The role of social media in enhancing performance measurement systems for small and medium enterprises (SMEs)
Fairul Rizal Rashid,
Annie Dayani Ahad,
Afiqah Amin and
Masairol Haji Masri
International Journal of Productivity and Performance Management, 2026, vol. 75, issue 9, 2925-2947
Abstract:
PurposeSocial media has evolved from being a tool for interaction into a platform that potentially offers novel performance measurement indicators. Thus, this research aims to examine the role of social media in the development of performance measurement systems (PMS) for small and medium enterprises (SMEs).Design/methodology/approachA qualitative research methodology employing semi-structured interviews was adopted in this research. A total of 25 online businesses were approached, and the interviewees consisted of the owners and/or managers of the participating SMEs.FindingsThe SMEs’ experience indicates that while there is a recognition of the importance of social media metrics in driving performance, the study shows that the conventional PMS practice amongst SMEs is still rather straightforward, focusing mostly on financial metrics, despite the attempts in using non-financial categories. Ultimately, this has contributed to the level of SMEs’ application of PMS via social media platforms, which are further influenced by the Technological Integration and the challenges endured and learning expectations from the SMEs.Research limitations/implicationsThis study is limited by a small sample size, a predominant focus on Instagram, a minimal industry-specific analysis and a short-term observational scope, all of which might constrain the generalizability and depth of its findings. A mix research methods can be undertaken on future relevant studies as a chosen method that is scarcely carried out.Practical implicationsThe research provides valuable insights for SMEs’ entrepreneurs to better understand the usage of multiple social media platforms, recognize the significance of PMS and hence impart effective business social media management in the current digitization era.Originality/valueThis research highlighted the importance and role of social media in the development of PMS for SMEs particularly by exploring social media application in an Asian context.
Keywords: Social media; Social commerce; Performance measures; Metrics; Multifaceted platforms; Small and medium enterprises (SMEs); ASEAN; Brunei (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijppmp:ijppm-02-2025-0095
DOI: 10.1108/IJPPM-02-2025-0095
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