Chapter II

Review of Related Literature and Studies

This chapter will present the topic and information gathered from articles and researchers

this represent the review of related literature and studies, synthesis of the state of the art,

theoretical framework and conceptual framework.

Foreign Literature

The relationship between SME overall performance in Nigeria and using social media has

acquired very little attention no matter social media’s promising potential, specifically for small

companies. The authors hoped that this study will fill an opening inside the authors’ knowledge

of the way social media impacts the overall performance of small and medium-sized companies

(SMEs) inside the creation enterprise.

The empirical finding showed that social media utilization elevated expertise

accessibility, reduced costs and progressed consumer family members and service for

corporations. On average, social media adoption changed drastically and positively associated

with SME enterprise performance. Also, the paper discovered that learning functionality

mediates the relationship between social media and SME’s overall performance

In lots of developing and evolved countries, small/medium-sized establishments (SMEs)

are a crucial part of the economic system and are generally referred to as the lifeblood of the

economic system. SMEs in Nigeria have contributed around 48% of the national gross home

product (GDP) nowadays and account for about 17.Four million jobs. Considering how a whole
lot they contribute to countrywide economies, it’s far expedient to are seeking methods wherein

they can derive cost from modern technologies to further make stronger their function. Internet 2.

Zero technologies and associated social media programs along with social network websites,

microblogging, weblogs, and similar technologies are acknowledged to improve conversation

and collaboration amongst personnel and customers. SMEs generally have a small budget for

branding, advertising and marketing, and corporate communique. Consequently, social media

gives an equipped and less expensive device that may be used to talk with customers and for

inner communique and collaboration. Numerous research within the region of diffusion of

innovations to SMEs argue that they do not typically use followed technology to its complete

capacity and as such do now not upload as a lot fee to the commercial enterprise. Extant studies

on company communication and the usage of social media specialize in large businesses’

adoption and use of the generation with little focus on SMEs. This contribution ambitions to fill

this hole by thinking about how SMEs in Nigeria adopt and use social media to enhance

company communique.

They take a look at adopting a cross-sectional studies design and facts changed gathered

the use of a particularly organized questionnaire which became scored on a five-point Likert

scale. Four elements of social media marketing have been selected to be studied: FB, Instagram,

Twitter, and YouTube. The populace of the look includes all SMEs in Benin metropolis, Nigeria.

The look at’s sample size becomes 500 selected SMEs. The obtained statistics have analyzed the

use of descriptive and inferential records. Fb, Instagram, Twitter, and YouTube had been all

determined to have a fine and widespread impact on the growth of SMEs. Primarily based on the

findings of the look, we urge that SMEs be endorsed to embody social media advertising to

compete within the international market. SME proprietors need to also maintain their social
media money owed updated with content material that educates, informs, and persuades

customers to buy their products. Similarly, SME proprietors have to use social media marketing

remarks as a catalyst for innovation and enlargement.

Small and Medium-sized enterprises (SMEs) can talk with their consumers and offer

them applicable facts on fee-powerful items or services with the assistance of social media

technology. Hence, this examination investigated the factors influencing social media

technologies on SMEs’ overall performance. In addition, this examines additionally assessments

of the capability of social media networks and customer involvement to enhance the

advantageous impact of social media utilization. The statistics became gathered from 253 SMEs.

Our results show that value-effectiveness, compatibility, and interactivity, have been related to

social media utilization. However, accept as true with changed into no longer substantially

associated with the use of social media. Appreciably, the fine effect of social media usage and

SMEs’ overall performance turned positively moderated by way of the capability of social media

networks and patron involvement. The relationship turned into greater sturdy whilst social media

capability and client involvement were high than low. Consequently, this examination has

highlighted the function of social media usage, consumer involvement, and social media

functionality and their effect on SMEs’ overall performance.

This article examines how social identity, perceived usefulness, and perceived ease of use

affect the use of social media in SMEs and whether the use of social media impacts the boom of

favor SMEs in Kenya. A survey related to 394 owner-managers of style SMEs from Nairobi and

Kiambu counties changed into finished, the use of a based questionnaire; and multivariate

evaluation changed into carried out via structural equations modeling. Social identification and

perceived ease of use bore a huge effect on the use of social media whereas perceived usefulness
showed no importance in influencing proprietor-managers’ goal to use social media. Using social

media alternatively had a vast effect on the SME boom. Social media usage is taken into

consideration as beneficial in enterprise but there’s no motivation closer to usage by way of the

proprietor-mangers. Coverage makers can consequently offer to enable surroundings to

encourage the use of social media utilizing SMEs. This look sought to find out whether or not

using social media has a direct impact on the boom of SMEs.

