Factors Influencing the Adoption of Social Media in Service Sector Small and Medium Enterprises (SMEs)

  • Alice Tabitha RamachandranEmail author
  • Norasnita Ahmad
  • Suraya Miskon
  • Noorminshah A. Iahad
  • Nazmona Mat Ali
Conference paper
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 1073)


Social media has turned into an internet marvel in recent years. This fast technological evolution and intensity of competition oblige companies to constantly looking for different ways to set apart themselves and offer added values to their customers especially in small and medium sized enterprises (SMEs). The increasing popularity of social media has encouraged SMEs to start to consider this means as a new approach to communicate with clients and increase their brand reputation. In spite of the potential benefit and the developing numbers of adopters, previous studies show that only a few SMEs are concerned about social media adoption. Therefore, this forms a necessity to understand more on the factor influence in the decision making of the adoption in SMEs. Lack of literature review also creates another concern that require a thorough research. So the study will discuss the relationship between factors of influencing the adoption of social media in SMEs service sector. The data collected for this study was done by using online survey strategy. This study used 384 as a sample size with a population of total 809 126 Malaysia’s SMEs in the service sector. From the result obtained, the three factors identified: ease of use, usefulness and trust have a significant relationship with adoption while usefulness is most contributed factor in the adoption of social media. This finding will be a valuable data in assisting new entrepreneurs in adopting appropriate social media for their business.


Social media Ease of use Usefulness Trust SMEs Service sector 


  1. 1.
    Tran, N.: Adoption and Utilization of Social Media by Micro-enterprises in Jyväskylä (2015)Google Scholar
  2. 2.
    Al Rahbi.: Factors Influencing Social Media Adoption in Small and Medium Enterprises (SMEs) (2017)Google Scholar
  3. 3.
    Olawale, F., Garwe, D.: Obstacles to the growth of new SMEs in South Africa: a principal component analysis approach. Afr. J. Bus. Manag. 4, 729–738 (2010)Google Scholar
  4. 4.
    Oliveira, T., Martins, M.F.: Literature review of information technology adoption models at firm level. Electron. J. Inf. Syst. Eval. 14(1), 110 (2011)Google Scholar
  5. 5.
    Meske, C., Stieglitz, S.: Adoption and Use of Social Media in Small and Medium-Sized Enterprises (2013)Google Scholar
  6. 6.
    Zeiller, M., Schauer, B.: Adoption, motivation and success factors of social media for team collaboration in SMEs. In: Proceedings of the 11th International Conference on Knowledge Management and Knowledge Technologies (2011)Google Scholar
  7. 7.
    Verheyden, M., Goeman, K.: Does (company) size matter? Differences in social media usage for business purposes. Quant. Methods Inq. 8(4), 3–15 (2013)Google Scholar
  8. 8.
    Razak, S.A., Azrin, N., Latip, B.: Factors that influence the usage of social media in marketing. J. Res. Bus. Manag. 4(2), 1–7 (2016)Google Scholar
  9. 9.
    Ahamat, A., Ali, M.S.S., Hamid, N.: Factors influencing the adoption of social media in small and medium enterprises (SMEs). Int. E-J. Adv. Soc. Sci. 3(8), 338–348 (2017)Google Scholar
  10. 10.
    HOME. In: Accessed 29 Jul 2019
  11. 11.
    Davis, F.D.: Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Q. 13(3), 319–339 (1989)Google Scholar
  12. 12.
    Dahnil, M.I., Marzuki, K.M., Langgat, J., Fabeil, N.F.: Factors influencing SMEs adoption of social media marketing. Procedia – Soc. Behav. Sci. 148, 119–126 (2014)Google Scholar
  13. 13.
    Thong, J.Y.L., Yap, C.S.: CEO characteristics, organizational characteristics and information technology adoption in small businesses. Omega 23(4), 429–442 (1995)Google Scholar
  14. 14.
    SME Statistics. In:–12-21-09-09-49/sme-statistics. Accessed 29 Jul 2019
  15. 15.
    Wirtz, B.W., Göttel, V.: Technology acceptance in social media: review, synthesis and directions for future empirical research. J. Electron. Commer. Res. 17(2), 97 (2016)Google Scholar
  16. 16.
    Siamagka, N.T., Christodoulides, G., Michaelidou, N., Valvi, A.: Determinants of social media adoption by B2B organizations. Ind. Mark. Manag. 51, 89–99 (2015)Google Scholar
  17. 17.
    Lorenzo-romero, C., Romero, C.L.: Determinants of use of social media tools in retailing sector (2014).
  18. 18.
    Sago, B.: Factors influencing social media adoption and frequency of use: an examination of Facebook, Twitter, Pinterest and Google+. Int. J. Bus. Commer. 3(1), 1–14 (2013)Google Scholar
  19. 19.
    Weerasinghe, S., Chandanie, M., Hindagolla, B.: Technology acceptance model and social network sites (SNS): a selected review of literature. Glob. Knowl. Memory Commun. (2018).
  20. 20.
    Tripathi, S.: Factors influencing the technology acceptance of social media in India: a literature review and research agenda for future. J. Adv. Comput. Sci. Inf. Technol. (ACSIT) 1(2), 43–47 (2014)Google Scholar
  21. 21.
    Krejcie, R.V., Morgan, D.W.: Activities 38, 607–610 (1970)Google Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Alice Tabitha Ramachandran
    • 1
    Email author
  • Norasnita Ahmad
    • 1
  • Suraya Miskon
    • 1
  • Noorminshah A. Iahad
    • 1
  • Nazmona Mat Ali
    • 1
  1. 1.Azman Hashim International Business SchoolUniversiti Teknologi MalaysiaJohor BahruMalaysia

Personalised recommendations