Factors Influencing the Adoption of Facebook as a Marketing Channel among SMEs in Nigeria as a Developing Country: A Conceptual Framework
Abstract
This paper reviews empirical literature to develop a conceptual framework for the adoption of Facebook as a marketing channel by Small and Medium Enterprises (SMEs) in developing countries like Nigeria. Recent peer-review journal articles were reviewed to develop the conceptual framework for this study. Facebook provides SMEs with a cost-effective strategy for marketing their products and services to both local and international customers. However, SMEs in developing countries like Nigeria are slow in the adoption of Facebook. A literature review has revealed a lack of research on the adoption of Facebook by SMEs from the context of developing countries like Nigeria. Most of the existing studies on Facebook adoption were conducted in developed countries. Findings from such studies cannot be directly applied to SMEs in developing countries because they face different challenges. The paper proposes a conceptual framework based on the Technology-Organization-Environment (TOE) framework that can be empirically tested by a future researcher to determine factors influencing the intention of small and medium enterprises operating in the context of developing countries to adopt Facebook as a marketing channel to enhance their competitive advantage in the modern market. Findings from this study would be beneficial to decision-makers in Nigerian SMEs and Nigerian government agencies with responsibility for strengthening SMEs' activities in the country. It will also encourage and guide SMEs to adopt Facebook as their marketing channel.
References
Abedin, B. (2016). Diffusion of adoption of Facebook for customer relationship management in Australia: An exploratory study. Journal of Organizational and End User Computing (JOEUC), 28(1), 56-72.
Abu Bakar, A. R., Ahmad, S. Z., & Ahmad, N. (2019). SME social media use: A study of predictive factors in the United Arab Emirates. Global Business and Organizational Excellence, 38(5), 53-68.
Abubakar, M. K., Patricia, M. N., Samuel, O. O., & Totolo, A. (2017). Factors affecting adoption of social media by womens non-governmental organisations (WNGOs). International Journal of Library and Information Science, 9(9), 96-106.
Aghimien, D. O., Oke, A. E., & Aigbavboa, C. O. (2018). Barriers to the adoption of value management in developing countries. Engineering, Construction and Architectural Management, 25(7), 818-834.
Agwu, E. (2018). An investigative analysis of factors influencing Ebusiness adoption and maintenance of commercial websites in Nigeria. Available at SSRN 3112757.
Ahani, A., Rahim, N. Z. A., & Nilashi, M. (2017). Forecasting social CRM adoption in SMEs: A combined SEM-neural network method. Computers in Human Behavior, 75, 560-578. https://doi.org/10.1016/j.chb.2017.05.032
Ainin, S., Parveen, F., Moghavvemi, S., Jaafar, N. I., & Mohd Shuib, N. L. (2015). Factors influencing the use of social media by SMEs and its performance outcomes. Industrial Management & Data Systems, 115(3), 570-588. https://doi.org/10.1108/imds-07-2014-0205
Ali, Z., Shabbir, M. A., Rauf, M., & Hussain, A. (2016). To Assess the Impact of Social Media Marketing on Consumer Perception. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(3). https://doi.org/10.6007/IJARAFMS/v6-i3/2172
Alsaad, A., Mohamad, R., & Ismail, N. A. (2017). The moderating role of trust in business-to-business electronic commerce (B2B EC) adoption. Computers in Human Behavior, 68, 157-169.
Alshamaila, Y. (2018). Social Network Site Usage by Small- and Medium-Sized Businesses: Understanding the Motivations and Barriers. Modern Applied Science, 12(3). https://doi.org/10.5539/mas.v12n3p41
Burgess, S., Sellitto, C., Cox, C., Buultjens, J., & Bingley, S. (2017). An innovation diffusion approach to examining the adoption of social media by small businesses: An Australian case study. Pacific Asia Journal of the Association for Information Systems, 9(3).
