Skip to main content
Log in

An exploratory investigation of social media adoption by small businesses

  • Published:
Information Technology and Management Aims and scope Submit manuscript

Abstract

Social media has become an online platform for businesses to market products/services and to manage customer relationships. While more and more small businesses have jumped on the bandwagon of social media in recent years, we found that only a limited number of published articles are currently available regarding the decision-making factors for social media adoption by small businesses. To understand why and how small businesses (i.e., small non-manufacturing enterprises) in the U.S. adopt social media, and for which business purposes, we conducted a case study using an approach that combined literature review, interviews, and cross-checking social media sites. In particular, we interviewed 27 small businesses as our cases in a mid-size U.S. city in terms of their social media adoption for business purposes. This study revealed some novel insights and developed a decision support model composed of factors critical to successful social media adoption by small businesses.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1

Similar content being viewed by others

References

  1. Bharadwaj A, El Sawy OA, Pavlou PA, Venkatraman N (2013) Digital business strategy: toward a next generation of insights. MIS Q 37(2):471–482

    Google Scholar 

  2. Boyd DM, Ellison NB (2007) Social network sites: Definition, history, and scholarship. J Comput Mediat Commun 13(1):210–230

    Article  Google Scholar 

  3. Cassell C, Symon G, Buehring A, Johnson P (2006) The role and status of qualitative methods in management research: an empirical account. Manag Decis 44(2):290–303

    Article  Google Scholar 

  4. Claussen J, Kretschmer T, Mayrhofer P (2013) The effects of rewarding user engagement: the case of facebook apps. Inf Syst Res 24(1):186–200

    Article  Google Scholar 

  5. Cook KS, Rice E (2006) Social exchange theory. Springer, New York

    Book  Google Scholar 

  6. Correia A (2013) Social information: gaining competitive and business advantage, using social media tools. Online Inf Rev 37(1):151–152

    Article  Google Scholar 

  7. Cox S (2012) Social media marketing in a small business: a case study. Department of Computer Graphics Technology Degree Theses. Paper 16 http://docs.lib.purdue.edu/cgttheses/16

  8. Cragg P, Caldeira M, Ward J (2011) Organizational information systems competences in small and medium-sized enterprises. Inf Manag 48(8):353–363

    Article  Google Scholar 

  9. Cragg P, Mills A (2011). IT support for business processes in SMEs. Bus Process Manag J 17(5), 697-710.

    Article  Google Scholar 

  10. Culnan M, McHugh P, Zubillaga J (2010) How large U.S. companies can use twitter and other social media to gain business value. MIS Q Exec 9(4):243–259

    Google Scholar 

  11. Currás-Pérez R, Ruiz-Mafé C, Sanz-Blas S (2013) Social network loyalty: evaluating the role of attitude, perceived risk and satisfaction. Online Inf Rev 37(1):61–82

    Article  Google Scholar 

  12. Dholakia UM, Durham E (2010) One café chain’s Facebook experiment. Harv Bus Rev 88(3):26

    Google Scholar 

  13. Durst S, Edvardsson IR (2012) Knowledge management in SMEs: a literature review. J Knowl Manag 16(6):879–903

    Article  Google Scholar 

  14. Ellison NB, Wohn DY, Khan ML, Fewins-Bliss R (2012) Reshaping access: an overview of research on access to higher education, social media and social capital. White paper for Bill and Melinda Gates Foundation. Available at http://www-personal.umich.edu/~enicole/ReshapingAccessToDistrib.pdf

  15. Emerson RM (1976) Social exchange theory. Annu Rev sociol 2:335–362

  16. Eriksson P, Kovalainen A (2008) Qualitative methods in business research. London: Sage.

  17. Fang X, Hu PJH, Li Z, Tsai W (2013) Predicting adoption probabilities in social networks. Inf Syst Res 24(1):128–145

    Article  Google Scholar 

  18. Florin J, Lubatkin M, Schulze W (2003) A social capital model of high-growth ventures. Acad Manag J 46(3):374–384

    Article  Google Scholar 

  19. Ghobadian A, Gallear D (1997) TQM and organization size. Int J Oper Prod Manag 17(2):121–163

    Article  Google Scholar 

  20. Harland CM, Caldwell ND, Powell P, Zheng J (2007) Barriers to supply chain information integration: SMEs adrift of eLands. J Oper Manag 25(6):1234–1254

