Social media adoption and business performance: The mediating role of organizational learning capability (OLC)

Abstract

Purpose – The purpose of this paper is to explore the mediating effect of learning capacity in the relationship between the social media usage by the construction of small and medium-sized enterprises (SMEs) and their business performance in Nigeria. Design/methodology/approach – A quantitative survey technique was used to collect data from the owner / manager of construction SMEs in Nigeria. The Partial Least Square Structural Equation Modeling (PLS-SEM) was used in the assessment of the measurement model and structural model to assess the validity and reliability of the measures and to evaluate the hypotheses proposed in the conceptual model. Findings – Empirical findings indicated a significant positive relationship between learning capacity and performance of SMEs. Similarly, the use of social media is significantly and positively associated to the business performance of SMEs. It has also been shown that learning capacity is a mediator of the relationship between social media and SME performance. Research limitations/implications – The data for the study is all from a single industry, and a related line of business, so it could be more interesting to include more companies across sectors or industries. The finding contributes to the ongoing debate on the effect of social media on business performance. It also defined the need for the owner / manager of SMEs to understand and appreciate the effect of social media through the organization's learning potential to gain a sustainable competitive advantage. Practical implications – There are a number of theoretical and practical implications for academics and practitioners who are interested in further studies of organizational social media. The research presents a quantitative study on the effect of social media adoption on the organizational performance of the construction industry. This study confirms the mediating role of learning capability in the relationship between the use of social media and performance of SMEs operating in the construction industry. Originality/value – This study empirically examined the relationship between social media adoption and the SMEs learning capability and business performance by evaluating a hypothesised conceptual framework to establish the relationships.