Sustainable Competitiveness in the Case of SMEs—Opportunities Provided by Social Media in an International Comparison

Abstract

In the extremely competitive business environment typical of the 20th century, small and medium-sized enterprises have had to face countless challenges. As time progressed, digitization and the development of information and communication technology has had increasing impacts on the lives of both individuals and businesses. Now, from an organizational point of view, social media has become a corporate strategic tool the significant role of which is indisputable. The relevance of our study can be found in the fact that social media is now one of the most popular solutions if the goal of a business is to reach a specific target audience, to receive feedback about products/services, and to initiate the immediate communication that contributes to the loyalty of consumers and customers in the long term, as well as to take advantage of cost-effective advertising opportunities. The primary goal of our research is to provide the reader with a comprehensive picture of the thinking in the SME sector regarding the corporate application of social media. In our study, following a comprehensive literature review related to the topic, we use primary data collection to examine small and medium-sized enterprises operating in Hungary and Slovakia. The reason for choosing the subjects of the research is that, taking into account the territorial size of the regions under investigation, similar districts were selected, and the regions have similar numbers of businesses engaged in economic activity. The investigation process covers two regions in the two selected countries, examining a total of 1114 enterprises. Before starting our research, two hypotheses were defined. In order to test the correctness of the hypotheses, we performed statistical analyses using the SPSS program, specifically the Mantel–Haenszel test and the chi-square test. Considering the results, the hypotheses formulated by the authors proved to be correct in the case of both countries. As a result, it can be stated that the success of traditional marketing tools used before the online space greatly influences the extent to which businesses feel their presence in social media is important.

Factors Affecting the Adoption of Social Media Marketing in Small and Medium-Sized Businesses.

“…From a business perspective, companies can use social media in several ways to improve operations and enhance the business profile by creating relationships with potential and existing consumers, creating value, enhancing and promoting brands, and building sustainability (Derham et al, 2011;Dubbelink et al, 2021;Hajli, 2014;Korcsmáros & Csinger, 2022). For example, Tuten & Solomon (2015) defined social media marketing as using social media platforms to develop and share valuable offers with the organization's stakeholders.…”

“…At the worldwide level, small and medium-sized enterprises have traditionally been seen as the foundation of development and macrosocial and economic policies. They have emerged as significant economic players during the past three decades in both developed and developing nations, particularly in light of the growth of information technology and the shift towards a more global business environment (Korcsmáros & Csinger, 2022).…”

“…Also, Social Media is an effective way to keep an eye on the activities of competitors and enhance the understanding of their strategies, which can be helpful in both the growth of the company and the creation of competitive advantages (Korcsmáros & Csinger, 2022;Amoah & Jibril, 2020). (Stelzner, 2020), the social media industry report surveyed over 5,200 businesses to explain how social media marketing contributed to their growth.…”

“…Several studies found that a lack of practical and technical experience, not receiving proper training, and a lack of well-equipped staff hinder SMEs from adopting social media marketing (Korcsmáros & Csinger, 2022;Michaelidou et al,2011;Stankovska et al, 2016;Stockdale & Standing, 2006;Gilmore et al, 2007;Bruque & Moyano, 2007). Studies recommended many ways to overcome this challenge.…”

“…Instead of hiring external persons or contractors to manage the company's online marketing, it is better to invest in building the employees' capacity. In the long term, capacity building can be more effective cost-wise, although it is time-consuming in a short time (Korcsmáros & Csinger, 2022). It is fundamental to consider the staff's age, and the companies must work toward changing the staff values and culture to facilitate information technology implementation (Bruque & Moyano, 2007).…”