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Antecedents of social media usage and performance benefits in small- and

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 Journal of Enterprise Information Management
Antecedents of social media usage and performance benefits in small- and
medium-sized enterprises (SMEs)
Raphael Odoom, Thomas Anning-Dorson, George Acheampong,
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Raphael Odoom, Thomas Anning-Dorson, George Acheampong, (2017) "Antecedents of social
media usage and performance benefits in small- and medium-sized enterprises (SMEs)", Journal of
Enterprise Information Management, Vol. 30 Issue: 3, pp.383-399, doi: 10.1108/JEIM-04-2016-0088
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Antecedents of
Antecedents of social media usage social media
and performance benefits in usage

small- and medium-sized

enterprises (SMEs) 383

Raphael Odoom, Thomas Anning-Dorson and George Acheampong Received 14 April 2016
Revised 24 July 2016
Marketing and Entrepreneurship, University of Ghana Business School, Accra, Ghana Accepted 17 October 2016

Abstract
Purpose – Despite the blossoming nature of social media marketing, the nuances and implications among
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small- and medium-sized enterprises (SMEs) appear to be under-researched in literature. The purpose of this
paper is to progress knowledge and offer extended understanding of the motivations and performance
benefits of social media accrued by SMEs with an empirical study from an emerging economy.
Design/methodology/approach – Based on past research, the study hypothesizes that interactivity,
compatibility and cost effectiveness are motivations germane to social media usage, which consequently offer
performance benefits. Data from 210 SMEs (having Facebook and/or Twitter accounts) are employed to
investigate the proposed conceptual model using structural equation modeling with sub-group analysis.
Findings – Finding from this study demonstrate that the interdependencies of social media motivations, as
well as effects of social media usage are positive but erratic across product-based and service-based SMEs.
Moreover, SMEs who offer physical products are more likely to employ social media based on cost-effective
motives while service SMEs are more likely to consider interactivity as a key motivation. Additionally,
findings from the study data suggest that in a tale of two sites, Facebook proved to edge Twitter in terms of
engendering performance benefits among SME users.
Originality/value – The findings provide evidence to issues of potential research and managerial interest,
offering insightful implications to the academic and practitioner communities. Evidently, irrespective of some
usage bottlenecks, SMEs in emerging markets appears to be reaping enhanced social media benefits by
deploying their marketing campaigns via multiple platforms.
Keywords Emerging market, Social media, Small- and medium-sized enterprises (SMEs)
Paper type Research paper

1. Introduction
Advances in information technology are resulting in explosions of revolutionary businesses
(Ostrom et al., 2015). Evidently, the prevalence of the internet has also given consumers a
plethora of uses on the web, resulting in a significant change in the conduct of business by
firms. In recent times, social media and social networking sites have become spearhead
platforms for building and managing both transactional and relational activities in firms
(Kaplan and Haenlein, 2010; Kumar et al., 2016), as well as for managing and communicating
brands (Ashley and Tuten, 2015). The burgeoning nature of the phenomenon therefore calls
for more studies across several business levels, sectors and contexts in examining the
adoption, usage, strategies and outcomes of social media with the aim of developing theory
(King et al., 2014; Ratchford, 2015). A considerable number of empirical works on the subject
of social media, from both firms’ perspectives (Ainin et al., 2015; McCann and Barlow, 2015)
as well as consumers’ perspectives (Whiting and Williams, 2013; Dessart et al., 2015) are
available in literature. Zeng and Gerritsen (2014) as well as Knoll (2016), for instance, duly
provide systematic reviews on this blossoming concept. Despite its increasing popularity,
Journal of Enterprise Information
however, literature exhibits three key deficiencies. Management
First, disparities exist in existing studies, with inconclusive findings generally based on Vol. 30 No. 3, 2017
pp. 383-399
contextual differences (Knoll, 2016). Hence, the need for further examinations of the nuances © Emerald Publishing Limited
1741-0398
in social media usage could be interminable, especially with their blossoming applications in DOI 10.1108/JEIM-04-2016-0088
 JEIM the business world. Second, from small- and medium-sized enterprises (SMEs) perspectives,
30,3 little evidence exists on the subject, especially from developing and/or emerging markets
(Ainin et al., 2015). Third, a scrutiny into the literature on social media marketing reveals a
dominance of works from Europe, Asia and the America, with little representation from
Africa (Botha et al., 2011; Zeng and Gerritsen, 2014). Although such context is plagued with
chronic shortage nature of resources as well as inadequate infrastructure (Sheth, 2011),
384 marketing literature also abounds in empirical works that suggest that firms operating in
such economies are circumventing these constraints and employing contemporary and
unconventional marketing practices to succeed in their markets.
Remarkably, scholars are also reflecting on whether present-day marketing will drive
emerging markets in future or the future of marketing practices will be driven by firm
activities from emerging markets (Gu et al., 2008; Sheth, 2011). Quite profoundly, literature
hints that the gross domestic products of most emerging markets are driven by the
economic activities of SMEs (Nieto and Santamaría, 2010). It has therefore become
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imperative that literature should be attentive to research on topical marketing issues,

