1

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The economic growth of any nation is driven by the collective presence of large-scale, small,

and medium-scale enterprises (Small businesses) within its business landscape. Over the

years, small businesses have experienced unprecedented growth worldwide, playing a

significant role in the advancement and prosperity of economies. They have become a rapidly

expanding sector that contributes to the sustainability of a nation's economy. However,

intense competition among Small businesses vying for the same consumer base presents a

challenge for many of these enterprises, especially when it comes to their sales performance.

Marketing and maintaining strong customer relationships are crucial elements for the success

of any business in today's highly competitive environment. For small and medium-sized

enterprises (Small businesses), executing effective marketing strategies has traditionally

posed challenges due to their unique requirements and limited resources compared to larger

corporations. With the advent of technology, businesses have increasingly turned to digital

tools to support their customer relationship management efforts. Among these tools, social

media has emerged as a prominent platform used by businesses to enhance their interactions

with customers (Adegbuyi, Akinyele, and Akinyele, 2015).

Social media platforms offer a dynamic and interactive space where businesses can interact

with customers, address their concerns, and tailor their marketing efforts to meet evolving

needs and preferences. Social media has effectively adopted traditional advertising, where

companies inform consumers about their product, with non-traditional advertising, where

customers advocate and review products and services to other customers. This fusion has

1
2

enabled businesses to gain a clear understanding of customer needs and preferences. The

transparency of obtaining genuine product reviews from previous users has the potential to

establish social media as a more trusted form of advertising compared to other mediums.

According to Stauss et al. (2001), the primary objective of utilizing social media to engage

with existing and potential customers is to strengthen relationships and boost sales. Social

media platforms are increasingly utilized by SME owners for content marketing to engage

current and potential customers (Davidsson and Findahl, 2016). Through social media

marketing, customer engagement can significantly enhance sales and productivity.. Social

media marketing facilitates consumer engagement and brand awareness by enabling

consumers to access information and share feedback easily (Baines and Fill, 2014).

Successful social media marketing strategies often leverage popular sites like Facebook,

Twitter, LinkedIn, YouTube, and corporate blogs. Social media marketing has become a

prominent trend in contemporary marketing strategies, with businesses prioritizing online

engagement with their audience over traditional means.

Studies indicate a widespread acknowledgment among micro and small businesses regarding

the effectiveness of social media as a marketing tool, though opinions are divided on its

efficacy in attracting new customers versus engaging existing ones (Chheda, 2014).

Adegbuyi (2015) in his research emphasizes the pivotal role of social media in marketing and

customer relationship management, particularly noting its relevance for micro-businesses.

Despite the low barriers to entry, some micro-businesses struggle to achieve significant

growth despite their marketing endeavors, underscoring the need to evaluate the effectiveness

of social media marketing in fostering business expansion. Lawal and Adejuwon (2023)

conducted a study on the influence of social media on small business performance in Nigeria.

The research adopted a survey design and focused on registered small businesses in Ilorin,

Kwara State, Nigeria. The study found that social media had a significant effect on market

2
3

share, indicating that small businesses that actively utilized social media platforms

experienced positive impacts on their market share. Furthermore, the study revealed that

search engines significantly influenced consumers' decision-making processes, suggesting

that online search activities played a role in shaping consumers' choices. Additionally, the

research by Omolekan and Omole (2020) found that social media had a significant impact on

brand equity, and brand equity, in turn, had an impact on the profitability of micro, small, and

medium enterprises (MSmall businesses) in Nigeria. It was also observed that social media

had a significant impact on consumer purchase decisions. Both studies recommended that

MSmall businesses should embrace social media platforms, create a social media plan

aligned with their goals, regularly post on social media, build relationships with customers,

and maintain professionalism in their interactions to improve their profitability.

Despite the vast opportunities that social media offers for marketing, it effectiveness can be

hindered by several unpredictable factors. One such factor is product positioning, which

refers to how a product is perceived by consumers in relation to competing products. Even

with careful planning and execution, businesses may struggle to accurately position their

products in the highly dynamic and competitive social media environment. Additionally,

messaging techniques play a crucial role in conveying the brand's message and engaging with

the audience. However, the effectiveness of these techniques can vary depending on factors

such as the target demographic, cultural differences, and evolving trends in social media

communication. As a result, businesses may find it challenging to craft messages that

resonate with their audience and drive desired outcomes.

1.2 Statement of the Problem

Traditional media platforms, such as television, radio, and print, have long been used by

businesses for marketing purposes. However, these platforms are associated with certain

limitations and flaws that have hindered their effectiveness in reaching and engaging with

3
4

target audiences. Traditional media often lack interactivity, making it challenging for

businesses to establish direct communication and build relationships with customers.

Additionally, the high costs of advertising on traditional media platforms can be prohibitive

for small businesses with limited budgets. Furthermore, measuring the impact and ROI of

traditional media campaigns is often difficult and imprecise.

Hence, the advent of social media platforms has emerged as a revolutionary alternative,

offering businesses the ability to overcome these flaws. Social media enables direct and real-

time engagement with customers, providing opportunities for feedback, interaction, and

relationship building. Moreover, social media marketing is generally more cost-effective,

allowing even small businesses to leverage its potential. The proliferation of social media

data has empowered small business owners to effectively manage customer relationships

(Libai et al., 2010). Social media data, characterized by volume, variety, and velocity, serve

as valuable sources for client analysis, market research, and innovation (Alharthi et al.,

2017). Technological advancements have facilitated easy access to data from various

platforms and formats (Moe and Schweidel, 2017). Thus, social media data play a significant

role in customer research, market analysis, and innovation sourcing. Social network

marketing and social media campaigns also offer avenues to promote products or services

across the internet through various social platforms.