Chang, S. E., Shen, W.-C., & Liu, A. Y. (2016). Why mobile users trust smartphone social networking services? A PLS-SEM approach. Journal of Business Research, 69(11), 4890-4895.
Chong, J. L., & Olesen, K. (2017). A Technology-Organization-Environment perspective on eco-effectiveness: A Meta-analysis. Australasian Journal of Information Systems, 21.
Dunu, I. V., & Uzochukwu, C. E. (2015). Social Media: An effective tool for social mobilization in Nigeria. IOSR Journal of Humanities and Social Science (IOSR-JHSS) Volume, 20, 10-21.
Gbandi, E., & Amissah, G. (2014). Financing options for small and medium enterprises (SMEs) in Nigeria. European Scientific Journal, ESJ, 10(1).
He, W., Wang, F.-K., Chen, Y., & Zha, S. (2017). An exploratory investigation of social media adoption by small businesses. Information Technology and Management, 18(2), 149-160.
Jambulingamis, M., Sumathi, C., & Rajagopal, G. R. (2015). Barriers of venturing into Facebook commerce among SMEs. The Journal of Internet Banking and Commerce.
Katunzi, T. M., & Ndekwa, A. G. (2016). Small and Medium Tourist Enterprises and Social Media Adoption: Empirical Evidence from Tanzanian Tourism Sector.
Kim, S. H., Jang, S. Y., & Yang, K. H. (2017). Analysis of the determinants of Software‐as‐a‐Service adoption in small businesses: Risks, benefits, and organizational and environmental factors. Journal of Small Business Management, 55(2), 303-325.
Ladokun, I. O. (2019). Exploring Social Media as a Strategy for Small and Medium Enterprises (SMEs) Performance: Evidence from Oyo State, Nigeria. South Asian Journal of Social Studies and Economics, 3(4). https://doi.org/ 10.9734/SAJSSE/2019/v3i430110
Leung, X. Y., & Baloglu, S. (2015). Hotel Facebook marketing: an integrated model. Worldwide Hospitality and Tourism Themes, 7(3), 266-282.
Maduku, D. K., Mpinganjira, M., & Duh, H. (2016). Understanding mobile marketing adoption intention by South African SMEs: A multi-perspective framework. International Journal of Information Management, 36(5), 711-723.
Martins, J., Gonçalves, R., Oliveira, T., Cota, M., & Branco, F. (2016). Understanding the determinants of social network sites adoption at firm level: A mixed methodology approach. Electronic Commerce Research and Applications, 18, 10-26. https://doi.org/10.1016/j.elerap.2016.05.002
Matikiti, R., Mpinganjira, M., & Roberts-Lombard, M. (2018). Application of the Technology Acceptance Model and the Technology–Organisation–Environment Model to examine social media marketing use in the South African tourism industry. South African Journal of Information Management, 20(1), 1-12.
Mohammed, F., Ibrahim, O., & Ithnin, N. (2016). Factors influencing cloud computing adoption for e-government implementation in developing countries: Instrument development. Journal of Systems and Information Technology, 18(3), 297-327.
Morah, D. N., & Omojola, O. (2018). Social Media Use and Entrepreneurship Development in Nigeria: Lagos and Onitsha in Focus.
Nassar, M. L., & Faloye, D. O. (2015). Barrier to innovation in developing countries’ firms: evidence from Nigerian small and medium scale enterprises. European Scientific Journal, 11(19).
Ndekwa, A. G., & Mujuni Katunzi, T. (2016). Small and Medium Tourist Enterprises and Social Media Adoption: Empirical Evidence from Tanzanian Tourism Sector. International Journal of Business and Management, 11(4). https://doi.org/10.5539/ijbm.v11n4p71
Njikam, M., Nanna, S., Shahrin, S., & Othman, M. F. I. (2019). High speed internet development in Africa using 4G-LTE technology. A review. Bulletin of Electrical Engineering and Informatics, 8(2), 577-585.