especially those from emerging or less-developed markets. Knowledge and understanding of
the tinges and ramifications of contemporary marketing efforts of SMEs in such contexts is
opportune in marketing research. Abou-Shouk et al. (2013) argue that SMEs, particularly
from developing countries, are slow adopters of technology, especially those related to
e-commerce. In recent times, however, avenues such as social media can be and are being used
by small businesses in both developing and developed economies for a range of functions,
including but not limited to marketing and customer relationship management. Some
studies suggest it is particularly suitable for SMEs because of its minimal cost, low barriers
to participation, mobility and low level of IT skills required to use it (Breslauer et al., 2009;
Toole, 2011; Durkin et al., 2014).
In a developing economy like Ghana for instance, most SMEs do not have the large amounts
of resources to compete in the marketspace heightened by foreign firms. Furthermore, there is a
shift in media consumption among Ghanaian consumers such that social media is becoming a
key strategic communication platform for both informative and interactive actions for several
firms. As a result, social media adoption and usage today presents an interesting route for SME
competitiveness, especially with its ability to offer affordable segmentation and targeting
purposes for communicating product and service brands to consumers. The study therefore
examines the motivating factors and performance benefits of social media usage among SMEs
in Ghana. We also examine variations in hypothesized relationships based on type of product
offered as well as the performance outcomes of the particular types of social media used.
The remainder of the paper is structured as follows. The next section discusses the theoretical
context and literature review, the research model and hypotheses for the study.
The methodology for the study also follows, along with study results, analyses and
discussions of findings. The paper ends with some implications for theory and practice, as well
as provides some avenues for future research.

2. Theoretical setting and hypothesis development

Theoretical context
The diffusion of innovations (DOI) theory espouses the process through which an
innovation spreads within organizations or among people over time that can result in its
adoption and use for several purposes (Bass, 1969; Rogers, 1983). The innovation in this
regard may take the form of a product, service, an idea, information or a practice perceived
as new by people (Rogers, 2004). In generic terms, the innovation may be considered as
something new in terms of its application by the adopting organization but not necessarily
new in its own right based on date of item creation (Newby et al., 2014). According to
proponents of the theory, such innovations are characterized by having relative advantages
 over existing methods, simple to understand with observable results, ability to be tried out Antecedents of
by potential adopters, as well as compatible with existing values, experiences and needs social media
(Bøving and Bøker, 2003). Research on the adoption and usage of technology innovations usage
generally tend to originate from the theory of the DOI (McMaster, 2001; Sarosa, 2012).
With their advocated potentials over traditional media (Zappe, 2010; Hanna et al., 2011),
usage of social media as an internet-based technology is no exception to the fundamental
idiosyncrasies of the theory. As a business support system employed for several reasons 385
with varied outcomes in various contexts, we consider the use of social media as a tech
innovation that requires diffusion and alignment with the marketing activities of
enterprises. The concept of social media is consequently defined in this study following the
description by Safko (2010) as an extension of traditional media which employ a more
sophisticated set of tools, techniques and technologies for connecting, building relationships
and social interactions. Therefore, newness is added to existing traditional media employed
by the enterprises via the augmentation of marketing activities with social media platforms.
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Following from this, the subsequent sections discusses the antecedents of social media
usage, and the ways in which they eventually influence performance outcomes for SMES.

