Influencing factors of social commerce adoption on SMEs in Pakistan: implications for SMEs in hospitality & tourism industry based on case studies

Small and medium-sized companies (SMEs) contribute to Gross Domestic Product (GDP) in severaleconomies. After developing the latest information and communication technology (ICT) tools, manySMEs have contributed to enhancing their social commerce (SC) potential in developed countries.This development is relatively low in developing countries as compared to the developed nations.Therefore, the main aim of this study is to identify the influencing factors on the adoption of SC onSMEs in Pakistan. Recommendations were made to SMEs to adopt SC more effectively by integratingthe TOE (Technological, Organisational and Environmental) model developed by Tornatzky andFleischer (1990).Many previous studies solely focused on developed economies, and research on SC adoption inunderdeveloped nations is limited. As a result, the primary goal of this study is to add to the body ofinformation about the development and adoption of social commerce in SMEs in emerging economiesafter identifying key SC adoption determinants.This research is being conducted in the context of SMEs in Pakistan's emerging economy. Twelveparticipants took part in this study from seven case studies. During the data collection process, allparticipants were either owner, social media managers/ executives or general managers from the samedepartment.The methodology adopted in undertaking this study is the qualitative research approach. This researchhas empirically identified the influencing factors affecting SMEs to adopt SC and the benefits of ICTuse in their organizational performance. Semi-structured interview method were used to collect thedata. In the next phase, Thematic Analysis (TA) method were used to identify the main themes, subthemesand the codes.Based on the results of the interviews, the conclusions suggest that SMEs in the Hospitality andTourism sector are adopting SC mainly for marketing purposes to promote and enhance brand image.Furthermore, to attract and reach more prospective consumers, improve sales, enter new markets, anduse SC as a customer care communication channel. According to the research, government support forSMEs and ICT infrastructure preparedness in Pakistan, internet affordability and availability, thebenefits of SC platforms, and the functional diversity and simplicity of use are some of the primarymotivations for using SC. Furthermore, the findings revealed that SC cost-effectiveness, low entrycost, and consumer popularity on Social Media (SM) are the primary motivators for SC adoption inSMEs. Moreover, assistance for small and medium-sized businesses and internal SM and businessmanagement were essential variables that motivated and enabled SMs to improve their performancein the implementation of SC.However, to achieve successful SC implementation, SMEs are faced with several challenges. Thefundamental problems were the lack of skills, trust, and SC rules and legislation in Pakistan.Furthermore, the unwillingness, if any and attitudes of management to pay SM charges has a particularinfluence to restrict SC adoption improvements. Furthermore, preliminary SC adoption plans, personaleffort dependency and poor understanding of SC's broader functioning among small and medium-sizedbusinesses were unwanted for SC adopts success in small and medium-sized enterprises. Lack ofentrepreneurship, lack of IT skills, lack of IT understanding within society, lower literacy rate, andowner-manager positions were also significant factors influencing the adoption of SC within Pakistan'sSMEs as a growing economy. The findings have ramifications for Pakistani government officials, ITproviders, and small business owners. The low rate of SC adoption by SMEs in Pakistan has clearimplications for the Pakistani government (GoP). The findings of this study may aid them in increasingthe number of competent programmers and better targeting them to encourage SMEs in Pakistan toembrace SC.This situation would provide an opportunity for IT suppliers to promote their goods and services. Theyshould also evaluate the decisive variables of SC adoption to improve their chances of success. Manysmall business owners desire to increase their level of adoption to compete more effectively.Furthermore, various recommendations have been made for Pakistani SMEs, including best practicesto adopt and bad practices to avoid. Successful SC implementation and better operational improvementoutcomes are strongly connected with the effective adoption of best practice.