Influence of social media adoption on the performance of construction small and medium-sized enterprises (SMEs) in Abuja – Nigeria

Abstract

Purpose – The purpose of this paper is to examine the influence of social media adoption on the performance of construction small and medium-sized enterprises (SMEs). Design/methodology/approach – Construction SMEs owners and managers in Nigeria were surveyed using questionnaires to gather data. Partial least square structural equation modeling (PLS-SEM) was employed to assess measurement reliability and validity, as well as the hypothesized paths provided in the conceptual model that formed part of the final conclusions. Findings – The empirical finding showed that social media usage increased knowledge accessibility, reduced costs and improved customer relations and service for organizations. Overall, social media adoption was significantly and positively related to SMEs business performance. Also, the paper revealed that learning capability mediates the relationship between social media and SMEs performance. Research limitations/implications – Data for the study came from only one industry and one related line of business; thus, including more companies from different sectors or industries could be more interesting. The study’s findings contributed to the growing body of knowledge about the impact of social media on the efficiency of businesses. Small and medium-sized businesses also need to understand and recognize the impact of social media on the organization’s performance in order to achieve a long-term competitive edge from the adoption of social media. Practical implications – According to the findings, small construction firms can benefit from marketing the brands through social media channels and improved learning capability. In terms of accessibility, cost savings and improved relationships with customers, research shows that social media promotion can be beneficial to businesses. A study like this has the potential to show how social media can help striving small businesses interact cost-effectively with customers all over the world, opening new doors for sales and continuous improvement. Originality/value – The relationship between SME performance in Nigeria and the use of social media has received very little attention despite social media’s promising potentials, particularly for small businesses. The authors hoped that this study will fill a gap in the authors’ understanding of how social media affects the performance of small and medium-sized businesses (SMEs) in the construction industry.