However, while the benefits of social media marketing are widely acknowledged, there is

still a gap in understanding the specific impact of social media marketing on sales in small

businesses. This research aims to fill this gap by examining the relationship between social

media marketing and sales outcomes in small businesses, identifying the challenges faced,

and providing insights and recommendations to optimize social media marketing strategies

for driving sales.

4
5

1.3 Research Questions

To address the aforementioned problem, this study seeks to answer the following research

questions:

1. What is the influence of social media marketing on sales in small businesses?

2. What are the factors that contribute to the success of social media marketing

campaigns in small businesses?

3. What challenges do small businesses face in implementing effective social media

marketing strategies?

4. What are the best practices and strategies for optimizing social media marketing

efforts to drive sales in small businesses?

1.4 Aim and Research Objectives

The aim of the research is to investigate the impact of social media marketing on sales in

small businesses and provide recommendations for optimizing social media strategies to

drive sales outcomes.

The specific objectives of this research are as follows:

1. To examine the impact of social media marketing on sales in small businesses.

2. To explore the factors that contributes to the success of social media marketing

campaigns in small businesses.

3. To identify the challenges faced by small businesses in implementing effective social

media marketing strategies.

4. To provide recommendations and best practices for optimizing social media

marketing efforts to drive sales in small businesses.

1.5 Significance of the Study

The significance of this research extends to various stakeholders in the field of small business

marketing, including small business owners, policymakers, students, and researchers.

5
6

Small business owners stand to benefit from this study as it provides valuable insights into

the impact of social media marketing on sales. The findings will help them make informed

decisions regarding marketing strategies and resource allocation, enhancing customer

engagement and brand awareness.

Policymakers involved in supporting small businesses can utilize the research findings to

develop targeted initiatives that encourage effective use of social media marketing, fostering

a favorable environment for small businesses to thrive.

Students and researchers in business and marketing fields will find this research valuable, as

it contributes to the existing body of knowledge, serving as a reference for academic papers

and inspiring further exploration into the subject.

1.6 Scope of the Study

This research focuses specifically on the impact of social media marketing on sales in small

businesses. The study will involve examining the experiences and perspectives of small

business owners, marketers, and consumers. The geographical scope of the study will

primarily focus on selected small business owners in Akwa Ibom State, Nigeria.

6
7

CHAPTER TWO

REVIEW OF LITERATURE

2.1 Introduction

In recent years, the introduction of social media has revolutionized the way businesses

operate. The advent of social media has disrupted traditional marketing practices, shifting the

focus from one-way communication to interactive and participatory engagement. Businesses

now have the opportunity to create and share content, build brand identity, and engage in

conversations with their customers in real-time and presenting new opportunities for small

businesses to engage with customers. Social media platforms have emerged as powerful tools

for communication, information sharing, and networking, enabling businesses to reach a

wider audience and establish direct connections with their target market.

This section provides an overview of the impact of social media on business practices,

highlighting how it has reshaped marketing strategies and customer engagement in the digital

era. Additionally, this chapter outlines the objectives of the study, which will be achieved

through a comprehensive conceptual and theoretical review. Conceptual Review contains a

detailed explanation and review of the concepts in relation to this work. It breaks down

concepts that are relevant to this study. The Theoretical Framework exposes theories that are

relevant to the study.

2.2. Conceptual Review

2.2.1 Definitions and Characteristics of Small Businesses

Small businesses represent a diverse group of firms engaged in various business activities

worldwide (Dan, 2014). Globally, Small businesses constitute the majority of businesses,

estimated between 420 million and 510 million (International Trade Center, 2015). Small

7
8

businesses account for over 95% of enterprises worldwide, contributing approximately 50%

to a country's GDP and generating 60-70% of total employment (International Trade Center,

2015). This highlights Small businesses' substantial presence in global business and their

significant contribution to employment generation, particularly in the service and

manufacturing sectors (Savrul et al., 2014; World Trade Organization, 2013). In developing

countries such as, Nigeria, Small businesses employ over half of the manufacturing

workforce (World Trade Organization, 2013). Small businesses in Nigeria contribute

significantly to economic growth, employment generation, and export activities (SMEDAN,

2013). These statistics reveal the vital role of Small businesses in production and service

provision and their socioeconomic impact on various nations and regions.

Despite the importance of Small businesses, there is ongoing debate in the literature

regarding the concept of SME. Faloye (2014) highlights the lack of a universal definition of

SME, with Jahanshahi, Zhang, and Brem (2013) noting dynamic meanings across countries

and regions. Measures for categorizing enterprises into micro, small, and medium ventures

vary based on factors such as employee count, assets, capital, and sales volume (Aigboduwa

& Oisamoje, 2013). For example, in Malaysia, Small businesses consist of 5-50 full-time

employees in the service sector and 5-150 in the manufacturing sector. In Iran, Small

businesses are enterprises with 10-250 employees, while in the European Union, they range

from enterprises with 10 to fewer than 250 employees, with specified sales and balance sheet

figures (European Union, 2015). In Nigeria, Small businesses are enterprises with 10-199

workers and asset values between 5 million naira and 500 million naira (SMEDAN, 2013).

