Social media marketing and firm performance of selected small and medium enterprises in Katsina State: A moderating role of digital literacy

This study examined the social media marketing and firm performance of small and medium enterprises in Katsina State with moderating role of digital literacy. On the ground of Technological Acceptance Model (TAM), crosssectional survey was used to collect data from the respondents. The study population comprised 460 employees and customers of Small and Medium Scale Enterprises (SMEs), and the sample size consisted of 185 employees and customers from chosen SMEs in Katsina State, Nigeria. The data was analyzed using a PLS-SEM technique and Smart PLS 4.1. The finding revealed that digital literacy has a significant and positive effect on firm performance of SME. Facebook has a significant and positive effect on firm performance of SME. WhatsApp has a significant and positive effect on firm performance of SME while Twitter has a negative and insignificant effect on performance of SMEs. For the indirect relationship the results indicate that digital literacy does not moderate the relationship between Twitter on firm performance of SME. However, digital literacy has an insignificant but positive moderating effect to Facebook and SMEs on firm performance. The study recommends that owners of SMEs concentrate on technology tools like WhatsApp Facebook to advertise their products and services. This may enhance general performance of their businesses and increase competitive advantage of rivals.