The Level of Adoption of Social Networking in Southwestern Nigeria
Posted: 26 Sep 2019
Date Written: December 31, 2017
The study examined the level of adoption of social networking among SMEs in Southwestern Nigeria; determined the factors influencing the adoption of social networking among the SMEs in the study area; and investigated the effect of Social Networking sites’ usage on the SMEs’ performance. These were with a view to providing information on effects of adoption of social networks on SMEs’ positioning strategy, markets share and customer retention success.
The study used primary data. The population consisted of 26,774 SMEs registered in Southwestern Nigeria. Slovin’s formula was applied to get a sample of 394. Principle of Probability Proportional to Size (PPS) was also adopted to allocate 394 copies of questionnaire to respondents as follows; Ekiti State (15), Lagos State (172), Ogun State (26), Ondo State (30), Osun State (33) and Oyo State (118) The structured questionnaire elicited information on the level of adoption; factors influencing adoption and effects of social networking on performance of SMEs in Southwest Nigeria. The data collected were analyzed using percentages and t-test statistics.
The results showed that majority of the respondents were early adopter (40.2%), networking innovators (30.8%), early majority (13.1%), late majority (13.6%) and laggards of social networking (2.3%). Also, the results showed that factors of knowledge (t = 1.899, p > 0.05), government (t = 8.980, p < 0.05) and cost (t = 0.915, p > 0.05) influenced the adoption of social networking in the study area. Furthermore, the social networking sites’ usage had a positive and statistically significant effect (t = 8.536, p < 0.05) on SMEs’ performance. In addition, the three social networks sites (Facebook, Twitter and Youtube) had higher significant effect (t = 5.507, p < 0.05); (t = 11.486, p < 0.05); and (t = 3.552, p < 0.05) respectively on performance proxies among SMEs in Southwestern Nigeria. Specifically, Facebook, Twitter and Youtube had 32.2% effect on positioning; 30.3% on market share; and 66.2% on customer retention.
The study concluded that the adoption of social networks had positive and significant effect on SMEs’ positioning strategy, markets share and customer retention success in Southwestern Nigeria.
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