Exploring the influence of social media utilization on strategic objectives and profitability in micro, small and medium enterprises (MSMEs): a preliminary empirical study

Purpose In recent years, there has been a significant increase in business entities that use social media platforms for business purposes. Thus, this study aims to investigate how Micro, Small and Medium Enterprises (MSMEs) in a developing country use multiple social media platforms to achieve business objectives and enhance profitability. Moreover, the explosive growth of social media platforms has also generated vast amounts of data, making them a valuable resource for organizations. So, the study also explores the extent to which MSMEs have adopted data collection and analytics methodologies to leverage social media insights for informed decision-making. Design/methodology/approach A quantitative research design was employed using an online survey targeting MSME owners and managers across various sectors in Brunei. Data were collected from 93 valid respondents through purposeful and convenience sampling, then analyzed using SPSS with both descriptive and inferential statistical techniques. The surveys were distributed through direct messages to the official business Instagram and Facebook accounts, and the available WhatsApp numbers of the MSMEs. Findings This study provides a preliminary analysis of the social media practices by MSMEs. Yet, it is successful to reveal that WhatsApp Business, Instagram and Facebook are the most frequently used and profitable platforms among MSMEs. These platforms are primarily used for brand visibility, customer engagement and product marketing. Despite widespread adoption, a majority of MSMEs do not systematically collect or analyze social media data, highlighting a gap in data-driven decision-making. Nevertheless, a growing trend toward basic analytics practices is evident. Research limitations/implications The study faced challenges in collecting survey data from MSMEs in Brunei. The study also does not include a qualitative investigation that could deepen understanding of platform strategies and analytics literacy. Its findings are Brunei-centric, lack longitudinal data and may have limited generalizability, although they offer valuable localized insights. Thus, researchers are keen to undertake more follow-up and relevant research later on by using a qualitative methodology approach. Practical implications The paper provides valuable information for MSME entrepreneurs on selecting and managing multifaceted social media platforms. Moreover, the study underlines the need for improved digital literacy and low-cost analytical tools to support MSMEs in leveraging social media-generated data for effective decision-making and building strategic advantage. Social implications The study reveals that social media use by MSMEs improves not only profitability but also citizens’ quality of life and supports national digital economy system Digital interactions have improved market connectivity, customer engagement and product accessibility while promoting inclusivity among youth, women and rural entrepreneurs. Moreover, advancing digital literacy and data analytics fosters innovation, creativity and self-reliance, strengthening entrepreneurial empowerment and community resilience. Originality/value This study has highlighted and examined multifaceted social media application and data analytics practices in an underexplored ASEAN context. The study contributes original empirical evidence on the strategic integration of social media platforms by MSMEs in Brunei and highlights context-specific digital behaviors and adoption challenges.