This look aims to examine the antecedent factors of social media adoption via the era-

organization-surroundings (TOE) framework and their impact on marketing performance

moderated via social media marketing functionality. A literature examine turned conducted on

the antecedent factors of social media utilization and their effect on company performance from

an aid-primarily based view and dynamic functionality. This examination proposes a conceptual

framework to provide an explanation for and predict social media usage and its outcomes on

SMEs’ advertising performance. In this example, social media usage can act as a mediating

variable, while social media advertising functionality is a notion to slight the effects of social

media usage on marketing overall performance.

Local Literature

This research study has been capable of establishing that SMEs may additionally derive

enterprise benefits from the usage of Social Media. However, in India, there are some SMEs in

which there does not exist the technical competence and suitable infrastructure for optimal use of

social media for enterprise purposes. Therefore, in need of such facilitating conditions, a few

SMEs are not making use of the social media platform for her business.
 More and more firms are seeking to use social media to connect to unique stakeholders as

plans on constructing a presence on such platforms are getting part of the top-stage method. The

cause of this have a look at is to perceive the elements that could help the Small and Medium

firms (SMEs) of India to undertake Social Media advertising (SMM) mechanisms for enhancing

their enterprise affect. The adoption of SMM utilizing SMEs has a widespread impact on the

improvement of commercial enterprise outcomes of the SMEs. A theoretical version has been

advanced with the help of theory borrowed from TAM and UTAUT2 with a few modifications to

discover this impact via commercial enterprise performance, and income, connect to customers,

and identify clients’ desires and the creativity of the employees. The theoretical version has been

established empirically through the use of a survey of 310 corporations and the next analysis was

executed with the use of based equation modeling. The effects spotlight that perceived

usefulness, perceived ease of use, and compatibility affect the impact of SMM after adoption by

using SMEs. The facilitating situations have an insignificant effect while cost has a giant but bad

effect on the usage of SMM by using SMEs. The reason that there is some research in this

context, is the look contributes to the existing literature on the effect of SMM in SMEs in a rising

economic system.

The dramatic boom of the net has caused the emergence of two essential phenomena:

social media and online engines like google. In the enterprise context, social media is a brand

new communication channel between the groups which include SMEs and clients, which permits

them to engage at once. This study aims to evaluate the effect of social media usage on the sales

procedure in SMEs. The technique used in this have a look at is Systematic Literature overview

(SLR). The technique is finished with the aid of reviewing several journals that discuss related

research subjects. The results of this study recognized comparable effects of social media use in
SMEs across one-of-a-kind countries. Using social media relies upon the kind of enterprise and

the form of social media used under SME’s business goals. The effect acquired is mainly

associated with clients, stakeholders, enterprise partners, and competition. However, the impact

produced in this examination is still preferred. Therefore, in addition, studies wish to be

accomplished to benefit more insights into the drivers of social media use in SMEs and their

effect on the performance of SMEs.

From a theoretical angle, the observation contributes to literature considering a selected

virtual tool and its effect on expertise advent and innovation. In reality, some research has taken

into consideration the impact of social media usage on different variables, which includes ROI

and productiveness, but never on know-how introduction and innovation through a quantitative

examination. From a managerial angle, the research indicates managers to put into effect and

involve social media inside business and innovation tactics. The outcomes Indicate that social

media influence definitely 3 out of four know-how creation procedures and they help to foster

the innovation process.

There have been numerous research on the adoption of social media among individuals in

addition to groups. Even though most of these studies had been carried out in advanced

economies and targeted large organizations. This examination, therefore, fills the space by way

of looking at the adoption of social media among small and medium-sized companies (SMEs)

inside the middle East region; mainly, within the UAE. Further, this study analyzes the adoption

phenomena via word of mouth, viral marketing, and social presence principle the use of in-

intensity semi-structured non-public interviews with entrepreneurs of SMEs. Every other giant

contribution rendered by way of this examination is its examination of social media adoption in

terms of the commercial enterprise’s overall performance of firms.

