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The effect of external social media utilization on business performance of SMEs in Saudi Arabia: the mediating role of market orientation

Author: Alhamami, Ahmed Abdullah,Hashim, Noor Azuan,Hamid, Roshayati Abdul,Hamid, Siti Ngayesah Ab.
Publisher: Abingdon: Taylor & Francis
Year: 2024
DOI: 10.1080/23311975.2024.2306974
Source: https://www.econstor.eu/bitstream/10419/326015/1/10.1080_23311975.2024.2306974.pdf
Alhamami, Ahmed Abdullah; Hashim, Noo Azuan; Hamid, Roshaya i Abdul; Hamid,
Si i Ngayesah Ab.
A icle
The e ec o ex e nal social media u iliza ion on business
pe o mance o SMEs in Saudi A abia: he media ing ole
o ma ke o ien a ion
Cogen Business & Managemen
P o ided in Coope a ion wi h:
Taylo & F ancis G oup
Sugges ed Ci a ion: Alhamami, Ahmed Abdullah; Hashim, Noo Azuan; Hamid, Roshaya i Abdul;
Hamid, Si i Ngayesah Ab. (2024) : The e ec o ex e nal social media u iliza ion on business
pe o mance o SMEs in Saudi A abia: he media ing ole o ma ke o ien a ion, Cogen Business &
Managemen , ISSN 2331-1975, Taylo & F ancis, Abingdon, Vol. 11, Iss. 1, pp. 1-20,
h ps://doi.o g/10.1080/23311975.2024.2306974
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Cogen Business & Managemen
ISSN: 2331-1975 (Online) Jou nal homepage: www. and online.com/jou nals/oabm20
The effec o ex e nal social media u iliza ion on
business pe o mance o SMEs in Saudi A abia:
he media ing ole o ma ke o ien a ion
Ahmed Abdullah Alhamami, Noo Azuan Hashim, Roshaya i Abdul Hamid &
Si i Ngayesah Ab. Hamid
To ci e his a icle: Ahmed Abdullah Alhamami, Noo Azuan Hashim, Roshaya i Abdul Hamid
& Si i Ngayesah Ab. Hamid (2024) The effec o ex e nal social media u iliza ion on business
pe o mance o SMEs in Saudi A abia: he media ing ole o ma ke o ien a ion, Cogen
Business & Managemen , 11:1, 2306974, DOI: 10.1080/23311975.2024.2306974
To link o his a icle: h ps://doi.o g/10.1080/23311975.2024.2306974
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Ope a iOns, in O ma iOn & echnOlOgy | esea ch a icle
Cogen Business & ManageMen
2024, VoL. 11, no. 1, 2306974
The e ec o ex e nal social media u iliza ion on business
pe o mance o SMEs in Saudi A abia: he media ing ole o ma ke
o ien a ion
ahmed abdullah alhamamia,b , noo azuan hashima, oshaya i abdul hamida and
si i ngayesah ab. hamida
aFacul y o economics and Managemen , na ional uni e si y o Malaysia, Bangi, Malaysia; bCollege o Business adminis a ion,
naj an uni e si y, naj an, saudi a abia
ABSTRACT
he impac o social media (sm) on small and medium businesses (smes) has ecei ed
less ocus, and he li e a u e is mixed. his s udy examines how ex e nal sm u iliza ion
(esmU) a ec s he pe o mance o saudi smes. acco ding o con ingency heo y,
esmU and ma ke o ien a ion (mO) a e expec ed o a ec business pe o mance (Bp),
which include p o i abili y and cus ome sa is ac ion. mO is expec ed o a ec Bp and
media es he e ec o esmU on Bp. his s udy co e s saudi a abian smes in al- iyadh.
andom sampling is used. his s udy included 451 sme manage s, di ec o s, and
owne s. he esul s o sma pls 4 showed ha esmU a ec ed posi i ely business
pe o mance, p o i abili y, cus ome sa is ac ion, and mO. mO also a ec ed business
pe o mance, p o i abili y and cus ome sa is ac ion and media ed pa ially he e ec
o esmU on business pe o mance, p o i abili y and cus ome sa is ac ion. ha ing a
high le el o esmU and mO is c i ical o imp o ing he Bp o smes. he usage o
esmU and i s applica ion can be a bene icial ools o smes in saudi a abia o
imp o e hei Bp.
1. In oduc ion
in bo h de eloped and eme ging economies, small and medium-sized businesses (smes) a e seen as he
backbone o economic p og ess and s abili y (yigi & Kanbach, 2023). in ecen yea s, he e has been a
g owing consensus in he li e a u e ha smes play an impo an ole in p omo ing bo h wo ldwide eco-
nomic g ow h and local social well-being (nu udeen Omonijo & yunsheng, 2023). smes con ibu e sig-
ni ican ly o income and jobs in many na ions. he Wo ld Bank es ima es ha in de eloping coun ies,
smes accoun o as much as 60% o o al jobs and as much as 40% o na ional e enue, and make up
mo e han hal o all companies and jobs wo ldwide ( he Wo ld Bank, 2021). he Wo ld Bank ecen ly
eleased a s udy s a ing ha smes a e unde inc easing p essu e o boos employmen oppo uni ies as
he demand o employmen is expec ed o ise by 600 million by 2030 ( he Wo ld Bank, 2021). his
s ess is ela ed o smes’ es ic ed access o capi al and bank loans and he g ea e i al y ha smes a e
acing (liu e  al., 2022).
he co ona i us illness (co id-19) epidemic has swep he globe, ha ing a subs an ial impac on he
economy (pa ma e  al., 2021). he cOViD-19 consequences on he business en i onmen migh be pa -
icula ly ha m ul o small- and medium-sized businesses (smes) (yu e  al., 2022). i is because hey e-
quen ly lack he esou ces—bo h inancial and human— o handle he di icul ies b ough on by he
© 2024 he au ho (s). Published by in o ma uK Limi ed, ading as aylo & F ancis g oup.