Antecedents to social media adoption and usage

Internet-enabled communication media has supported many organizations to conduct their
businesses from anywhere across the globe (Chen et al., 2008). Knoll (2016) for instance reports
that social media has clearly become part of human lives, especially among internet users.
According to eMarketer (2013), more than a third out of four of the world’s internet-user
population will hook onto social network sites by close of 2016. Other reports reveal that more
than 1 billion internet users have been watching videos on YouTube monthly
(YouTube, 2014). At the firm level, the use of social media among Fortune 500 companies
surged massively in 2012 (Okazaki and Taylor, 2013) with as many as 66 percent having
corporate Facebook pages and 73 percent having official corporate Twitter accounts aside the
numerous corporate blogs. Evidence suggests that the figures are on the ascendancy each
year (McCann and Barlow, 2015). This unceasing increase – according to Okazaki and Taylor
(2013) – denotes a long-term trend and/or norm toward social media use among corporations
(and individual brands). Consequently, social media has become an auspicious platform for
both firms and consumers to transact and relate to each other in a conducive and mutually
valuable manner (Kumar et al., 2016).
Known as “user-generated communication,” social media have reformed the tools and
strategies employed by several organizations (Michaelidou et al., 2011) in their
communications with their customers, who wield power in terms of information control.
In effect, Mangold and Faulds (2009) refer to social media as the new hybrid element of the
promotion mix. Reports suggest that over 1.44 billion active monthly users of Facebook
spend over 700 billion minutes on the website, with 500 million tweets sent via Twitter daily
and 70 million photos/videos uploaded on Instagram (Sakyi-Gyinae, 2015). As a result, many
firms are interacting via such tools by offering links and services from their Facebook and
Twitter platforms in creating interactive brand communities (Kaplan and Haenlein, 2010).
As tools used in innovative ways by firms to support existing business systems, the
diffusion of social media in terms of the antecedents toward their adoption, usage and
consequences could best be explained by the tenets of the DOI theory. Following from
Ainin et al. (2015), the study examines two social media (Twitter and Facebook) along three
antecedents, given that recent submissions suggestively rate them as top media used by
firms and individuals (Wamba and Carter, 2014; Aladwani, 2015).
Interactivity. Liu and Shrum (2002) define interactivity as “the degree to which two or
more communication parties can act on each other, on the communication medium, and on
the messages and the degree to which such influences are synchronized” (p. 54). From earlier
 JEIM discourses on new media platforms, Ha and James (1998) describe interactivity to embrace
30,3 the ability of users to provide content in response to a source of communication partner.
Thus, interactivity is characterized by two-way communication between firms and/or
among customers (Goldfarb and Tucker, 2011). The “social” context of social media
emphasizes the interaction on individual/interpersonal level or a collective intergroup level
(Kietzmann et al., 2012) which often requires some degree of responsiveness particularly
386 from firms. In such circumstances, the immediacy of the responsiveness and the degree to
which the communication bear a resemblance of human dialogues becomes imperative
(Li et al., 2002). Thus, the virtual presence requires the need to synchronously communicate
and engage with consumers in real time, as well as obtain effective and impactful
interactions (Elaluf-Calderwood et al., 2005).
Although characterized as “interactive,” differences exist among social media with
regard to the nature of interactions they support (Quan-Haase and Young, 2010), resulting in
a variety of gratifications within several organizations. Sundar et al. (2003) conceptualize
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two major classification of interactivity: functional interactivity – which comprises the

