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STRATEGIC ORIENTATION AND THE PERFORMANCE OF SMEs: THE MEDIATING ROLE OF SOCIAL MEDIA MARKETING



Despite social media’s rising significance and perceived value for SMEs, a handful of studies have focused on SMEs' use of social media channels to enhance business management in relation to the performance of the organization. The rapid growth in the use of social media for business purposes requires that more empirical investigations are done across different levels, sectors and contexts of businesses to analyse the adoption, utilization, strategies and outcomes of social media so as to create theory. Data was collected through the administration of an online survey link. Responses from five hundred and forty-seven (547) CEOs/Managers/Owners of SME clients of the National Board of Small Scale Industries (NBSSI now Ghana Enterprise Agency - GEA) were successfully obtained and analysed using structural equation modeling (SEM) technique. The study used strategic collaboration, innovation, and coordination as proxies for social media marketing as these variables have been less researched and for most SMEs to overcome the negative impact of the COVID-19 pandemic these variables are needed. The study found that IT business alignment has significant and positive influence on four constructs; strategic collaboration, innovation, coordination, and responsiveness. The results suggest that both strategic collaboration and innovation have significant and positive influences on responsiveness. The results further indicate that innovation and coordination have no significant influence on SMEs performance. However, responsiveness has significant and positive influence on SMEs performance. The study adds to the body of knowledge by showing that IT-business alignment improves SMEs' responsiveness. The conceptualization in investigating the effect of IT-business alignment at the business process level provides a new insight to understand how and why alignment influences performance. This research clarifies concepts and theories about how strategic orientation aided by social media marketing influences SME responsiveness and performance. The study also provides more knowledge on the impact of social media as a marketing strategy for SMEs, as well as the roles played by social media as a marketing strategy for products and services for SMEs, factors influencing adoption of social media as a marketing strategy among SMEs. Policymakers can rely on these findings to formulate useful policies to promote the operations of business enterprises. Additionally, a number of future lines of research are proposed and discussed to understand the direction of the next steps that SMEs should take to successfully make use of social media marketing in growing their businesses


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English
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