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Effects of entrepreneurial orientation on social media adoption and SME performance: The moderating role of innovation capabilities

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  • Mingyue Fan
  • Sikandar Ali Qalati
  • Muhammad Aamir Shafique Khan
  • Syed Mir Muhammad Shah
  • Muhammad Ramzan
  • Raza Saleem Khan

Abstract

The increase of social media (SM) has led to continuous deviations in how day-to-day entrepreneurial activities can be carried out. Additionally, studies devoted to SM entrepreneurship and SM are relatively limited and fragmented in their focus. However there is growing interest from scholars, practitioners and academia for upcoming studies and exploration within small and medium-sized enterprises (SMEs) context. This research explores the impact of entrepreneurial orientation (EO) on SM adoption and SME performance in developing countries. We employed the resource-based view (RBV) as the foundation for developing the conceptual framework The present study employed a closed-ended questionnaire to collect data from SMEs located in Pakistan. Partial-least-squares-structural equation-modeling (PLS-SEM) was utilized for the analysis of 423 responses. The results proved a direct positive link between EO–SMEs performance, EO–SM adoption, SM adoption–SMEs performance, innovation capabilities (IC), and SME performance. Partial mediation was found between EO and SME performance, and the significant moderation effect of IC was found between SM adoption and SME performance. This paper has implications for practitioners and researchers regarding SM adoption in the SMEs. It builds an empirical, multi-dimensional hypothesized model, including mediating and moderating roles affecting the relationships.

Suggested Citation

  • Mingyue Fan & Sikandar Ali Qalati & Muhammad Aamir Shafique Khan & Syed Mir Muhammad Shah & Muhammad Ramzan & Raza Saleem Khan, 2021. "Effects of entrepreneurial orientation on social media adoption and SME performance: The moderating role of innovation capabilities," PLOS ONE, Public Library of Science, vol. 16(4), pages 1-24, April.
    • Handle: RePEc:plo:pone00:0247320
    DOI: 10.1371/journal.pone.0247320
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    Cited by:

    1. Sikandar Ali Qalati & Dragana Ostic & Gu Shuibin & Fan Mingyue, 2022. "A mediated–moderated model for social media adoption and small and medium‐sized enterprise performance in emerging countries," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 846-861, April.
    2. dos Santos, José & Duffett, Rodney, 2021. "Exploring social media usage as a communication channel among independent food retailer SMEs in South Africa," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 5(2), pages 392-392, September.
    3. Batara Surya & Hernita Hernita & Agus Salim & Seri Suriani & Iwan Perwira & Yulia Yulia & Muhlis Ruslan & Kafrawi Yunus, 2022. "Travel-Business Stagnation and SME Business Turbulence in the Tourism Sector in the Era of the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(4), pages 1-37, February.
    4. Maha Shehadeh & Ahmad Almohtaseb & Jehad Aldehayyat & Ibrahim A. Abu-AlSondos, 2023. "Digital Transformation and Competitive Advantage in the Service Sector: A Moderated-Mediation Model," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    5. Albanus Kioko Mutuku & Betty Nzula Kiilu & Philiph Mathuku & Daniel O. Auka, 2022. "Effect of Entrepreneurial Skills on Organizational Performance of Small and Medium Enterprises in Nakuru City-Kenya," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 156-173.
    6. Sikandar Ali Qalati & Dragana Ostic & Mohammad Ali Bait Ali Sulaiman & Aamir Ali Gopang & Asadullah Khan, 2022. "Social Media and SMEs’ Performance in Developing Countries: Effects of Technological-Organizational-Environmental Factors on the Adoption of Social Media," SAGE Open, , vol. 12(2), pages 21582440221, May.

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