Can Social Media Marketing Adoption Lead to Relative Competitiveness and Improved Sales Performance? A Study of SME Suppliers in The Zambian Mining Sector

Abstract

Globally, SMEs play a vital role in a country's economic growth through employment creation, contributing to GDP and fostering competition and innovation. However, these SMEs face a plethora of challenges which threaten their stability and continued existence. Worldwide, mortality rate of SMEs is high, with the situation in Zambia being no different. The case is worse among SMEs suppliers in the Zambian mining sector, whose sole dependency is on the mines. These SMEs risk failure to obtain regular business contracts due to competitive pressures with international suppliers, possible mine closures, low mining activities and unstable international market prices. Scholars suggest that SMEs can improve their relative competitiveness and sales performance by enhancing their visibility and building customer relations through adoption of social media platforms such as Facebook. Surprisingly, there has been inconclusive findings, some reveal a positive relationship, others a negative one while others suggest a zero relationship between social media (Facebook) adoption, relative competitiveness and sales performance. In light of the mixed findings, this study seeks to examine this in the context of SME suppliers in the Zambian Mining sector where research on the subject is non-existent. Mixed method approach of data collection will be employed. Findings of this study will help decision making among SME managers and policy makers.