Social Media Marketing for Small and Medium Enterprise Performance in Uganda: A Structural Equation Model
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Date
2022-11-03
Journal Title
Journal ISSN
Volume Title
Publisher
MDPI
Abstract
Thanks to the ongoing expansion of internet access and, most recently, the movement
restrictions that were put in place globally to stop COVID-19 spread, many small and medium
enterprises (SMEs) are prepared to use social media platforms to market their products as a way to
improve their business performance in emerging economies. Businesses at all levels that use social
media marketing (SMM) see a considerable increase in their output. This study’s objective is to
identify the factors that significantly help Ugandan SMEs implement SMM techniques to enhance
their commercial performance. Here, statistical models are utilized to analyze how the age and gender
of SMEs owners as moderating variables affect the adoption and performance of SMEs in Uganda. A
theoretical model that is based on the Technology Acceptance Model (TAM) and Innovation Diffusion
Theory (IDT) theories has been put out as part of a specific conceptual framework. The following
indicators are used to evaluate the performance of SMEs: sales, customer engagement, awareness of
customers’ needs, low operation costs, and brand modification by staff. Empirical model validation
has been performed using 152 business units (observation units) corresponding to the number of
respondents (units of analysis), and the ensuing analyses have been done using structural equation
modelling (SEM). The results indicate that compatibility and perceived ease of use have a positive
impact on SMEs to adopt SMM, while perceived usefulness has a negative impact on SMEs to adopt
SMM. Age and gender as moderating variables all have a positive moderating effect. With limited
studies available on the subject, this research contributes to already existing literature by combining
two components of the TAM model and one component of the IDT to explain the impact of SMM on
SMEs when moderated by both age and gender in a developing economy.
Description
Keywords
social media marketing; electronic marketing; social media influence; small and medium enterprises (SMEs); structural equation modelling; moderating variables
Citation
Kikawa, C.R.; Kiconco, C.; Agaba, M.; Ntirampeba, D.; Ssematimba, A.; Kalema, B.M. Social Media Marketing for Small and Medium Enterprise Performance in Uganda: A Structural Equation Model. Sustainability 2022, 14, 14391. https://doi.org/10.3390/ su142114391