A platform known as social media enables users to communicate via the internet by creating

content and exchanging ideas and information. Social media is getting more attention for helping

small and medium-sized businesses run their businesses. However, there haven’t been enough

studies done in the Philippines on the use of social media and how it affects organizational

performance and sustainability. The use of social media and its impact on organizational

performance and sustainability are the subject of this study. Interviews with small and medium-

sized businesses in the Philippines, a developing nation’s perspective, are used in this qualitative

study. The outcomes demonstrate the accessibility of competitors, information sharing, customer

service, and collaboration. While brand visibility, productivity, revenue generation, and

sustainability are all aspects of social media impact. In addition, small and medium-sized

businesses (SMEs) identified conversation, sharing, presence, and reputation as essential

components of their performance in terms of productivity, brand visibility, and revenue

generation. On the other hand, small and medium-sized businesses (SMEs) have found that the

ability to improve brand awareness, identity, interactions, lead generation, conversion, customer

service, and insights reporting are extremely important considerations when selecting a social

media platform for a company. As a result, this study confirms that social media plays a positive

role in the activities and sustainability of SMEs’ businesses. Some theoretical and practical

implications are presented in this work.

No matter the encouraging environment for online advertising and marketing in

Philippine small and medium firms (SMEs), its implementation requires the utmost interest. To

advantage of useful insights, identifying the important drivers of online advertising and

marketing implementation is a crucial step; but, this agenda stays a gap in the literature.
Accordingly, this painting explores those drivers by extracting them from the literature, adopting

the Delphi approach to perceive the relevant drivers, and making use of the decision-making trial

and evaluation laboratory (DEMATEL) in modeling their causal relationships. From 16 drivers,

the Delphi group considers five applicable drivers: interactive connectivity, getting rid of

geographic limitations and growing use of online channels, larger marketplace scope, client

engagement, and fee financial savings. Results of the DEMATEL suggest that interactive

connectivity gets rid of geographic barriers, and increases the use of online channels as key

drivers in the transition to on line advertising of Philippine SMEs. Accordingly, relevant

coverage- and choice-makers should initiate techniques to stimulate those key drivers.

New media is one of the most exciting trends for girls’ entrepreneurship within the

international these days. It is considered important in riding the monetary boom, growing jobs,

and narrowing the gender hole in society. The query is how can the brand new media pressure

and broaden entrepreneurial possibilities and development for women inside the Philippines?

This research examined the role of recent media in developing ladies’ marketers. A semi-based

interview survey among 40-five Filipino girls micro-entrepreneurs (WMEs) changed into

conducted via an easy cluster sampling method to assess new media usage, its effect on their

corporations, capability obstacles, and man or woman insights. Findings show that new media is

vital in facilitating the realization of outcome portfolios which includes business environment,

finance and marketplace get admission, and productivity. The advantages of leveraging new

media have been normally felt, however, the results of the study display that the utilization has

no longer been completely exhausted pointing to the want for appropriate interventions. Having

acknowledged the tremendous role of the latest media, they have a look at establishing the

requirement for a concrete technique for the implementation of improvement strategies. This
research commends the institutions and coverage makers to design suitable programs that

encourage new media utilization and development tailored-match to the desires of Filipino

WMEs.

Foreign Studies

In the globalization era, social media is widely used by small and medium enterprises

(SMEs) to promote and market their products. However, there is still a limited objective of this

study on the effectiveness of social media in improving the business performance of SMEs. This

study analyzes the effect of social media on knowledge creation, innovation, and performance in

SMEs in Jabodetabek (Indonesia). This study combines online and offline methods to collect

data from a sample of 384 SMEs. Data was analyzed SEM-PLS. The variables are social media,

knowledge creation, innovation, and performance. The result is that social media does not have a

direct impact on performance. However, social media has a significant influence on business

performance, moderating knowledge creation, and innovation. The effectiveness of social media

in improving business will the partner use for knowledge creation and innovation.

Small and mid-size enterprises (SMEs) are businesses that maintain revenues, assets or a

number of employees below a certain threshold. Each country has its own definition of what

constitutes a small and medium-sized enterprise. Certain size criteria must be met and

occasionally the industry in which the company operates in is taken into account as well.