    Article  Google Scholar 

  21. Harris L, Rae A (2009) Social networks: the future of marketing for small business. J Bus Strategy 30(5):24–31

    Article  Google Scholar 

  22. He W, Zha SH, Li L (2013) Social media competitive analysis and text mining: a case study in the pizza industry. Int J Inf Manag 33(3):464–472

    Article  Google Scholar 

  23. He W, Chen Y (2014) Using blog mining as an analytical method to study the use of social media by small businesses. J Inf Technol Case Appl Res 16(2):91–104

    Google Scholar 

  24. He W, Wang FK, Zha SH (2014) Enhancing social media competitiveness of small businesses: insights from small pizzerias. N Rev Hypermed Multimed 20(3):225–250

    Article  Google Scholar 

  25. He W, Zha S (2014) Insights into the adoption of social media mashups. Int Res 24(2):160–180

    Google Scholar 

  26. He W, Wu H, Yan G, Akula V, Shen J (2015) A novel social media competitive analytics framework with sentiment benchmarks. Inf Manag. doi:10.1016/j.im.2015.04.006

    Google Scholar 

  27. He X (2014) Is social media a fad? A study of the adoption and use of social media in SMEs. In: SAIS 2014 proceedings. Paper 13

  28. Herr PM, Kardes FR, Kim J (1991) Effects of word-of-mouth and product-attribute information on persuasion: an accessibility-diagnosticity perspective. J Cons Res 17(4):454–462

    Article  Google Scholar 

  29. Homans GC (1958) Social behavior as exchange. Am J Sociol 63(6):597–606

    Article  Google Scholar 

  30. Kaplan A, Haenlein M (2010) Users of the world, unite! The challenges and opportunities of social media. Bus Horiz 53:59–68

    Article  Google Scholar 

  31. Kaplan AM, Haenlein M (2009) The fairyland of second life: virtual social worlds and how to use them. Bus Horiz 52(6):563–572

    Article  Google Scholar 

  32. Kietzmann JH, Hermkens K, McCarthy IP, Silvestre BS (2011) Social media? Get serious! Understanding the functional building blocks of social media. Bus Horiz 54(3):241–251

    Article  Google Scholar 

  33. Kim, Y., Kim, M., & Kim, K. (2010). Factors influencing the adoption of social media in the perspective of information needs. iConference 2010. Available at https://www.ideals.illinois.edu/handle/2142/15025

  34. Laroche M, Habibi MR, Richard MO (2013) To be or not to be in social media: How brand loyalty is affected by social media? Int J Inf Manag 33(1):76–82

    Article  Google Scholar 

  35. Lin N, Cook KS, Burt RS (eds) (2001) Social capital: theory and research. Transaction Publishers, New Brunswick

    Google Scholar 

  36. Liu H, Zhang J, Liu R, Li G (2014) A model for consumer knowledge contribution behavior: the roles of host firm management practices, technology effectiveness, and social capital. Inf Technol Manag 15(4):255–270

    Article  Google Scholar 

  37. Mangold WG, Faulds DJ (2009) Social media: the new hybrid element of the promotion mix. Bus Horiz 52(4):357–365

    Article  Google Scholar 

  38. McCarthy J, Rowley J, Ashworth CJ, Pioch E (2014) Managing brand presence through social media: the case of UK football clubs. Int Res 24(2):181–204

    Google Scholar 

  39. McCorkindale T (2010) Can you see the writing on my wall? A content analysis of the Fortune 50’s Facebook social networking sites. Publ Relat Soc Am 4(3):1–13

    Google Scholar 

  40. Michaelidou N, Siamagka NT, Christodoulides G (2011) Usage, barriers and measurement of social media marketing: an exploratory investigation of small and medium B2B brands. Ind Mark Manag 40(7):1153–1159

    Article  Google Scholar 

  41. Neuman WL (1997) Social research methods: qualitative and quantitative approaches (3rd ed.). Boston: Allyn and Bacon.