CONTACT ahmed abdullah alhamami [email p o ec ed]om [email p o ec ed]m.edu.my na ional uni e si y o Malaysia, Facul y
o economics and Managemen , Bangi, Malaysia; College o Business adminis a ion, naj an uni e si y, naj an, saudi a abia
h ps://doi.o g/10.1080/23311975.2024.2306974
his is an open access a icle dis ibu ed unde he e ms o he C ea i e Commons a ibu ion License (h p://c ea i ecommons.o g/licenses/by/4.0/), which
pe mi s un es ic ed use, dis ibu ion, and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed. he e ms on which his a icle has been
published allow he pos ing o he accep ed Manusc ip in a eposi o y by he au ho (s) o wi h hei consen .
ARTICLE HISTORY
ecei ed 16 ma ch 2023
e ised 30 Decembe
2023
accep ed 12 Janua y
2024
KEYWORDS
ex e nal social media
u iliza ion; ma ke
o ien a ion; business
pe o mance; cus ome
sa is ac ion; p o i abili y;
smes
REVIEWING EDITOR
lo enzo a di o,
poli ecnico di Ba i, i aly
SUBJECTS
in o ma ion &
communica ion
echnology (ic );
echnology; educa ion
- social sciences
2 a. a. alhamami e al.
cu en co ona i us scena io (aisjah e al., 2023; a sawan e al., 2023; yu e al., 2022). acco ding o empi -
ical esea ch om h oughou he wo ld, 60% o smes a e in dange o unning ou o inancial ese es,
and 50% o smes ha e empo a ily s opped ope a ing due o he shu down (Ba ik e al., 2020; amdan
e  al., 2022). cOViD-19, howe e , has esul ed in a change in business ac i i ies and he way in which
businesses hink.
smes mus use echnology o imp o e hei business pe o mance (Bp) and o h i e in he cu en
economic clima e (Omo osho, 2023; su yan ini e  al., 2023). One o he bene icial echnologies is he
usage o social media (sm). he e is an inc easing demand o smes o use sm (pa ma e  al., 2021). sm
has he po en ial o boos e enue, clien loyal y, cos e iciency, se ice quali y, b and ecogni ion, and
websi e a ic (mak ides e al., 2020). in u ilizing sm, companies di e en ia e be ween in e nal and ex e -
nal usage. in e nal usage e e s o he in e ac ions wi hin an o ganiza ion, such as hose be ween
employees and managemen , and ex e nal is o he in e ac ions wi h clien s and supplie s (mpanda e &
li, 2020). p io s udies ocused on iden i ying he p edic o s o using sm by smes (ahmad e  al., 2019),
how smes use sm o business collabo a ion (yu e al., 2022), smes sus ainabili y (pa ma e al., 2021), and
comme cial ac i i ies (abed, 2020). O he esea ch has con ibu ed in o ma ion on in e nal usage, while
limi ed s udies examined he ex e nal usage o sm by smes in de eloping coun ies (abu Baka e  al.,
2019; co al de Zubielqui & Jones, 2022). esmU allows smes o ga he compe ing in elligence om i als
and clien s (co al de Zubielqui & Jones, 2022).
howe e , i is s ill no clea how he esmU can a ec he business pe o mance. p io s udies indica ed
ha he e ec is mixed wi h posi i e, nega i e o no e ec . his is because using esmU equi es com-
panies o ha e ha dwa e and so wa e as well as s a who a e knowledgeable and can ope a e he sm
(ahmad e  al., 2019; ol ean e  al., 2019; ga ino e  al., 2019). he e has been li le explo a ion o he
ways in which esmU a ec s business ou comes (Ki chne e  al., 2022). esea che s ha e also disco e ed
ha he impac o sm on company success is highe when i is used ex e nally a he han in e nally
(alalawneh e  al., 2022; mpanda e & li, 2020). he e o e, his s udy examines he e ec o esmU on
business pe o mance.
esea ch has shown ha ma ke ing is inc easingly c ucial o he success o smes ( ols oy e  al.,
2022). a company’s pe o mance ises when i s ma ke o ien a ion (mO) is enhanced because i
becomes mo e able o adap o he e e -shi ing demands o i s cus ome s ( ajeddini & a en, 2020).
mO is he p ocess o de e mining a clien ’s wan s and equi emen s and hen sa is ying hose demands
h ough he de elopmen o no el s a egies (na e & sla e , 1990). When applied ex e nally, sm
helps businesses mee cus ome demands and mee he obs acles hey ace in he ma ke place. When
used ex e nally, sm has a sizeable impac on how well a company does and how well i communica es
wi h i s s akeholde s (liga aba e al., 2023). i was disco e ed ha using sm ex e nally has a subs an-
ial impac on mO and ha mO in u n media es he impac o using sm ex e nally on p oduc inno-
a ion (mpanda e & li, 2020).
in o de o emain compe i i e, businesses mus cons an ly e ol e o mee he shi ing demands o
hei indus y. his includes adap ing o shi ing consume p e e ences and compe i o s a egies ( aulks
e  al., 2021). his is due o he ac ha consume s ul ima ely de e mine a business’s success o ailu e.
e icien mO is a majo and a ou able p edic o o Bp o sme ( ajeddini & a en, 2020). Wi h his in
mind, smes a e encou aged o emb ace mO p inciples and pu hem in o e ec (Ud iyah e  al., 2019).
he e o e, his s udy examines he di ec and media ing ole o mO.
