The Innovation Impact on Marketing Performance: The Case of SMEs in Developing Countries

Abstract

Despite the growing body of literature on social media adoption in marketing, there appears to be a lack of research on the specifics and ramifications for small and medium-sized enterprises (SMEs), which are an important segment of the business world. This study aims to address this gap by investigating the use of Facebook and Instagram in marketing among fast-food SMEs in Pakistan, a developing country. To achieve this goal, the study employs the technology-organisation-environment (TOE) framework and a multiple case study approach to analyse the antecedents of Facebook and Instagram adoption and their impact on marketing performance. Data was collected through semi-structured interviews with thirty fast-food SMEs in Pakistan and analysed using thematic analysis. The study reveals that several antecedents influence the adoption of Facebook and Instagram in marketing among SMEs, including interactivity, cost-effectiveness, owner support, customer pressure, and market scope. Furthermore, the adoption of these social media platforms impacted marketing performance, as it enhances brand awareness and customer buying interest. The study's findings offer a conceptual framework on the antecedents of Facebook and Instagram adoption in marketing among fast-food SMEs in Pakistan, with implications for their marketing performance. The study's conceptual framework can serve as a foundation for future research exploring social media adoption in other SMEs and industries. This study has both practical and theoretical contributions. At the practical level, it provides suggestions for fast-food SMEs in Pakistan on how to adopt social media platforms effectively for marketing purposes. At the theoretical level, it enriches the existing literature on social media adoption in SMEs.