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Mar 23, 2024
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Abstract
The tremendous shift towards digital platforms has prompted businesses to go online during the heights of the pandemic. Among those who embraced this enormous shift are the Micro, Small and Medium Enterprises (MSMEs), which are the backbone of the economic growth in developing countries. The efficient use of social media marketing has been a key player in the success of companies in today’s business environment, and the quest for sustainable development gives rise to the need for better strategic decisions in the MSMEs. This paper analyzes whether there is a relationship between social media integration and the financial performance of selected micro retail businesses in Cebu City. The level of social media integration and the total assets turnover of 385 selected micro retail businesses were correlated using Pearson’s correlation, with their related advertising expenses as the moderating variable. As observed in a non-contrived setting with minimal interference, our results showed a weak positive correlation among the variables correlated with such relationships varying per business industry. Our analysis also revealed that the average total assets turnover of businesses employing social media is higher than those which do not. The results also showed that the more integrated the business is, the more likely they are to invest in social media advertising.
Article Details
This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
Lumbab, R. J., Zamora, J. M., Jucom, L. N., & Sapariya, J. (2024). Social Media Integration and Financial Performance of Selected Micro Retail Businesses in Cebu City. International Journal of Multidisciplinary: Applied Business and Education Research, 5(3), 1024-1037. https://doi.org/10.11594/ijmaber.05.03.25
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Bishop M (2019) Healthcare social media for consumer informatics. SpringerLink. https://link.springer.com/chapter/10.1007/978-3-319-96906-0_4
Chaffey D (2023) Global social media statistics research summary 2023. https://www.smartinsights.com/social-media-marketing/social-media-strategy/new-global-social-media-research/
Chung S, Animesh A, Han K, Pinsonneault A (2020) Financial returns to firms’ com-munication actions on firm-initiated so-cial media: Evidence from facebook busi-ness pages. Information Systems Re-search, 31(1), 258–285. https://doi.org/10.1287/isre.2019.0884
Dagooc, E.M (2019) Cebu retail sector stood its ground amid a crunch. The Freeman. https://www.philstar.com/the-freeman/cebu-business/2019/12/27/1980115/cebu-retail-sector-stood-its-ground-amid-crunch
Dean C (2019) Social media marketing strate-gies used by owners of small retail busi-ness. Proquest. https://www.proquest.com/openview/ed686725fff4e5c4d18e963bf3c537bd/1?pq-origsite=gscholar&cbl=18750&diss=y
Del Rey J (2020) The year shopping changed forever. Vox. https://www.vox.com/recode/22204578/2020-ecommerce-growth-retail-shopping-changed-forever
Department of Trade and Industry Philippines (DTI) [https://www.dti.gov.ph/resources/msme-statistics/], Accessed October 2, 2022
Fountain T (2021) Why small businesses and startups should invest in social media marketing. Forbes. https://www.forbes.com/sites/forbesbusinesscouncil/2021/01/25/why-small-businesses-and-startups-should-invest-in-social-media-marketing/?sh=21c07e0e563e
Francisco J P, Canare T (2020) The challenges to SME market access in the Philippines and the role of business associations. APEC-Canada Business Partnership. https://apfcanada-msme.ca/sites/default/files/2020-07/The%20Challenges%20to%20SME%20Market%20Access%20in%20the%20Philip-pines%20and%20the%20Role%20of%20Business%20Associations.pdf
Jacobides M, Reeves M (2020. Adapt your business to the new reality: Start by how habits have changed. Harvard Business Review. https://hbr.org/2020/09/adapt-your-business-to-the-new-reality
Kapoor K, Tamilmani K, Rana N, Patil P, Dwivedi Y, Nerur S (2018) Advances in social media research: Past, present and future. ResearchGate. https://www.researchgate.net/publication/320882912_Advances_in_Social_Media_Research_Past_Present_and_Future
Khanal AR, Mishra AK (2016) Financial per-formance of small farm business house-holds: the role of internet. China Agricul-tural Economic Review, 8(4),553-571. https://doi.org/10.1108/CAER-12-2014-0147
Killian G, McManus K (2015) A marketing communications approach for the digital era: Managerialation. Business Horizons, 58(5), 539-549. https://doi.org/10.1016/j.bushor.2015.05.006
Li H (2021) An empirical study to determine the role of social media in the develop-ment of businesses. Revista Argentina de Clínica Psicológica, 30(1), 961-970. https://www.revistaclinicapsicologica.com/data-cms/articles/20210303103831pmSSCI-566.pdf
McKay L (2010) No one-stop shop for social. DestinationCRM. https://www.destinationcrm.com/Articles/CRM-News/Daily-News/No-One-Stop-Shop-for-Social-67552.aspx
Nobre H, Silva D (2014) Social network mar-keting strategy and SME strategy bene-fits. Journal of Transnational Manage-ment, 19(2), 138-151. https://doi.org/10.1080/15475778.2014.904658
Onofrei G, Filieri R, Kennedy L (2022) Social media interactions, purchase intention, and behavioural engagement: The medi-ating role of source and content factors. ResearchGate. https://www.researchgate.net/publication/357447880_Social_media_interactions_purchase_intention_and_behavioural_engage-ment_The_mediating_role_of_source_and_content_factors
Paquette H. (2013) Social media as a market-ing tool: A literature review. DigitalCom-mons@URI. https://digitalcommons.uri.edu/cgi/viewcon-tent.cgi?article=1001&context=tmd_major_papers
Pettersson T, Tadesse D (2019) Small enter-prises’ marketing strategy in the digital era: A study of hotels in Sweden. DiVa. http://www.diva-por-tal.org/smash/record.jsf?pid=diva2%3A1327656&dswid=-8
Philippine Statistics Authority (2020) Func-tional literacy rate of Filipinos by expo-sure to different forms of mass media ranges from 92.6 percent to 97.1 percent in 2019. https://psa.gov.ph/press-releases/id/163686
Rios LJ. For small and midsize businesses that want to survive the pandemic, a social media presence is no longer optional. Business Insider, in press.
Rosario A, Sotgiu F, Valck K, Bijmolt T (2016) The effect of electronic word of mouth on sales: A meta-analytic review of platform, product, and metric factors. Journal of Marketing Research, 53(3), 297–318. https://doi.org/10.1509/jmr.14.0380
Sharma V (2017) How technology has changed business. Klientsolutech. https://www.klientsolutech.com/how-technology-has-changed-business/
Shpak V (2021) Small business as a foundation for progressive development. Re-searchGate. https://www.researchgate.net/publication/348874037_SMALL_BUSINESS_AS_A_FOUNDA-TION_FOR_PROGRESSIVE_DEVELOPMENT
Susanto H, Fang Yie L, Mohiddin F, Rahman Setiawan AA, Haghi PK, Setiana D (2021) Revealing social media phenomenon in time of COVID-19 pandemic for boosting start-up businesses through digital eco-system. Applied System Innovation, 4(1), 6. https://doi.org/10.3390/asi4010006
Sutherland K (2022) Importance of social me-dia marketing during COVID-19. Pal-grave. https://www.palgrave.com/gp/blogs/business-economics-finance-management/importance-of-social-media-marketing-during-covid-19/18025270
Veleva S, Tsvetanova A (2020) Characteristics of the digital marketing advantages and disadvantages. IOP Conference Series: Materials Science and Engineering, 940. https://doi.org/10.1088/1757-899X/940/1/012065