Determinants of social media marketing adoption by Small, Micro and Medium Enterprises in Capricorn and Waterberg District Municipalities of Limpopo Province, South Africa

Abstract

The aim of this study was to investigate the determinants of the adoption of Social Media Marketing by small, micro and medium enterprises. The study integrated the Technology Acceptance Model (TAM) and the Technology-Organisation-Environment (TOE) Framework to develop a theoretical framework. This study had four objectives: (1) to evaluate the effects of TAM constructs (perceived usefulness and perceived ease of use) on the intention to adopt SMM by SMMEs; (2) to examine the effects of TOE constructs (relative advantage, customer pressure, competitive pressure and top management support) on the intention to adopt SMM by SMMEs; (3) to identify the moderating influences of demographic variables (age and gender) on the relationship between TAM and TOE constructs and intentions to adopt SMM by SMMEs; and (4) to find out whether the intention to adopt affects the actual adoption of SMM by SMMEs. The study made use of a quantitative research design. The study population is SMMEs in Capricorn and Waterberg District Municipalities of Limpopo Province. The sample size of the study was determined by using the ten-times rule and the non-probability sampling (convenience and snowballing) methods were used. The cross-sectional survey method was used to collect data. A sample of 360 was selected. A self-administered questionnaire was used to collect primary data from respondents. Data analysis was completed using the Partial Least Square-Structural Equation Modelling (PLS-SEM). The Cronbach’s alpha and composite reliability were employed to measure reliability. The results of the research study revealed that perceived usefulness; relative advantage; top management support and customer pressure produced direct positive relationships towards intention to adopt social media marketing. Whereas perceived ease of use and competitive pressure produced insignificant direct negative relationships towards intention to adopt social media marketing. The results of the moderating effects of age and gender on TAM and TOE constructs and the intention to adopt were also presented. It is recommended that SMMEs should adopt SMM so that they can fully enjoy the benefits of engaging with stakeholders and advertise products and services through social media platforms.