Social media adoption and performance of the manufacturing sector of Bangladeshi SMEs: A TOE framework perspective

Globalization and swift digitization have posed challenges for small and medium enterprises (SMEs) in the competitive market. Moreover, the advent of modernization has formed both challenges and prospects for SMEs. SME firms have begun using social media (SM) applications to reach target audiences, develop relationships with prospective consumers, and retain existing consumers. Nevertheless, little attention has been paid to a comprehensive acceptance of social media (SM) in Bangladesh. This research examines the impact of the TOE framework on SM adoption and on SME firms' performance. A purposive sampling method has been adopted to reach the targeted respondents. Using a structured questionnaire, a total of 353 data points were collected from various districts of Bangladesh. SmartPLS 4 has been used for the path analysis. The study shows a positive and significant impact of relative advantage on compatibility with social media adoption. Perceived employee capability, cost-effectiveness, and top management support (organizational factors), as well as competitive pressure and perceived customer pressure (environmental factors), significantly increase SM adoption. SMEs' performance is also influenced by the adoption of SM. The study offers numerous suggestions for policymakers, SME foundations, and researchers interested in SM and its applications.