ISSN: 2222-6990
Open access
This paper investigates the multifaceted impact of social media on the business performance of Small and Medium Enterprises (SMEs) in Klang Valley, Malaysia. In the digital transformation era, social media has become a key platform for businesses to communicate with their audience, but its efficacy, particularly in the SME sector, is underexplored in this region. This study investigates the impact of social media strategies involving social advertising (SMA), customer opinion awareness (SACO), and customer relations (SMCR) on social media engagement (SME) and business performance (BP) among SMEs. Findings indicate that both SMA and SACO positively influence SME, which in turn improves BP. Specifically, SMA enhances engagement through advertising, while SACO drives engagement by responding to customer opinions, with both paths positively impacting BP via SME as a mediator. In contrast, SMCR exhibits a negative direct effect on SME and an indirect effect on BP, suggesting that an exclusive focus on customer relations may detract from engagement and performance. The results underscore the importance of a balanced social media strategy that integrates advertising, customer responsiveness, and relationship management to optimize engagement and business outcomes.
Afthanorhan, A., Awang, Z., Rashid, N., & Foziah, H. (2019). Assessing the effects of service quality on customer satisfaction. Management Science Letters, 13-24. https://doi.org/10.5267/j.msl.2018.11.004.
Aguilar, N., Ongon, C., Samulde, H., Cleofe, N., Gerpacio, A., & Melo, M. (2022). Influence of Social Media Marketing on the Brand Performance of the Students’ Small Online Businesses. World Journal of Advanced Research and Reviews, 16(2), 876-886. https://doi.org/10.30574/wjarr.2022.16.2.1265.
Alkhateeb, M., & Abdalla, R. (2021). Social media adoption and its impact on SMEs performance a case study of Palestine. Studies of Applied Economics, 39(7), https://doi.org/10.25115/eea.v39i7.4872.
Alzougool, B. (2019). The use and continuance use of social media applications by small and medium enterprises in Kuwait. Global Knowledge, Memory and Communication, Vol. 68 No. 6/7, 471-490.
Amanda. (2019, March 20). How Social Media Impacts an SME? Retrieved from Funding Societies: https://blog.fundingsocieties.com.my/sme-business guides/how-social-media-impacts-an-sme/
Amoah, J., & Jibril, A. (2021). Social Media as a Promotional Tool Towards SME’s Development: Evidence from the Financial Industry in a Developing Economy. Cogent Business & Management, 8(1), https://doi.org/10.1080/23311975.2021.1923357.
Arianty, N., & Julita, J. (2019). The Impact of Social Media Use on SME Progress. Journal of International Conference Proceedings (JICP), V2 (3).
Azman, A. B., & Majid, M. A. A. (2023). Role of family and survival strategies of micro-family food business during covid-19 pandemic. Journal of Tourism and Services, 14(26), 153-172.
Bakar, M., Norhisham, S., Fai, C., & Baharin, N. (2021). Comparison of service quality and stakeholder perception on bus services for urban transportation in Klang Valley. International Journal of Academic Research in Business and Social Sciences, 11(2)., https://doi.org/10.6007/ijarbss/v11-i2/9210.
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
Bedda, W. (2022). Entrepreneurial marketing for the international growth of niche SMEs: An exploratory study in the MENA region”. Cardiff Metropolitan University. Thesis., https://doi.org/10.25401/cardiffmet.23624334.v1.
Dodokh, A., & Al-Ma'aitah, M. (2019). Impact of social media usage on organizational performance in the Jordanian dead sea cosmetic sector. EJBM, https://doi.org/10.7176/ejbm/11-2-09.
Efendio?lu, E., & Durmaz, Y. (2022). An empirical study was conducted to examine the influence of social media advertising perceptions on advertising value, brand awareness, and brand associations among Generation Y Instagram users. Journal of Retailing and Consumer Services, Vol 67, 102786.
Eid, R., Abdelmoety, Z., & Agag, G. (2019). Antecedents and consequences of social media marketing use: an empirical study of the UK exporting B2B SMEs. Journal of Business and Industrial Marketing, 35(2), 284-305. https://doi.org/10.1108/jbim-04-2018-0121
Gavino, M., Williams, D., Jacobson, D., & Smith, I. (2019). Latino entrepreneurs and social media adoption: personal and business social network platforms. Management Research Review, 42(4), 469-494. https://doi.org/10.1108/mrr- 02-2018-0095.
Goel, L., & Donaldson, J. (2021). Social Media Exploration and Exploitation by Small and Medium Enterprises for Business Continuity. Journal of Global Information Management (JGIM), 29(6).
