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This study aims to examine the determinants of Facebook adoption and its impact on the performance of service-based small and medium enterprises (SMEs) in northwestern Nigeria. The mediating effect of Facebook adoption between the determinants of Facebook adoption and the performance of the SMEs was examined.Design/methodology/approachA comprehensive framework was built using the technology – organisation–environment framework integrated with the resource-based view theory. Data were collected from 165 SME decision-makers using an online survey. The hypothesised relationships were tested using partial least squares structural equation modelling.FindingsFacebook adoption exerted a positive impact on the financial and non-financial performance of the SMEs. The important determinants of Facebook adoption were relative advantage, perceived risks, top management support, organisational readiness and government support. The mediating effect of Facebook adoption between these determinants and financial and non-financial performance was confirmed.Research limitations/implicationsThe findings contribute to better insight into the determinants of Facebook adoption and its impact on the financial and non-financial performance of SMEs. The findings can inspire and guide SMEs on adopting Facebook as a marketing strategy to improve performance and reduce failure rates.Originality/valueThe findings confirm the potential of adopting Facebook for enhancing the performance of SMEs. This is arguably among the first empirical studies to test the mediating effect of Facebook adoption.
Journal of Systems and Information Technology – Emerald Publishing
Published: Jul 11, 2022
Keywords: Determinants; Facebook adoption; Service-based SMEs; Performance; Developing countries; Services SMEs
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