Purpose-The purpose of this paper is to investigate the factors that influence Facebook usage among small and medium enterprises (SMEs). In addition, it examines the impact of Facebook usage on financial and non-financial performance of the SMEs. Design/methodology/approach-Using integrated model, this study examined the influence of compatibility, cost effectiveness, interactivity and trust on Facebook usage and its subsequent impact on organizations performance. Statistical analyses were based on the data collected, through survey questionnaire from 259 SMEs in Malaysia. Partial Least Square (PLS) method was used to test the hypotheses. Findings-The study revealed that Facebook usage has a strong positive impact on financial performance of SMEs; similarly it was also found that Facebook usage positively impacts the nonfinancial performance of SMEs in terms of cost reduction on marketing and customer service, improved customer relations and improved information accessibility. Additionally, factors such as compatibility, cost effectiveness and interactivity was identified as factors that influence Facebook usage among SMEs. Research limitations/implications-This study is limited in selection of samples. The sample only covered one community of SME in Malaysia which limits generalizability of the findings. This study provided a clearer idea on the real importance of Facebook and its benefits. The results would motivate and guide organizations in the adoption of Facebook for business activities. The study also has various theoretical and practical contributions. Originality/value-Very few empirical studies investigated the actual impact of Facebook usage among organizations. This study investigated the effect of Facebook usage on the financial performance of the organizations which is really important to study as it reveals the exact value of using Facebook for business activities.

No abstract

No abstract

Purpose Based on the system of value chain theory, the purpose of this paper is to investigate the impact of social media usage on the performance and the entrepreneurial orientation of the organizations. Design/methodology/approach A total of 174 organizations responded to the survey. Findings The result of the study showed that social media usage has a very strong positive impact on organizations’ performance, in terms of cost reduction, improved customer relations, and enhanced information accessibility. Research limitations/implications In the study, social media usage was categorized into three sub-constructs such as social media usage for marketing, social media usage for building customer relations, and social media usage for information search. This study investigated the usage of social media and its impact as a whole, considering all social media tools together. Finally, this study used a cross-sectional sample to collect data. Practical implications The result of the study benefits the managers to understand the various areas of organizational performance that can be improved by social media usage. Social implications The study also provided evidence that social media usage has strong positive influences on enhancing the entrepreneurial orientation of the organizations. Originality/value This study provides a clearer idea on the real importance of social media and its benefits. This study demonstrated the various areas of organizational performance that can be improved through social media usage.

No abstract