The implication of social media marketing on the sustainability of SMEs in Accra Ghana

Abstract

Social media is a nascent technological tool that impacts organizations today. The impact varies from large to small organizations and developed and developing country contexts. The present study advances insight by investigating the implication of social media marketing on small and medium enterprise (SME) sustainability in Accra, using an exploratory, sequential, mixed methods strategy. The study commenced with the qualitative phase, interviewing 16 SMEs in Accra from different industries, as classified by the Ghana Investment and Promotion Council. The findings from the qualitative phase formed the basis for the quantitative phase, which surveyed 234 SMEs to participate in the study. The qualitative data were analysed with NVivo, while SmartPLS was employed for the quantitative data. Findings from the qualitative and quantitative phases reveal support for organisational and entrepreneurial factors influencing the adoption decision of SMEs in Accra. However, the study did not find support for two qualitative phase technological factors (complexity and perceived cost) and one environmental factor (institutional pressure). Furthermore, support for social media adoption and financial marketing performance were revealed as non-financial marketing performance in both study phases, while financial marketing performance was found to also support environmental and social sustainability. This study's originality lies in the use of a sequential mixed methods approach, to extend Technology, Organization and Environment theory in examining marketing performance outcomes and sustainability. Moreover, the inclusion of an additional factor to test social media adoption among SMEs and developing a conceptual framework to explore and test these relationships, differentiates this study. Theoretically, the study contributes to the existing knowledge, demonstrating the factors influencing SMEs' social media adoption, how this translates into non-financial marketing performance of SMEs and would lead to their sustainable performance. Based on the overall findings, the study also develops a conceptual framework that can serve as a foundation upon which future studies could be conducted. Practically, the findings would also benefit SME owners/managers on advantages of social media use in their organizations and to develop a proper implementation strategy. For policymakers who oversee SME activities, this study would provide the avenue for policy formulation on how SMEs can take advantage of social media in their organization to enable them to become competitive and remain sustainable.