features found on a social site that allows users to interact within several modes; and
contingency interactivity – which occurs when users’ roles are interchangeable and the
“interactants” are responding to one another. Facebook and Twitter for instance enable
contingency interactivity among its publics by offering a relationship-building kind of
communication that is often lacking from websites (Saffer et al., 2013). Cone (2008) suggests
that having a social media presence alone is not enough for organizations. It is argued that
this should be complimented with customer interactions. Lovejoy et al. (2012) in this regard
point out that contingent interactive features like replies and mentions enable organizations
to communicate with their customers. Interactivity ultimately bridges the gap created by
disparity in time and geographical location (Michaelidou et al., 2011) becoming a key
consideration for adopting social media. In the light of this, the following is hypothesized:
H1. Interactivity positively and significantly influences social media usage.
Cost effectiveness. Fisher (2009) remarks that among the numerous decisions for marketing
managers in recent times is the pressure to justify preferences for online communications over
the use of traditional advertising tools. Historically, the marketing spends on delivering
messages have often been via cash and are generally viewed as heavy expenses (Weinberg and
Pehlivan, 2011). However, a variety of free or low-cost solutions are currently available that can
be effectively used. Comparative to the typically exorbitant traditional media, social media
strategy may not require astronomical budgeting (Hanna et al., 2011). Scholars have
recommended social media outlets as cost-effective and efficient platforms available to
marketers (Ainin et al., 2015) granted that such outlets have become relatively free in terms of
accessibility for both firms and consumers (Hanna et al., 2011). In addition, generating target
groups, as well as disseminating systematic advertising and promotions to these groups is
possible at relatively lower costs (Dong-Hun, 2010) via social media. Since most social media
sites are free for signing up, the cost is often associated with the time spent on posting/blogging
status messages, and responding to customer comments (Zappe, 2010).
Aside being relatively cheaper platforms, social media enable effective expansion in
collaborative content sharing to large numbers of people across geographic distances
(Korda and Itani, 2013). The cost of reaching customers beyond such boundaries could be
higher via traditional media. With over 1 billion users on both Facebook and Twitter for
instance, consumers are currently moving away from traditional media as means of
obtaining information on products and services. As such, firms now have the benefit of
deploying innovative strategic brand communications that effectively engage and reach
their customers in countless ways, via platforms that do not require highly priced media
 spends and creativity (Hanna et al., 2011). Hello Health for instance is popular and Antecedents of
successful, largely because of the cost-effective way it employs web-based social media to social media
interact with clients, particularly on their medical prescriptions (Hawn, 2009). With the usage
adoption of social media’s possibly resulting in real cost savings (Hoffman and Fodor, 2010),
it becomes a paramount choice for most SMEs, who are typically peddled with resource
constraints. The second hypothesis is therefore theorized as follows:
H2. Cost effectiveness positively and significantly influences social media usage. 387
Compatibility. Compatibility describes the degree to which an innovation fits with a potential
adopter’s existing values, previous practices and current needs (Severin and Tankard, 2001;
Chong and Chan, 2012). Within the fundamental framework of the DOI theory, this is an
essential element in the adoption and use of an innovation (Wang et al., 2010), especially with
regard to the newness of characteristics or properties of the innovation (Lai and Chang, 2011).
Social media platforms offer functions/features that previously may not have existed, and
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improve upon traditional marketing media in meeting consumer preferences and market needs.
By integrating social media activities in business operations in a manner consistent with
organizational values and objectives, firms are able to niche their target customers effectively
and efficiently via sharing their product/service contents almost instantly (Derham et al., 2011).
Consumers on the other end of the social media landscape, consider such novel platforms as
trustworthy sources of corporate communication and information regarding products and
services (Foux, 2006), especially from verified firm accounts.
Quite profoundly, findings from empirical studies assessing the construct of compatibility
on new technologies have presented both positive and negative results. Ramdani et al. (2009)
for instance found compatibility to be an insignificant factor in enterprise systems adoption.
In a similar vein, Low et al. (2011) also found an insignificant impact of compatibility on
adoption of cloud computing. Yet, findings from some other studies (such as Brown and
Russell, 2007; Hsu et al., 2007; Wang et al., 2010; Ainin et al., 2015) have also provided contrary
evidence, exhibiting positive relationships of compatibility as an antecedent on adoptions/use
of tech innovations. Such works seem to suggest that firms are more likely to consider
adoption and usage of social media based on its compatibility with firms’ values and goals
(Ainin et al., 2015). Although extant findings show unconvincing results in terms of
relationships, we hypothesize a positive association given that the arguments on compatibility
favouring social media adoption/use among firms are more likely to be depicted in SME
settings. Therefore, the third hypothesis is set out as follows:
H3. Compatibility positively and significantly influences social media usage.
Social media usage and benefits. According to the uses and gratification theory, users of media
are habitually active, as well as goal-oriented, and are usually motivated to choose a medium
that best gratifies their needs (Roy, 2009). Thus, a continual usage of a specific media is
premised on the gratifications of these needs, generally typified via user satisfaction.
In accord with Burton-Jones and Gallivan (2007), we operationalize social media usage in the
current study following the system-centered approach, where the measures of the system
usage are based on the variety of tasks for which the system is employed. Social media
researchers have enumerated a number of uses for social media by most firms. Notable among
the uses are the quests to attract new customers, cultivate relationships, increase awareness,
communicate the brand online, as well as receive feedback from customers and business
partners (Michaelidou et al., 2011). Anecdotal evidence suggest that these are implemented as
firms create communities, distribute content (Kumar et al., 2016) and increase traffic to their
websites, in pursuit of identifying new business opportunities and building direct relationships
with existing and prospective clients (Breslauer et al., 2009; eMarketer, 2013).
 JEIM The benefits associated with its usage are wide and varied. Empirically, Kwok and Yu (2013)
30,3 have found that Facebook usage for instance increased sales of a chain of restaurants. In
addition to this, evidence of the benefits for using Twitter have been also provided by other
scholars (see for instance Wamba and Carter, 2014; Aladwani, 2015). However, user behaviors
vary on both social media sites (Hughes et al., 2012), suggesting possible differences in outcomes
across the enterprises. Nevertheless, by synthesizing these usage outcomes, it is evident that the
388 overarching goal of social media usage is to enhance organizational performance, in both
financial and non-financial terms (Ainin et al., 2015). These financial and non-financial outcomes
ultimately become the resultant benefits firms obtain from using social media. Thus, our fourth
and final hypothesis is as follows:
H4. Social media usage positively and significantly influences performance benefits
obtained by firms.
Based on the above discourses in the literature, the study proposes a conceptual model for
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the research hypotheses, depicted in Figure 1.

3. Methodology
Research design and measures
A quantitative research approach with the use of a structured questionnaire was
employed ahead of a qualitative approach. This was to enable the calculations of actual
statistical measures for the theorized hypotheses on empirical data (Hair et al., 2010).
The questionnaire for the survey consisted of two sections. The first section had questions
on the constructs of interest to this research (cost effectiveness, interactivity,
compatibility, social media usage and performance benefits). The statements measuring
these constructs were measured on a five-point Likert scale anchored with, “1 ¼ not at all”
to “5 ¼ to a large extent” with “3 ¼ neutral.” Regarding measures, the items for cost
effectiveness were adapted from the work of Ainin et al. (2015). The items for interactivity
were also adapted from literature (Kietzmann et al., 2012; De Vries and Carlson, 2014;
Ainin et al., 2015), while those for compatibility were adapted from Chong and Chan (2012),
as well as Teo and Pian (2003). Social media usage items were adapted from
Michaelidou et al. (2011) as well as McCann and Barlow (2015), while items for
performance benefits were adapted from Ainin et al. (2015).
The second section of the questionnaire focused on the demographic information on the
firms (nature of product offered, firm ownership type, number of years in business, size
based on number of employees, and type of social media used). The scale items were all
purified/refined using scale generation and purification processes and techniques
identified from scholars (Flynn and Pearcy, 2001; DeVellis, 2003; King et al., 2012),
particularly via exploratory factor analysis and confirmatory factor analysis (CFA).
In order to evaluate the various hypotheses stated earlier in this study, the study
employed a structural equation modeling (SEM) approach. SEM is a preferred modeling

