Exploring the Role of Social Media on Small and Medium Enterprises (SMEs) Growth: With Reference to SMEs in the Colombo District in Sri Lanka

Abstract

Purpose- This study explores how adoption of social media influence growth of SMEs. This study explores how small businesses can achieve business growth through adoption of social media into aspects of innovation, pricing, customer relationship management and marketing.

Design/methodology/approach- Research philosophy adopted was social constructivist while the the study used a qualitative approach to create in depth understanding of how growth of SMEs is influenced by adoption of social media. Thematic analysis was performed to analyze data those were collected from in-depth interviews conducted with 11 SME owners using purposive sampling techniques.

Findings- Findings revealed that SME owners are engaged in different sectors and that the themes such as pricing, maintaining customer relations, innovation and marketing have been supporting to grow business due to the incorporation of social media into  themes mentioned. The study also revealed most of the SME owners did not know how to use the tools provided in social media apps for businesses, mainly due to lack of knowledge on the subject and support from relevant authority.

Implication- The present study provides a starting point for further research on the effect of social media on SMEs.  Further studies can be carried out in different countries and contexts using ethnography and longitudinal methodologies. A model has been developed to derive the relationship between social media influence and SMEs for the benefit of further research.

Keywords: Social media, SME, business growth, market access, customer relationship management, innovation, pricing