The look aimed to decide the profile of Micro, Small, and Medium companies (MSMEs); the

participation of proprietors and consumers in social networking websites online (SNS); its

position in representation, purchaser engagement, and lead conversion; and the challenges

encountered via owners in the use of SNS. A self-made questionnaire become administered to
268 randomly decided MSME proprietors and 405 consumers. Effects showed that the MSME

owners in Tarlac bought gadgets like shirts and bags with a preliminary investment of P10, 001-P

50, 000, with maximum respondents working for six months to much less than years. Each

consumer and owners prefer Facebook as their SNS as they have been the usage of it for one to

three years. Notably, each shows settlement with security worries posed using SNS. The

customers suggested that they specially visit websites to inquire about charges and to save online

whilst the owners used it to improve advertising. The proprietors reported that they agree on its

advantages in enhancing social media representation, client engagement, and lead conversion.

Regardless of these benefits, the MSME identified problems in their use of SNS by and large, the

amount of time needed in coping with the pages, and the danger of beside-the-point behavior

inclusive of harassment.

The primary goal of this literature overview is to have a look at the digital advertising

techniques used by online enterprise sellers amidst the COVID-19 pandemic. In this case,

effective advertising enables the collection of information to recognize extra approximately the

targeted customers, permitting advertising and marketing and different techniques to be extra

directed. In addition, this was initiated to deeply recognize how the digital advertising techniques

of online enterprise sellers work. Based on the literature assessment, the researchers recognized

the following subject matters: digitalization and digital marketing, digital and traditional modes

of marketing, social media as a digital marketing strategy, records technology as marketing

techniques, e-commerce throughout the COVID-19 pandemic, knowledge online, internet, cell,

and digital marketing, possibilities, and destiny research instructions, and implications. In end,

digital advertising has handed over traditional marketing. Those elements affect digital

marketing abilities hole. Net advertisements have become greater vast. Corporations’ perceptions
of the fee of virtual marketing may be categorized. An incorporated method is required to fulfill

customer needs using virtual advertising channels. To achieve this new market, groups should

first apprehend their customers’ lifestyles. Virtual advertising and marketing have evolved into a

web marketing platform for small enterprise owners, no matter the lack of funds to replace

generation and harness net improvement. Advertising and marketing on social media are

attracting the eye of digital entrepreneurs. Because of the capability marketplace proportion

gains that social media advertising and marketing may want to give for internet entrepreneurs,

it’s miles anticipated that social marketing spending will continue to grow within the coming

years.

Local Studies

Social media is a platform that allows users to create content, and share ideas, and

information in an internet-based form of communication. Social media is gaining attention to

support small and medium enterprises in conducting business. However, studies on social media

use and its impact on organizational performance and sustainability remain underexplored in the

Philippines. This observation explores the use of social media and its effect on organizational

overall performance and sustainability. This observation applies a qualitative have a look at via

interviews with SMEs within the Philippines, a developing united states of America perspective.

Effects display collaboration, facts sharing, patron family members and providers, and

competition’ accessibility. At the same time as social media, the effect consists of brand

visibility, productivity, revenue era, and sustainability. Furthermore, SMEs diagnosed

communique, sharing, presence, and recognition are key functions that contribute to SMEs’

(productivity, brand visibility, and sales generation) performance. On the other hand, SMEs
recognized social media with the provision to enhance emblem awareness, identity, interactions,

lead generation, conversion, customer support, and insights reporting are observed as particularly

crucial criteria in the selection of social media for commercial enterprise. For this reason, this

observation confirms the high-quality role and influences of social media on SMEs’ business

sports and sustainability. This work shows some practical and theoretical implications.

The current literature has espoused the position of social media platforms in promoting

tourism destinations. Regardless of such advances, confined works are pronounced on how social

media foster the sustainability of visitor destinations. This painting builds upon the argument that

sustainable tourism (ST) schedules and projects may be incorporated along the conventional

competitive venture of social media marketing as a communications method for tourism

stakeholders. With such an argument and the scarce literature on the subject, this paper analyzes

the impact of social media strategies on advertising signs contextualized within ST. In addressing

this goal, a fuzzy cognitive mapping method is adopted to study the modifications in marketing

overall performance indicators given a preliminary set of activation values of social media

advertising strategies. A case has look at Kalanggaman Island (Philippines), a rising traveler

