The Value of Social Media for Small Businesses

ABSTRACT: Companies are implementing social media for marketing, advertising, employee recruitment, and overall communications with employees, clients, and partners. Small businesses are able to gain substantial value from social media but there are also many challenges. In this research, the Technology-Organization-Environment framework, the Resource-Based View theory, and interview data are combined to develop a model of social media usage and value for small businesses. Survey data from small businesses from a variety of industries and geographical locations are collected to validate the model. Results indicate that technology competence, pressure from clients, and characteristics of the mobile environment are significant antecedents of social media usage. The dimensions of social media value—perceived impact on internal operations, marketing, customer service, and sales—are also significant. Implications and avenues for future research are discussed.

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