Enhancing Small and Medium Enterprises' Performance through Social Media Integration: Embedding the Diffusion of Innovation Theory in the Technology-Organization-Environment Framework

Abstract

Social media integration within small and medium enterprises (SMEs) has gained significant attention recently. This uptake is due to the growing recognition of the potential benefits of convergent digital technologies in enhancing customer information searching and improving customer experience. The research analyses how SMEs in developing countries use social media and identifies factors that affect its integration. Given the diversity in organisational performance, the research gap is attempting to understand how to integrate digital platforms in these contexts effectively. The study base theories are the technology-organisation-environment and diffusion of innovation. The technological aspects focus on the relative benefits, presence qualities, visibility, linkages, and interactivity. The organisational factors involve interdependent decision-making roles for support of operations and innovation. Competitive pressure and uncertainty increase are the study's environmental aspects. The study used a cross-sectional online survey to collect data from 938 business owners/managers in Harare, Zimbabwe. Thus, SmartPLS 4.0 software allows for data analysis and structural equation modelling. The results show no significant impact of social media integration and factors related to technology and organisation on small and medium-sized enterprises' performance. The empirical findings reveal that external pressure and environmental uncertainty affect social media integration in SMEs. There is still no clear evidence that social media integration significantly affects performance. The argument is that external environmental features are essential in predicting outcomes. We discuss the implications of this finding for theory, practice, and policy.