How Facebook Adoption Impacts SMEs Performance
DOI:
https://doi.org/10.54099/aijb.v3i1.787Keywords:
SMEs, Performance, , Facebook, Social media, Uganda, Sustainable Development Goals , Facebook, Social media, , Uganda, Sustainable Development GoalAbstract
The rise in social media usage has revolutionized information dynamics, transforming traditional communication into a multidirectional, interactive process. This study explores the impact of Facebook adoption on Small and Medium-sized Enterprises (SMEs) performance, addressing a notable gap in the Ugandan context. A quantitative survey involving 120 SMEs employed a comprehensive questionnaire validated for content and reliability. Existing literature suggests that Facebook positively influences SME performance, more so in areas like cost-effective marketing and customer engagement. Results highlight a moderate to high levels of Facebook adoption among SMEs. Correlation analysis reveals positive associations between Facebook adoption and SME performance. Regression analysis further signifies Facebook's significant impact ( =0.142, P<0.0003), particularly through customer engagement (B=0.263, p<0.029). The study points out the unique relationship between Facebook adoption and SME performance and thus recommend businesses to strategically engage with customers on this platform. While the model explains a part of SME performance, areas for future research to explore additional influencing factors are recommended.
References
Alraja, M. N., Khan, S. F., Khashab, B., & Aldaas, R. (2020). Does Facebook commerce enhance SMEs performance? A structural equation analysis of Omani SMEs. Sage Open, 10(1), 2158244019900186.
Bakaykina, A. (2013). Do existing development banks help or hinder attracting more development funds to the Russian SME sector. Central European University.
Beckers, S. F., Van Doorn, J., & Verhoef, P. C. (2018). Good, better, engaged? The effect of company-initiated customer engagement behavior on shareholder value. Journal of the Academy of Marketing Science, 46, 366-383.
Bellucci, M., & Manetti, G. (2017). Facebook as a tool for supporting dialogic accounting? Evidence from large philanthropic foundations in the United States. Accounting, Auditing & Accountability Journal, 30(4), 874-905.
Buechel, E. C., & Berger, J. (2015). Motivations for consumer engagement with social media. In Consumer Psychology in a social media world (pp. 3-22). Routledge.
Carmichael, D., & Cleave, D. (2012, December). How effective is social media advertising? A study of facebook social advertisements. In 2012 International Conference for Internet Technology and Secured Transactions (pp. 226-229). IEEE.
Carter, J. K. (2014). Social media strategies in small businesses.
Chanthinok, K., Ussahawanitichakit, P., & Jhundra-indra, P. (2015, July). Social media marketing strategy and marketing outcomes: A conceptual framework. In Allied Academies International Conference. Academy of Marketing Studies. Proceedings (Vol. 20, No. 2, p. 35). Jordan Whitney Enterprises, Inc.
Chetioui, Y., Butt, I., & Lebdaoui, H. (2021). Facebook advertising, eWOM and consumer purchase intention-Evidence from a collectivistic emerging market. Journal of Global Marketing, 34(3), 220-237.
Chugh, R., & Ruhi, U. (2018). Social media in higher education: A literature review of Facebook. Education and Information Technologies, 23, 605-616.
Curran, J. M., & Lennon, R. (2011). Participating in the conversation: exploring usage of social media networking sites. Academy of Marketing Studies Journal, 15, 21.
Dahnil, M. I., Marzuki, K. M., Langgat, J., & Fabeil, N. F. (2014). Factors influencing SMEs adoption of social media marketing. Procedia-social and behavioral sciences, 148, 119-126.
Fakhreldin, H., Shahin, M., & Miniesy, R. (2023). The impact of Facebook and Instagram on the growth of Egyptian MSMEs. Global Business and Economics Review, 29(1), 41-65.
Fisher, E. (2015). ‘You Media’: audiencing as marketing in social media. Media, Culture & Society, 37(1), 50-67.
Galati, A., Crescimanno, M., Tinervia, S., & Fagnani, F. (2017). Social media as a strategic marketing tool in the Sicilian wine industry: Evidence from Facebook. Wine Economics and Policy, 6(1), 40-47.
Handayani, P. W., & Lisdianingrum, W. (2011, December). Impact analysis on free online marketing using social network Facebook: Case study SMEs in Indonesia. In 2011 International Conference on Advanced Computer Science and Information Systems (pp. 171-176). IEEE.
