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The Use of Social Media Platforms for Competitive Information and Knowledge Sharing and Its Effect on SMEs’ Profitability and Growth through Innovation

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  • Sarah Salem Ghazwani

    (Department of Management Information Systems, College of Business Administration, King Saud University, Riyadh 11587, Saudi Arabia)

  • Saeed Alzahrani

    (Department of Management Information Systems, College of Business Administration, King Saud University, Riyadh 11587, Saudi Arabia)

Abstract

Traditionally, corporations obtain competitive information via marketing reports, trade journals, newspapers, and competitors’ websites. That information was secondary and limited. With the widespread usage of Web 2.0 technologies, social media platforms (SMPs) are used by micro, small, and medium-sized enterprises (SMEs) to search for information about their customers, competitors, and markets. SMEs are the engine of economic growth and effective solution to poverty and unemployment. There is also a growing use of SMPs to facilitate knowledge sharing, which leads to developing new ideas and sharing new knowledge, boosting creativity and efficiency, and assisting in achieving goals. This study aims to examine the effect of those uses of SMPs on Saudi SMEs’ performance growth and profitability through innovation. To evaluate 220 valid online questionnaire responses, we used SmartPLS 4 through a PLS-based structural equation model. The results show the positive direct effect of using SMPs for customer information and knowledge sharing on SME innovation in emerging economies and the indirect effect of those uses on SME performance growth and profitability. As a result, Saudi SME decision makers are advised to improve their effectiveness in using SMPs to acquire customer information and use it for knowledge sharing because those uses will positively influence innovation and increase SME growth and profitability.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:16:y:2023:i:1:p:106-:d:1305012
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    References listed on IDEAS

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