These variations highlight the lack of a universally accepted definition of SME, emphasizing

the need for contextualization when conceptualizing the term.

Ogechukwu (2006) outlines a set of general criteria used to define small and medium-scale

enterprises (Small businesses) across various countries. These criteria encompass factors

8
9

such as the number of employees, annual turnover, local operations, sales volumes, financial

strength, autonomy of managers and owners, relative market size within their industries, and

capital typically supplied by individuals or shareholders. In Nigeria, there is a proliferation of

small-scale businesses, particularly in the commercial sector. However, a notable trend in

Nigeria is the gradual classification of service providers, hotels, fast food establishments, and

restaurants as Small businesses. Due to these differences in definition and the absence of a

universal standard, the European Union established a universally accepted definition in 2003.

According to this definition, Small businesses and micro-businesses are characterized as

companies with fewer than 250 employees and specific financial criteria, with revenues not

exceeding 50 million Euros (measured as turnover) or 43 million Euros (measured as balance

sheet).

Small and medium-scale enterprises (Small businesses) are distinct from transnational

corporations, multinational corporations, publicly owned enterprises, or large facilities.

However, they have the potential to grow into larger business units based on their business

and ownership structures (Macqueen, 2006). While it is true that a significant portion (around

80%) of SME financing comes from owners, friends, and families, Small businesses can take

various forms of business organization, including private ownership, limited partnerships,

contracts and sub-contracts, cooperatives, or associations (Kozak, 2007). Small businesses

operate within a narrow context, but when effectively managed, they have the capacity to

contribute to economic growth and national development.

According to Ikherehon (2004), the roles of small businesses can be summarized as follows:

 Small and medium-scale enterprises (Small businesses) form the foundation of the

national economy.

 They contribute to the development of local technology.

9
10

 Small businesses provide an effective means of promoting indigenous

entrepreneurship.

 They mobilize and utilize domestic savings.

 Small businesses create greater employment opportunities per unit of capital

compared to larger enterprises.

 They ensure structural balance by encompassing both large and small industry sectors,

as well as rural and urban areas.

 Small businesses contribute to the supply of high-quality parts, components, and

intermediate products, thereby enhancing the international competitiveness of

manufactured goods.

 They stimulate technological development and innovation, producing specialized

items in smaller quantities to meet diverse and current demands.

 Small businesses are effective in subcontracting with larger enterprises.

 They enhance efficiency by reducing costs and improving flexibility.

 Small businesses have the capacity to expand exports and effectively substitute

imports.

2.2.2 An Overview of Social Media and Social Media Marketing

Social media is usually described as a group of internet-based applications that build on the

ideological and technological foundations that allow the creation and exchange of user-

generated content (Kaplan and Haenlein, 2010, p. 61). However, this definition is not

universally accepted, and various definitions have emerged due to the diverse categories of

social media. Constantinides and Fountain (2008) categorized social media into social

networks, forums, blogs, bulletin boards, content communities, and content aggregators,

suggesting that these platforms serve different purposes in online socialization.

10
11

According to Holland, Teicher and Donaghey (2019), social media can best be defined as

consisting of all digital platforms where people meet and exchange information. Social media

is gradually expanding to mean more than just social networks such as Twitter, Facebook,

Instagram Whatsapp, etc., but every service that is social in nature with a wide audience

(Chatterjee and Krystyanczuk, 2017). It has also been defined as consisting of all digital

platforms that support the creation, usage and sharing of user-generated content (Alt, 2019).

The term ‘social media’ has been regarded as a misnomer for several reasons. According to

Vaynerchuk (2011), social media is not media but a cultural shift that was driven on the

platform of the internet. The social media has also been regarded as a misnomer because it is

seen as an anti-social tool that prevents interaction between people in close proximity;

ultimately creating a lot more insular people (Lewis, 2016). Nelsen (2017) also agrees that to

some extent, the term ‘social media’ is a misnomer due to their anti-social and undemocratic

characteristics. Invariably, the term ‘social media’ bears the characteristics of terms

associated with information technology. Such terms are open to different meanings

depending on people’s perspective (Beauchamp, 2016; Jones, 2010).

Within the marketing domain, social media platforms are seen as avenues for small business

owners to establish online networks and disseminate information (Kaplan and Haenlein,

2010). Messages conveyed through social media tend to be faster than other media due to the

interactive nature among users (Joshi, 2019). These platforms encompass forums,

microblogging, social networking, bookmarking, and wikis (Joshi, 2019). Social media falls

under the category of digital media, which refers to media accessed through the internet,

encompassing text, images, video, and audio formats (Kumar et al., 2019). According to

Sugars (2012), social media pages like Facebook are interactive databases of customers for a

business.

11
12

Social media marketing refers to the use of social media platforms to promote products,

services, or brands and engage with the target audience. It involves creating and sharing

content, running targeted advertising campaigns, and fostering interactions and relationships

with users on platforms such as Facebook, Instagram, Twitter, LinkedIn, and YouTube.

Social media marketing harnesses the power of social networks to increase brand visibility,

drive website traffic, generate leads, and foster customer loyalty (Hanna, 2020).