he pe o mance o smes in de eloped coun ies is highe han hose in de eloping and eme ging
economies. o ins ance, smes con ibu e o saudi a abia’s g oss domes ic p oduc (gDp) by 20%, which
is lowe han he egion o 22% and he global o 34% ( a idi & malik, 2019). saudi Vision 2030 suppo s
smes o imp o e pe o mance and bene i he economy and employmen . ew s udies ha e examined
esmU and i s e ec s on mO and smes’ Bp in saudi a abia (abed, 2020). con ingency heo y sugges s
ha companies mus ma ch and c ea e a i be ween in e nal and ex e nal ac o s o pe o m be e .
esmU is an ex e nal ac o s ha is ela ed o he cus ome s, supplie s, and business pa ne s and unde -
s anding his a iable can help in making mO and Bp mo e e ec i e. hus, his s udy examines how
esmU a ec s mO and smes’ Bp as well as how mO a ec s he Bp o sme and media es he e ec o
esmU on smes’ Bp. he nex sec ion discusses he li e a u e as well as he me hodology, indings, discus-
sion implica ions, and conclusions.
cOgen BUsiness & managemen 3
2. Li e a u e e iew
2.1. Theo e ical amewo k
he con ingency heo y holds ha no managemen me hod wo ks o all companies in all si ua ions
(O ley, 2016; sa a i & saleh, 2020). he con ingency heo y sugges s ha companies mus c ea e a man-
agemen sys em ha is linked o he ou side and inside en i onmen s and i hem oge he . his s udy
uses con ingency heo y o explain how esmU a ec s mO and Bp. mO needs sm o ob ain ou side
sou ces abou cus ome s, compe i o s, and business pa ne s o make he igh decisions abou wha
p oduc s and se ices o o e . sme manage s who g asp he clima e and ac in a way ha mee s clien
expec a ions will boos pe o mance (lu i, 2020). con ingency heo y in small businesses is a ely con-
side ed (ngo, 2021). ma ke esea ch using sm can help companies unde s and wha people a e saying
abou hei b ands, indus y, and i als (alsha ji e  al., 2018). his in o ma ion can enhance p oduc ion
e iciency and he ma ke ing plan. he e o e, he con ingency heo y migh be able o explain how
esmU and mO a ec he Bp o smes.
2.2. SME business pe o mance
pe o mance is he main objec i e o e e y en ep eneu wishing o con inue o be success ul in busi-
ness (a sawan e  al., 2023; e a e  al., 2018). pe o mance is de ined as an in es o ’s, use ’s, eam’s, o
company’s abili y o accomplish a pa icula objec i e h ough a se ies o ac ions (lai inen, 2002). Business
pe o mance (Bp) is a measu emen o he achie emen o o ganiza ional goals, and i is a key-dependen
a iable o in e es o schola s in all managemen ields (aisjah e  al., 2023; chi e  al., 2023; su yan ini
e  al., 2023). Bp shows how a company uses ma e ials and in angible means o each i s aims
(Za agoza-sáez e  al., 2020). p o i abili y is a key sign o Bp (Omo osho, 2023). i is he olume o p o i
o income ha a co po a ion is capable o p oducing wi hin i s ini e capi al (azha e  al., 2019).
p o i abili y is a c i ical pe o mance indica o ha mus be conside ed, as business g ow h is imp obable
o be sus ained wi hou p o i a ailable o u u e ein es men . he impo an c i e ion ha allows man-
age s o build a success ul company plan o smes is p o i abili y (gaganis e  al., 2019).
manage s ha e ealized ha business success can be assessed when an o ganiza ion achie es i s goals
wi h minimum esou ces, indica ing e iciency in using esou ces o p o i . O he non- inancial measu es can
de ine Bp (Dwi edi, ismagilo a, sa ke , e al., 2021). Based on he balanced sco eca d (Bsc), cus ome sa is ac-
ion is a c i ical indica o o Bp, and i alls unde he non- inancial indica o . Businesses use sm o s eng hen
hei ela ionships wi h cus ome s, which esul s in inc eased b and us ha leads o cus ome sa is ac ion
and inancial e u ns (de Oli ei a san ini e  al., 2020). acco dingly, in his s udy, cus ome sa is ac ion is used
as one o he dimensions o he Bp o smes. he e o e, in his esea ch, pe o mance is measu ed using p o -
i abili y ( inancial indica o ) and cus ome sa is ac ion (non- inancial indica o s). he use o cus ome sa is ac-
ion is due o he ac ha esmU and mO ocus mo e on he sa is ac ion o cus ome s.
inancial pe o mance can be measu ed using ei he subjec i e o objec i e c i e ia, o pe haps bo h
(sa kees e  al., 2010). ye , p e ious esea ch has ound ha mos en e p ises a e mo e likely o disclose
subjec i e in o ma ion abou hei company’s success. in his way, hey a e mo e likely o p o ide sub-
jec i e indica o s since he componen s a e mo e adap able, while also no o e ly exposing sensi i e
in o ma ion o o he s ( amdan e al., 2022). he e o e, a ho ough app oach o analyzing co po a e suc-
cess should include inancial and non- inancial pe o mance. sou and hsu ( sou & hsu, 2015) de ine
inancial pe o mance as a company’s capaci y o ea n money om he p ima y sou ces o comme ce,
such as asse s. non- inancial pe o mance, on he o he hand, in ol es long- e m goals ha emphasize
he impo ance o es ablishing cus ome loyal y, acqui ing new cus ome s, and s eng hening he i m’s
b and and c edibili y (Blaze ic & lie ens, 2004; sou & hsu, 2015). his esea ch de ines smes pe o -
mance as he i m’s capaci y o mee s a ed objec i es using a combina ion o inancial and non- inancial
pe o mance me ics (Blaze ic & lie ens, 2004; sou & hsu, 2015).
