirically using a survey of 310 firms and subsequent analysis have been carried out using structured equation modelling. The results highlight that perceived usefulness, perceived ease of use and compatibility positively affect impact of SMM after adoption by the SMEs. The facilitating conditions have insignificant impact whereas cost has a significant but negative impact on the use of SMM by SMEs. Since there are a few studies in this context, the study contributes to existing literature on the impact of SMM in SMEs in an emerging economy.

Suggested Citation

  • Chatterjee, Sheshadri & Kumar Kar, Arpan, 2020. "Why do small and medium enterprises use social media marketing and what is the impact: Empirical insights from India," International Journal of Information Management, Elsevier, vol. 53(C).
    • Handle: RePEc:eee:ininma:v:53:y:2020:i:c:s0268401219316676
    DOI: 10.1016/j.ijinfomgt.2020.102103
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    Cited by:

    1. Jiang, Cuiqing & Yin, Chang & Tang, Qian & Wang, Zhao, 2023. "The value of official website information in the credit risk evaluation of SMEs," Journal of Business Research, Elsevier, vol. 169(C).
    2. Dibya Nandan Mishra & Rajeev Kumar Panda, 2023. "Decoding customer experiences in rail transport service: application of hybrid sentiment analysis," Public Transport, Springer, vol. 15(1), pages 31-60, March.
    3. Sikandar Ali Qalati & Dragana Ostic & Mohammad Ali Bait Ali Sulaiman & Aamir Ali Gopang & Asadullah Khan, 2022. "Social Media and SMEs’ Performance in Developing Countries: Effects of Technological-Organizational-Environmental Factors on the Adoption of Social Media," SAGE Open, , vol. 12(2), pages 21582440221, May.
    4. Borah, Prasad Siba & Iqbal, Shuja & Akhtar, Shamim, 2022. "Linking social media usage and SME's sustainable performance: The role of digital leadership and innovation capabilities," Technology in Society, Elsevier, vol. 68(C).
    5. Sheshadri Chatterjee & Ranjan Chaudhuri & Demetris Vrontis & Adnane Maalaoui, 2023. "Internationalization of family business and its performance: examining the moderating role of digitalization and international networking capability," Review of Managerial Science, Springer, vol. 17(7), pages 2443-2470, October.
    6. Xue, Yan & Tang, Chang & Wu, Haitao & Liu, Jianmin & Hao, Yu, 2022. "The emerging driving force of energy consumption in China: Does digital economy development matter?," Energy Policy, Elsevier, vol. 165(C).
    7. Mora Cortez, Roberto & Ghosh Dastidar, Ayan, 2022. "A longitudinal study of B2B customer engagement in LinkedIn: The role of brand personality," Journal of Business Research, Elsevier, vol. 145(C), pages 92-105.
    8. Grahl, Jörn & Hinz, Oliver & Rothlauf, Franz & Abdel-Karim, Benjamin M. & Mihale-Wilson, Cristina, 2023. "How do likes influence revenue? A randomized controlled field experiment," Journal of Business Research, Elsevier, vol. 167(C).
    9. Yogesh K. Dwivedi & Elvira Ismagilova & Nripendra P. Rana & Ramakrishnan Raman, 2023. "Social Media Adoption, Usage And Impact In Business-To-Business (B2B) Context: A State-Of-The-Art Literature Review," Information Systems Frontiers, Springer, vol. 25(3), pages 971-993, June.
    10. Rakshit, Sandip & Islam, Nazrul & Mondal, Sandeep & Paul, Tripti, 2022. "An integrated social network marketing metric for business-to-business SMEs," Journal of Business Research, Elsevier, vol. 150(C), pages 73-88.
    11. Connie Bayudan‐Dacuycuy & Lawrence B. Dacuycuy, 2022. "Harnessing the potential of online marketplaces in the Philippines: Insights from the National Information and Communications Technology Household Survey," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 9(3), pages 288-316, September.
    12. Chatterjee, Sheshadri & Chaudhuri, Ranjan & Vrontis, Demetris, 2022. "Examining the role of cross-cultural factors in the international market on customer engagement and purchase intention," Journal of International Management, Elsevier, vol. 28(3).
    13. Olesia V. Bubnovskaia & Norris Krueger & Ivan I. Gutorov, 2022. "Cognitive flexibility as a decision-making factor in entrepreneurship," Upravlenets, Ural State University of Economics, vol. 13(1), pages 2-19, March.
    14. Pankaj Dikshit & M. P. Gupta & Arpan Kumar Kar & B. Chandra, 2022. "Taxation transformation of businesses enabled by information systems: an empirical study of Goods and Services Tax implementation in India," SN Business & Economics, Springer, vol. 2(9), pages 1-26, September.
    15. Ghazanfar Ali Abbasi & Noor Fareen Abdul Rahim & Hongyan Wu & Mohammad Iranmanesh & Benjamin Ng Chee Keong, 2022. "Determinants of SME’s Social Media Marketing Adoption: Competitive Industry as a Moderator," SAGE Open, , vol. 12(1), pages 21582440211, January.

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