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Social Media and SMEs’ Performance in Developing Countries: Effects of Technological-Organizational-Environmental Factors on the Adoption of Social Media

Author

Listed:
  • Sikandar Ali Qalati
  • Dragana Ostic
  • Mohammad Ali Bait Ali Sulaiman
  • Aamir Ali Gopang
  • Asadullah Khan

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.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:sagope:v:12:y:2022:i:2:p:21582440221094594
    DOI: 10.1177/21582440221094594
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    Cited by:

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    3. Lie Ao & Rohit Bansal & Nishita Pruthi & Muhammad Bilawal Khaskheli, 2023. "Impact of Social Media Influencers on Customer Engagement and Purchase Intention: A Meta-Analysis," Sustainability, MDPI, vol. 15(3), pages 1-15, February.
    4. Alfonso Pellegrino & Masato Abe, 2023. "Leveraging Social Media for SMEs: Findings from a Bibliometric Review," Sustainability, MDPI, vol. 15(8), pages 1-15, April.
    5. Duc-Niem Le & Van-Hoa Nguyen, 2024. "Does Quality Certification or Product Diversification Improve the Performance of Small and Medium Enterprises?," Sustainability, MDPI, vol. 16(5), pages 1-11, February.
    6. Li Ma & Xuefeng Liu, 2023. "Strategies for Environmental Protection and Optimization of Ecological Business Economic Growth from the Perspective of Sustainable Development," Sustainability, MDPI, vol. 15(3), pages 1-14, February.
    7. Sheema Matloob & Mónica Lorena Sánchez Limón & Halia Mayela Valladares Montemayor & Ali Raza & Julio Cesar Castanon Rodriguez, 2023. "Does Strategic Change Enhance the Relationship between Firms’ Resources and SMEs Performance in Pakistan?," Sustainability, MDPI, vol. 15(3), pages 1-20, January.
    8. Mir Satar & Sager Alharthi & Muzaffar Asad & Amer Alenazy & Muhammad Uzair Asif, 2024. "The Moderating Role of Entrepreneurial Networking between Entrepreneurial Alertness and the Success of Entrepreneurial Firms," Sustainability, MDPI, vol. 16(11), pages 1-19, May.

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