Examining Scale Internal Consistency: An Empirical Exploration of Social Media's Impact on SMEs Performance

Zaim Aizat Afdhal Bashri and Muhammad Faizal Samat

Information Management and Business Review, 2024, vol. 16, issue 3, 644-652

Abstract: Small and Medium Enterprises (SMEs) in Malaysia play a vital role in economic development by creating job opportunities and lowering unemployment rates. Numerous studies have been undertaken to improve business performance, with an emphasis on areas such as finance, SME characteristics, and knowledge management. However, in today's technological context, the importance of social media in business, particularly for Malaysian SMEs, should not be underestimated. As a result, the major goal of this study is to assess the internal consistency of the acquired data, facilitating subsequent systematic analysis. In this study, Cronbach's Alpha is used to validate the customized questionnaire. Data were collected from 141 respondents to investigate the effects of compatibility, cost-effectiveness, interaction, and trust on social media usage, as well as its implications for organizational performance. The questionnaire had 36 items and used a 5-point Likert scale to assess internal consistency. Preliminary reliability analysis revealed strong relationships for all variables, demonstrating the instrument's reliability in improving research quality. Furthermore, the study discovered that social media usage had a significant positive influence on SMEs' non-financial performance, notably in terms of cost saving or cost reduction in marketing, enhanced customer service, better customer interactions, and more convenient access to information. Furthermore, compatibility, trust, cost-effectiveness, and interactivity were identified as the main factors influencing social media adoption among SMEs.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:rnd:arimbr:v:16:y:2024:i:3:p:644-652

DOI: 10.22610/imbr.v16i3(I).4017

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