2.3. The ex e nal social media
he ph ase ‘social media’ was i s used in an online media en i onmen in okyo in 1994 (Ko csmá os &
csinge , 2022). ye , he no ion o social media has de eloped o e ime, and se e al de ini ions a e now

4 a. a. alhamami e al.
a ailable. acco ding o Kaplan and haenlein (2010), sm has e ol ed in o an e ec i e comme cial pla -
o m o people o sha e knowledge and de elop ne wo ks. sm is a collec ion o websi es whe e use s
can sha e ideas, images, ideos, and hobbies (Jib il e al., 2019). academics and p ac i ione s ha e no ed
he g owing ele ance o consume engagemen in new p oduc /se ice c ea ion h ough a social ne -
wo k ( . li e al., 2020). sm has al e ed comme ce (Bo ah e al., 2022). social media is de ined as ‘a g oup
o in e ne -based applica ions ha build on he ideological and echnological ounda ions o Web 2.0,
and ha allow he c ea ion and exchange o use -gene a ed con en ’ (Kaplan & haenlein, 2010). sm
suppo s all business unc ions. sm hus a ec s how and when people ga he and use knowledge
(hi chen e  al., 2017; mpanda e & li, 2020). sm ne wo ks a e used in business plans in e nally, be ween
pa ne s, and wi h clien s.
esmU has inc eased o e he yea s. in 2023, mo e han 4.76 billion use s ha e used sm, equi alen o
59.4% o he wo ld’s popula ion, wi h an inc ease o 3% mo e han in 2022 (Kepios, 2023). he e o e,
companies can a ge sm use s o aise b and exposu e due o hei apid g ow h. sm helps smes dis-
co e cus ome ends and needs o possible p oduc s (men ion e al., 2019). sm also s eng hens smes
ne wo king by os e ing use ul join in o ma ion and e ec i e knowledge sha ing on new p oduc s and
se ices, which may inc ease hei compe i i eness (hi chen e  al., 2017). in pa icula , esmU p omo es
company aims by in e ac ing wi h cus ome s, endo s, and he public. li e al. ( . li e al., 2020), s a ed
ha ‘social media pla o ms a e becoming an impo an way o small i ms o acqui e business in o ma-
ion’. smes in saudi a abia use sm applica ions o sell hei p oduc s and se ices and in e ac wi h cli-
en s and business pa ne s. his s udy assumes ha smes should adop sm as a goal o ma ke success
and he bes inno a i e ool o boos company pe o mance and he ma ke place. saudi smes need sm
o bene i om his echnology. hus, his s udy analyzes saudi smes’ sm ex e nal use and i s e ec s on
mO and Bp. his s udy de ines ex e nal social media usage as he use o social media pla o ms by en e -
p ises o connec wi h hei ex e nal s akeholde s. in e ac ing wi h clien s ia acebook, wi e , you ube,
and o he compa able media is one o hem (mpanda e & li, 2020).
2.4. Ma ke o ien a ion
he in ense in e es in ma ke o ien a ion o e he las h ee decades has esul ed in a g ea e unde -
s anding o i s complica ed s uc u e and pe o mance esul s (Bodlaj & Ča e , 2022). ne e heless,
esea ch on he signi icance o ma ke o ien a ion in he li e a u e is less explo ed, pa icula ly in he
con ex o smes (Bodlaj & Ča e , 2022). mO e e s o he o ganiza ional e o o unde s and and mee
he needs o cus ome s (na e e al., 2004). mO deals wi h he company’s in o ma ion ega ding i s
i als, clien s, and ma ke places. mO means ha all employees a e commi ed o con inuously p o id-
ing op alue o cus ome s (na e & sla e , 1990). companies ha adop mO concep s build cus-
ome loyal y o he company’s p oduc s and gene a e op clien alue, esul ing in imp o ed Bp.
he e o e, i is necessa y o smes, pa icula ly hose in de eloping coun ies, o welcome he concep
o mO and i s applicabili y in hei line o ope a ions i hey wan o be compe i i e (Bam o &
K aa, 2019).
s udies ha ha e examined he mO in he con ex o smes end o use he dimensions o p oac i e
ma ke o ien a ion (pmO) and esponsi e ma ke o ien a ion ( mO). na e , sla e , and maclachlan
(2004b), dis inguished be ween p oac i e and esponsi e ma ke o ien a ion; esponsi e ma ke o ien-
a ion helps o ganiza ions o disco e cu en needs, bu p oac i e ma ke o ien a ion is equi ed o
de ec he u u e wan s o clien s. acco ding o a uahene-gima, sla e , and Olson (2005), mO demon-
s a es a i m’s emphasis on maximizing he use o i s p esen skills and knowledge. pmO, on he o he
hand, demons a es a i m’s concen a ion on disco e ing new in o ma ion ha di e s d ama ically
om he company’s cu en skills and expe ise. o ins ance, lim e  al. (2016) who examined he
e ec o inno a ion as well as mO on inancial pe o mance, di ided he mO o include esponsi e and
p oac i e dimensions. in he smes con ex , he s udy o pe zold e al. (2019) deployed he wo dimen-
sions o mO and highligh ed he lack o s udies using hese dimensions in he li e a u e o smes. mO
has been used as a media o be ween knowledge managemen and p oduc comme cializa ion in he
s udy o ghah oudi e al., (2019). in his s udy, mO is expec ed o a ec he Bp o smes and media e
he e ec o esmU on Bp.
cOgen BUsiness & managemen 5
2.5. Concep ual F amewo k
Based on con ingency heo y, his s udy p oposes ha he e ec o esmU on p o i abili y, cus ome
sa is ac ion, and ma ke o ien a ion o be posi i e. he s udy p oposed a di ec e ec o ma ke o ien a-
ion on p o i abili y and cus ome sa is ac ion and a media ing ole o ma ke o ien a ion be ween esmU
and Bp (p o i abili y and cus ome sa is ac ion). Bp is a second o de a iable ha is measu ed using
p o i abili y and cus ome sa is ac ion. he use o mO as a media o and examining i s e ec on business
pe o mance is in line wi h o he esea che s (Ku niawan e  al., 2021). igu e 1 shows he concep ual
amewo k o his s udy.
