Social Media Marketing for Small and Medium Enterprise Performance in Uganda: A Structural Equation Model

Abstract

Thanks to the ongoing expansion of internet access and, most recently, the movement restrictions that were put in place globally to stop COVID-19 spread, many small and medium enterprises (SMEs) are prepared to use social media platforms to market their products as a way to improve their business performance in emerging economies. Businesses at all levels that use social media marketing (SMM) see a considerable increase in their output. This study’s objective is to identify the factors that significantly help Ugandan SMEs implement SMM techniques to enhance their commercial performance. Here, statistical models are utilized to analyze how the age and gender of SMEs owners as moderating variables affect the adoption and performance of SMEs in Uganda. A theoretical model that is based on the Technology Acceptance Model (TAM) and Innovation Diffusion Theory (IDT) theories has been put out as part of a specific conceptual framework. The following indicators are used to evaluate the performance of SMEs: sales, customer engagement, awareness of customers’ needs, low operation costs, and brand modification by staff. Empirical model validation has been performed using 152 business units (observation units) corresponding to the number of respondents (units of analysis), and the ensuing analyses have been done using structural equation modelling (SEM). The results indicate that compatibility and perceived ease of use have a positive impact on SMEs to adopt SMM, while perceived usefulness has a negative impact on SMEs to adopt SMM. Age and gender as moderating variables all have a positive moderating effect. With limited studies available on the subject, this research contributes to already existing literature by combining two components of the TAM model and one component of the IDT to explain the impact of SMM on SMEs when moderated by both age and gender in a developing economy.

Financial Accountability and Service Delivery in Kabale District, Uganda

“…In order to determine how respondents felt about the impact of financial responsibility on service delivery at the Kabale District local government, the data was first computed using frequencies, which also contained means and percentages. The correlation method was based on Pearson's coefficient (+ or -to show the direction of the relationship between the variables), and significance will be tested at 99% and 95% confidence levels (Patience et al, 2022;Kikawa et al, 2022). The coefficient of determination 899 implies that record-keeping systems affect service delivery at Kabale District local government by 89.9%.…”

Increasing access to business incubation services for cottage start-ups to promote inclusive entrepreneurship in Southwest Uganda

“…Ouimette, Chowdhury, & Kickul (2021) propose a design model for improving information security adoption for SMEs in Uganda, addressing critical concerns in the realm of cybersecurity. Social media's impact on micro and small enterprises is explored by Sendawula et al (2022) and Kikawa et al (2022), offering insights into the perceptions, readiness, and usage of social media in fostering sustainable growth and marketing performance. Lastly, Mbowa et al (2023) investigate the influence of social capital on small and medium enterprises' performance in Wakiso District, Uganda, highlighting the interconnectedness of social networks and business outcomes.…”

“…Ouimette, M., Chowdhury, I., & Kicku (2022) addresses important cybersecurity issues and suggests a design paradigm for SMEs in Uganda to embrace information security more easily. Sendawula et al (2022) and Kikawa et al (2022) examine the effects of social media, providing information on attitudes, preparedness, and use of social media in promoting longterm development and effective marketing. The study conducted in Uganda's Wakiso District by Mbowa et al (2023) emphasizes the connection between social networks and economic results.…”