Genecom Institute of Science and Technology, Inc.

Rawis, Legazpi City

S.Y. 2022-2023

Perceived impact of social

media in business development
on small and medium
enterprises in Legazpi City
Research Title:

Prepared by:
Andueza, Gaiza Marione P.
Lotivio, Jan Edward L.
Gaveria, Rosella A.
Ty, Christian T.
Literal, Ian V.
 CHAPTER I
This chapter will present the topic and its background of the study and the information
gathered from articles and researchers, this will also present the Statement of the Problem and its
research questions, this will also discuss the significance of the study, scope and delimitations,
and lastly the definition of terms.

Introduction
Social media is a collective term for websites and applications that focus
oncommunication, community-based input, interaction, content-sharing and collaboration.
People use social media to stay in touch and interact with friends, family and various
communities. Businesses use social applications to market and promote their products and track
customer concerns. (Ben Lutkevich, 2021)

According to Oxford University (2023) social media is a broad category or genre of

communications media which occasion or enable social interaction among groups of people,
whether they are known to each other or strangers, localized in the same place or geographically
dispersed. It includes new media such as newsgroups, MMOGs, and social networking sites.
Such media can be thought of metaphorically as virtual meeting places which function to
occasion the exchange of media content among users who are both producers and consumers.

Small and medium-size enterprises play a vital part in many economies around the world.
Their innovation, flexibility, creativity, efficiency, and locality all play a part in successful
SMEs. Through conscious consumer behavior, government assistance, and reliance on one’s
community, SMEs have engrained themselves as an important part of business.
Thus small and medium 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 enterprises. Small and Medium Enterprises (SMEs) play a major
role in most economies, particularly in developing countries. SMEs account for the majority of
businesses worldwide and are important contributors to job creation and global economic
development. Social media plays a key role in businesses’ marketing strategies given the sheer
amount of time individuals spend each day on social platforms and apps. At the same time, social
media is an ever-changing field. (According to Daniel Liberto,2022)

Small and medium enterprises are privately owned businesses whose capital, workforce,
and assets fall below a certain level according to the national guidelines.Local restaurants,
grocery stores, garages, etc. that serve a hyperlocal target audience usually fall under the blanket
of a small-to-medium-size enterprise as they generate less revenue and operate with less than a
certain level of workforce and assets. (According to Parth Verma,2023)

Social media marketing is the latest “buzz” in marketing. Apart from basic websites;
consumers looks for a blog, a Facebook page, shopping cart, e-brochures. (According to M.
Rajasekar, 2019).
 Social media have also become adopted as a significant marketing tool. Thanks to digital
media, companies can get their information out to the public faster than ever. Instead of printing
inserts and waiting for the Sunday paper to announce their sales, companies now can let the
world know about an exciting promotion through email, social networking, their websites and
Internet ads. However, digital media can spread bad information about a business just as fast as it
can spread good. A video or camera taken with a cell phone or a Facebook status update
featuring a company secret or faux pas can go viral within minutes, leaving a business’s
reputation damaged when business before digital media would have been able to clear up the
mess long before it went public.
Social media allows businesses to crowd-source Ideas. Before you launch a new product
or service, one would like to have some ideas about what people think about it. So by engaging
with prospects and customers via social media, one can actually ask the fans and followers what
colors they prefer or what types of features they want. In addition social media allows businesses
to be more transparent and reliable. The process of taking a prospect to the point of becoming a
customer has slowed down somewhat due to consumers‟ awareness. People want to buy from
those companies who have established credibility and who seem to be totally transparent in their
advertising campaigns. (According to Lakshimi. V, Afraa Mahboob, Ankita Choudhary,2017)

Social media marketing for small businesses is the act of using social media platforms to
create awareness for a start-up company’s products and services and engaging with a company’s
customers, prospects, partners, and employees. Small businesses can use social media to share
content, generate leads, attract new customers, provide customer service, and build their brands.
(According to Andre Ice Kay, 2022)
Small and Medium-sized Enterprises (SMEs) can communicate with their consumers and
provide them with relevant information on cost-effective goods or services with the help of
social media technologies. (According to Hussam Al Halbusi,2021)

Statement of the problem:

The main aim of this paper is to determine the impact of Social media in business
development of small and medium enterprises and how it can facilitate small and medium
enterprises to spread out their businesses. On the other hand, with growing usage of internet as
well as mobile applications, social media penetration has become an official part four
professional and personal life.
(SMEs)
Specifically, this study ought to answer the following question:
1. What is the importance of social media to businesses ?
2. What are the effects of social media in small and medium enterprises?
3. What is the role of enterprises in the economy?

Scope and Delimitation:

This research will focus on the impact of social media in business development of small
and medium enterprises in Legazpi City. In this study, the researchers will be able to determine
the advantages and disadvantages of using social media in small and medium enterprises in
Legazpi City. The respondent are the owners, managers, and personnel are able to participate in
this study. This study will be conducted on this March, 2023. Also the data will be gathered
through interviews and surveys questionnaire.
Significance of the study:
This research will focus on the development of the impact of social media in business
development of small and medium enterprises in Legazpi City. In this study, the researchers will
be able to determine the advantages and disadvantages of using social media in small and
medium enterprises in Legazpi City.
The study is anticipated to be of much value to a number of people and organizations as follows;
It will help to explain to the public the roles played by the social media in small and medium
businesses in their performance. It will help to find out the difference in performance between
businesses with and without business social media. It will help to find out the
challenges encountered by the customers when making business exchange with the
small and medium businesses through social media and it will help other researchers
to identify viable areas for further research. Also, it will be used as an additional
reference to other researchers on social media towards business performance. Finally
the study will help to fulfill the requirement of enabling to achieve the MBA degree.

Definition of terms:
Assets-property owned by a person or company, regarded as having value and available to
meet debts, commitments, or legacies.
-anything that has current or future economic value to a business.
Buzz-general sense of excitement about or interest in someone or something, as reflected in or
generated by media coverage or word of mouth.
Broad-covering a large number and wide scope of subjects or areas.
Collaboration -the action of working with someone to produce or create something.
-traitorous cooperation with an enemy.
Collective –a cooperative enterprise.
Conscious -aware of and responding to one’s surroundings; awake.
-having knowledge of something; aware.
Credibility -the quality of being convincing or believable.
Efficiency -an action designed to achieve efficiency.
Engrained -firmly fix or establish (a habit, belief, or attitude) in a person.
-to work indelibly into the natural texture or mental or moral constitution.
Facilitates -make (an action or process) easy or easier.
-to help people deal with a process or reach an agreement or solution without getting
directly involved in the process, discussion, etc.
Faux-made in imitation; artificial.
-not genuine; fake or false.
Geographically Dispersed -means a state where each location is distant from any other more
than 1,500 m in any direction. Mobile sensors are always considered “geographically
dispersed”.
Hyperlocal-relating to or focusing on matters concerning a small community or geographical
area.
Innovation – the action or process of innovating. A new method, idea, product.
- Innovation can refer to something new, such as an invention, or the practice of
developing and introducing new things.
-An innovation is often a new product, but it can also be a new way of doing
something or even a new way of thinking.
Localized -confined or restricted to a particular location.
Media- it is the plural form of medium, which (broadly speaking) describes any channel of
communication. This can include anything from printed paper to digital data, and encompasses
art, news, educational content and numerous other forms of information.
Metaphorically -a comparison between two things that are otherwise unrelated. With
metaphor, the qualities of one thing are figuratively carried over to another.
-To indicate that you are not using words with their ordinary meaning, but are
describing something by means of an image or symbol.
Promote -further the progress of (something, especially a cause, venture, or aim); support or
actively encourage.
Prospect –the possibility or likelihood of some future event occurring.
-a person regarded as likely to succeed or as a potential customer, client, etc.
Reliance - the state of needing or depending on something or someone in order to be able to do
something.
Revenue-income, especially when of a company or organization and of a substantial nature.
-the money that is produced by carrying out normal business operations and is
calculated by multiplying the average sales price by the number of items sold. It is the total sum
of money from which other costs and expenses are subtracted to calculate net income.
Threshold-at the beginning of something or very close to something (such as a new condition,
an important discovery, etc.)
Usage-the use of something, the way in which it is used, or how much it has been used.
Vital -concerned with or necessary to the continuation of life. Absolutely necessary or
important; essential.

