Abstract
Small and medium enterprises (SMEs) have become a vibrant and dynamic sector of the world economy. Information technology plays a vital role in improving the productivity and competitiveness of SMEs. The dynamic business environment has brought fierce competition among SMEs and, therefore, requires the owners to interact with internal and external members actively. Hence, this study aims to investigate the impact of technology, organization, and environment as important factors in the performance of small and medium-sized enterprises. It also examines the mediating role of social media adoption. Items were developed to measure the various purposes of social media use in organizations, which contribute to increasing the measurement of social media usage. For the empirical investigation, this paper used a closed-ended questionnaire. Using a quantitative method, we observed 423 responses through structural equation modeling. The findings of the study indicate that technology, organization, and the environment play effective roles for SME performance. More importantly, social media adoption positively mediates the relationship between technology, organization, environment, and SME performance. The study also helps organizations realize the advantages of using social media and specifies the rationale behind an organization’s investment in social media.
Highlights
Small and medium-sized enterprises (SMEs) can use social media (SM) because of its ease of use, low cost, technical manageability, and its ability to connect with many potential consumers [1]
We argue that greater involvement of stakeholders in the process and operation of a business, concerning different type of social media, will be employed; this study employs the stakeholder theory as an instrumental lens to understand the effects of social media in SME context
This study investigated the impact of technology, organization, and environment as important factors in the performance of small and medium-sized enterprises
Summary
Small and medium-sized enterprises (SMEs) can use social media (SM) because of its ease of use, low cost, technical manageability, and its ability to connect with many potential consumers [1]. SM is a popular choice for SMEs [5] because it enables clear communication, and gives firms the opportunity to understand and respond—competently and proactively—to customer needs [6]. Research tends to consider the use of SM from a business-to-consumer perspective. Studies have investigated the effects of SM on consumer purchase decisions [8], the impact on brand awareness and purchase intention [9], customer retention, electronic word of mouth, and purchase decision involvement [10]. Despite the significant impacts and perceived value for SMEs, research is limited regarding how SMEs choose or use SM channels. Few studies have investigated the use of SM to advance business practices and their effects on an organization’s performance [11]. Prior studies have investigated the Sustainability 2021, 13, 75.
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