Social media marketing and SME performance in Ibadan City

Abstract

This study investigates how social media marketing influences small medium enterprise (SME) performance in Ibadan, Nigeria, offering insights to address the resource constraints and competitive pressures these businesses face. The research assesses their effectiveness in enhancing brand awareness and business performance by focusing on five dimensions of social media marketing namely informativeness, interactivity, personalisation, trendiness, and word of mouth. Using a sample of 370 SMEs selected through the Krejcie and Morgan sampling method, data were analysed via SPSS and SmartPLS. The results indicate that informativeness and interactivity positively, and significantly impact SME performance, while personalisation, trendiness, and word of mouth have minimal effects. These findings underscore the value of prioritising informativeness, and interactivity in social media marketing strategies, highlighting a strategic focus for SME managers to drive growth, and resilience. This study contributes to the literature by highlighting specific social media marketing dimensions that directly influence SME performance, offering a targeted approach for resource-limited businesses seeking competitive advantages through social media marketing.