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Social Networking Sites and Performance of Small and Medium Enterprises: Evidence from Oyo State, Nigeria

Kayode Muhammed Ibrahim Akintunde A. Akintayo Emmanuel Ayeni Abidemi Hassan

Volume 7 Issue 3 | Sep 2024

DOI: 10.31841/KJEMS.2024.166

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Abstract

The use of social media dramatically influences the effective and profitable performance of businesses, especially SMEs. Nonetheless, more empirical studies are required to enhance understanding the relationship between social media and SME success, particularly in developing countries, Nigeria inclusive. The present research confirms the suitability of social networking sites as an effective tool to enhance competitiveness and performance among SMEs. Self-administered questionnaires were distributed among 385 SME owners and managers in Oyo town, Oyo State. Descriptive data were obtained with the help of a structured interview and purposeful sampling. The exploratory study of data was done using descriptive analysis; another analysis was the multinomial regression hypothesis analysis. The study findings showed that social networking sites enhance SME performance more than any other factor, p < 0.01. Based on these findings, the role of the social media tool is quite tactical for enhancing SMEs' competitive advantage and productivity. The study shows how social networking sites should be included in business strategies for growth and the realization of sustainable business success in today's information age. These platforms are recommended for business owners to enhance operations, reach more markets, and eliminate vulnerability in the unstable business world.