Asean International Journal of Business
Vol. 3 No. 1 (2024)

How Facebook Adoption Impacts SMEs Performance

Richard, Mugarura (Unknown)
Osunsan, Olutayo (Unknown)
Onyait, Samuel (Unknown)
Augustine, Wandiba (Unknown)



Article Info

Publish Date
11 Jan 2024

Abstract

The rise in social media usage has revolutionized information dynamics, transforming traditional communication into a multidirectional, interactive process. This study explores the impact of Facebook adoption on Small and Medium-sized Enterprises (SMEs) performance, addressing a notable gap in the Ugandan context. A quantitative survey involving 120 SMEs employed a comprehensive questionnaire validated for content and reliability. Existing literature suggests that Facebook positively influences SME performance, more so in areas like cost-effective marketing and customer engagement. Results highlight a moderate to high levels of Facebook adoption among SMEs. Correlation analysis reveals positive associations between Facebook adoption and SME performance. Regression analysis further signifies Facebook's significant impact ( =0.142, P<0.0003), particularly through customer engagement (B=0.263, p<0.029). The study points out the unique relationship between Facebook adoption and SME performance and thus recommend businesses to strategically engage with customers on this platform. While the model explains a part of SME performance, areas for future research to explore additional influencing factors are recommended.

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Journal Info

Abbrev

AIJB

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Asean International Journal of Business (AIJB) is a peer-reviewed economic journal serving as a forum for Business Economics Scholars concerning to area of Accounting, Banking, Economics, Entrepreneurship, Finance, Human Resources Management, and Management. This open accessed Journal publishes ...