Is Social Media Adoption a Powerful Means to Reach High Performance in Small- and Medium-Sized Firms? An Empirical Investigation

Abstract

Social media represent today an essential part of marketing strategies in business life. These communication tools are used as a source of information and dissemination of knowledge and belong to very important business marketing tactics as they help create new business opportunities, develop a stronger market position and, often contribute to changing consumer behaviour. In particular, this study investigates if and how the use of Facebook and Instagram positively affects business performance. Analyzing a sample of 30 successful European businesses that have registered relevant revenue growth in the last 3-year period, findings show that Facebook and Instagram adoption is neutral with reference to the achievement of positive financial and economic performance. An interpretive model is conceived to point out different kinds of social media adopters. Implications and limitations are discussed.