A mediated model on the adoption of social media and SMEs' performance in developing countries

Purpose: Small and medium-sized enterprises (SMEs) can adopt and use social media (SM) for communicating information with stakeholders with minimal cost. The ability to access and share information influences the SMEs' performance, but there is little scholarship on the association between the adoption of social media and SMEs' performance. This research aims to investigate the effects of technology-organizational-environmental (TOE) factors on the adoption of SM and SMEs' performance in developing countries. Design/methodology/approach: This study employed the TOE framework as determinants affecting the adoption of social media and SMEs' performance. The paper used a closed-ended questionnaire to gather data, through an online survey, from randomly selected respondents from SMEs operating in Pakistan. Partial-least-squaresstructural-equation-modeling (PLS-SEM) was used for the path analysis of 423 responses from SMEs' owners, executives, and managers. The present study also explores the mediating role of SM between TOE characteristics and SMEs' performance. Findings: The findings revealed a direct positive relationship between TOE constructs, the adoption of SM, and SMEs' performance. Full mediation was found between technological factors and SMEs performance, and partial mediation was found between organizational and environmental factors and SMEs' performance. Complementary mediation among the variables was also examined. Originality/value: This paper has implications for practitioners and researchers interested in investigating social media adoption in SMEs. It builds an empirical, multi-dimensional hypothesized model, including several determinants that may influence the adoption of social media.