Adoption of social media by small and medium sized (SMEs) enterprises of District Sargodha for promotion of Businesses

Abstract

Social Media Marketing has become a key driver of growth and competitive advantage in many business enterprises in the developed world. Small and Medium Enterprises in District Sargodha, Punjab Pakistan are faced with numerous challenges which made mortality rate of small businesses very high. Social media marketing has the potential of enhancing the growth of SMEs in Pakistan. However, its adoption rate among SMEs is still low. The objective of this study therefore is to investigate the factors influencing Social Media Marketing adoption by SMEs in Sargodha using the Diffusion of Innovation framework. This study models the adoption social media marketing by SMEs in District Sargodha using Everett Rogers’ Diffusion of Innovation theory. The study adopts a cross-sectional survey research design using a structured questionnaire to collect data from 200 SMEs located in District Sargodha, Punjab Pakistan. Data were analysed using multiple regression Ordinary Least Squares Method. Results show that only complexity of social media for all SMEs are significantly determines social media adoption by SMEs. Other dependent factors do not have significant effect on social media adoption. As such, it was recommended that attention should be paid to these variables to drive the adoption social media marketing by SMEs.