Gunawardane, S., Dulanjana, K., Siriwardana, D., & Mel, D. (2022). Impact of Social Media on Business Performance: With Reference to Small and Medium Enterprises, Western Province, Sri Lanka. Sri Lanka Journal of Social Sciences, 45(1), 19. https://doi.org/10.4038/sljss.v45i1.8310.
Hair, J.F., Jult, G.T.M., Ringle, C., & Sarstedt, M. (2017). A primeron partial least squares structural equation modeling (PLS-SEM), 2nd ed. London: SAGE
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Sage Publications
Hashim, N. H., Mohammad, H., & Alam, M. M. (2023). The contribution of sustainability practices and microfinance on micro-enterprise business performance in Malaysia: the moderating role of business location. Management & Accounting Review (MAR), 22(2), 275-305.
Hayes, A. F., & Scharkow, M. (2013). The relative trustworthiness of inferential tests of the indirect effect in statistical mediation analysis: Does method really matter? Psychological Science, 24 (10), 1918-1927.
Hidayat, S., Fatimah, C., Patriana, E., Ulfa, M., Rahmawati, Y., & Maryani, A. (2020). Celebrity Endorser in Supporting SMEs through Social Media in Pandemic Situation. 2020 8th International Conference on Cyber and IT Service Management (CITSM).
Kamarudin, M. A. I., Nordin, N., & Nabiha, A. K. S. (2021). Conceptualization of entrepreneurial training model for family business SMEs in Malaysia. Journal of Global Business and Social Entrepreneurship (GBSE), 7(22), 19-41.
Khanal, A., Akhtaruzzaman, M., & Kularatne, I. (2021). The influence of social media on stakeholder engagement and the corporate social responsibility of small businesses. Corporate Social Responsibility and Environmental Management, 28(6), 1921-1929. https://doi.org/10.1002/csr.2169.
Jadhav, G., Gaikwad, S., & Bapat, D. (2023). A Systematic Literature Review: Digital Marketing and Its Impact on SMEs. https://scite.ai/reports/10.1108/jibr-05- 2022-0129.
Kim, H., & Zhan, W. (2018). Defining and measuring social customer-relationship management (CRM) capabilities. Journal of Marketing Analytics, 7(1), 40-50. https://doi.org/10.1057/s41270-018-0044-8.
Latif, R., Yoong, C., Ghee, L., Sam, K., & Wee, M. (2023). The relationship between service quality, perceived value, corporate image, complaint behavior, role of agent and customer satisfaction in life insurance services in klang valley, Malaysia. International Journal of Economics Business and Management Research, 07(01), 40-56. https://doi.org/10.51505/ijebmr.2023.7105
Lupo, C., & Stroman, J. (2020). Social Media Marketing Adoption Strategies: An Exploratory Multiple Case Study of Landscape Industry Small Businesses. Journal of Social Behavioral and Health Sciences, 14(1), https://doi.org/10.5590/jsbhs.2020.14.1.15.
Macharia, D., & Namusonge, M. (2021). The Role of Social Media on the Performance of Small and Medium Enterprise: A Review of Literature. International Academic Journal of Innovation, Leadership and Entrepreneurship, 2(2), 258-278. https://iajournals.org/articles/iajile_v2_i2_258_278.pdf.
Maharani, S., & Yamit, Z. (2022). The effect of business model innovation, customer trust and commitment on SME business growth. Jurnal Indonesia Sosial Sains, 3(7), 1039-1051. https://doi.org/10.36418/jiss.v3i7.647.
Maiorescu, I., Bucur, M., Bogdan, G., Moise, D., Strat, V., & Zgura, I. (2020). Social Media and IOT Wearables in Developing Marketing Strategies. Do SMEs Differ from Large Enterprises? Sustainability, 12 (18).
Marolt, M., Zimmermann, H.-D., & Pucihar, A. (2022). Social Media Use and Business Performance in SMEs: The Mediating Roles of Relational Social Commerce Capability and Competitive Advantage. Sustainability, Vol.14(22).
Moksin, H., Yew, D., Douglas, S., Said, H., Musa, M., & Radzi, M. (2023). The effect of social media as marketing tool on sales performance of SMEs in Malaysia. Asian Journal of Social Science Research, Vol. 5(1), 64-74.
Moses, T., Peter, R., & Peter, V. (2019). An examination of social media practices that improve customer satisfaction in the b2b market in the ICT sector in India. Electronic Journal of Information Systems Evaluation, 22(2), https://doi.org/10.34190/ejise.19.22.2.006.
