Social Media Usage and SME Firms’ Sustainability: An Introspective Analysis from Ghana

Abstract

Social media is gradually transforming diverse business ecosystems due to the limitless capabilities they offer. Given this, emerging businesses across the globe are leveraging this innovation to improve their operations. While the literature on the usage of social media by small and medium enterprises (SMEs) is still emerging, the outcomes from existing research have not been coherent. Amid this, limited empirical evidence has been adduced on the affordance of the technology for the SME ecosystem in developing economies, particularly Ghana. Following this, this study aims to fill this research gap by investigating the impact of social media usage on the long-term sustainability of SMEs, specifically in Ghana. Using empirical data from 424 respondents who are representatives of manufacturing SMEs in Ghana, using SmartPLS techniques, the study confirmed that, generally, social media usage does not only have a positive impact on SMEs but drastically drives their motivations towards resilience and sustainability. The results further revealed a positive and significant effect of social media usage value creation, business connections and opportunities on SMEs’ sustainability. This study contributes to knowledge of social media usage and sustainability from a developing country’s perspective. This study offers several implications for theory and practice.