Social Networking Sites and Performance of Small and Medium Enterprises

Evidence From OYO State, Nigeria

Abstract

Social networking sites play a significant role in the performance of small and medium enterprises (SMEs), particularly in terms of enhancing productivity and profitability. Also, there’s little evidence linking social media sites with performance of SMEs within emerging economies like Nigeria. This study provides empirical evidence on how SMEs utilize social networking sites to enhance their performance and competitiveness. The population of the study consisted of SME owners and managers within Ibadan metropolis in Oyo State. The sample size is made up of 385 respondents. Data was obtained using a structured questionnaire while purposive sampling method was employed in the study. Data analysis was done using descriptive statistics while multinomial regression was used to test the hypothesis formulated. The findings revealed that social networking sites have a positive significant (p < 0.01) influence on the performance of small and medium enterprises in Oyo state, Nigeria.  These findings underscore the importance of leveraging social networking platforms as strategic tools for enhancing the performance and competitiveness of SMEs in the study area. The study therefore recommends the need for business owners to incorporate social marketing sites into their business strategy for sustainable business growth and performance in this digital age.