Factors influencing social media adoption in small and medium enterprises (SMEs)

Abstract

The adoption and use of Information and Communication Technologies (ICTs) is widely regarded as essential in contemporary organisational environments. Such technologies have substantial effects on an organisation’s productivity and competitiveness. However, the nature of the effects varies across types of organisation (small to large), by country-context (developed and developing countries) and with the type of ICT adopted. This thesis focuses primarily on Small to Medium Enterprises (SMEs) in a less-researched developing country context, the region of the Gulf Cooperation Council (GCC), with special reference to Oman. In terms of the ICT under investigation, recognising the emergence of more interactive forms of technology, this thesis focuses on social media applications. It is widely recognised that the adoption and use of these applications change the ways in which organisations conduct their activities and represent a critical business opportunity for SMEs. This opportunity will only be realised by SMEs if, and when, social media are adopted in their organisations. This therefore creates a requirement to understand the factors that influence SMEs in making the adoption decision. The research related to such factors is scarce, not least because the technologies are relatively new. By using the Technology-Organisation-Environment (TOE) framework, this study therefore attempted to understand the factors influencing the decision by SMEs to adopt social media. It employed a sequential, exploratory mixed method, where both qualitative and quantitative approaches were combined to meet the research objectives. In the first stage, a preliminary TOE model of 18 factors was developed from the analysis of semi-structured interviews with 18 SMEs owner-managers in Muscat, the capital city of Oman. In the second stage, a survey involving 205 SMEs in Muscat was conducted to examine empirically the preliminary model. The survey data were analysed using logistic regression (LR). Of the factors examined, compatibility, observability, trialability, trust, image, perceived lack of managerial time, market scope, customer pressure and family and friends’ support were found to have significant influence on SMEs’ decisions to adopt social media. These findings have important implications and value for the research community, SMEs and policy makers (in particular, the Public Authority for SME Development (PASMED)) in terms of formulating improved strategies for social media adoption. The resulting research model proposed in this thesis can improve these stakeholders’ understandings of why some SMEs have chosen to adopt social media technologies, while other SMEs which face similar market conditions have not.