Adoption of Social Media Technology and 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. Notwithstanding 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 predominantly in the informal sector. Thus, this study examines Social Media Adoption and its Impact on SMEs Competitive advantage in the Federal Capital Territory (FCT), Abuja, Nigeria. The study adopts a survey research design. The population comprises of 2,825 owner manager SMEs in FCT Abuja. A sample of 338 is drawn using Krejcie and Morgan table. Primary data are collected through the use of questionnaires. However, 326 questionnaires are retrieved from the respondents. Regression analysis is used to analyze the data with the aid of SPSS Version 20. The study reveals that two independent variables (perceived usefulness and perceived ease of use) had a positive significant impact on SMEs competitive advantage in Abuja. It therefore, 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 equally recommends for the training SMEs on the usage of the various social media platforms and how they can leverage on them to gain competitive advantage.