There are various types of social media marketing techniques that businesses can employ to

achieve their marketing goals. Firstly, content marketing involves creating and sharing

valuable and relevant content, such as articles, blog posts, videos, and infographics, to attract

and engage the target audience (Meyerson, 2021). Secondly, influencer marketing leverages

the popularity and credibility of social media influencers to promote products or services to

their followers (Smith, 2020). Thirdly, paid advertising on social media platforms allows

businesses to reach a wider audience through targeted ads based on demographics, interests,

and behaviors (Obrien, 2020).

In addition to these techniques, social media marketing encompasses various strategies to

effectively engage and interact with the audience. One such strategy is social media listening,

which involves monitoring and analyzing social media conversations and mentions of the

brand or industry to gain insights and understand customer sentiments (Beauchamp, 2020).

Engaging in two-way communication, responding to comments and messages, and initiating

conversations with followers are essential for building relationships and fostering brand

loyalty (Hanna, 2020). Moreover, user-generated content encourages users to create and

share content related to the brand, increasing brand awareness and engagement (Meyerson,

2021).

2.2.3 Impact of Social Media on Small Businesses: An Empirical Overview

12
13

In their study, Udodiugwu et al. (2024) investigated the influence of social media

management on the performance of selected small businesses, focusing specifically on

dealers of perishable food items in Awka, Anambra, Nigeria. The research employed a

descriptive survey research design, and data was collected from the field using a Likert

questionnaire designed on a five-point scale. Hypotheses were tested using linear regression

analysis. The findings of the linear regression analysis indicated a positive and significant

impact of technology glitch management on sales, as well as a positive impact of internet on

customer retention for small businesses.

Lawal & Adejuwon (2023) conducted a study to examine the impact of social media

marketing on the success of selected small and medium-sized enterprises (Small businesses)

in the South-West region of Nigeria. The research utilized a descriptive survey approach,

with the study population consisting of officially registered Small businesses in the South-

West Nigeria SME offices. The sample size of 376 was determined using the Raosoft Sample

Size calculator, and data was collected through questionnaires administered to the

owner/managers of the selected Small businesses. The questionnaire underwent reliability

testing, yielding a Cronbach alpha coefficient of 0.889. Both descriptive and inferential

statistics were employed for data analysis using SPSS 24 and Smart PLS 3.3.3. The results of

the PLS-SEM analysis, with a 95% confidence level, indicated that customization and social

interaction had statistically significant effects (β= 0.252, t= 1.970; β= 0.472, t= 4.229,

respectively), while branded entertainment, customer engagement, and electronic word of

mouth did not show significant effects (β= 0.017, t= 1.1101; β= 0.065, t= 0.493; β= 0.093, t=

0.548, respectively). The data analysis revealed a positive relationship between social media

marketing and sales growth in the South-West region of Nigeria. The study concluded that

Small businesses in Southwest Nigeria experienced a significant increase in sales after

implementing social media marketing strategies. It is recommended that business owners’

13
14

focus on fostering stronger customer relationships and creating engaging content on their

social media platforms tailored to their brand, in order to enhance their sales performance.

In their study, Adejuwon and Buttle (2022) investigated the impact of adopting social media

marketing (SMM) on the customer retention ability of small and medium enterprises (Small

businesses). The study focused on the SMM components, including customer engagement,

branded entertainment, electronic word of mouth (E-WOM), social interaction, and

customization. The research employed a descriptive survey research design, with the

population consisting of Small businesses located in Lagos, Oyo, and Osun States, which

have a high concentration of Small businesses in Southwest Nigeria. The sample size of 489

was determined using the Raosoft Sample Size calculator, and data were collected through

questionnaires. The questionnaire underwent reliability testing, with a Cronbach alpha

coefficient of 0.889. Data analysis was conducted using descriptive and inferential statistics,

utilizing Statistical Package for Social Sciences (SPSS) version 24 and SmartPLS version

3.3.3. The results of the Partial Least Squares Structural Equation Modeling (PLS-SEM)

analysis, with a 95% confidence level, demonstrated that customer engagement (β= 0.366, t=

2.671), customization (β= 0.356, t= 2.679), and social interaction (β= 0.255, t= 2.154) had

significant effects on customer retention. However, branded entertainment (β= -0.047, t=

0.281) and E-WOM (β= -0.024, t= 0.163) were found to be statistically insignificant. The

study concluded that social media marketing significantly influenced the customer retention

of Small businesses in Southwest Nigeria. Therefore, the study recommends that SME

managers and owners should prioritize customer engagement, customization, and social

interaction to enhance customer retention.

Silvano and Mbogo (2022) conducted a study to explore the influence of social media

marketing on the sales performance of small businesses, focusing specifically on women's

clothing stores in Nyamagana District, Tanzania. The research utilized a quantitative research

14
15

approach, with data collected through questionnaires. The collected data was then analyzed

using statistical software, specifically the Statistical Package for Social Science (SPSS)

version 22. ANOVA was employed to predict how the use of Facebook, Instagram, and

Twitter for marketing purposes influenced the sales performance of small businesses in the

women's clothing retail sector. Regression analysis was also conducted to determine the

relationship between the independent variables (use of Facebook, Instagram, and Twitter)

and the dependent variable of the study. The results of the regression analysis indicated that

Facebook had a significant impact on the sales performance of small businesses (Beta =

0.199, P < 0.020). This means that a one-unit increase in the use of Facebook resulted in a

0.20 increase in the performance of small businesses. For Instagram, the findings revealed

that it had a significant impact on the sales performance of small businesses (Beta = 0.369, P

< 0.947). However, the results showed that Twitter did not have a direct relationship with the

sales performance of small businesses (Beta = -0.599, P < -0.945). Based on these findings,

the study suggests further research to be conducted on strategies that can enhance the

effective use of social media in small businesses. This would help in improving their sales

performance and overall success.

