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THE ROLE OF SOCIAL MEDIA ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES: A REVIEW OF LITERATURE

David Maina Macharia - School of Business, Kenyatta University, Kenya

Mary Namusonge - School of Business, Kenyatta University, Kenya


ABSTRACT

The Small and Medium play a vital role in different economies across the globe. SME's performance is very important for the growth and development of the economy. The purpose of this study was to review the literature on the role of social media on SMEs performance to highlight the knowledge gaps suitable to form a basis for future research work. Therefore, the specific objective were to review the existing conceptual and theoretical literature on the construct of social media usage and SME performance; to review the relevant empirical literature on the construct of social media usage and SME performance; and to identify emerging conceptual, theoretical, and empirical gaps from the reviewed literature. The research is anchored on three theories; namely, the social network theory, social penetration theory, and technology acceptance model. The theories shed light on the importance of social networks which can be employed in business to enhance performance. Technology–Organization–Environment (TOE) conceptual Framework guided the study. The study established that social media plays a positive role in enhancing SME's performance. The adoption of social media by SMEs is important to their performance. However, the effectiveness of using social media to enhance SMEs’ performance is dependent on the role played by the SMEs management and the government.


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