How Does SME Social Media Adoption Drive Marketing Performance?

Abstract

This study presents an integrated model investigating the dynamics of small and medium enterprise (SME) social media adoption and its impact on SME marketing performance. Drawing data from a cross-sectional survey among 234 SMEs operating in various sectors in Ghana, this research employed a comprehensive analysis using the statistical package for the social sciences and structural equation modelling to test 14 hypotheses. While trust and interactivity were significant drivers of social media adoption, the results revealed the cost and complexity influence on adoption was not substantiated. Additionally, the study underscored the crucial role of organisational, environmental, and entrepreneurial factors in shaping social media adoption patterns among SMEs. Moreover, the findings highlighted the positive social media adoption impact on both non-financial and financial marketing performance, with non-financial marketing performance further contributing to overall financial marketing performance. Despite its contributions, this study acknowledges certain limitations, including its focus on SMEs exclusively present on social media in Accra and the potential implications of these findings on SMEs operating in other regions of Ghana. Overall, this research provides valuable insights into the complex interplay between SME social media adoption and marketing performance, contributing to the broader understanding of digital marketing strategies within the SME sector.