Document Type : Research Paper
Authors
1 Department of Business Management, Faculty of Management and Accounting, University of Hormozgan, Bandar Abas,Iran
2 Department of Business Management, Faculty of Management and Accounting, University of Hormozgan, Bandar Abas, Iran
Abstract
Abstract
With the rise of the internet and its potential for global connectivity, small and medium-sized enterprises increasingly utilize digital marketing approaches, most notably social media marketing. This paper is a literature review that examines the influence of multiple factors such as company-specific characteristics and internal and external factors on the adoption of social media marketing. Hence, in this study, the researcher explored the areas of social media marketing adoption and their impact on the performance of Small and Medium-Sized Businesses (SMBs). The research sample was comprised of senior executives and specialists from SMBs (private sectors) located in Hormozgan Province. The data collection method consisted of a questionnaire widely disseminated to a total of 143 companies. Our findings reveal that social media marketing adoption is positively influenced by technological factors (such as ease of use and perceived usefulness), organizational factors, and environmental factors. In particular, the adoption of social media marketing is indirectly influenced by technological and organizational factors, which mediate the variables of ease of use and perceived usefulness. Our findings indicate a positive and significant impact of social media marketing adoption on the operational outcomes of SMBs. Given these developments, it is recommended that businesses consider the factors that impact the adoption of social media marketing. This approach can create apt internal and external conditions to foster successful implementation.
Introduction
With the emergence of the internet and related technologies, specifically social media platforms, businesses have begun leveraging these platforms as part of their marketing plans. As social media marketing has become a powerful tool in these times, there currently exists an abundance of research addressing various aspects of this topic. However, the research on this type of marketing remains fractured and scattered, which has hindered the establishment of a singular and cohesive framework for analysis. Despite the widespread availability of social media marketing as a tool, its application and the company characteristics that influence its adoption remain understudied. However, the analysis of its role in improving company performance has grown increasingly imperative. Therefore, this study aims to investigate the factors that impact the adoption of social media marketing and its role in enhancing company performance among Small and Medium Sized Enterprises (SMBs). These contributions will enrich existing theory within this domain. A review of current literature reveals the significance of TOE and TAM as frameworks that facilitate deeper examination of the internal and external factors pertaining to the acceptance of social media. Given their relevance, this research incorporates both theories in its analysis of the adoption of social media marketing within SMBs.
Methodology
This research was carried out across two distinct stages. In the initial stage, a systematic review of literature on the subject was conducted, evaluating articles spanning from the years 2010 to 2021. The subsequent stage involved the development of a questionnaire as the primary data collection tool. Following this, the questionnaire was administered to 143 private SMEs located within the province of Hormozgan. To properly determine the sample size, the available sampling method was utilized. To assess the validity of the questionnaire, multiple methods were applied, including content validity, face validity (feedback from professors), and construct validity (correlation coefficients of extracted means and standard deviations, Formula-R and Larker matrices). Additionally, the questionnaire's reliability was measured through Cronbach's alpha and composite reliability coefficients.
Findings
During the systematic literature review in the first stage of research, 27 articles were identified as potentially relevant. Following the completion of the data extraction process, a content analysis was performed to organize and analyze the extracted data. The findings revealed a positive and significant impact of technological, organizational, and environmental factors on the adoption of social media marketing. To probe the potential effects of the aforementioned factors, three hypotheses were established. In the first hypothesis, the positive effect of the technology factor on the acceptance of social media marketing was confirmed. In the second hypothesis, the positive impact of organizational factors on the acceptance of social media marketing was validated. Furthermore, the third hypothesis confirmed the positive impact of the Environmental factors on the acceptance of social media marketing as well.
A more in-depth examination of the articles revealed that perceived ease of use and perceived usefulness could potentially mediate the relationship between technological and organizational factors and acceptance of social media marketing. To assess the impact of these two variables, four sub-hypotheses were explored. In the first sub-hypothesis, the role of the perceived ease of use in the relationship between technological factors and acceptance of social media marketing was examined. The outcome indicated a positive impact, thus confirming the hypothesis. Additionally, the second sub-hypothesis examined the role of perceived ease of use as a mediator within the relationship between organizational factors and acceptance of social media marketing. The findings supported this relationship, thus validating the sub-hypothesis. The third sub-hypothesis explored the potential influence of technological factors on the acceptance of social media marketing through perceived usefulness. The fourth sub-hypothesis affirmed that organizational factors positively impact the acceptance of social media marketing through perceived usefulness. To ultimately examine the impact of social media marketing acceptance on the performance of SMBs, a framework of hypotheses was established and investigated. To gauge the model's validity and stability, the partial least squares structural equation modeling (PLS-SEM) method was used, guided by the SmartPLS software.
Conclusion
The aim of this research was to investigate the factors influencing the acceptance of social media marketing and how it affects the performance of small and medium-sized private companies. The findings revealed that these effective factors can be categorized into three domains: technological, organizational, and environmental. The study has demonstrated that the acceptance of social media marketing has a significant, positive impact on company performance, particularly among small and medium-sized enterprises. From this conclusion, it can be inferred that adopting such marketing strategies can enhance efficiency, increase revenue, and ultimately improve the overall health and success of companies.
While this study has thoroughly assessed the direct and indirect effects of technological and organizational factors and environmental factors on the acceptance of social media marketing, it is not exhaustive. There are additional influential factors to consider, including individual, social, relational, and structural elements, that may also have a significant impact on the adoption of this marketing strategy. Therefore, future researchers are encouraged to take these factors into account as well and thoroughly investigate their individual impacts on the success of social media marketing initiatives.
Keywords
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