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Social Media Use and Business Performance in SMEs: The Mediating Roles of Relational Social Commerce Capability and Competitive Advantage

Author

Listed:
  • Marjeta Marolt

    (Faculty of Organizational Sciences, University of Maribor, 4000 Kranj, Slovenia)

  • Hans-Dieter Zimmermann

    (School of Management, Eastern Switzerland University of Applied Sciences, 9000 St. Gallen, Switzerland)

  • Andreja Pucihar

    (Faculty of Organizational Sciences, University of Maribor, 4000 Kranj, Slovenia)

Abstract

Social media (SM) enables micro, small, and medium sized enterprises (SMEs) to improve brand awareness and to engage their audience, which can lead to referrals, repeat business, and increased sales. However, the existing literature offers limited insights into how the ability to leverage SM for commercial activities that are beyond transactions (relational social commerce capability) can affect performance outcomes for SMEs. Drawing on the existing literature and insights from in-depth interviews with six SME managers/owners, we developed a conceptual research model and examined it empirically by using a dataset collected from Slovenian SMEs. This study identifies relational social commerce capability and competitive advantage as important mediators when exploring the impact of SM use on business performance. More specifically, the findings reveal the mediating role of relational social commerce capability between SM use and competitive advantage, while SM use was not found to have a direct impact on competitive advantage. Furthermore, the findings illustrate business performance as a result of the competitive advantage derived from relational s-commerce capability.

Suggested Citation

  • Marjeta Marolt & Hans-Dieter Zimmermann & Andreja Pucihar, 2022. "Social Media Use and Business Performance in SMEs: The Mediating Roles of Relational Social Commerce Capability and Competitive Advantage," Sustainability, MDPI, vol. 14(22), pages 1-14, November.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:22:p:15029-:d:971961
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    2. Sarah Salem Ghazwani & Saeed Alzahrani, 2023. "The Use of Social Media Platforms for Competitive Information and Knowledge Sharing and Its Effect on SMEs’ Profitability and Growth through Innovation," Sustainability, MDPI, vol. 16(1), pages 1-23, December.
    3. Abbas Alwan Ghazi Alateya & Shathees Baskaran, 2023. "Understanding the Skills and Roles of Social Media Manager in Improving Job-Related Performance among SMEs in Australia," Business Management and Strategy, Macrothink Institute, vol. 14(2), pages 109-127, December.
    4. Arman Poureisa & Yuhanis Abdul Aziz & Siew-Imm Ng, 2024. "Swipe to Sustain: Exploring Consumer Behaviors in Organic Food Purchasing via Instagram Social Commerce," Sustainability, MDPI, vol. 16(6), pages 1-23, March.
    5. Rosmadi Fauzi & Mariney Mohd Yusoff & Abd Rahman Roslan & Siti Nadira Ahmad Rozlan & Muhammad Fathi Marzuki & Mohd Muslim Said & Kamaruzaman Jusoff, 2023. "Measuring the Struggle of Small-Scale Businesses in the COVID-19 Environment," Sustainability, MDPI, vol. 15(5), pages 1-17, March.
    6. Yonghee Kim & Sungjin Yoo, 2024. "Global Financial Investment Connectedness, ICT, and Intellectual Property Strategies: A Country-Level Empirical Analysis," Sustainability, MDPI, vol. 16(8), pages 1-10, April.
    7. Quoc Hoang Thai & Khuong Ngoc Mai, 2023. "Does Entrepreneurial Financial Support Guarantee New Ventures’ Performance via Competitive Advantage and Innovation? Empirical Answers from Ho Chi Minh City Region, Vietnam," Sustainability, MDPI, vol. 15(21), pages 1-29, November.

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