ADOPTION OF SOCIAL MEDIA TECHNOLOGY AND ITS IMPACT ON SMALL AND MEDIUM ENTERPRISES (SMEs) COMPETITIVE ADVANTAGE IN FEDERAL CAPITAL TERRITORY, ABUJA

Abstract

Many businesses are adopting social media networks to woo potential customers. Social media networks have been reported to help SMEs compete favourably between themselves, and in many instances compete with larger businesses. Regardless of its popularity, there is still very limited information on the impact of social media adoption on SMEs competitive advantage especially in developing countries where SMEs are predominately in the informal sector. Thus, this study examined Social Media Adoption and its Impact on SMEs Competitive advantage in the Federal Capital Territory (FCT), Abuja, Nigeria. The study adopted a survey research design. The population comprised of 2,825 owner manager SMEs in FCT Abuja. A sample of 338 was drawn using Krejcie and Morgan table. Primary data was collected through the use of questionnaires. However, 326 questionnaires were retrieved from the respondents. Regression analysis was used to analyze the data with the aid of SPSS Version 20. The study revealed that two independent variables (perceived usefulness and perceived ease of use) had a positive significant impact on SMEs competitive advantage in Abuja. The study recommends that there is need for advocacy by the government agencies in charge of SME activities to enlighten SMEs on the importance of social media adoption to their businesses, it is equally recommended to train SMEs on the usage of the various social media platforms and how they can leverage on them to gain competitive advantage.