    Google Scholar 

  42. Papachristos E, Katsanos C, Karousos N, Ioannidis I, Fidas C, Avouris N (2014) Deployment, usage and impact of social media tools in small and medium enterprises: a case study. In: Social computing and social media. Lecture Notes in Computer Science vol 8531. Springer International Publishing, pp 79–90

    Google Scholar 

  43. Paraskevas A, Katsogridakis I, Law R, Buhalis D (2011) Search engine marketing: transforming search engines into hotel distribution channels. Cornell Hosp Q 52(2):200–208

    Article  Google Scholar 

  44. Parsons J (2013) Convert your facebook likes into sales. Available at http://boostlikes.com/blog/2013/05/convert-facebook-likes-sales

  45. Rishika R, Kumar A, Janakiraman R, Bezawada R (2013) The effect of customers’ social media participation on customer visit frequency and profitability: an empirical investigation. Inf Syst Res 24(1):108–127

    Article  Google Scholar 

  46. Saldanha T, Krishnan MS (2012) Organizational adoption of web 2.0 technologies: an empirical analysis. J Organ Comput Electron Commer 22(4):301–333

    Google Scholar 

  47. Sarosa S, Zowghi D (2003) A strategy for adopting information technology for SMEs. In: Proceedings of the 10th European conference on information technology evaluation (ECITE 2003), Madrid, Spain, 25–26 Sept 2003

  48. Schiffman LG, Kanuk LL (1995) Consumer behavior, 5th edn. Prentice Hall, New Delhi, pp 581–582

    Google Scholar 

  49. Sinclaire JK, Vogus CE (2011) Adoption of social networking sites: an exploratory adaptive structuration perspective for global organizations. Inf Technol Manag 12(4):293–314

    Article  Google Scholar 

  50. SMB Group (2012) 2012 Impact of social business in small and medium business study. Retrieved from http://www.smb-gr.com/2012-smb-social-business-study/

  51. Small Business Trends (2011) Small business survey by Deluxe reveals snapshot of social media savvy entrepreneurs. Retrieved November 6, 2011 from http://smallbiztrends.com/2011/06/social-media-savvyentrepreneurs.html

  52. Sterne J (2010) Social media metrics: how to measure and optimize your marketing investment. Wiley, Hoboken

    Google Scholar 

  53. Stokes D, Lomax W (2002) Taking control of word of mouth marketing: the case of an entrepreneurial hotelier. J Small Bus Enterp Dev 9:349–357

    Article  Google Scholar 

  54. Strauss A, Corbin J (1991) Basics of qualitative research: grounded theory procedures and techniques. Sage, Newbury Park

    Google Scholar 

  55. Television Bureau of Advertising Inc. (2009) Multiplatform Glossary. Retrieved from http://www.tvb.org/trends/4758#s

  56. Trusov M, Bucklin RE, Pauwels KH (2008) Effects of word-of-mouth versus traditional marketing: findings from an internet social networking site. Robert H. Smith School Research paper no. RHS, 06-065

  57. Urquhart C, Vaast E (2012). Building social media theory from case studies: a new frontier for IS research. In: Proceedings of international conference on information systems, Retrieved at 22 Sept 2014 at http://aisel.aisnet.org/icis2012/proceedings/ResearchMethods/8/

  58. Wamba SF, Carter L (2014) Social media tools adoption and use by SMES: an empirical study. J Organ End User Comput 26(2):1–17

    Article  Google Scholar 

  59. Weber L (2009) Marketing to the social web: how digital customer communities build your business, 2nd edn. Wiley, Hoboken

    Book  Google Scholar 

  60. Weinberg BD, Pehlivan E (2011) Social spending: managing the social media mix. Bus Horiz 54(3):275–282

    Article  Google Scholar 

  61. Westland JC (2012) The adoption of social networking technologies in cinema releases. Inf Technol Manag 13(3):167–181

    Article  Google Scholar 

  62. Yin RK (2003) Case study research: design and methods. Newbury Park, CA: Sage

  63. Zach O, Munkvold BE (2012) Identifying reasons for ERP system customization in SMEs: a multiple case study. J Enterp Inf Manag 25(5):462–478

    Article  Google Scholar 

  64. Zeng X, Wei L (2013) Social ties and user content generation: evidence from Flickr. Inf Syst Res 24(1):71–87

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Wu He.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

He, W., Wang, FK., Chen, Y. et al. An exploratory investigation of social media adoption by small businesses. Inf Technol Manag 18, 149–160 (2017). https://doi.org/10.1007/s10799-015-0243-3

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10799-015-0243-3

Keywords

Navigation