Moy, M., Cahyadi, E., & Anggraeni, E. (2020). The impact of social media on knowledge creation, innovation, and performance in small and medium enterprises. Indonesian Journal of Business and Entrepreneurship, https://doi.org/10.17358/ijbe.6.1.23.
Murniati, D., Razzaq, A., Ismail, A., & Mota, L. (2023). Training urgency to bridge the digital divide for social media marketing awareness and adoption: case of CBT rural homestay operators Malaysia. Journal of Technical Education and Training, 15(1), https://doi.org/10.30880/jtet.2023.15.01.013.
MyBiz. (2022). Number of registered SMEs in Malaysia. Retrieved from Malaysia Business Licensing Portal: https://mhbizpro.malaysiaairlines.com/
Nurmala, N. (2022). How can context and information content of advertising increase sales of advertising products on social media? International Journal of Business Economics & Management, 5(4), 488-495. https://doi.org/10.21744/ijbem.v5n4.2051.
Ohajionu, U. C., & Mathews, S. (2019). Original paper predicting generation Y’s
purchase intention towards brands advertised on social media: A PLS-SEM
analysis. World, 6(2), 98-127.
Qalati, S., Li, W., Ahmed, N., Mirani, M., & Khan, A. (2020). Examining the factors affecting SME performance: the mediating role of social media adoption. Sustainability, 13(1), 75. https://doi.org/10.3390/su13010075.
Pallant, J. (2020). SPSS Survival Manual: A Step-by-Step Guide to Data Analysis Using
IBM SPSS. Routledge
Radwan, A. F., Mousa, S. A., Mohamed, M., & Youssef, E. Y. M. (2021). Impact of
social media influencer marketing on youth purchase intentions in UAE. Media
Watch, 12(3), 422-439.
Ruliana, P., Irwansyah, I., Andrini, S., & Kurnia. (2020). The Use of Digital Channels as a Marketing Tool in Ceramic SMEs. Advances in Social Science, Education and Humanities Research.
Shareef, M. A., Mukerji, B., Dwivedi, Y. K., Rana, N. P., & Islam, R. (2019). Social media marketing: Comparative effect of advertisement sources. Journal of Retailing and Consumer Services, 46, 58-69.
Smith, J. (2023). The Role of SMEs in Malaysia's Economic Development. Journal of Asian Economics, 45, 23-35.
Sulaiman, A., Jaafar, N., & Mohezar, S. (2018). Social Media for Business Performance: A Critical Review. International Journal of Business Information Systems, 27(3), 379-396
Tajvidi, R., & Karami, A. (2021). The Effect of Social Media on Firm Performance. Computers in Human Behavior, 115, 105174. https://doi.org/10.1016/j.chb.2017.09.026.
Tan, M., & Lee, K. (2023). Leveraging Social Media: A Resource-Based View on SMEs in Malaysia. Journal of Small Business Strategy, 34(2), 123-138.
Torres, A., Barton, S., & Behe, B. (2019). Evaluating the business and owner characteristics influencing the adoption of online advertising strategies in the green industry. Horttechnology, 29(3), 374-381. https://doi.org/10.21273/horttech04274-19.
Vrontis, D., Chaudhuri, R., & Chatterjee, S. (2022). Adoption of Digital Technologies by SMEs for Sustainability and Value Creation: Moderating Role of Entrepreneurial Orientation. Sustainability, V14 (13).
Wahyuni, I., Jasfar, F., Kristaung, R., & Warsindah, L. (2022). The role of customer bonding as a customer trust mediator and service performance on SMEs performance. Journal of Economics Management and Trade, 1-14. https://doi.org/10.9734/jemt/2022/v28i530407.
Wicaksono, T., Hossain, M., & Illés, C. (2021). Prioritizing business quality improvement of fresh Agri-food SMEs through open innovation to survive the pandemic: a QFD-based model. Journal of Open Innovation Technology Market and Complexity, 7(2), 156. https://doi.org/10.3390/joitmc7020156.
Yap, J. B. H., & Lock, A. (2017). Analysing the benefits, techniques, tools and challenges of knowledge management practices in the Malaysian construction SMEs. Journal of Engineering, Design and Technology, 15(6), 803-825.
Hudi, Z. H., Munap, R., Paulus, L., Mahmood, M., & Ithnin, M. S. (2024). Harnessing Social Media: Elevating Business Performance in Klang Valley’s Small and Medium Enterprises. International Journal of Academic Research in Business and Social Sciences, 14(10), 3087–3109.
Copyright: © 2024 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode