NATIONAL UNIVERSITY OF BATTAMBANG

GRADUATE SCHOOL

Subject: Research Methodology

Project Title:
THE IMPACT OF SOCIAL MEDIA USAGE WITHIN SMALL AND
MEDIUM-SIZED ENTERPRISES (SMEs): A CASE STUDY OF SOME
LOCAL BUSINESSES IN PHNOM PENH CITY

បង្រៀនដោយសាស្ត្រា ចារ្យ: គឹម គីម

រៀបចំដោយនិស្សិត: TING HOUYCHENG

ជំនាន់ទី ១៧

2023
 CONTENTS
CHAPTER I
INTRODUCTION

1.1.Background of the Study...........................................................................................................2

1.2.Statement of the Problem...........................................................................................................2
1.3.Significant of the
Study..............................................................................................................3
1.4.Research Questions....................................................................................................................3
1.5.Research Objectives...................................................................................................................3
1.6.Research Hypothesis..................................................................................................................4
1.7.Scope and Limitation of the Study.............................................................................................4
1.8.Expected
Outcomes....................................................................................................................4

REFERENCES

-i-
 CHAPTER 1
INTRODUCTION

1.1Background of The Study

Social media has become a significant part of our lives nowadays. It has been widely
embraced by all kind of people of different races, cultures, and ages, helping them to develop
and maintain connection at a personal level and at work. Social media are defined as the internet-
based platforms which enable users or the general public to access, generate, and share ideas,
images, videos, information, interests, and other elements (Belás et al., 2021). Today, there are
4.8 billion social media users worldwide, representing 59.9% of the global population. As of
April 2023, the top most used social media platforms, ranked by global active users, were
Facebook, YouTube, WhatsApp, Instagram, and WeChat (Search Engine Journal, 2023).
Due to its popularity, small and medium enterprises (SMEs) have begun to use social
media as a marketing tool, and indeed, it is a low-cost strategy for reaching out to a wide variety
of customers (Adegbuyi et al., 2015). An effective social media platform can serve as a robust
outreach tool to disseminate information to those who need to consume it. Building a large
follower base to engage and amplify a message is something one must do better. (Ly & Ly,
2020).
Looking at the social media users in Cambodia, there were 13 million Facebook users in
Cambodia as of June 2022, which is accounted for 78.8% of the entire population (Napoleon
Incor., 2023). Among various platform, Facebook is the most popular, followed respectively by
Tik Tok, Instagram, YouTube, LinkedIn and Twitter. These platforms can help marketers to get
more chance in doing online and social media marketing.
According to (Em et al., 2021), SMEs have embraced social media platforms for various
purposes. They utilize social media channels to establish an online presence, share content,
engage with customers, and promote their products or services. Social media provides SMEs
with opportunities to compete with larger enterprises, allowing them to target niche markets,
personalize interactions, and leverage user-generated content. As digital technologies continue to
shape the business landscape, understanding the impact of social media on SMEs has become
increasingly important. This background study aims to provide an overview of the key aspects
and relevant research findings regarding the social media impact on SMEs.

1.2 Statement of the Problem

The rapid growth of social media platforms has revolutionized the way businesses
interact with their audiences and market their products or services. Small and Medium-sized
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Enterprises (SMEs) are an essential component of the global economy, contributing to job
creation, innovation, and economic growth. Despite the increasing adoption of social media by
SMEs, there is a lack of comprehensive understanding regarding the specific impact and
effectiveness of social media strategies on SME performance and outcomes. Thus, this study
aims to provide a comprehensive understanding of the social media impact on SMEs and to
understand various perceptions of business owners regarding the use of social media. This
research will contribute to the existing body of knowledge by filling gaps in understanding and
providing empirical evidence to guide policymakers, researchers, and practitioners in supporting
the growth and success of SMEs in the digital era.

