Effects of entrepreneurial orientation on social media adoption and SME performance: The moderating role of innovation capabilities

Abstract

The increase of social media (SM) has led to continuous deviations in how day-to-day entrepreneurial activities can be carried out. Additionally, studies devoted to SM entrepreneurship and SM are relatively limited and fragmented in their focus. However there is growing interest from scholars, practitioners and academia for upcoming studies and exploration within small and medium-sized enterprises (SMEs) context. This research explores the impact of entrepreneurial orientation (EO) on SM adoption and SME performance in developing countries. We employed the resource-based view (RBV) as the foundation for developing the conceptual framework The present study employed a closed-ended questionnaire to collect data from SMEs located in Pakistan. Partial-least-squares-structural equation-modeling (PLS-SEM) was utilized for the analysis of 423 responses. The results proved a direct positive link between EO–SMEs performance, EO–SM adoption, SM adoption–SMEs performance, innovation capabilities (IC), and SME performance. Partial mediation was found between EO and SME performance, and the significant moderation effect of IC was found between SM adoption and SME performance. This paper has implications for practitioners and researchers regarding SM adoption in the SMEs. It builds an empirical, multi-dimensional hypothesized model, including mediating and moderating roles affecting the relationships.

Exploring social media usage as a communication channel among independent food retailer SMEs in South Africa

“…Several inquiries emphasized that restricted resources, technical capabilities, and adverse usefulness sentiments were impediments to social media usage (Michaelidou et al, 2011;Jagongo & Kinyua, 2013;Ainin et al, 2015;Braojos-Gomez et al, 2015;Grimmer et al, 2017;Tuten & Perotti, 2019). Further studies found that social media had a positive effect on the profitability and/or performance of businesses, and the ICT channel was seen as technically accessible and cost effective (Bocconcelli et al, 2017;Fan et al, 2021;Lányi et al, 2021;Qalati et al, 2020;Qalati et al, 2021). The most dominant social medium appealing to customers in the retail sector was Facebook (Odoom et al, 2017).…”

“…There is a growing body of literature on social media and communication strategies in mainly developed nations. Ainin et al (2015); Bocconcelli et al (2017); Bae and Zamrudi (2018); Appel et al (2020); Chatterjee and Kumar Kar (2020); Fan et al (2021); Gabbianelli and Pencarelli (2021); and Siti-Nabiha et al (2021) have investigated factors influencing the adoption of this ICT channel, whereas others have conducted enquiries into the extent and mode of social media implementation (Harris & Rae, 2009;McCann & Barlow, 2015;Taiminen & Karjaluoto, 2015;Barnard et al, 2017;Torres de Oliveira et al, 2020;Olanrewaju et al, 2020;Olsson & Bernhard, 2020). From an African developing country perspective, researchers such as Badenhorst-Weiss and Cilliers (2019); Das ; Makhitha (2016); Amoah and Jibril (2021); and Lányi et al (2021) investigated factors affecting competitiveness and the impact of marketing strategies on profitability.…”

Digital Marketing, Msme Product Marketing Innovation

“…Utilize facebook ads, instagram ads, youtube ads, twitter ads, google adsense which can be accessed easily by MSME actors through social media. The use of advertising (advertising) on social media, although it requires initial capital, the benefits obtained are comparable and can even be much greater than the capital spent (Fan et al, 2021). This is because the use of advertising can reach consumers more precisely with the criteria that we have previously determined, ranging from age, city of origin, occupation, gender and even what accounts are often seen by target consumers.…”

“…c. Create and release product marketing videos then broadcast through social media accounts or carry out direct promotions of products sold so that they can be seen by consumers who follow the social media of MSME actors (Fan et al, 2021). This strategy, if done correctly and consistently, will have a positive impact on the business being run.…”

“…Able to connect producers and consumers through cyberspace. Digital marketing can be connected without the need to meet face to face, even without the need to know who the consumer is contacting (Fan et al, 2021). This digital track record will store consumer data for further management by MSME actors.…”