2.5.1. Ex e nal SM u iliza ion and SMEs pe o mance
esmU is de ined as he in e ac ions wi h clien s and supplie s using sm (mpanda e & li, 2020). i in ol es
using sm o eac o clien iews, cus ome commen s, o complain s, de elop he company’s image
o sell goods, and collabo a e wi h consume s o c ea e new se ices o p oduc s (co al de Zubielqui
& Jones, 2022). hus, esmU has imp o ed company pe o mance by linking i ms wi h a la ge numbe
o possible consume s wo ldwide, boos ing sales, g ow h, and e enue (alam e  al., 2023; alsaad e  al.,
2023; aj idi & Ka ami, 2021). in pa icula , Bo ah, iqbal, and akh a (2022) illus a e how smes ob ain
eedback om clien s ia social media, which a ou ably imp o es company communica ion and pe o -
mance. addi ionally, amoah and Jib il (2021) indica ed ha sme pe o mance is s ongly in luenced by
social media use. absah e al. (2018) ound ha he usage o sm in smes’ business plans imp o es ma -
ke success. a s udy by ga ne in 2015 as men ioned by y. li e al. (2021) e eals he widesp ead use o
esmU o suppo o ganiza ional p ocesses, bu a ying esul s in e ms o quan i iable ad an ages a he
o ganiza ional le el. mo e s udy is needed o lea n how esmU impac s business esul s (y. li e al., 2021).
he e o e, s udies o esmU a e s ill limi ed in he li e a u e and p io li e a u e indica ed ha he e
a e mixed indings in e ms o he e ec o esmU on Bp. in he s udy o ga ino e  al. (2019), hey
ound no signi ican di ec e ec o sm on he e enue o companies in he Us. simila ly, ahmad e al.
(2019), in Uae ound ha he usage o sm did no a ec he Bp o smes. mo eo e , ol ean e  al.
(2019) did no ind a di ec e ec o sm on i m pe o mance (sales/ma ke sha e/p o i abili y g ow h).
in addi ion, academics call o u he concep ual e inemen and empi ical s udy o he impac s o
business sm use on i m success (Dwi edi, ismagilo a, ana, e  al., 2021). he use o sm has made
unning a company easie and mo e e icien compa ed o how hings we e done in he pas and
when con en ional business p ac ices we e employed (Jib il e al., 2019). his s udy makes he ollow-
ing hypo heses:
h1: esmU posi i ely in luence he Bp o smes.
h2: esmU posi i ely in luences he p o i abili y o smes.
h3: esmU posi i ely in luences cus ome sa is ac ion o smes.
Figu e 1. Concep ual amewo k o he s udy.
6 a. a. alhamami e al.
2.5.2. Ex e nal SM u iliza ion and ma ke o ien a ion
companies can use sm ne wo ks o apidly espond o consume eques s and o esee hei needs in he
ma ke (p. li & noo , 2022). hus, sm ne wo ks help smes o achie e esponsi e and p oac i e mO.
esea ch shows ha a company’s mO will be bols e ed by i s in es men in and imp o emen o i s
echnological in as uc u e (Bo ges e al., 2009). adhika i and gill (2011) ound ha echnological adop-
ion had a simila ly p o ound e ec on he mO o indian businesses. saa ed a, c iado, and and eu (2014)
indica ed ha hea y sm use has an e ec on mO. Using a me hod e y simila o his one, ecen
esea ch disco e ed ha sm use by businesses posi i ely impac s mO (mpanda e & li, 2020). in a simila
ein, ali and ahmed (2022) ound ha sm use signi ican ly a ec ed mO among Uae businesses. o his
eason, i is o in e es o u he de elop he business sm li e a u e by explo ing how esmU impac s he
mO s a egy o a i m (mpanda e & li, 2020). his s udy ound ha he widesp ead use o sm was he
mos e ec i e ma ke ing echnique. mos ecen esea ch in he ield o ma ke ing has concluded ha
smes a e inc easingly elian on sm usage as a p ima y ool o mO (ala cón e  al., 2018; ali & ahmed,
2022; Bhimani e al., 2019). he e o e, he pu pose o his esea ch is o in es iga e how mO is impac ed
by he esmU. Because o his, he ollowing is pos ula ed:
h4: esmU a ec s he mO o smes.