Herispon, H., & Anuar, S. (2023). The Pressure of the Covid 19 Pandemic, Digitalization, and the Classic Problems of MSMEs in Indonesia. ADPEBI International Journal of Business and Social Science, 3(1), Article 1. https://doi.org/10.54099/aijbs.v3i1.531
Iskamto, D. (2023). Organizational Culture and Its Impact on Employee Performance. International Journal of Management and Digital Business, 2(1), Article 1. https://doi.org/10.54099/ijmdb.v2i1.584
Iskamto, D., & Ghazali, P. L. (2021). Framework of Mediating Role of MSEs Performance On The Relationship Between Entrepreneur Environment and Entrepreneur Satisfaction. The Journal of Management Theory and Practice (JMTP), 71–73. https://doi.org/10.37231/jmtp.2021.2.2.118
Iskamto, D., Aftanorhan, A., & Ghazali, P. liza. (2022). The Mediating Role of SMEs’ Performance in the Relationship between Entrepreneur Competence and Satisfaction. IQTISHADIA, 15(1), Article 1. https://doi.org/10.21043/iqtishadia.v15i1.14298
Khairawati, S., Marianti, D. J., & Wijiharta. (2022). Innovation, Alliances and Management of Halal Products as Strategies to Increase MSME Competitiveness in the Era of the Covid-19 Pandemic. Asean International Journal of Business, 1(2), Article 2. https://doi.org/10.54099/aijb.v1i2.169
Kiprotich, S., Kimosop, J., Chepkwony, P. K., & Kemboi, A. (2015). Moderating effect of social networking on the relationship between entrepreneurial orientation and performance of small and medium enterprise in Nakuru County, Kenya.
Kithinji, L. W. (2014). Internet marketing and Performance of Small and medium Enterprises in Nairobi County (Doctoral dissertation, University of Nairobi).
Kunz, W., Aksoy, L., Bart, Y., Heinonen, K., Kabadayi, S., Ordenes, F. V., ... & Theodoulidis, B. (2017). Customer engagement in a big data world. Journal of Services Marketing, 31(2), 161-171.
Laksmi, A. C., & Piniji, L. S. (2022). Pottery MSMEs in Kasongan, Bantul, and Behavioral Intention to Use E-Wallet. Adpebi International Journal of Multidisciplinary Sciences, 1(1), Article 1. https://doi.org/10.54099/aijms.v1i1.283
Leong, L. Y., Jaafar, N. I., & Sulaiman, A. (2017). Understanding impulse purchase in Facebook commerce: does Big Five matter?. Internet Research, 27(4), 786-818.
Lubis, K. S., & Irawati, L. (2022). The Effect of Financial Literacy on Financial and Capital Management on MSME Performance. Asean International Journal of Business, 1(1), 77–85. https://doi.org/10.54099/aijb.v1i1.66
Meske, C. & Stieglitz, S. (2013). Adoption and use of social media in small and medium-sized enterprises. In Practice-Driven Research on Enterprise Transformation: 6th Working Conference, PRET 2013, Utrecht, The Netherlands, June 6, 2013. Proceedings 6 (pp. 61-75). Springer Berlin Heidelberg.
Mohamed, S. A., Al-Sulaiman, F. A., Ibrahim, N. I., Zahir, M. H., Al-Ahmed, A., Saidur, R., ... & Sahin, A. Z. (2017). A review on current status and challenges of inorganic phase change materials for thermal energy storage systems. Renewable and Sustainable Energy Reviews, 70, 1072-1089.
Mugenda, O. M., & Mugenda, A. G. (2003). Research methods: Quantitative & qualitative apporaches (Vol. 2, No. 2). Nairobi: Acts press.
Odoom, R., Anning-Dorson, T., & Acheampong, G. (2017). Antecedents of social media usage and performance benefits in small-and medium-sized enterprises (SMEs). Journal of enterprise information management, 30(3), 383-399.
Ogunnaike, O. O., & Kehinde, O. J. (2013). Social networking and business performance: The case of selected entrepreneurs in Ota, Nigeria. Journal of Business and Management Sciences Research, 2(5), 116-122.
Ramsaran-Fowdar, R. R., & Fowdar, S. (2013). The implications of Facebook marketing for organizations. Contemporary management research, 9(1).
Sulaiman, A., Tajudeen, F. P., Jaafar, N. I., Moghavvemi, S., & Mohd Shuib, N. L. (2017). The Relationship between SME Owner’s Personality, Facebook Usage and Organizational Performance.
Tikam, M. V. (2013). Impact of ICT on Education. International Journal of Information Communication Technologies and Human Development (IJICTHD), 5(4), 1-9.
Yoon, G., Li, C., Ji, Y., North, M., Hong, C., & Liu, J. (2018). Attracting comments: Digital engagement metrics on Facebook and financial performance. Journal of Advertising, 47(1), 24-37.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Asean International Journal of Business
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