Interactivity
H1

Cost Social media Performance

H2 H4
effectiveness usage benefits

H3
Figure 1.
Research model Compatibility
 method (Bagozzi and Yi, 2012) because it affords researchers the control for measurement Antecedents of
error, provides information on the degree of fit of the tested model, and is able to test social media
multiple relationships (Byrne, 2013). usage
Sample
Data were obtained from SMEs selected from a commercial database obtained via the
National Board for Small Scale Industries in Ghana. We purposively selected contacted 389
SMEs who had active Facebook and/or Twitter accounts via their e-mails and phone
numbers stated in their profiles/bios to establish agreements to partake in the study. Prior to
the questionnaire administration, an adequate assessment of the psychometric properties of
the scale items was carried out by testing for face and content validity using academic
faculty involving marketing lecturers and PhD students as well as social media consultants
(Bagozzi and Yi, 1988). In order to minimize concerns about common method bias
(Podsakoff et al., 2012), information provided by the SMEs came from two categories of
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personnel in each enterprise. Particularly, the CEOs completed the section on enterprise
characteristics/profiles while the marketing officers (in charge of social media accounts)
completed the predictor and outcome measures.
Given the difficulty in using objective financial data as the information may be
unavailable, unreliable or difficult to crosscheck in most cases (Woodcock et al., 1994),
perceptual responses on performance benefits were obtained for the survey. Such approach
is recognized as reliable, and proven to produce results that are consistent with objective
measures in past research (Dess and Robinson, 1984; Ainin et al., 2015). Out of the 236 SMEs
contacted, 216 responses were returned, from which six of the questionnaires had anomalies
and had to be discarded. Hence, the researcher made use of 210 fully filled and valid
questionnaires, which was adequate for the intended analysis. The final usable data
therefore represented an 88.98 percent response rate.

4. Results and analyses

Profile of the enterprises
Table I presents the profile of the sampled enterprises. The results from the distribution of
firm characteristics reveal that the sampled enterprises were fairly represented. There were
66.7 percent of enterprises offering physical goods and 33.3 percent providing services. Sole
proprietors (13.3 percent), families/households (48.6 percent) and cooperatives/associations
(38.1 percent) described the ownerships of the firms. Most of the sampled enterprises
(approximately 91 percent) have been in business for over five years, with the majority of
them (54.3 percent) having more than 20 employees. Regarding the type of social media
used, 53.8 percent of the sampled enterprises used Facebook only, 34.3 percent used Twitter
only while 11.9 percent used both media platforms.

Reliability and validity

Reliability of the measurement items was assessed by inspecting the loadings as well as
internal consistencies on their corresponding constructs (Fornell and Larcker, 1981). Results
indicated loadings ranging from 0.730 to 0.944 with internal consistency (Cronbach’s α)
values also ranging from 0.887 to 0.937 (see Table II). CFA was employed in testing the
measurement model. Hair et al. (2010) recommend that most model-fit indices should reach
the acceptable standards in order to be eligible for model fitness. From Table II, all CFA
indicators exceeded the recommended values, exhibiting an adequate fit to the data
collected. Our five-component CFA model fitted the data well, with all indices satisfying
their respective criteria. Following suggestions by Anderson and Gerbing (1988), normed
χ2 ( χ2/df) value was 1.98; comparative fit index (CFI) ¼ 0.97; normed fit index (NFI) ¼ 0.96;
 JEIM Sample composition
30,3 Enterprise characteristics Measures n %

Nature of product offered

Goods 140 66.7
Services 70 33.3

390 Firm ownership

Sole proprietor 28 13.3
Family/household 102 48.6
Cooperatives/associations 80 38.1
Number of years in business
1-5 years 19 9.0
6-10 years 51 24.3
11-15 years 102 48.6
Above 15 years 38 18.1
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Number of employees
20 or less 96 45.7
21-40 50 23.8
41-60 39 18.6
61-80 15 7.1
81-99 10 4.8
Type of social media used
Facebook only 113 53.8
Twitter only 72 34.3
Table I. Both 25 11.9
Profile of enterprises Note: n ¼ 210

standardized root mean-square residual (SRMR) ¼ 0.045; root mean square error of
approximation (RMSEA) ¼ 0.053, 90 percent confidence interval for RMSEA ¼ (0.047;
0.068). With factor loadings significant at 1 percent for our sample, convergent validity of
the measures was supported (Bagozzi and Yi, 1988).
In addition to this, Table III presents the descriptive statistics, the variances extracted for
each construct and the square of the correlations between each construct and the others.
Diagonal elements represent the average variance extracted (AVE) for the constructs.
The correlation coefficients ranged from 0.340 to 0.537 with AVEs also ranging from 0.569
to 0.710. Discriminant validity was established by comparing the shared AVE values
between pairs of constructs with their ϕ2 correlations. In all cases, the AVE values were
greater than the shared ϕ2 correlations associated with each pair of constructs.
This supported discriminant validity (an indication that the constructs are distinct from one
another) as recommended by Fornell and Larcker (1981).