2.5.3. Ma ke o ien a ion and SME business pe o mance
ma ke o ien a ion is de ined as an o ganiza ional app oach ha is a e y success ul and e icien ech-
nique o de eloping he beha iou s equi ed o p o ide be e alue and con inuous ou s anding pe -
o mance o cus ome s (na e & sla e , 1990). p e ious esea ch on he impac o ma ke o ien a ion on
business pe o mance has shown con lic ing esul s (Jamaludin e  al., 2022). se e al empi ical s udies in
he pas in es iga ed he ela ionship be ween mO and Bp o smes. adams e  al. (2019) claimed ha a
posi i e impac on inno a ion pe o mance is achie ed when a company’s mO is es ablished. Ud iyah
e al. (2019) e eal ha , i mO ises, Bp imp o es as well. in ma ke ing, he esea ch p ocess is c i ical o
imp o ing Bp ( iswan o e al., 2020). he s udy o mankgele and a oki (2020) ound a posi i e ela ion-
ship be ween mO and Bp o smes. Bam o and K aa (2019) e ealed ha he mO a iable o cus ome
o ien a ion posi i ely and signi ican ly p edic s Bp. howe e , nega i e o insigni ican indings we e
epo ed. ho e al. (2018) in eme ging economies ound ha he e is no signi ican ela ionship be ween
mO and Bp. simila ly, oyo-Vela, amezqui a salaza , and puig Blanco (2022) ound ha mO did no sig-
ni ican ly in luence ma ke ing pe o mance. i is e iden ha mos s udies ound a posi i e ela ionship
be ween mO and Bp o smes in de eloped coun ies. his s udy p oposes ha he mO will ha e a sig-
ni ican impac on he Bp o smes in saudi a abia. hence, he ollowing hypo hesis will be examined
empi ically:
h5: ma ke o ien a ion posi i ely in luences he Bp o smes.
h6: ma ke o ien a ion posi i ely in luences he p o i abili y o smes.
h7: ma ke o ien a ion posi i ely in luences cus ome sa is ac ion o smes.
2.5.4. Media ion ole o ma ke o ien a ion
sm usage adds alue o smes h ough e ec i e mO and a new way o engage wi h cus ome s. mO
enables be e s a egies o ma ke ing by inc easing he capabili y o i ms o p edic and espond o
cus ome s’ needs, which helps i ms o boos pe o mance by inc easing sales, g ow h, and p o i abili y
(aichne & Jacob, 2015; Wamba & ca e , 2015). ew o he p e ious s udies examined mO as a media o .
Ku niawan e  al. (2021), ound ha mO media ed he e ec o ne wo king capabili ies on Bp. simila ly,
Ku niawan e al. (2020a), also ound ha mO media ed he e ec o agile p ojec managemen and i m
pe o mance. i is possible ha a ma ke -o ien ed business ha uses sm e ec i ely may be mo e likely
o see imp o ed pe o mance. addi ionally, a ma ke -o ien ed business may be mo e likely o unde s and
how o use sm in ways ha align wi h i s o e all ma ke ing s a egy, which can lead o imp o ed pe -
o mance. acco dingly, in his s udy, he e ec o sm ex e nal u iliza ion on smes’ Bp is expec ed o be
media ed by mO. hus, i is hypo hesized:
cOgen BUsiness & managemen 7
h8: mO media es he posi i e e ec o esmU on Bp o smes.
h9: mO media es he posi i e e ec o esmU on he p o i abili y o smes.
h10: mO media es he posi i e e ec o esmU on cus ome sa is ac ion o smes.
3. Resea ch me hodology
he s udy deploys a posi i is pa adigm. he s udy is deduc i e in na u e. he popula ion o his s udy
is smes in saudi a abia. a sample o smes in al- iyadh, he capi al o saudi a abia, has he la ges num-
be o smes in he a ge popula ion. he selec ed sample o his s udy cons i u es sme owne s, di ec-
o s, and manage s in saudi smes o ganiza ions loca ed in al- iyadh ci y. acco ding o he epo o
monsha’a (smes gene al au ho i y) in 2022, he numbe o smes in saudi a abia is 892,063 (sme
mOni O , 2022). he epo shows ha he la es numbe o smes in al- iyadh p o ince equals 264,030
-which cons i u es 35.4% o he o al numbe o smes in saudi a abia. his s udy is using a simple an-
dom sampling echnique. his sampling echnique is mo e ime e ec i e, simple, and easy o implemen
(seka an & Bougie, 2019). One o he mos ci ed app oaches in calcula ing samples is he o mula p o-
ided by yamane, (1967), which is depic ed as:
•
= n/1 + n e2 whe e
•
= sample size, n = he popula ion
o he s udy, e = e o ma gin. he esul o yamane’s o mula
•
= 400. o a oid a low esponse a e,
esea che s sugges ed doubling he sample size. in his s udy, ollowing he sugges ion o hassan &
ghazali, (2012), he ac ual sample is doubled. his makes he sample size o his s udy accoun o 800
esponden s.
he da a was collec ed using a ques ionnai e. his me hod is widely used by esea che s o inc ease
he esponse and gene alize he indings (appolloni e  al., 2021; a sawan e  al., 2023; so acool e  al.,
2018). measu emen s in he s udy used a i e-poin scale om ‘s ongly disag ee (1) o s ongly ag ee
(5)’. compa ed o an open-ended ques ion, i was easie o esponden s o answe and equi ed less
ime o comple ion (gilbe a. chu chill, 1979). he measu emen s o he a iables we e adop ed om
p io li e a u e. he measu emen o esmU (18 i ems) was adop ed om (mpanda e & li, 2020), he
measu emen o mO consis ing o en i ems was adop ed om (na e e  al., 2004). he measu emen
o p o i abili y (5 i ems) was adop ed om (Do is e  al., 2013) while he measu emen o cus ome sa -
is ac ion (3 i ems) was adop ed om (agniho i e al., 2016). he back- o-back ansla ion was conduc ed
o ansla e he ques ionnai e in o a abic. i e expe s alida ed he english and a abic e sions o he
ques ionnai e. no changes we e epo ed in he measu emen o he a iables excep o ansla ion and
demog aphic in o ma ion whe e h ee ques ions we e added. a pilo s udy was conduc ed by in i ing
manage s o smes in di e en egions o saudi a abia o pa icipa e in he s udy.
a e comple ing he alidi y and co ec ing he ques ionnai e based on he sugges ion o he expe s,
some i ems we e modi ied. a pilo s udy was conduc ed o ensu e ha he measu emen s a e eliable.
a o al o 50 ques ionnai es we e dis ibu ed o execu i e employees wo king in smes in saudi. a o al
o 42 comple e and alid esponses we e collec ed. able 1 shows he esul s o he pilo s udy. i shows
ha he measu emen s ha e an accep able c onbach’s alpha g ea e han 0.70.
