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Effect of Social Media Usage on the Performance of Micro and Small-Scale Enterprises in Lagos State, Nigeria

Author

Listed:
  • ADEJUMO Dauda Adegoke

    (Department of Economics, Management, Industrial Engineering and Tourism (DEGEIT) University of Aveiro, Portugal)

  • ALABI Ezekiel

    (Business Administration Department, University of Ilesa, Ilesa, Osun State)

  • OLAOYE Bosede Olubusayo

    (Department of Business Administration, Osun State Polytechnic, Iree)

Abstract

Social media has rapidly transformed how micro and small enterprises (MSEs) engage customers and access markets, yet many MSEs in Lagos State continue to struggle with leveraging these platforms effectively for business growth. This study therefore examined the effect of social media usage on the performance of MSEs in Lagos State, Nigeria, responding to the need for empirical clarity on how different platform types shape revenue growth. The objective was to assess the combined effect of social media, involving visual-centric, professional networking, real-time engagement, and community-driven platforms on MSE performance, particularly revenue growth among MSEs in the area. A descriptive survey design was adopted, and data were collected using a structured questionnaire administered to 781 respondents drawn from a population of 3,337,198 MSE owners using Taro Yamane’s formula, with reliability established through pilot testing and Cronbach’s alpha values above acceptable thresholds. Multiple regression analysis showed that all four platform dimensions significantly enhanced revenue growth, with visual-centric platforms (1.921) exerting the strongest effect, followed by professional networking (1.835), real-time engagement (1.817), and community-driven (1.763) platforms. The study concluded that social media is a critical performance-enhancing tool for MSEs, supporting revenue expansion and customer engagement across Lagos State. It recommended strategic investment in visual content creation, deeper participation in professional and community networks, and increased use of real-time platforms to strengthen responsiveness.

Suggested Citation

  • ADEJUMO Dauda Adegoke & ALABI Ezekiel & OLAOYE Bosede Olubusayo, 2025. "Effect of Social Media Usage on the Performance of Micro and Small-Scale Enterprises in Lagos State, Nigeria," International Journal of Research and Innovation in Applied Science, International Journal of Research and Innovation in Applied Science (IJRIAS), vol. 10(11), pages 47-56, November.
  • Handle: RePEc:bjf:journl:v:10:y:2025:i:11:p:47-56
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    References listed on IDEAS

    as
    1. Papadopoulos, Thanos & Baltas, Konstantinos N. & Balta, Maria Elisavet, 2020. "The use of digital technologies by small and medium enterprises during COVID-19: Implications for theory and practice," International Journal of Information Management, Elsevier, vol. 55(C).
    2. Y. Dwivedi & E. Ismagilova & L. Hughes & J. Carlson & R. Filieri & J. Jacobson & V. Jain & H. Karjaluoto & H. Kefi & A. S. Krishen & V. Kumar & M. Rahman & R. Raman & P. Rauschnabel & J. Rowley & J. S, 2021. "Setting the future of digital and social media marketing research: Perspectives and research propositions," Post-Print hal-04713688, HAL.
    3. Dwivedi, Yogesh K. & Ismagilova, Elvira & Hughes, D. Laurie & Carlson, Jamie & Filieri, Raffaele & Jacobson, Jenna & Jain, Varsha & Karjaluoto, Heikki & Kefi, Hajer & Krishen, Anjala S. & Kumar, Vikra, 2021. "Setting the future of digital and social media marketing research: Perspectives and research propositions," International Journal of Information Management, Elsevier, vol. 59(C).
    4. Gil Appel & Lauren Grewal & Rhonda Hadi & Andrew T. Stephen, 2020. "The future of social media in marketing," Journal of the Academy of Marketing Science, Springer, vol. 48(1), pages 79-95, January.
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