Omolekan and Omole (2020) conducted a study to examine the influence of social

networking on the performance of small businesses in Nigeria. The specific objectives of the

study were to evaluate the impact of social media on market share and determine the effect of

search engines on consumers' decision-making processes. The research utilized a survey

design, with the study population consisting of registered small businesses in Ilorin, Kwara

State, Nigeria. The sample respondents were selected using judgmental and simple random

techniques. The collected data was analyzed using ordinary least square regression. The

findings of the study revealed that social media had a significant effect on market share,

indicating that small businesses that actively utilized social media platforms experienced

15
16

positive impacts on their market share. Additionally, the study found that search engines

significantly influenced consumers' decision-making processes, indicating that online search

activities played a role in shaping consumers' choices. Based on these findings, the study

concluded that a significant relationship exists between social networking and the

performance of small businesses. The study recommended that small businesses should

embrace video sharing platforms to effectively promote their products and services.

Furthermore, building consumer trust through timely delivery and product quality was

emphasized as a strategy to encourage repeat purchases and enhance business performance.

Tsado and Santas (2018) conducted a study to explore the impact of social media marketing

on the sales performance of selected small and medium enterprises (Small businesses) in

Niger State, Nigeria. The primary objective of the research was to investigate whether Small

businesses advertise their products or services through social media platforms and to

determine the influence of social media marketing on their sales performance. The study

utilized a survey research method, with questionnaires serving as the data collection

instrument. The gathered data was analyzed using descriptive statistics, including frequency

tables, cross-tabulation, and the Gamma test. The findings indicated that social media

marketing did not have a significant effect on the sales performance of Small businesses in

the Minna metropolis. Based on these findings, the study recommended that organizations

supporting Small businesses, such as the Small and Medium Enterprise Development Agency

of Nigeria (SMEDAN) and various state agencies, should assist SME owners in

understanding the benefits of advertising through different social media platforms and

provide education in this area.

The study conducted by Yabilsu (2018) examined the influence of social media on brand

equity and profitability in micro, small, and medium enterprises (MSmall businesses) in

Nigeria, with a specific focus on the Federal Capital Abuja. The research employed a survey

16
17

method, utilizing questionnaires as the primary means of data collection. Data analysis

involved the use of the simple descriptive percentage method, and hypotheses were tested

using the Kendall coefficient of concordance method. The findings of the study indicated the

following: there is a recognized need for social media in business interactions in Nigeria,

social media has a significant impact on brand equity, and brand equity has an impact on the

profitability of MSmall businesses in Nigeria. Additionally, there is a significant influence of

social media on consumer purchase decisions. The study recommended that MSmall

businesses should develop a social media plan aligned with their goals and objectives,

maintain regular posting on social media platforms, build relationships with customers, and

maintain professionalism in their interactions.

Kazungu, Matto, and Massawe (2017) undertook a study titled "Social Media and

Performance of Micro Enterprises in Moshi, Tanzania," highlighting the growing popularity

and utilization of social media in various organizational operations, including Micro

Enterprises (MEs). The study delved into how social media impacts MEs' performance

concerning customer base, sales growth, profit maximization, and brand enhancement. It

specifically focused on identifying the most utilized social media platforms by MEs,

examining their influence on MEs' performance, and elucidating how MEs integrate social

media into their business processes. Data collection occurred in Moshi, Tanzania, involving a

representative sample of 90 MEs, employing a case study research design utilizing structured

questionnaires and interviews. Findings indicated that, all else being equal, the use of social

media enhances business performance. WhatsApp emerged as the most preferred social

media platform by MEs, followed by Facebook, Instagram, and Twitter. However, challenges

such as awareness, information security risks, and costs were observed as hindrances to MEs'

adoption of social media. The study concluded that effective utilization of social media

17
18

constitutes an efficient tool for enhancing MEs' performance, suggesting further research on

financial and marketing aspects of social media and addressing associated challenges.

Similarly, Surin and Wahab (2013) conducted a study on the "Effect of Social Network on

Business Performance in Established Manufacturing Small and Medium Enterprises (Small

businesses) in Malaysia," aiming to investigate the influence of social networks on business

performance among Malaysian manufacturing Small businesses. Data were collected via mail

questionnaires distributed to owner-managers in the Malaysian manufacturing sector,

yielding 226 usable responses for analysis. Hierarchical multiple regression analysis revealed

that network centrality significantly and positively affects business performance, whereas

family members networking and network density had positive but insignificant effects. As the

study was conducted in Malaysia, its findings and recommendations might not directly

translate to the Nigerian context, emphasizing the need for localized research. Consequently,

the present study seeks to offer recent insights and recommendations concerning the impact

of social media marketing on micro-business performance in Abuja, Nigeria.

Furthermore, Pentina, Koh, and Lee (2018) investigated the "Adoption of Social Networks

Marketing by Small businesses: Exploring the Role of Social Influences and Experience in

Technology Acceptance." Extending the Technology Acceptance Model (TAM), their study

explored how social influences affect Small businesses' adoption of social network marketing

(SNM) technology, emphasizing the temporal aspect of new technology adoption. Findings

revealed that social influences from experts, competitors, and customers strongly influence

SNM adoption, directly and by shaping perceptions of technology usefulness. For Small

businesses already employing SNM, social influence emerged as the primary determinant of

intention to continue using the marketing technology, with experience further reinforcing this

relationship.

