Determinants of SME’s Social Media Marketing Adoption: Competitive Industry as a Moderator

Ghazanfar Ali Abbasi, Noor Fareen Abdul Rahim, Hongyan Wu, Mohammad Iranmanesh and Benjamin Ng Chee Keong

SAGE Open, 2022, vol. 12, issue 1, 21582440211067220

Abstract: In light of the growing role of social media marketing in the success of businesses and its low adoption rate among small and medium enterprises (SMEs), this study aims to identify determinants of SMEs’ social media marketing adoption by considering the competitive industry as a moderator. Data were collected from 214 SMEs in Malaysia. Unlike extant literature, this study proposed a dual-stage analysis involving partial least squares (PLS) technique and artificial intelligence named deep artificial neural network (ANN). The application of deep ANN architecture is used to predict 91% of accuracy for the proposed model. The results showed that perceived relative advantage, perceived cost, top management support, perceived competitor pressure, and perceived vendor pressure have a significant impact on social media marketing adoption. Furthermore, the competitive industry moderates the effects of competitive pressure and customer pressure on social media marketing adoption. The results of the study extend the literature on social media marketing by illustrating the influence of technological, organizational, and environmental (TOE) factors on social media marketing adoption among SMEs concerning the extent of industry competition. The results of the study enable policymakers and managers of SMEs to understand the factors that influence social media marketing adoption in both competitive and non-competitive industries and invest effectively in digital marketing.

Keywords: social media marketing; digital marketing; mobile marketing; technology adoption; technology-organizational-environmental; TOE factors; determinants; SMEs (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:12:y:2022:i:1:p:21582440211067220

DOI: 10.1177/21582440211067220

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