Assessment of hypotheses
The parameter estimates presented in Table IV and Figure 2 represent the final results, which
best explain the findings of the study in line with the hypotheses proposed early on. The model-
fit indices for the structural model provided evidence of a good model fit (RMSEA ¼ 0.061;
GFI ¼ 0.94; NFI ¼ 0.97; CFI ¼ 0.96; AGFI ¼ 0.91; χ2/df ¼ 2.04). H1 states that the interactive
nature of social media positively and significantly influences social media usage among SMEs.
The SEM results revealed that there was a significant relationship between interactivity and
social media usage ( β ¼ 0.72, t-value ¼ 13.34, po0.001). H2 states that cost effectiveness
positively and significantly influences social media usage. Similarly, this relationship was
 Construct and items Item code Factor loading t-value CR α
Antecedents of
social media
Interactivity 0.886 0.902 usage
Our social media platform offers interactive
communication with customers Int1 0.830 Fixed
Offers interactive mechanisms for value co-creation
with our audience Int2 0.863 10.70
Ability to engage customers via mentions and replies 391
with controlled message contents Int3 0.855 10.57
Cost effectiveness 0.898 0.912
We use Twitter/Facebook to cut down cost on
marketing communications Cost1 0.888 Fixed
Our social media platform saves costs relating to
time and effort in marketing, branding and customer
service Cost2 0.857 12.01
Twitter/Facebook is more cost effective to us than
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traditional media Cost3 0.845 11.71

Compatibility 0.894 0.903
The chosen social media is compatible with our
existing IT infrastructure Compt1 0.799 Fixed
Twitter/Facebook is compatible with our business
processes and operations Compt2 0.820 9.30
It is easy to integrate Twitter/Facebook with our
existing departmental strategies Compt3 0.848 9.58
Our choice of social media is consistent with the
enterprise’s beliefs and values Compt4 0.829 9.45
Usage 0.936 0.937
To attract new customers Us1 0.901 Fixed
To nurture relationships with clients and customers Us2 0.841 12.29
To communicate firm’s brand online Us3 0.800 10.96
Receiving feedback Us4 0.850 12.52
Creating awareness of our brand Us5 0.835 11.86
Answering queries from customers and respond to
requests Us6 0.826 11.71
Performance benefits obtained 0.908 0.887
Increase in sales transactions P1 0.944 Fixed
Increase in number of customers P2 0.730 9.71 Table II.
Improved brand visibility P3 0.940 17.23 Measurement model

statistically significant ( β ¼ 0.185, t-value ¼ 3.51, po0.001). The H3 for the study
(compatibility positively and significantly influences social media usage) was also
statistically significant ( β ¼ 0.100, t-value ¼ 2.03, po0.05). Finally, H4 posits that social
media usage positively and significantly influences performance benefits obtained by SMEs.
This was also statistically significant in the study ( β ¼ 0.737, t-value ¼ 17.90, po0.001).
As a result, all stated hypotheses for the study were statistically supported.

Mean SD Interactivity Cost effectiveness Compatibility Usage Benefits

Interactivity 2.93 0.735 0.702

Cost-effective 3.05 0.806 0.461 0.646
Compatibility 3.26 0.639 0.349 0.350 0.679
Usage 2.92 0.712 0.503 0.397 0.530 0.710 Table III.
Benefits 1.53 0.525 0.427 0.340 0.389 0.537 0.569 Descriptive statistics
Notes: Average variances extracted (AVE) are on the diagonal; square correlations are off-diagonal and correlations
 JEIM Given the effect of firm differences as contingencies on enterprises’ social media strategy
30,3 (Hughes et al., 2012), we examined group variations for two firm characteristics
(nature of products offered, and type of social media used) via a series of regressions. We
first anticipated possible differences usage motivations based on the types of product
offered by the enterprises (either physical goods or services). Results from Table V
(Model 1) reveal that interactivity and cost effectiveness had positive and strong
392 significant effects on social media usage while compatibility showed a positive but lower
strength effect on usage. Particularly, interactivity exhibited more effects on usage with
services than with physical goods, while cost effectiveness had more effect on usage with
physical goods than in services. Second, we examined differences among the type of social
media used (Twitter only, Facebook only and both) in an attempt to assess their
differential effects on performance benefits. Results from Table V (Model 2) reveal that the
effects of social media usage on performance benefits were positive and significant across
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Structural relationships β estimate t-value p-value SE

Interactivity → Usage 0.722 13.34 0.000 0.054

Cost effectiveness → Usage 0.185 3.51 0.000 0.052
Table IV. Compatibility → Usage 0.100 2.03 0.043 0.049
Structural model Usage → Benefits 0.737 17.90 0.000 0.041
assessment results RMSEA ¼ 0.061 GFI ¼ 0.94 NFI ¼ 0.97 CFI ¼ 0.96 χ2/df ¼ 2.04

