Adoption of Social Media for SME Growth in the Covid-19 Era: A Case of SMEs in the Clothing industry in Lusaka, Zambia

Abstract

Social media has become an emerging integral component to any business in the COVID-19 era. This study on social media adoption by SMEs in the COVID-19 era using the VT4 framework is thus essential. This study sought to investigate how the VT4 influences social media adoption and growth of SMEs. A quantitative research design was used to carry out this study. The target population of the study was SMEs staff in the clothing industry in Lusaka. A structured questionnaire was used as the data collection tool on 240 randomly selected sample size. The Statistical Packages for Social Sciences (SPSS) was used for data analysis. The study first sought to establish the social media platform adopted by SMEs in their business and the factors that influence adoption. The findings of the study revealed that Facebook was the most used social media platform among SMEs followed by WhatsApp. The least used was YouTube. The results of the study further revealed that among the factors that influenced social media adoption by SMEs was perceived usefulness and society's attitude. The study further sought to establish the impact of VT4 on social media adoption and SME growth. Descriptive analysis and the Pearson's correlation were used to analyze the results. The results of H 1 to H 5 showed a statistically significant Pearson's correlation with P Value of less than 0.005 (sig. 2-tailed) < 0.05, indicating that there is a statistically significant relationship between the VT4 and social media adoption and SME growth. Consequently, the study established that there was a statistical relationship between the VT4 (the independent variable) and social media adoption and SME growth (the dependent variable). The study thus concluded that SMEs in the clothing industry in Zambia have adopted social media and this has enhanced their growth. To elicit positive impact of the VT4 on social media adoption and SME growth, the study recommends mandatory social How to cite this paper: Kakumbi, G., &

Utilization of Social Media and Its Implications on the Performance of SMEs in Dodoma City, Tanzania

“…A more or less similar study by Apenteng and Doe (2014) in Ghana established that use of social media enables SMEs to reach greater market including outside markets at low costs. In Zambia, Kakumbi & Phiri (2022) found that adoption of social media by SMEs made it possible for SMEs to be more visible and to communicate more with clients, communicate their products and be able to market their products using prominent people. In turn, SMEs were also able to create ties and to get feedback from clients.…”

“…Use of social media has also an influence on innovation and branding in SMEs. However, as Kakumbi and Phiri (2022) have observed, most SMEs have not been generally enthusiastic in their involvement with electronic commerce. In Tanzania there is paucity of information on the relationship between social media and performance of SMEs.…”

“…However, the good performance of SMEs among other factors relies on the use of appropriate marketing strategies to retain the existing and attract new customers, which leads to the increase of sales volumes (Masum & Fernandez, 2008;Achtenhagen et al, 2010). In the context of the COVID-19 pandemic, for example, Kakumbi & Phiri (2022) argue that SMEs still need to remain functional by tapping into the opportunities offered by digital technologies and the internet.…”

“…In addi-tion, online marketing enables SMEs to access crucial information about their competing enterprises in terms of marketing activities and tactics, as well as product development and brand sediments (Ainin et al, 2015). Thus, marketing managers can be in a position to develop and implement appropriate marketing content and strategies to compete in the market (Chanthinok et al, 2015;Kakumbi & Phiri, 2022).…”

“…Ainin et al (2015) suggest that social media technology improves customers relations and accessibility of information from potential customers and respond to meet their needs and expectations. Social media has significant role on branding of SMEs products and through direct and efficient communication with customers enables the enterprises to be more innovative on their products regardless of geographical limitations (Tajvidi & Karami, 2017;Kakumbi & Phiri, 2022). They are effective in spreading brand awareness which in turn brings about brand loyalty and trust among customers (Al-Hadban et al, 2014).…”