Social media technology plays a crucial role in boosting productivity and competitiveness within various industries. It has made a substantial impact on the growth and vitality of small and medium-sized enterprises (SMEs) in the global economy. Through the utilization of social media technologies, SMEs can efficiently reach markets and interact with stakeholders while keeping costs to a minimum. As a result, the purpose of this study is to investigate the factors that influence SMEs' adoption of social media and the subsequent impact on their performance. The research team conducted a comprehensive study on the difficulties encountered by Small and Medium Enterprises (SMEs), considering various aspects such as technology, organization, and the environment. To gather data for the investigation, a survey with predefined answer options was administered. By adopting a quantitative methodology, the researchers analyzed 395 responses using structural equation modelling from industries such as Pharmaceutical, Automobile parts components, Electronics, IT solution Provider, Logistics, Financials, Khadi, Ceramics and glass product in Jharkhand. The results suggest that social media is becoming increasingly important for SMEs. By focusing on studying the innovative use of social media, managers and decision-makers in SMEs can improve their performance. However, Business performance refers to how well an organization achieves its goals and objective, typically measured through Sales, Brand Awareness and Customer Relationship. Additionally, incorporating social media into their operations acts as a positive mediator between technology, organization, environment, and SME performance. This research also highlights the advantages of using social media for organizations and provides insights into the motivations behind investing in this digital platform. It will help SME owner/Manager to improve marketing practices via social media adoption.