Social Media Adoption and Financial Sustainability: Learned Lessons from Developing Countries

Abstract

Social Media (SM) is considered one of the most discussed topics in today’s business environment, mostly because of the recent developments and improvements in computer and ICT (Information and Communications Technology) technologies. However, very little is known about Social Media’s (SM) role in creating Small and Medium-sized Enterprises’ (SMEs’) financial sustainability. Drawing upon the Technology Organisational and Environmental (TOE) framework, the authors constructed a comprehensive model that examined the role of different factors in the adoption of SM by SMEs in developing countries (using Pakistan as an example). Using a questionnaire survey of 383 owners/managers of SMEs in Pakistan, the research findings determined the different factors (i.e., organisational, technological, and environmental), which can impact the adoption of SM by SMEs. In line with previous research studies, the results of structural equation modelling show that technological factors such as perceived benefits of SM, compatibility of SM, cost, and trust have a substantial effect on SMEs’ SM adoption. Similarly, both organisational factors: top management support and technological competence, are strong predictors of SM adoption in SMEs. Finally, environmental factors (i.e., competitor pressure, customer pressure, and information intensity) positively impacted SM adoption by SMEs. The effect of SM adoption on SMEs’ financial sustainability was also tested and found to be positive and significant. Several theoretical and practical implications for owners/managers and other stakeholders regarding SM’s successful implementation by SMEs are highlighted within the paper.

Antecedents of Sustainable SMEs in the Social Media Space: A Partial Least Square-Structural Equation Modeling (PLS-SEM) Approach

“…The publication established that constant connectivity through social media entices customers to regularly purchase the firm's products or services. Given this, SMEs constantly achieve an increase in sales volume, which subsequently leads to an increase in the bottom line (Rahman et al, 2020;Botchway et al, 2020). Wardati and Er, (2019) also researched the impact of social media usage on the sales process in Small and Medium enterprises and concluded that social media as an advertising tool by SMEs enabled them to improve the sales volume and reduce the selling processes.…”

“…As such, although social media was initially rejected by Small Medium Enterprises for several reasons, it was later adopted based on its business opportunities and strategies (Kallier, 2017). Social media as a strategic advertising tool has facilitated SME's sustainability, brand awareness, acquisition of information, purchase behavior, postpurchase communication, and evaluation of consumer decision-making processes (Rahman et al, 2020). Therefore, small and medium enterprises are significantly innovating and intensifying their business strategies.…”

A Cognizance of Green Bond Features Preferential to Renewable Energy Project Financing in Ghana

“…The company reputation is an essential driver to increase its marketing value (Jenck et al, 2004). A positive company brand takes years to build but can be ruined in a matter of minutes with current media coverage and social media campaigning (Ur Rahman, et al, 2020;Raghubansie, et al, 2013;Weybrecht, 2014;and El-Gohary, 2010). Investor relation and the marketing departments within companies perceive green practices as a communication channel through which they can display environmental initiatives (Ross, 2015;and Falsen and Johansson, 2015).…”

“…In addition, Milford et al (2014) illustrated that added difficulties are attached, particularly with financing clean energy projects. However, financial sustainability and green investments remain important globally (Ur Rahman et al, 2020). Getting past the traditional financing system's constraints means that more tailored and innovative finance mechanisms need to be explored.…”

Sustaining work outcomes through human capital sustainability leadership: knowledge sharing behaviour as an underlining mechanism

“…One may see that is positioned in a more holistic way that integrates with other leadership aspects. When we look into leadership from a psychological and sustainable perspective, the aforementioned holistic view of leadership (HCSL) becomes highly significant for the development and for proper functioning of the human resource at organisations (Di Fabio and Peiró, 2018; Ur Rahman et al , 2020). A prior study by Di Fabio and Peiro (2018) further promoted the idea of the integration of the aforementioned sustainability leadership with the other leadership behaviours, like ethical leadership, mindful leadership and servant leadership.…”