Odoom, R., Anning-Dorson, T., & Acheampong, G. (2017). Antecedents of social media usage and performance benefits in small- and medium-sized enterprises (SMEs). Journal of enterprise information management, 30(3), 383-399. https://doi.org/10.1108/jeim-04-2016-0088
Ogbo, A., Igwe, A., Ezeobi, J., Modebe, N., & Kalu, E. U. (2019). The Impact of Social Entrepreneurship on the Sustainability of Selected Small and Medium Enterprises in Nigeria. Advances in Research, 1-15.
Omenugha, N. O. (2018). The Utilization of Digital Platforms for Marketing in the Nigerian Entertainment and Media (E&M) Industry: Prospects and Challenges. Case Studies in Business and Management ISSN 2333-3324
Radulovich, L., Javalgi, R. G., & Scherer, R. F. (2018). Intangible resources influencing the international performance of professional service SMEs in an emerging market: Evidence from India. International Marketing Review, 35(1), 113-135.
Rugova, B., & Prenaj, B. (2016). Social media as marketing tool for SMEs: opportunities and challenges. Academic Journal of Business, Administration, Law and Social Sciences, 2(3), 85-97.
Samat, M. F., Yusoff, M. N. H., & Ismail, M. (2018). The Mediating Effect of Social Media Marketing Adoption between Competitive Intelligence and SME Performance. International Journal of Asian Social Science, 8(7), 379-387. https://doi.org/10.18488/ journal.1 .2018.87.379.387
Senyo, P. K., Effah, J., & Addae, E. (2016). Preliminary insight into cloud computing adoption in a developing country. Journal of enterprise information management, 29(4), 505-524.
Shim, S., Lee, B., & Kim, S. L. (2018). Rival precedence and open platform adoption: An empirical analysis. International Journal of Information Management, 38(1), 217-231.
Siamagka, N.-T., Christodoulides, G., Michaelidou, N., & Valvi, A. (2015). Determinants of social media adoption by B2B organizations. Industrial Marketing Management, 51, 89-99.
Szolnoki, G., Dolan, R., Forbes, S., Thach, L., & Goodman, S. (2018). Using social media for consumer interaction: An international comparison of winery adoption and activity. Wine Economics and Policy. https://doi.org/10.1016/j.wep.2018.07.001
Tajudeen, F. P., Jaafar, N. I., & Ainin, S. (2018). Understanding the impact of social media usage among organizations. Information & Management, 55(3), 308-321. https://doi.org/10.1016/ j.im.2017.08.004
Tornatzky, L. G., Fleischer, M., & Chakrabarti, A. (1990). The processes of technological innovation. Issues in organization and management series. Lexington Books. Available at http://www. amazon. com/Processes-Technological-Innovation-Organization/Management/dp/0669203483. Accessed June 10, 2019.
Yang, Z., Sun, J., Zhang, Y., & Wang, Y. (2015). Understanding SaaS adoption from the perspective of organizational users: A tripod readiness model. Computers in Human Behavior, 45, 254-264. https://doi.org/10.1016/j.chb.2014.12.022
LICENSE OF PUBLISHING RIGHTS
I hereby grant to the Journal exclusive publishing and distribution license in the manuscript identified above and any tables, illustrations or other material submitted for publication as part of the manuscript (the “Article”) in print, electronic and all other media (whether now known or later developed), in any form, in all languages, throughout the world, for the full term of copyright, and the right to license others to do the same, effective when the article is accepted for publication. This license includes the right to enforce the rights granted hereunder against third parties. Supplemental Materials With respect to Supplemental Materials that I wish to make accessible through a link in the Article or on a site or through a service of the Journal, the Journal shall be entitled to publish, post, reformat, index, archive, make available and link to such Supplemental Materials on a non-exclusive basis in all forms and media (whether now known or later developed), and permit others to do so. “Supplemental Materials” shall mean additional materials that are not an intrinsic part of the Article, including but not limited to experimental data, e-components, encodings and software, and enhanced graphical, illustrative, video and audio material.
