Mediating Role of Social Media Marketing Adoption between TOE Framework and Competitive Intelligence Towards SMEs Performance

Abstract

The business landscape in Malaysia has grown fiercely competitive due to technology and globalization. Fueled by rapid technological advancement, companies, including small and medium enterprises (SMEs), are leveraging social media for product promotion. While past studies have highlighted the potential of social media for SMEs, adoption hinges on information processing by owner-managers. This study, conducted in Malaysia's East Coast (Kelantan, Terengganu, Pahang), investigates how technological, organizational, and government support, along with competitive intelligence, impact SME performance. The study draws from Resource-based View (RBV) and Diffusion of Innovation (DOI) theories, supported by the Technology, Environment, and Organization (TOE) framework. Employing a quantitative approach, 339 out of 1920 surveyed owner/managers' SMEs were analyzed using structural equation modeling (SEM-PLS). Results indicate positive links between technological, government support, competitive intelligence, and SME performance. However, organizational support's impact on SME performance varies with organizational size. Additionally, the study confirms social media marketing's mediating role between these factors and SME performance. The research paper significantly enriches the existing body of knowledge within the Technology, Environment, and Organization (TOE) framework and the realm of Competitive Intelligence as it pertains to SMEs' performance, with a notable focus on the mediating role of Social Media Marketing (SMM).