Da a collec ion was conduc ed using a hyb id app oach. he online ques ionnai e esul ed in a mini-
mal a e o esponse. Only 24 esponses we e collec ed. as an al e na i e, he pape -based ques ionnai e
was dis ibu ed o smes’ owne s, manage s, and ceOs, because hey a e he ones who a e mos amilia
wi h he company’s cul u e, s uc u e, and ma ke condi ions (luba kin e  al., 2006), and his inc eased
he esponse o 471 wi h a esponse a e o 58.8% (800/471). he da a was e ined based on missing
alues, ou lie s, no mali y, and mul icollinea i y. o examine he missing alue, esea che s such as (hai
e al., 2017) sugges ed ha a equency analysis using spss can show whe he he da a is missing alue
Table 1. Reliabili y analysis o pilo s udy (N = 42).
Va iable numbe o i ems a e alida ion C onbach’s alpha Rema k
esMu 18 0.902 Reliable
Mo 10 0.851 Reliable
P o i abili y 5 0.882 Reliable
Cus ome sa is ac ion 3 0.821 Reliable
14 a. a. alhamami e al.
e ec i e mO imp o es Bp (adams e  al., 2019). e ec i e mO can link company ope a ions o
ma ke -needed goods and se ices, suppo ing s a egic business hinking. Ud iyah e al. (2019) ound
ha mO imp o emen boos s Bp.
ma ke ing o ien a ion media es he posi i e e ec o esmU on he Bp o smes (p o i abili y and cus-
ome sa is ac ion). he media ion pa ially suppo s he no ion ha pa o he ela ionship be ween
esmU and p o i abili y as well as cus ome sa is ac ion can be explained by mO. One possible explana-
ion o mO’s media ing ole is ha mO is linked o he ma ke ’s ecep i i y and p oac i i y. a
ma ke - ocused company ha makes good use o sm may ha e be e esul s han a non-ma ke - ocused
company ha ails o employ sm well. he e o e, mO and esmU can be combined o imp o e he Bp o
smes in saudi a abia. his conclusion is in line wi h p io li e a u e (Ku niawan e  al., 2020a, 2020b;
mpanda e & li, 2020) who con i med he media ing ole o mO.
6. Implica ions
6.1. Theo e ical implica ion
he s udy con ibu ed o he li e a u e by examining he pe o mance o smes in eme ging economies.
p io li e a u e has mainly ocused on iden i ying he p edic o s o using sm by smes. his s udy con ib-
u ed o he li e a u e by examining he e ec o esmU on mul iple dependen a iables such as mO,
p o i abili y, and cus ome sa is ac ion. he s udy sol ed he con adic ion in he indings ega ding he
mixed esul s and con i med he posi i e e ec o esmU on he mO and Bp o smes. se e al s udies
no ed he need o smes o be ma ke o ien ed. howe e , limi ed s udies examined empi ically hese
associa ions be ween mO and Bp o sme. he s udy has con ibu ed o he li e a u e in e ms o es ing
he media ing ole o mO. By doing so, he s udy has p o ided academia wi h empi ical indings ega d-
ing he ole o mO as a media o as well as a p edic o o smes’ Bp.
he s udy con ibu ed o he li e a u e by es ing he alidi y o con ingency heo y in he con ex o
smes. mos p io li e a u e ocuses on using his heo y in he con ex o la ge-scale companies and ew
examined hei applicabili y in he con ex o smes. he s udy also con ibu ed by conduc ing a s udy
on smes in saudi a abia, which has he po en ial o help in p o iding he communi y wi h a s udy ha
en iches hei unde s anding o he ole o esmU and mO. his s udy has signi ican implica ions o
decision-make s in saudi a abia. Based on he indings o his s udy, esmU is c i ical o he Bp o smes.
he e o e, decision-make s in saudi a abia a e ecommended o imp o e he le el o esmU. his can be
done by in ol ing and engaging cus ome s mo e by c ea ing games and sp eading a su ey wi h a
ewa d o discoun o p omo ion so ha he smes can be e unde s and he needs and wan s o hei
cus ome s.
6.2. P ac ical implica ions
he indings also showed ha esmU a ec ed signi ican ly mO. ma ke e s a smes can u ilize access o
cus ome s o unde s and hei needs and wan s. his can be done in se e al ways. One o which is o
ewa d a ue and au hen ic su ey. i can be also done by p o iding samples o cus ome s o y and
le hem exp ess eely hei expe ience and opinion wi h he p oduc o he se ices. mO is c i ical
indica ing ha smes should pay mo e a en ion o mO, and his can be done by c ea ing in imacy wi h
cus ome s. a compe i ion whe e ewa ded ques ions asked by smes and answe ed by cus ome s has he
po en ial o inc ease he awa eness o he p oduc and se ices o smes and c ea e a be e ela ionship
wi h cus ome s. adop ing cus ome ela ionship managemen and in eg a ing i wi h sm is also a sug-
ges ion o imp o e communica ion wi h cus ome s and iden i y he end in he ma ke . his s udy is
impo an o decision-make s o smes in saudi a abia because i en iches hei unde s anding ega ding
he ole o esmU and mO in he con ex o smes’ Bp. he s udy is in line wi h he go e nmen agenda
o shi ing om an oil o a non-oil economy. he indings o his s udy a e c i ical o achie ing he
ision o 2030 in saudi a abia and conside ing hese indings by smes con ibu es o hei pe o mance
and he gDp o he coun y as well as employmen .