destination, is executed to illustrate the evaluation process. Three coverage scenarios with

interrelated social media advertising techniques are examined: minimal attempt, shifting visuals,

and collaborative strategies. The minimum attempt state of affairs will increase counting metrics,

feedback, and net site visitors, while the shifting visuals scenario yields will increase in attain,

counting metrics, feedback, and network traffic. In the end, the collaborative techniques situation

complements indicators on recognition, the proportion of voice, counting metrics, feedback, and

lead. The findings generated from the proposed framework offer policy- and choice-makers a

platform for studying feasible social media guidelines in disseminating the ST timetable.
 Tomas, Batangas have been surveyed. Evaluation of the surveyed data acquired on this

takes a look at found that social media advertising and marketing has resulted a tremendous

effect on the perceptions of e-shopping customers. The findings of the look at recommend that e-

shopping clients perceived that businesses with social media presence can revel in profitable

ventures. The responses of the sampled clients meditated that they actively participated in social

media campaigns, and a massive percentage of participants observed the efforts of brand owners

and they took advantage of the possibilities that are useful to them. Moreover, based totally on

the look at findings, it can be concluded that emblem owners want to consciousness of the timing

and consistency of posts for effective social media advertising.

Respondents from the Philippines highlighted the importance of comfort, competitive

reductions, app carrier quality, fulfillment, and multiple fee alternatives as the important thing

reasons for adopting the FDAs. However, these factors require redressal in the Philippines

context. Additionally, the examined findings highlight a few u. S .-unique requirements: in the

Philippines, meals packaging, cheaper options supplied via the local comfort stores, and lack of

form of meal alternatives; in India, the effect of parental ideals and segregated vegetarian meals

transport. They have a look at makes practical pointers for patron behavior researchers, builders,

and entrepreneurs of FDAs who are faced with challenges in app development for a multi-

cultural target market and to make certain increases and the adoption of the FDAs across the 2

nations.

Digital inclusion should be understood in ways past get admission to and need to think

about class formation, the stratification of records, and structural structures of power. Although

Philippine telecoms have constantly developed services and products for the running bad, the

question of what forms of get right of entry persists. This article examines the special approaches
Filipinos can be digitally connected thru pay as you go mobiles, cheaper internet get admission

to which includes Pisonet, and as laborers in data era-commercial enterprise method outsourcing

(IT-BPO) agencies. I argue that what is taking place is a ‘true enough’ get an entry that reinforces

current magnificence structures and raises new questions regarding inclusion. At the same time

as there are an increasing number of new ways for Filipinos to be linked, virtual inclusion is

additionally famous new sort of social stratification, not sincerely among the ‘haves’ and ‘have

nots’ but as a substitute, from the uneven access this is dictated with the aid of one’s

accumulation of economic and cultural capital.

Synthesis of the state of the art

Over the years, social media has transformed the way small and medium enterprises

(SMEs) conduct business. The impact of social media in business development for SMEs has

been a subject of great interest among scholars and practitioners. Existing literature suggests that

social media can offer several benefits to SMEs, including increased brand awareness, customer

engagement, and sales growth.

Studies have shown that social media can help SMEs reach a wider audience at a lower

cost compared to traditional marketing methods. Social media also provides SMEs with the

opportunity to interact with their customers, receive feedback, and build long-lasting

relationships.

However, the impact of social media on SMEs is not entirely positive. The excessive use

of social media can lead to information overload, which can be detrimental to SMEs.

Additionally, social media can expose SMEs to negative feedback and online reputation risks.
 Overall, the state of the art suggests that social media can have a significant impact on the

development of SMEs. However, SMEs should be strategic in their use of social media and

ensure that they use it in a way that aligns with their business objectives.