18
19

2.2.4 Challenges Faced by Small Businesses in Implementing Effective Social Media

Marketing Strategies

Implementing effective social media marketing strategies can be a complex task for small

businesses. They often encounter several challenges that impede their ability to leverage

social media platforms successfully. Some of the major challenges faced by small businesses

in implementing effective social media marketing strategies include:

1. Limited Resources: Small businesses often operate with limited resources, including

time, budget, and expertise. Owners and staff have multiple responsibilities, making it

difficult to allocate sufficient time and effort to develop and execute comprehensive

social media campaigns. Moreover, smaller budgets may restrict their ability to hire

specialized professionals or invest in paid advertising on social media platforms

(Smith, 2019).

2. Adapting to the Evolving Social Media Landscape: The social media landscape is

constantly evolving, with platforms introducing new features and algorithms. Staying

up-to-date and effectively utilizing these changes can be demanding for small

businesses, particularly those with limited resources and expertise. Keeping pace with

the latest trends and effectively incorporating them into their strategies can present a

significant challenge (O'Connor, 2020).

3. Identifying Target Audience and Creating Relevant Content: Small businesses may

struggle with identifying their target audience and developing content that resonates

with them. Limited access to market research data and insights hinders their ability to

understand their customers' preferences and needs. This challenge makes it difficult to

create relevant and engaging content that captures the attention of their target

audience (Meyerson, 2021).

19
20

4. Measuring Impact and Return on Investment (ROI):

Measuring the impact and ROI of social media marketing efforts is often a challenge

for small businesses. While social media platforms provide basic analytics,

understanding how these activities contribute to business objectives, such as increased

sales or brand awareness, requires more advanced tracking and analysis. Small

businesses may lack the tools or expertise needed to accurately measure and assess

the outcomes of their social media campaigns (Hanna, 2020).

2.2.5 Factors That Contribute to the Success of Social Media Marketing Campaigns in

Small Businesses

Small businesses can achieve success in their social media marketing campaigns by

considering several factors. Having clear goals and a well-defined social media strategy is

crucial for small businesses to achieve success. Through setting specific and measurable

objectives, such as increasing brand awareness, driving website traffic, or generating leads,

businesses can align their social media activities with their overall marketing goals

(Beauchamp, 2020). A strategic approach helps in prioritizing efforts, targeting the right

audience, and delivering content that resonates with them. Consistency in branding and

messaging across social media platforms is essential for small businesses to establish a strong

and recognizable brand identity. Maintaining consistent visual elements, tone of voice, and

key messages helps in building brand recognition and fostering trust and loyalty among

followers (Obrien, 2020). By consistently representing their brand values and personality,

small businesses can create a cohesive and memorable presence on social media.

Additionally, successful social media marketing campaigns involve actively engaging and

interacting with the audience. Small businesses should focus on fostering genuine

connections, responding to comments and messages promptly, and initiating conversations

with their followers (Smith, 2020). By engaging with their audience, businesses can build

20
21

relationships, gain valuable insights, and create a community around their brand.

Encouraging user-generated content and running interactive campaigns can also enhance

engagement levels (Hanna, 2020).

Furthermore, creating and sharing relevant and high-quality content is crucial for the success

of social media marketing campaigns. Small businesses should tailor their content to meet the

needs and interests of their target audience (Meyerson, 2021). By providing valuable

information, entertainment, or inspiration, businesses can establish themselves as industry

experts and thought leaders. Visual content, such as images, videos, and infographics, can

further enhance the appeal and shareability of the content (Beauchamp, 2020). Monitoring the

performance of social media campaigns and optimizing strategies based on data insights is

essential for small businesses. Regularly analyzing metrics, such as engagement rates, reach,

click-through rates, and conversions, businesses can result in the identification what works

and what needs improvement (Obrien, 2020). This data-driven approach allows them to make

informed decisions, refine their targeting, adjust content strategies, and maximize the

effectiveness of their social media efforts.By considering these factors and adapting their

strategies accordingly, small businesses can effectively utilize social media platforms to

connect with their target audience, build brand awareness, and drive business growth.

2.3 Theoretical Framework

2.3.1 Technology Acceptance Model

The Technology Acceptance Model (TAM) is a theoretical framework that originated in the

field of information systems and technology adoption. It was first introduced by Fred Davis

in 1986 as an extension of the earlier work by Davis and Richard Bagozzi on the Theory of

Reasoned Action (TRA) (Davis, 1989). The TRA proposed that an individual's intention to

engage in a behavior is influenced by their attitude toward the behavior and subjective norms.

Building upon this foundation, Davis developed the TAM to specifically address the adoption

21
22

and acceptance of technology. The TAM was initially conceptualized to explain users'

acceptance and usage of computer systems in organizational settings. However, it has since

been widely applied to various domains, including the acceptance of new technologies,

software, and digital platforms. The model has been extensively researched and validated,

making it a valuable framework for understanding the factors that influence individuals'

acceptance and adoption of technology.

Davis posits that users' intentions when interacting with an information system are heavily

influenced by their attitudes and perceptions of the system's usefulness, which in turn affects

the system's success. Actions and utility are influenced by the perceived ease of use.