SCHOLARLY COMMUNICATIONS RIGHTS
I understand that I retain the copyright in the Article and that no rights in patents, trademarks or other intellectual property rights are transferred to the Journal. As the author of the article, I understand that I shall have: (i) the same rights to reuse the Article as those allowed to third party users of the Article under the CC-BY-NC-ND license, as well as (ii) the right to use the Article in a subsequent compilation of my works or to extend the Article to book-length form, to include the article in a thesis or dissertation, or otherwise to use or re-use portions or excerpts in other work, for both commercial and non-commercial purposes. Except for such uses, I understand that the license of publishing rights I have granted to the Journal gives the Journal the exclusive right to make or sub-license commercial use.
USER RIGHTS
The publisher will apply the Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 International License (CC-BY-NC-ND) to the Article where it publishes the Article in the journal on its online platforms on an Open Access basis. For further information, see http://www.elsevier.com/about/open-access/open-access-options. The CC-BY-NC-ND license allows users to copy and distribute the Article, provided this is not done for commercial purposes and further does not permit distribution of the Article if it is changed or edited in any way, and provided the user gives appropriate credit (with a link to the formal publication through the relevant DOI), provides a link to the license, and that the licensor is not represented as endorsing the use made of the work.
The full details of the license are available at https://creativecommons.org/licenses/by-nc-nd/4.0/.
REVERSION RIGHTS
Articles may sometimes be accepted for publication but later rejected in the publication process, even in some cases after public posting in “Articles in Press” form, in which case all rights will revert to the author (see http://www.elsevier.com/locate/withdrawalpolicy).
REVISIONS AND ADDENDA
I understand that no revisions, additional terms or addenda to this License Agreement can be accepted without the Journal’s express written consent.
I understand that this License Agreement supersedes any previous agreements I have entered into with the Journal in relation to the Article from the date hereof.
COPYRIGHT NOTICE
The publisher shall publish and distribute the Article with the appropriate copyright notice.
AUTHOR REPRESENTATIONS/ETHICS AND DISCLOSURE
I affirm the Author Representations noted below and confirm that I have reviewed and complied with the relevant Instructions to Authors, Ethics in Publishing policy, Declarations of Interest disclosure and information for authors from countries affected by sanctions (Iran, Cuba, Sudan, Burma, Syria, or Crimea). Please note that some journals may require that all co-authors sign and submit Declarations of Interest disclosure forms. I am also aware of the publisher’s policies with respect to retractions and withdrawal.
Author Representations
1. The Article I have submitted to the journal for review is original, has been written by the stated authors and has not been previously published.
2. The Article was not submitted for review to another journal while under review by this journal and will not be submitted to any other journal.
3. The Article and the Supplemental Materials do not infringe any copyright, violate any other intellectual property, privacy or other rights of any person or entity, or contain any libellous or other unlawful matter.
4. I have obtained written permission from copyright owners for any excerpts from copyrighted works that are included and have credited the sources in the Article or the Supplemental Materials.
5. Except as expressly set out in this License Agreement, the Article is not subject to any prior rights or licenses and, if my or any of my coauthors’ institution has a policy that might restrict my ability to grant the rights required by this License Agreement (taking into account the Scholarly communication rights permitted hereunder), a written waiver of that policy has been obtained.
6. If I and/or any of my co-authors reside in Iran, Cuba, Sudan, Burma, Syria, or Crimea, the Article has been prepared in a personal, academic or research capacity and not as an official representative or otherwise on behalf of the relevant government.
7. If I am using any personal details or images of patients, research subjects or other individuals, I have obtained all consents required by applicable law and complied with the publisher’s policies relating to the use of such images or personal information.
8. Any software contained in the Supplemental Materials is free from viruses, contaminants or worms.
9. If the Article or any of the Supplemental Materials were prepared jointly with other authors, I have informed the co-author(s) of the terms of this License Agreement and that I am signing on their behalf as their agent, and I am authorized to do so.