FACTORS AFFECTING THE PERFORMANCE OF SMES DURING COVID-19 AND THE ROLE OF SOCIAL MEDIA ADOPTION

Shirin Jamal Mohammad Rashid

doi:10.25212/lfu.qzj.9.1.47

المؤلفون

Shirin Jamal Mohammad Rashid Department of Health Administration Department, College of Administration and Economics, Lebanese French University, Erbil, Kurdistan Region, Iraq

DOI:

https://doi.org/10.25212/lfu.qzj.9.1.47

الكلمات المفتاحية:

social media, trust, compatibility, cost-effectiveness, Kurdistan SMEs, Erbil

الملخص

The purpose of this study was to investigate the factors affecting the adoption of social media by SMEs in the Kurdistan region. In addition, it also aimed to investigate the impact of social media adoption on the financial and non-financial performance of SMEs. The researcher used an integrated model for this research and analyzed the impact of trust, compatibility, and cost-effectiveness for social media adoption by SME owners using the diffusion of innovation theory. The findings of the study suggest that trust, compatibility, and cost-effectiveness have a positive and significant impact on the adoption of social media for firm performance in the Kurdistan region. Similarly, the results also show that social media adoption is crucial to the firm financial and non-financial performance in the Kurdistan region specifically due to the Covid-19 social distancing issue. The current study is limited to the Kurdistan region Erbil city only however, the future research can focus on a broader sample size. Future research can also focus on analyzing specific social media tools such as Facebook or Instagram to analyze the impact on the performance. Not many existing studies analyzed the impact of social media adoption during the pandemic while societies practice social distancing and are financially stagnated by the pandemic

التنزيلات

بيانات التنزيل غير متوفرة بعد.

المراجع

Ahmad, S. Z., Bakar, A. R. A., & Ahmad, N. (2019). Social media adoption and its impact on firm performance: the case of the UAE. International Journal of Entrepreneurial Behavior & Research, 45(1), 19-31.

Ali Qalati, S., Li, W., Ahmed, N., Ali Mirani, M., & Khan, A. (2021). Examining the factors affecting SME performance: the mediating role of social media adoption. Sustainability, 13(1), 75-89.

Fan, M., Qalati, S. A., Khan, M. A. S., Shah, S. M. M., Ramzan, M., & Khan, R. S. (2021). Effects of entrepreneurial orientation on social media adoption and SME performance: The moderating role of innovation capabilities. Plos one, 16(4), e0247320.

Ainin, S., Parveen, F., Moghavvemi, S., Jaafar, N. I., & Shuib, N. L. M. (2015). Factors influencing the use of social media by SMEs and its performance outcomes. Industrial Management & Data Systems, 67(2), 45-55.

Akar, E., & Topçu, B. (2011). An examination of the factors influencing consumers' attitudes toward social media marketing. Journal of internet commerce, 10(1), 35-67.

Agarwal, R., & Venkatesh, V. (2002). Assessing a firm's web presence: a heuristic evaluation procedure for the measurement of usability. Information systems research, 13(2), 168-186.

Bhanot, S. (2012). Use of social media by companies to reach their customers. SIES Journal of Management, 8(1).

Cooper, R. B., & Zmud, R. W. (1990). Information technology implementation research: a technological diffusion approach. Management science, 36(2), 123-139.

Kaminski, J. (2011). Diffusion of innovation theory. Canadian Journal of Nursing Informatics, 6(2), 1-6.

Mustonen‐Ollila, E., & Lyytinen, K. (2003). Why organizations adopt information system process innovations: a longitudinal study using Diffusion of Innovation theory. Information Systems Journal, 13(3), 275-297.

MacVaugh, J., & Schiavone, F. (2010). Limits to the diffusion of innovation: A literature review and integrative model. European journal of innovation management.

Chege, S. M., Wang, D., & Suntu, S. L. (2020). Impact of information technology innovation on firm performance in Kenya. Information Technology for Development, 26(2), 316-345.

Trachtman, L. E., Spirek, M. M., Sparks, G. G., & Stohl, C. (1991). Factors affecting the adoption of a new technology. Bulletin of science, technology & society, 11(6), 338-345.

Meske, C., & Stieglitz, S. (2013, June). Adoption and use of social media in small and medium-sized enterprises. In working conference on practice-driven research on enterprise transformation (pp. 61-75). Springer, Berlin, Heidelberg.

Wamba, S. F., & Carter, L. (2013, January). Twitter adoption and use by SMEs: An empirical study. In 2013 46th Hawaii International Conference on System Sciences (pp. 2042-2049). IEEE.

Zeiller, M., & Schauer, B. (2011, September). Adoption, motivation and success factors of social media for team collaboration in SMEs. In Proceedings of the 11th international conference on Knowledge Management and Knowledge Technologies (pp. 1-8).

Lee, Y., & Kozar, K. (2004). Developing a theory of website usability: an exploratory study to identify constructs and nomological networks. ICIS 2004 Proceedings, 51.

