A mediated–moderated model for social media adoption and small and medium‐sized enterprise performance in emerging countries

Abstract

Social media adoption (SMA) can enable small and medium‐sized enterprises (SMEs) to build strong relationships with customers at low cost, addressing the global challenge of SME's growth and sustainability. In the under‐examined developing‐country context, this study aims to explore the mediating role of SMA and customer relationship management capabilities (CRMC) and the moderating role of innovation capabilities (IC) and SMA. Grounded on the resource‐based view, 431 randomly selected closed‐ended‐questionnaire responses were analyzed. Findings reveal the positive and significant effect of entrepreneurial orientation (EO), SMA, CRMC, and IC on SME performance (SMEP), as well as the partially mediating role of SMA and CRMC and the moderating role of IC on the SMA–SMEP relationship.