References

Halbusi, Hussam Al (2021). Exploring social media adoption in small and medium enterprises in
Iraq: pivotal role of social media network capability and customer involvement.
Tandfonline.com:
https://www.tandfonline.com/doi/full/10.1080/09537325.2022.2125374
Kay, Andre Ice (2022). Truths About Social Media Marketing for Small Business: Stats,
Benefits, Tips and Importance. Sociallybuzz.com:
https://www.sociallybuzz.com/benefits-of-social-media-marketing-for-small-business/
Liberto, Daniel (2022).Social Media: Definition, Effects, and List of Top Apps. Investopedia:
https://www.investopedia.com/terms/s/social-media.asp
Lutkevich, Ben (2021).Social Media. Whatls.com:
https://www.techtarget.com/whatis/definition/social-media
Oxford Reference (2023). Social Media. Oxford Reference:
https://www.oxfordreference.com/view/10.1093/oi/authority.20110810105901867#:~:tex
t=A%20broad%20category%20or%20genre,MMOGs%2C%20and%20social
%20networking%20sites
Rajasekar, M. (2019). A study on Social Media on Marketing. Ijsdr.org:
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.ijsdr.org/
papers/IJSDR1711013.pdf&ved=2ahUKEwiG65qr6oD-
AhW4m1YBHSyfCocQFnoECBcQAQ&usg=AOvVaw064Gj1HET59MX6qB_vblxY
V, Lakshimi. , Mahboob, Afraa , Choudhary, Ankita (2017). A study on Impact of social media
on small and Medium enterprises. Ijsdr.org: https://www.google.com/url?
sa=t&source=web&rct=j&url=https://www.ijsdr.org/papers/
IJSDR1711013.pdf&ved=2ahUKEwiG65qr6oD-
AhW4m1YBHSyfCocQFnoECBcQAQ&usg=AOvVaw064Gj1HET59MX6qB_vblxY
Verma, Parth (2023).Small and Medium Enterprise (SME) – Definition, Characteristics, &
Examples. Feedough.com: https://www.feedough.com/small-and-medium-enterprises-
sme/
 Chapter II

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.

Related 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.

Related Studies

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.

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.

What Are Small and Mid-size Enterprises (SMEs)?

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.

KEY TAKEAWAYS

Small and mid-size enterprises (SMEs) are businesses that have 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.
Each country may also set different guidelines across industries to define what a
small business is across sectors.
SMEs play an important role in the economy, employing vast numbers of people
and helping to shape innovation.
Governments regularly offer incentives, including favorable tax treatment and
better access to loans, to help keep them in business.
Understanding Small and Mid-size Enterprises (SMEs)
Though small in SMEs play an important role in the economy. They outnumber
large firms considerably, employ vast numbers of people and are generally
entrepreneurial in nature, helping to shape innovation.
Small and mid-size enterprises can exist in almost any industry, but it is more
likely they reside within industries requiring fewer employees and requiring smaller
upfront capital investments. Common types of SMEs include legal firms, dentist offices,
restaurants, or bars.
SMEs are segregated from large, multi-national companies because they
fundamentally operate differently. Large, complex firms may require advanced ERP
systems, interconnectivity across offices around the world, or must deeper organizational
charges. SMEs, on the other hand, may be more with limits to its upside potential but also
with more simple operations.

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.

Local Literature

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.

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.

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.

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.
Perceived usefulness (PU) is one of the main constructs of the technology acceptance
model (TAM) (Davis 1989). Users’ acceptance of computing facilities was one of the initial
developments of this theory (Davis et al.1989). The theory has since been developed by many
scholars in different Areas (Adams et al. 1992; Gefen & Straub 2000; Gefen et al. 2003; Pavlou
2003; Hajli 2013; Kim 2012). TAM argues that constructs have a strong influence in the
acceptance of systems by a user (Pavlou 2003). The original definition of perceived usefulness
by Davis (Davis 1989) is ‘the degree to which a person believes that using a particular system
would enhance his or her job performance’. It is one of the main reasons why people are
receptive to new technology (Davis 1989). The constructs introduced by TAM can be applied in
a wide range of ways (Adams et al. 1992). These can also be used to predict consumer behaviour
in e-commerce (Gefen & Straub 2000; Pavlou 2003). TAM is among the popular theories in
Information Systems (IS) as it emphasises intention to use a system. Its instruments have been
validated in different research (Pavlou 2003).In the present study, only perceived usefulness and
intention to buy have been selected as main factors to develop the proposed model. One of the
main reasons for omitting perceived ease of use from the present study is that, it is argued, this
construct has an indirect effect on user acceptance through PU (Gefen & Straub 2000). Previous
researchers have been consistent in arguing that PU has a positive direct effect on acceptance of
a system (Gefen &c Straub 2000; Pavlou 2003). There are different aspects that define PU in an
e-commerce environment. For instance, the quality of a website in terms of system, service and
information quality has a significant impact on perceived usefulness, which in turn encourages
consumers to buy (Ahn et al. 2007). Businesses can concentrate on information, service and
system quality to improve their websites, and also enhance perceived usefulness in their
consumers (Ahn et al. 2007).
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 behaviour.
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.
H1a
The affective dimension of social identity positively influences social media members’
(a) use and (b) purchase behavior.
H1b
The evaluative dimension of social identity positively influences social media members’
(a) use and (b) purchase behavior.

Figure:1 Conceptual Paradigm

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