The role of technological and environmental factors in creating business value from social media dynamic capabilities for SMEs in Saudi Arabia

Anwar Yahia Shams Eldin, Awadia Elnour, Rugaia Omer Ahmed Hassan and Abdelrehim Awad ()
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Anwar Yahia Shams Eldin: University of Bisha
Awadia Elnour: University of Bisha
Rugaia Omer Ahmed Hassan: University of Bisha
Abdelrehim Awad: University of Bisha

Palgrave Communications, 2025, vol. 12, issue 1, 1-11

Abstract: Abstract Small and medium-sized enterprises (SMEs) are also a significant engine of economic diversification and innovation, especially in developing economies like Saudi Arabia, where they represent 99% of private firms. Despite government support, SMEs are unable to realize measurable business value from social media and digital platforms. This current study aims to explore the influence of technological and environmental factors on business value creation through Saudi SMEs’ social media dynamic capabilities. A systematic questionnaire was distributed to 300 SMEs, and a response rate of 92.4% was obtained. SmartPLS 3.0 was employed to conduct data analysis, and its robustness was confirmed through acceptable R² values of 0.658 for social media dynamic capabilities and 0.611 for business value. Path analysis showed that technological factors have positive impacts on social media capabilities (β = 0.421, p

Date: 2025
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DOI: 10.1057/s41599-025-05784-x

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