Chong, A. Y. L., & Chan, F. T. (2012). Structural equation modeling for multi-stage analysis on Radio Frequency Identification (RFID) diffusion in the health care industry. Expert Systems with Applications, 39(10), 8645-8654.

Ramdani, B., Kawalek, P., & Lorenzo, O. (2009). Predicting SMEs' adoption of enterprise systems. Journal of enterprise information management.

Alam, S. S., & Noor, M. K. M. (2009). ICT adoption in small and medium enterprises: An empirical evidence of service sectors in Malaysia. International Journal of Business and management, 4(2), 112-125.

McKnight, D. H., Cummings, L. L., & Chervany, N. L. (1998). Initial trust formation in new organizational relationships. Academy of Management review, 23(3), 473-490.

Hallikainen, P. (2015). Why people use social media platforms: Exploring the motivations and consequences of use. In From information to smart society (pp. 9-17). Springer, Cham.

Schaffer, V. (2013). Overcoming social media barriers for small businesses. In 26th Annual SEAANZ Conference Proceedings (pp. 1-12). University of the Sunshine Coast, Queensland.

Akinwunmi, A. O., Olajubu, E. A., & Aderounmu, G. A. (2015). Trust: A requirement for cloud technology adoption. International Journal of Advanced Computer Science and Applications, 6(8), 112-118.

Belanche, D., Casaló, L. V., & Flavián, C. (2012). Integrating trust and personal values into the Technology Acceptance Model: The case of e-government services adoption. Cuadernos de Economía y Dirección de la Empresa, 15(4), 192-204.

Gálvez-Rodriguez, M. D. M., Caba-Pérez, C., & López-Godoy, M. (2014). Facebook: A new communication strategy for non-profit organisations in Colombia. Public relations review, 40(5), 868-870.

Ferrer, E., Bousoño, C., Jorge, J., Lora, L., Miranda, E., & Natalizio, N. (2013). Enriching social capital and improving organizational performance in the age of social networking. Business and Management, 5(2), 94-281.

Wong, C. B. (2012). Facebook usage by small and medium-sized enterprise: the role of domain-specific innovativeness. Global Journal of Computer Science and Technology.

Kwok, L., & Yu, B. (2013). Spreading social media messages on Facebook: An analysis of restaurant business-to-consumer communications. Cornell Hospitality Quarterly, 54(1), 84-94.

Chu, S. K. W., Woo, M., King, R. B., Choi, S., Cheng, M., & Koo, P. (2012). Examining the application of Web 2.0 in medical‐related organisations. Health Information & Libraries Journal, 29(1), 47-60.

Chong, A. Y. L., & Chan, F. T. (2012). Structural equation modeling for multi-stage analysis on Radio Frequency Identification (RFID) diffusion in the health care industry. Expert Systems with Applications, 39(10), 8645-8654.

Liao, C., Wang, H. Y., Chuang, S. H., Shih, M. L., & Liu, C. C. (2010). Enhancing knowledge management for RD innovation and firm performance: An integrative view. African Journal of Business Management, 4(14), 3026-3038.

Hsu, C. L., Lu, H. P., & Hsu, H. H. (2007). Adoption of the mobile Internet: An empirical study of multimedia message service (MMS). Omega, 35(6), 715-726.

Mirani, R., & Lederer, A. L. (1998). An instrument for assessing the organizational benefits of IS projects. Decision Sciences, 29(4), 803-838.

Rogers, E. M. (1995). Diffusion of Innovations: modifications of a model for telecommunications. In Die diffusion von innovationen in der telekommunikation (pp. 25-38). Springer, Berlin, Heidelberg.

Teo, T. S., Tan, M., & Buk, W. K. (1997). A contingency model of Internet adoption in Singapore. International Journal of electronic commerce, 2(2), 95-118.

Teo, T. S., & Pian, Y. (2003). A contingency perspective on Internet adoption and competitive advantage. European Journal of Information Systems, 12(2), 78-92.

Teo, T.S. and Choo, W.Y. (2001), “Assessing the impact of using the internet for competitive intelligence”, Information and Management, 39(1), 67-83.

Wang, Y. M., Wang, Y. S., & Yang, Y. F. (2010). Understanding the determinants of RFID adoption in the manufacturing industry. Technological forecasting and social change, 77(5), 803-815.

Qalati, S. A., Yuan, L. W., Khan, M. A. S., & Anwar, F. (2021). A mediated model on the adoption of social media and SMEs’ performance in developing countries. Technology in Society, 64, 101513.

Sarosa, S. (2012). Adoption of social media networks by Indonesian SME: A case study. Procedia Economics and Finance, 4, 244-254.

Yasa, N., Giantari, I., Sukaatmadja, I., Sukawati, T., Ekawati, N., Nurcaya, I., & Astari, A. (2021). The role of relational and informational capabilities in mediating the effect of social media adoption on business performance in fashion industry. International Journal of Data and Network Science, 5(4), 569-578.