cOgen BUsiness & managemen 15
7. Conclusion, limi a ions and di ec ion o u u e wo k
7.1. Conclusion
he p esen s udy was conduc ed in he dynamic con ex o saudi a abia, speci ically emphasizing
iyadh, he h i ing and ene ge ic capi al ci y o he kingdom. he main aim o his esea ch was o
in es iga e he complex ela ionship be ween esmU and Bp as well as mO speci ically ocusing on smes.
addi ionally, he esea ch aimed o examine he media ing ole o mO. he s udy’s esul s p o ide insigh
in o he signi ican in luence o esmU as a p edic o in de e mining he pe o mance o smes ac oss
se e al dimensions. signi ican ly, i has been shown ha esmU has a c ucial ole in in luencing he p o -
i abili y o smes, as well as hei le els o cus ome sa is ac ion and o e all mO. u he mo e, he esea ch
e ealed an addi ional le el o impo ance beyond he di ec impac o esmU on smes. mO has eme ged
as a signi ican aspec in he equa ion. mO has been shown o ha e a signi ican in luence on he p o-
duc i i y and cus ome happiness o smes. his sugges s ha companies ha p io i ize a s ong mO a e
mo e likely o achie e highe le els o pe o mance and main ain g ea e cus ome sa is ac ion.
ne e heless, he eal unde s anding is in he e ela ion ha mO unc ions as a media ing ac o , con-
nec ing esmU wi h p o i abili y and cus ome sa is ac ion. essen ially, mO unc ioned as a media o
be ween hese wo a iables.
7.2. Limi a ions
his s udy has limi a ions ha a e wo hwhile o be men ioned he e o a be e unde s anding o he ind-
ings o his s udy. i s ly, his s udy was conduc ed exclusi ely in iyadh, saudi a abia, which means ha he
indings a e inhe en ly limi ed o his speci ic ci y. secondly, he s udy’s esul s canno be eadily applied o
la ge-scale companies due o he subs an ial di e ences in o ganiza ion, s uc u e, inancial esou ces, and
egula o y equi emen s be ween smes and la ge en e p ises. hi dly, he s udy p ima ily elied on he pe -
spec i es o manage s, owne s, di ec o s, and op managemen wi hin smes, po en ially missing ou on a
mo e comp ehensi e iew o he subjec ma e . Based on he esul s o his s udy as well as he limi a ions
ha we e men ioned ea lie , he e a e se e al pa hs o u u e wo k o expand he indings o his s udy.
7.3. Fu u e wo k
he e a e se e al a enue o expand he indings o his s udy. i s ly, u u e s udies can bene i om
duplica ing his s udy in o he na ions, wi h a pa icula ocus on he gul coope a ion council (gcc)
a ea o o he eme ging economies. h ough he expansion o esea ch o o he geog aphical se ings,
esea che s ha e he oppo uni y o e alua e he applicabili y o he esul s and in es iga e possible
de ia ions impac ed by a ange o economic, cul u al, and egula o y si ua ions. secondly, in o de o
enhance he dep h o knowledge abou he in luence o esmU and mO, i is ecommended ha u u e
esea che s expand he ange o hei s udies o include o ganiza ions o signi ican size. examining and
compa ing he impac s o hese cha ac e is ics on smes and la ge en e p ises p o ide signi ican insigh s
in o he di e gen dynamics expe ienced by o ganiza ions o di e en sizes. hi dly, al hough his s udy
included smes om many sec o s, i is sugges ed ha u u e esea ch migh be enhanced by adop ing
a mo e sec o -speci ic pe spec i e. esea che s ha e he op ion o es ablish and ocus hei a en ion on
a pa icula a ea, such as he se ice sec o , e ail sec o , o cons uc ion sec o o o e comp ehensi e
insigh s on he e ec s o esmU and mO on en e p ises ope a ing wi hin he indus y. las bu no leas ,
o s eng hen he explana o y powe o he model, i is ecommended ha u u e s udies in eg a e new
a iables, he eby expanding upon he exis ing esea ch amewo k. en i onmen al unce ain y, a c ucial
ac o in he con empo a y dynamic business en i onmen , may be included as an independen a iable
o enhance he comp ehension o smes’ business pe o mance.
Disclosu e s a emen
no po en ial con lic o in e es was epo ed by he au ho (s).
16 a. a. alhamami e al.
Abou he au ho s
D . Ahmed Abdullah Alhamami is a lec u e a naj an Uni e si y, college o Business adminis a ion. he ecei ed his
mas e deg ee om cen al michigan Uni e si y, Usa. he is ocusing on en ep eneu ship and inno a ion, social
media, smes, and ma ke ing.
Noo Azuan Hashim is associa e p o esso a he economic and managemen acul y, Uni e si i Kebangsaan malaysia.
she ecei ed a Bsc (hons) om he Uni e si y o neb aska lincoln, an msc in ma hema ics om eas e n michigan
Uni e si y, Usa and a phD in e-comme ce and smes a he Uni e si y o she ield, UK.
D . Roshaya i Abdul Hamid is a lec u e a he economic and managemen acul y, Uni e si i Kebangsaan malaysia.
she is an expe on O ganiza ional Beha io and en ep eneu ship.
D . Si i Ngayesah Ab. Hamid is a lec u e a he economic and managemen acul y, Uni e si i Kebangsaan malaysia.
specializing in islamic ma ke ing, B anding.
ORCID
ahmed abdullah alhamami h p://o cid.o g/0000-0003-3959-2317
Re e ences
abed, s. s. (2020). social comme ce adop ion using Oe amewo k: an empi ical in es iga ion o saudi a abian
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