4
Interactivity

0.72
1 0.16
2 0.46

3.8 0.74
Cost effective 0.19 Usage Performance

0.1

Figure 2. 5
Compatibility
The structural model

Model 1a Model 2
Goods Services Facebook only Twitter only Both media

Interactivity 0.574 (6.07)*** 0.759 (13.38)***

Cost-effective 0.314 (3.32)*** 0.109 (2.19)**
Table V. Compatibility 0.140 (1.07)* 0.142 (1.57)*
Variations in model Usage 0.476 (7.43)*** 0.453 (9.07)*** 0.621 (18.41)***
across enterprise Notes: aDependent variable: in Model 1 is usage, in Model 2 is performance benefits. t-values in parentheses.
characteristics *p o0.1; **p o0.05; ***p o0.01
 all groups, although higher in Facebook only than in Twitter only. Notably, the highest Antecedents of
exhibited effect of usage on performance benefits was demonstrated via the use of both social media
social media. usage
5. Discussions and conclusions
This paper sheds light on SMEs’ social media motivations and the performance benefits
associated with their usage. The study examined these relationships grounded on the DOI 393
theory. In general, the research found that interactivity, cost effectiveness and compatibility
were factors germane to social media usage, which consequently result in the realization of
some performance benefits for SMEs. The results are consistent in all dimensions with
previous studies conducted in other contexts. First, past research has shown that the
interactive nature of social media is a key consideration for firms who choose and deploy their
marketing activities on such platforms (Cone, 2008; Michaelidou et al., 2011; Ainin et al., 2015).
Interactivity provides a richer rent for firms in terms of obtaining feedback via a two-way
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communication, as well as instilling better feelings of responsiveness and flow of mutual

information (Sundar et al., 2003; Kietzmann et al., 2012). Thus in congruence with previous
studies, this research reinforces the consideration given to the interactive element of social
media as a key antecedent motivating SMEs toward their usage.
Furthermore, past research has emphasized the indispensable role of cost effectiveness
(Hawn, 2009; Hanna et al., 2011) and compatibility (Hsu et al., 2007; Wang et al., 2010) as
other key factors engendering social media usage. This research in a like manner
augmented this contention by affirming with related empirical results. In consistence with
extant research, it appears social media now offer SMEs a better low-cost option over
traditional media. Consequently, the relatively lower cost associated with using social media
presents an advantageous avenue for SMEs to carry out their marketing activities within
their chronic resource-constrained environments. More profoundly, the degree to which
social media fit firms’ needs and practices (compatibility) become a non-negligible
consideration toward their usage by SMEs. With any form of internet connection
(even mobile), Facebook and Twitter are easily compatible with the infrastructure of most
firms since they are very simple and easily adoptable by any enterprise (Ainin et al., 2015).
Moreover, this research in line with previous studies (Michaelidou et al., 2011; Wamba and
Carter, 2014; McCann and Barlow, 2015) found social media usage to have a strong positive
and significant impact on SMEs’ performance benefits accrued.
Additionally, our findings revealed differential relationships between SMEs who offer
physical products and those who offer services. While interactivity was a higher motivation
among SMEs offering services, cost effectiveness on the other hand was a higher
motivation among SMEs who are into physical goods. Perhaps, the intangible nature of
services requires that service SMEs pursue more interactive endeavors with their customers
and clients. As a result, social media offer adequate recipes to the interactivity dimension.
Furthermore, the point that product-offering SMEs are burdened with manufacturing costs
and are likely to embrace cost-cutting means of communications could lend explanations to
the second scenario. In addition to this, our study found variations with the performance
benefits accrued by SMEs who use Facebook only, Twitter only and a blend of both
platforms. Findings from our data seem to suggest that SMEs who employed both Facebook
and Twitter in tandem reap improved performance benefits than those who employ each
media separately. Thus, in congruence with previous studies, varied outcomes are accruable
to SMEs when they embark on marketing activities via social media (Kwok and Yu, 2013;
Tsimonis and Dimitriadis, 2014; Aladwani, 2015).
Overall, the findings from the study permit us to conclude that despite the peddled
bottlenecks, the use of social media as a strategic tool in optimizing firm performance seem
prevalent among SMEs within an emerging market setting too. In a context where firms are
 JEIM believed to be slow adopters of technology relating to electronic commerce
30,3 (Abou-Shouk et al., 2013), the study results demonstrate that social media is being used to
augment marketing activities of SMEs. In an era where customer-generated stories have
stronger voices in brand advocacy, it has become pertinent for firms to engage end-user
parties at various levels and via unconventional means. The advent of Web 2.0 platforms
(such as those examined in the study) offer novel approaches for enterprises to build and
394 develop relationships, as well as enhance communications with customers and trade partners.
Firms embracing social media across various business levels and economic contexts now have
several possibilities to target and facilitate superior relationships and interactions with
customers. Profoundly, in a tale of two sites, Facebook proved to edge Twitter in terms of
engendering performance benefits among SME users as per findings from our data. Yet, the
two media have in recent times, become viable avenues for connecting with customers on
more personal levels, given their abilities to offer direct mentions and replies in real time.
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6. Implications and limitations