Companies utilize this model to achieve their objectives through the use of social media and

online commerce (Davis, 1989). In modeling how individuals utilize and manage data and

information, the Technology Acceptance Model (TAM) is foundational. It bolsters the

argument for technological determinism, positing that the system's adoption hinge s on two

crucial factors: perceived usefulness and perceived ease of use. An individual's perception of

a system's usefulness in achieving professional objectives is termed perceived utility (PU),

while their feelings about the interface's simplicity are captured by perceived ease of use

(PEOU) (Ekwueme & Akagwu, 2017). According to the technology adoption paradigm,

individuals' thoughts and feelings about using an information system significantly impact

their intention to actually use it. Despite online marketing's prevalence, consumers still

consider various factors such as internet accessibility, trustworthiness, convenience, and

payment methods (Ekwueme & Akagwu, 2017).

The TAM model for technology adoption remains relevant to this study, particularly as

customers increasingly make informed purchasing decisions without visiting physical

businesses. While social media and the internet are relatively new networking technologies,

their widespread usage in promotional campaigns can be explained by TAM. Customers are

22
23

more likely to adopt a product or service if they perceive it as beneficial and easy to use, with

trust playing a crucial role in its perceived utility. Despite consumers' control over the

advertising process, the theory sheds light on whether consumers embrace or reject social

media versus online merchants, regardless of the financial gains from advertising and e-

commerce. The theory's relevance lies in its explanation of how social media, as described by

TAM, has enabled customers to shift towards online purchases instead of traditional stores.

2.2.2 Resource Dependency Theory

Resource Dependency Theory (RDT) is a theoretical framework that originated in the field of

organizational sociology. It was first introduced by Jeffrey Pfeffer and Gerald Salancik in

1978 as a response to the challenges organizations face in managing their external

environment and acquiring necessary resources. RDT was initially developed by sociologists

Jeffrey Pfeffer and Gerald Salancik in their seminal work titled "The External Control of

Organizations: A Resource Dependence Perspective," published in 1978 (Pfeffer and

Salancik, 1978). The theory was a significant contribution to the field of organizational

sociology, aiming to explain how organizations are influenced by their external environment

and how they strategically manage their dependencies on external resources to ensure

survival and success. According to RDT, organizations strive to reduce their dependency on

external entities by establishing resource exchanges, forming alliances, and engaging in other

strategic actions. The theory emphasizes that organizations seek to gain control over critical

resources or establish strong relationships with resource providers to ensure their continued

access to resources.

The core principle of Resource Dependency Theory lies in the understanding that

organizations are not self-sufficient entities but are dependent on external resources to

function effectively (Pfeffer and Salancik, 1978). These resources can include financial

23
24

capital, knowledge, expertise, technology, raw materials, information, legitimacy, and more.

According to RDT, organizations must interact with and rely on external entities, such as

suppliers, customers, government agencies, and other organizations, to acquire the necessary

resources for their operation and growth. The Resource Dependency Theory serves as a

valuable framework for explaining the research objectives of this study. RDT suggests that

organizations, including small businesses, are dependent on external resources to survive and

thrive. In the context of social media marketing, small businesses rely on various resources

such as content, audience engagement, and technical expertise to effectively utilize social

media platforms for marketing purposes. The theory helps to understand how small

businesses manage their resource dependencies, including forming partnerships,

collaborations, and strategic alliances, to acquire and leverage these resources.

Applying RDT to the research objectives, the study aims to explore how small businesses in

relation to social media marketing strategically manage their resource dependencies to

achieve marketing objectives, such as increasing brand visibility, enhancing customer

engagement, and ultimately driving sales growth. Through an understanding of resource

dependency dynamics, the research seeks to provide recommendations for small businesses

on optimizing their resource allocation and improving their sales outcomes in the realm of

social media marketing.

24
25

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.

Adejuwon, J. A., & Buttle, L. O. (2022). Social Media Marketing and Customer Retention of

Selected Small and Medium Enterprises (Small businesses) In South-West

Nigeria. International Journal Of Management And Economics Invention, 8(6), 2458-

2467.

Ahmed, T. M. (2015). Internet and Customer Relationship Management in SME’s. In

Jayachandran, S., Sharma, S., Kaufman, P., Raman, “The Role of Relational

Information Processes and Technology Use in Customer Relationship Management”,

Journal of Marketing, 69(4), 177-192.

Ates, A., Garengo, P., Cocca, P., & Bititci, U. (2013). The development of SME managerial

practice for effective performance management. Journal of small business and

enterprise development, 20(1), 28-54.

Baines, P., & Fill, C. (2014). MARKETING 3E P. Oxford University Press, USA.

25
26

Chen, Y., Wang, Q., & Xie, J. (2011). Online social interactions: A natural experiment on

word of mouth versus observational learning. Journal of marketing research, 48(2),

238-254.

Chheda, S. H. (2014). Impact of social media marketing on performance of micro and small

businesses. DY Patil University, Navi Mumbai.

Constantinides, E. (2014). Foundations of social media marketing. Procedia-Social and

behavioral sciences, 148, 40-57.

Dan, C. (2014). Matters arising from Small businesses E-commerce adoption: Global

perspective. International Journal of Internet of Things, 3(1), 1-7.

Davis, F. D. (1989). Technology acceptance model: TAM. Al-Suqri, MN, Al-Aufi, AS:

Information Seeking Behavior and Technology Adoption, 205, 219.

