Social media marketing adoption and performance of micro-enterprise in an emerging market

Purpose Online social media platforms offer valuable, low-cost marketing tools for acquiring, retaining and growing customers for micro and small enterprises (MSEs). However, MSEs have been slow to adopt social media marketing as part of their traditional marketing strategy. The purpose of this study is (1) to examine the process of social media marketing adoption by MSEs in an emerging market using the Technology-Organization-Environment framework and (2) to investigate the impact of social media marketing adoption on MSEs' marketing outcomes and overall firm performance. Design/methodology/approach Data for the study (n = 1,472) were collected directly from a registered list of MSEs operating in the country. Structural equation modeling was used to test all relationships identified in the conceptual model. Findings Our findings indicate that MSEs' perceptions of technological, organizational and environmental factors positively influence their adoption and use of social media marketing. Moreover, the adoption of social media marketing by MSEs significantly enhances overall firm performance, including total sales volume, profits, market share and return on investment by improving marketing outcomes such as customer service quality, perceived product value, customer retention and the ability to attract new customers. Originality/value This study contributes to the evolving research streams on MSEs' adoption of social media marketing and the role of relationship marketing practices on market and financial performance. By integrating these two research streams, it provides insights into how MSEs can enhance relationship marketing and firm performance by leveraging technological, organizational and micro-environmental (market) factors, consistent with resource-based view theory. Managerial implications and directions for future research are discussed.