Findings from the study make three key contributions to the literature on social media as well
as enterprise information management among SMEs. First, we progress theory by extending
the DOI theory on a burgeoning but seemingly interminable phenomenon – social media
marketing. Evidence from extant literature on the shades of social media marketing among
firms shows a dearth of research grounded on theories. The current study thus offers a modest
contribution in that regard by providing empirical support from a social media perspective for
the largely accepted DOI theory (Rogers, 1983) with a conceptual framework that exhibits good
explanatory power. Second, literature on social media exhibits fewer studies that integrate and
examine the relationships among the constructs used in this study, particularly from SMEs
perspectives. Existing works either studied the relationships of the constructs in isolation and/
or within different settings (see e.g. Ramdani et al., 2009; Low et al., 2011), calling into question
the need for further empirical examinations for validation and theory building. We again
contribute to literature by presenting results examining multiple interdependencies among the
constructs, as well as using data from SMEs.
Finally, the current study presents results from an emerging economy in Sub-Saharan
Africa setting. Such context is low in representation with regard to literature on the nuances
and implications of social media marketing especially at the firm level. In a context often
characterized with inadequate infrastructure as well as unbridled competition (Sheth, 2011),
the results illuminate the global marketing literature with findings that are perhaps similar to
or different from those set in other emerging or developed economies. The forgoing discourses
highlight some interesting implications for both researchers and SME managers in other
contexts. Theoretically, the study shows that the interconnections of social media motivations,
as well as the effects of social media usage on performance are erratic across SMEs who are
into physical products and those into services. Therefore, it will be erroneous to assume that
the antecedents and outcomes tested in this study are invariant for all enterprises.
Additionally, the paper departs from previous works by arguing that benefits reaped by
enterprises from their social media marketing activities are enhanced via the use of multiple
platforms. Yet, it is relevant to point out that adopting social media (which provide firms with
a considerable control and choice of marketing message) alone might not be enough if
enterprises are not able to utilize the media in accord with their marketing objectives.
The practical implication of the ongoing discourse is that, for SME managers/owners
seeking to augment their marketing efforts on social media, multiple platforms should be
employed since each media may offer unique benefits during their usage. The apparent
effect of combining the social media provides enhanced performance benefits. Moreover,
irrespective of the motivating antecedents for adoption and usage, enterprise owners or
managers may not optimally maximize their social media presence if their overarching goal
 is just to have an existing account without exploiting them for any marketing activities. Antecedents of
The specific media types examined in this study (Facebook and Twitter) are very social media
cost-effective and vogue platforms representing unique and compelling channels for SMEs. usage
Their ease of use, speed, interactive nature, as well as their ability to reach larger customer
base regardless of geographical locations, make such social media essential for SMEs to invest
time and resources in them regularly. Creating and sharing content, engaging existing and
prospective customers, as well as monitoring competitor contents via such media are some 395
possible benefits available for firms that embrace social media marketing activities.
The current research has some limitations, prompting curious avenues for future research.
First, the paper only makes use of two types of social media: Facebook and Twitter. As a
result, our findings are only within the remit of the two platforms and scholars and managers
should be cautious in universally generalizing with other social media available for firms.
Second, the hypotheses formulated in the study were tested using SMEs from a single country
as well as cross-sectional in nature and therefore do not suggest static effects in other
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contexts. Given that firms’ strategic orientations and outcomes may be context-specific,
opportunities exist for further studies to corroborate the construct relationships and findings
from this research. The effects tested in the study are that of relationships and not causalities.
Again, the concepts examined in this research are applicable in both larger and smaller firm
settings across various economic context. The findings consequently open up further debates
on the phenomenon under study, especially the possible disparities that exist between
product-based SMEs and service-based SMEs. Moreover, a comparative study that examines
the research framework using responses from both larger and smaller firms could unearth
interesting results for advancing theory.

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About the authors

Raphael Odoom is a Fellow at the University of Copenhagen and currently with the University of
Ghana Business School. His research interests are in the areas of branding, social media marketing and
small business management. He has published in the Journal of Product and Brand Management as
well as Services Marketing Quarterly. Raphael Odoom is the corresponding author and can be
contacted at: rafaelodoom@gmail.com
Thomas Anning-Dorson is with the Department of Marketing and Entrepreneurship, University of
Ghana Business School. His research interests are in innovation, service management, competition and
emerging markets.
George Acheampong is a Researcher at the University of Ghana Business School and a DANIDA
BSU/GEP Scholar. His interests are in how private enterprise can contribute to development in African
and emerging economies and has published in Thunderbird International Review.

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