Fajobi, T. A. (2023). Social Media and Sales Performance of Clothing Small Businesses in

Nigeria. Journal of Social Entrepreneurship Theory and Practice, 2(2), 1-13.

Fatai, A. (2011). Small and medium scale enterprises in Nigeria: The problems and

prospects. The Collegiate Journal of Economics, 5(6), 1-22.

Halligan, B., & Shah, D. (2009). Inbound marketing: get found using Google, social media,

and blogs. John Wiley & Sons.

Hanaysha, J. (2016). The importance of social media advertisements in enhancing brand

equity: A study on fast food restaurant industry in Malaysia. International Journal of

Innovation, Management and Technology, 7(2), 46.

26
27

Jahanshahi, A. A., Zhang, S. X., & Brem, A. (2013). E-commerce for Small businesses:

empirical insights from three countries. Journal of Small Business and Enterprise

Development, 20(4), 849-865.

Katona, Z., Zubcsek, P. P., & Sarvary, M. (2011). Network effects and personal influences:

The diffusion of an online social network. Journal of marketing research, 48(3), 425-

443.

Kumar, V., Rajan, B., Gupta, S., & Pozza, I. D. (2019). Customer engagement in

service. Journal of the Academy of Marketing Science, 47, 138-160.

Lawal, L. O., & Adejuwon, J. A. (2023). Social media marketing and sales performance of

selected small and medium enterprises in South-West Nigeria. Journal of

Management, Economics, & Industrial Organization (JOMEINO), 7(1).

Moe, W. W., & Schweidel, D. A. (2017). Opportunities for innovation in social media

analytics. Journal of Product Innovation Management, 34(5), 697-702.

Muller, E., & Peres, R. (2019). The effect of social networks structure on innovation

performance: A review and directions for research. International Journal of Research

in Marketing, 36(1), 3-19.

Ogechukwu, A. D. (2011). The role of small scale industry in national development in

Nigeria. Universal Journal of Management and Social Sciences, 1(1), 23-41.

Olusegun, O. O., Olympus, O. O., & Olakunle, A. I. (2020). Online marketing and the

performance of small-scale enterprises in Nigeria: a study of selected Small

businesses in Ikeja, Lagos State, Nigeria. Annals of Contemporary Developments in

Management & HR (ACDMHR), 2(3), 15-24.

27
28

Omolekan, O. J., & Omole, O. (2020). Influence Of Social Networking On Small Business

Performance In Nigeria. Annals of Spiru Haret University, Economic Series, 20(2),

43-61.

Oyedijo, A. (2012). Competitive strategy orientations of small and medium business owners

and their performance impacts: The case of paint manufacturing Small businesses in

South-Western Nigeria. Journal of Asian Business Strategy, 2(1), 1-8.

Pfeffer, J., & Gerald, R. (1978). Salancik. 1978. The external control of organizations: A

resource dependence perspective. (9), 159 – 170.

Pulizzi, J. (2013). B2C content marketing research: Strategy influences success. Content

Marketing Institute. Retrieved from

http://contentmarketinginstitute.com/2013/10/2014-b2c-consumercontent-marketing/

Savrul, M., Incekara, A., & Sener, S. (2014). The potential of e-commerce for Small

businesses in a globalizing business environment. Procedia-Social and Behavioral

Sciences, 150, 35-45.

Silvano, G., & Mbogo, C. (2022). Impact of social media marketing on small businesses’

sales performance: A case of women clothing stores in Nyamagana District,

Tanzania. International Journal of Engineering, Business and Management

(IJEBM), 6(2), 70-82.

SMEDAN. (2013). National MSME survey report 2013. Retrieved from

http://www.smedan.gov.ng

Surin, E. F., & Ab Wahab, I. (2013). The effect of social network on business performance in

established manufacturing small and medium enterprises (Small businesses) in

28
29

Malaysia. International Proceedings of Economics Development and Research, 67,

55.

Tsado, E., & Santas, T. (2018). Influence of social media marketing on the sales performance

of select small and medium scale enterprises in Niger State, Nigeria. Novena Journal

of Management and Social Sciences, 1, 152-165.

Udodiugwu, M. I., Jude, U., Kingsley Enyinna, D. E., & Vivian, O. (2024). Management of

Social Media; A Survival Strategy for Improving the Performance of Small

Businesses in Awka, Anambra State, Nigeria. Obiakor and Kingsley Enyinna, Dr.

Eneremadu and Onyedika Vivian, Dr. Okeke, Management of Social Media.

Verhoef, P. C. (2003). Understanding the effect of customer relationship management efforts

on customer retention and customer share development. Journal of marketing, 67(4),

30-45.

Verlegh, P. W., Ryu, G., Tuk, M. A., & Feick, L. (2013). Receiver responses to rewarded

referrals: the motive inferences framework. Journal of the Academy of Marketing

Science, 41, 669-682.

World Trade Organization. (2013). E-commerce in developing countries: Opportunities and

challenges for small and medium enterprises. Retrieved from www.wto.org

Yabilsu, S. J. (2018). Impact of Social Media on Brand Equity and Profitability in Micro,

Small and Medium Enterprises in Nigeria. Covenant Journal of Business and Social

Sciences.

Zach, O., Munkvold, B. E., & Olsen, D. H. (2014). ERP system implementation in Small

businesses: exploring the influences of the SME context. Enterprise Information

Systems, 8(2), 309-335.

29
30

30