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External pressure or internal culture? An innovation diffusion theory account of small retail businesses’ social media use

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  • Kwon, Wi-Suk
  • Woo, Hongjoo
  • Sadachar, Amrut
  • Huang, Xiao

Abstract

COVID-19 put unprecedented external pressure on small businesses to adopt or increase use of social media while not all small businesses are internally ready for this rapid change. This study investigated the roles of external pressures and organizational culture of openness and learning in driving small retail business owners'/managers' social media use decisions by impacting their perceived usefulness and barriers, based on the innovation-decision process model from the diffusion of innovations theory and the theory of reasoned action. An online survey with structured measurements was administered to 411 U.S. small retail business owners/managers. Results from structural equation modeling revealed that external pressures positively influenced small business owners'/managers’ perceived usefulness and barriers and social media use intention. In addition, the culture of openness and learning positively influenced the perceived usefulness while mitigating the perceived barriers, thereby directly and indirectly influencing the social media use intention. Theoretical and managerial implications are discussed.

Suggested Citation

  • Kwon, Wi-Suk & Woo, Hongjoo & Sadachar, Amrut & Huang, Xiao, 2021. "External pressure or internal culture? An innovation diffusion theory account of small retail businesses’ social media use," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    • Handle: RePEc:eee:joreco:v:62:y:2021:i:c:s096969892100182x
    DOI: 10.1016/j.jretconser.2021.102616
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    1. Alghamdi, OmarA. & Agag, Gomaa, 2024. "Competitive advantage: A longitudinal analysis of the roles of data-driven innovation capabilities, marketing agility, and market turbulence," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    2. Lyu, Tu & Chen, Hao & Guo, Yulin, 2023. "Investigating innovation diffusion, social influence, and personal inner forces to understand people's participation in online e-waste recycling," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).

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