1.3 Significance of the Study

The findings of this research have contributed many benefits to business stakeholders,
marketers, researchers and students. Most importantly, it would be beneficial to young business
startup and small and medium enterprise (SME). The main advantages of this research are
presented as follows:
 The existing business stakeholders would have a better understanding about other
business owners’ perspectives towards the use of social media and the further influences
of the social media within their business context.
 There are suitable factors in social media marketing that could use in the context of
Cambodia for marketers and students of related field.
 This study is also crucial to new business starters considering what plans they should
anticipate in order to prepare themselves in this digital era.
 This research will be beneficial for the future researchers because it provides essential
information and some answers that might be needed for their future research.

1.4 Research Questions

The research questions of this study are identified as follows:

1. In what way does social media usage impact SMEs in terms of customer engagement,
brand awareness, sales, and overall business performance?
2. What are the respondents’ attitudes towards the use of social media in their business?

1.5 Research Objectives

The purposes of this research aim to:

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 1. explore further benefits social media brings to business performances of various SMEs
in different areas of Phnom Penh city.
2. find out the users’ attitudes towards the use of social media within their business
context.

1.6 Research Hypothesis

The hypothesis of this study can formulated as follow:

-Hypothesis 1: Social media is positively related to the business performances within SMEs in
terms of customer engagements
-Hypothesis 2: SMEs that actively uses social media platforms for marketing and promotional
activities experience a positive impact on their sales performance, leading to an increase in
income.
-Hypothesis 3: Business owners are aware of social media’s benefits for their businesses and
have different strategies in using them.

1.7 Scope and Limitations of Study

This study is limited in selection of samples. The sample only covered some local
businesses in Phnom Penh and did not fully cover all sorts of business ranges within the city.
Future research should include respondents from various communities and different sizes of
organizations to enhance the findings on the impact of social usage and to improve the
possibility of generalization. Moreover, the relationship between social media usage and its
impact on business performance in different time periods can be investigated to examine whether
there are any changes in results between time periods.

1.8 Expected Outcome

The results can be predicted that the business performance is potentially affected by the
use of social media, regardless of any sizes and goals of the businesses. The business owners
may use various strategies to build and maintain relationship with their customers and others,
including the use of the Internet (message and chat) and online campaign. Despite the positive
impacts, social media platform might also cause some difficulties among elderly users within
business context because of some certain features. As a result, only the youngers can fully enjoy
the benefits of social media and make use of its full capacity. It is important that business owners

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know what goals they wish to achieve and also get to understand the basic strategies to properly
use social media within their business in order to improve their overall business performances.

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 REFERENCES
Adegbuyi, O. A., Akinyele, F. A., & Akinyele, S. T. (2015). Effect of Social Media Marketing on
Small Scale Business Performance in Ota-Metropolis, Nigeria. International Journal of Social
Sciences and Management, 2(3), 275–283. https://doi.org/10.3126/ijssm.v2i3.12721
Belás, J., Amoah, J., Dvorský, J., & Šuleř, P. (2021). the Importance of Social Media for
Management of Smes. Economics and Sociology, 14(4), 118–132.
https://doi.org/10.14254/2071-789X.2021/14-4/7
Em, O., Makmee, P., & Wongupparaj, P. (2021). Development of assessment criteria of social
media marketing on purchaseintention among social media users in Cambodia. International
Conference on Educational Research, May 2021.
https://www.researchgate.net/publication/351343786
Ly, B., & Ly, R. (2020). Effect of Social Media in Tourism (Case in Cambodia). J Tourism Hospit,
9(1), 424. https://doi.org/10.35248/2167-0269.19.9.424

Websites References

Napoleon Incor. (2023). Retrieved from Napoleon Cat.: https://napoleoncat.com/stats/facebook-

users-in-cambodia
Search Engine Journal. (2023, July). Retrieved from Search Engine Journal:
https://www.searchenginejournal.com/social-media/biggest-social-media-sites/