Theoretical Framework

The study was guided by the Technology Acceptance Model (TAM), and Social Identity

Theory (SIT). TAM essentially describes how users of Technology come to accept and use the

technology. Davis (1989) developed TAM which specifies the causal relationships between

system design features, perceived usefulness, perceived ease of use, attitude toward using and

actual usage behaviour. When users are presented with a new technology, the decision about how

and when to use it is influenced by several factors. These include perceived usefulness; the

degree to which a person believes that using a particular system would enhance their job

performance, and perceived ease of use; the degree to which a person believes that using a

particular system would be free from effort. TAM has been used in a number of researches in

social media use (Sheng & Zolfagharian, 2014; Pavlou, 2003; Pentina et al., 2012; Lee et al.,

2006; Koufaris, 2002). These studies agree that the use of social media is anchored on perceived

usefulness and perceived ease of use. Perceived usefulness and perceived ease of use influence

an individual’s attitude towards using social media (intention). According to TAM, intentions to

use technology will determine whether a person will use the technology or not (behaviour). This

theory is significant in this study because the study derives two constructs from TAM: perceived

usefulness and perceived ease of use.The Social Identity Theory (SIT) suggests that people

define themselves based on personal and social aspects (Tajfel, 1982). Personal identity depicts a

person’s distinct characteristics, including personal traits and abilities. The social aspect (i.e.

social identification) refers to the perception of belonging to a human group (Ashforth & Mael,
1989). Tajfel (1981) defined social identity as that part of an individual’s self-concept, which

derives from one’s knowledge of their membership of a social group (or groups) together with

the value and emotional significance attached to that membership. Social identity therefore

supports positive associations with participation behaviour, i.e. the intention to use and actual

usage of social media (Dholakia et al.,2004; Lee et al., 2011). This theory therefore supports this

study by showcasing individuals’ Behaviour and attitudes in identifying themselves with the

usage of social media.

Figure 1. Theoretical Paradigm

Conceptual Framework

This study comprehensively observes both the adoption factors at the organizational level

of SMEs and the results of social media usage. From the previous studies examining the factors

that influence social media adoption, only a few have perceived the impact on SMEs’

performance.

Social media allows individuals to keep in touch with friends and extended family. Some

people will use various social media applications to network and find career opportunities,
connect with people across the globe with like-minded interests, and share their own thoughts,

personal updates, and insights online. Social identity theory aims to specify and predict the

circumstances under which individuals think of themselves as individuals or as group members.

The theory also considers the consequences of personal and social identities for individual

perceptions and group behavior.

This trend of consumer behavior change coupled with the novel potential of social media

to stick users with the platform have been well recognized by marketers, who now embrace it as

a tool to enhance customer acquisition and management to increase sales prospects. Moreover,

equipped with analytical capability, social media service providers are able to provide highly

sophisticated data for advertisers to effectively target customers and tailor their product and

service offerings to individual preferences. The social media giant Facebook is reported to have

advertising revenue as a massive portion of its sales (DiChristopher, 2015).Nonetheless, the

dependence on advertising as primary revenue source shows that majority of users do not

contribute directly to social media revenues through their purchase behavior. If managers of

social media firms are able to identify a common factor that simultaneously influences social

media use and consumer purchase behavior, they may cultivate their large customer base and

convert users to purchasers. Investing in this common factor helps online service providers in the

social media sector to generate additional value from active users. Thus, this approach also

enhances marketing effectiveness and is of practical and academic significance. Social media

emerges and then significantly spreads exponentially because of its social networking ability,

which satisfies the need of users to maintain their social identity. In a recent study, approximately

61%, 36%, and 21% of teens report that they frequently check their social media accounts to see

whether their posts are getting likes, if they are left out by friends, and if their friends say
negative things about them, respectively (Hadad, 2015). Prior research has recognized the social

aspect of social media and empirically examined the role and effect of social identity in driving

consumer online behavior.

Prior studies have shown that social identity theory contributes to purchase behavior in

various consumption situations. Madrigal (2001) investigated the direct and indirect effects of

social identity on purchase intentions in a corporate sponsorship context. In a broader

commercial context, customer identification toward a company has been reported to contribute to

a higher level of desired behavioral outcomes such as customer loyalty and willingness to

purchase (Ahearne et al., 2005, Bhattacharya and Sen, 2003, Homburg et al., 2009, Huang et al.,

2010). Thus far, most studies on social identity examined purchase behavior in a physical, offline

context. Although investigations on the direct effect of social identity on online consumer

purchase behavior appear to be limited, the reported relationships between affective factors,

including emotional support and commitments, as well as online social commerce intention,

partially support our proposition that social identity plays a key role in driving the purchasing

intention of online users (Gupta et al., 2010, Liang et al., 2011). Jointly, these research efforts

support our proposition that social identity has dual effects on both usage and consumption

intentions.

Figure:2 Conceptual Paradigm

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