Social media (SM) has become a necessity and a method to confront challenges and fierce competition. More than half of the population are using SM. However, its implication for small and medium enterprises (SMEs) is not well documented and researched. Therefore, the purpose of this study is to review the literature pertaining to the adoption of SM by SMEs. A systematic literature review was conducted using specific keywords and database. This has resulted in reviewing 28 related articles. The findings was presented using frequency analysis. Number of articles are increasing steadily especially in emerging markets with large number of studies deploying the exploratory nature. The most widely used theory is the technological-organizational-environmental framework (TOE) and the sample size of the reviewed studies is adequate. Increasingly the structural equation modelling are being used. However, the use of intervening variable is minimal. The finding also showed that organizational and environmental context variables are the most important predictors of SM adoption by SMEs while the consequence of this adoption on business performance is mixed. There is a need for more studies to discover the consequence of adopting SM by SMEs using a combination of theories.
Purpose: The usage of social media (SM) by small and medium enterprises (SMEs) received relatively less attention and the findings in the literature are mixed in terms of the effect of SM on SME performance. The purpose of this study is to examine the effect of SM utilization on SME business performance (SMEBP) in Saudi Arabia. Theoretical Framework: Based on the resource-based view, this study proposed that SM internal utilization (SMIU) affects positively the SMEBP and marketing innovation (MI). MI is expected to affect the SMEBP and mediate the effect of SMIU on SME performance (profitability (PR) and business growth (BG). Design/Methodology/Approach: The population of this study is the SMEs in Al-Riyadh city in Saudi Arabia. A simple random sampling is deployed. The data was collected using a questionnaire. A total of 451 respondents representing SMEs participated in this study. Findings: The finding was derived using Smart PLS version 4. The findings showed that SMIU affected positively PR and BG of SME and MI. MI affected positively the PR and BG of SME and mediated partially the effect of SMIU on PR and BG of SME. Research practical Implication: Decision makers are advised to deploy SM more effectively and to create a rewarding culture for innovative ideas to improve performance. Originality/Value: This study helps to enhance the understanding regarding the role of marketing innovation and social media internal usage in improving the performance of SMEs in emerging economies.
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