A Structural Path Analysis Towards Examining Technological Factors Influencing SME’S Sustainability Through Social Media Marketing

1. Introduction

Many of the world’s top firms depend substantially on small and medium-sized enterprises (SMEs) for crucial resources. Their success substantially impacts the economies of countries where SMEs grow (Anees-ur-Rehman & Johnston, 2019; Casidy et al., 2020; Seifzadeh et al., 2020). Historically, SMEs have focused on established markets, although this tendency has started to alter in recent years (Muoz-Pascual et al., 2019; Valaei et al., 2017a). Despite their multiple benefits, small and medium-sized enterprises (SMEs) around the globe, and especially those operating (or wishing to operate) in developing nations (Malik & Jasiska-Biliczak, 2018), often face resource constraints and a dearth of technology applications.

Despite the rising significance of globalization, the success of small and medium-sized businesses (SMEs) is dependent on cutting-edge technology (Vrontis et al., 2020; Widya-Hasuti et al., 2018). Small and medium-sized firms’ long-term expansion and success (SMEs) may be facilitated by using improved, widely known, cost-effective marketing strategies (AL-Kwifi et al., 2020; Pandey et al., 2020). Information and communication technology (ICT) should be viewed as an essential and potentially fruitful tool for promoting products and services and fostering further sustainable business growth by small and medium-sized enterprises (SMEs), given the need to integrate new technologies into established processes (Bessant et al., 2001). Small and medium-sized enterprises (SMEs) must rely heavily on social media to engage with their clients. Therefore, it may pertain to anything associated with “a new generation of web development and design that aims to improve communication, sourcing, information sharing, interoperability, and collaboration on the World Wide Web.” SMM adoption is more probable among SMBs if proponents see the technology as beneficial and secure (Consoli, 2012; Ilavarasan & Levy, 2010; Kapoor et al., 2018; Paris et al., 2010). Before committing to SMM, small and medium-sized businesses (SMEs) must assess the advantages and downsides of the approach carefully. Theoretically, these concerns are supported by the technology acceptance model (TAM), but how TAM presents itself in the context of small and medium-sized businesses (SMEs) in developing countries that employ social media marketing (SMM) has received little research (Chung et al., 2017; Crammond et al., 2018; Davis, 1989; Koronios et al., 2020; Azhari et al., 2023).

There is some evidence that SMM may assist SMEs in adopting new technologies; however, the vast majority of research in this area is conducted from the perspective of Western economies and their particular needs, goals, and viewpoints (Johnstone, 1999). For developing nations such as Bangladesh, small and medium-sized enterprises (SMEs) are essential to economic progress (Adla et al., 2020). Despite this, many lack the technical know-how and suffer financially (Shareef et al., 2019). Despite this, there is universal consensus that the practicality of ICT is crucial to their continued success in this field (Alam & Mohammad Noor, 2009; Totskaya, 2015; Ying et al., 2023). For small and medium-sized companies (SMBs) in developing countries to grow sustainably, social media marketing (SMM) is an effective strategy (Aral et al., 2013; Aswani et al., 2018). A combination of circumstances led to this result. Access to timely, relevant information via social media platforms and apps may stimulate customer engagement with companies and their products and services (Filieri et al., 2021). Even though small and medium-sized businesses (SMEs) can achieve sustainable business growth through the effective and efficient use of SMMs, few studies discuss how SMEs in emerging economies achieve positive outcomes through the use of SMM applications and how highlighted mechanisms, such as appropriate leadership support, can assist them in obtaining additional benefits from SMM applications (Chowdhury et al., 2023).

This investigation seeks to understand the elements that influence the broad adoption of social media marketing methods. This study is essential because it gives insight into how ICT may help the long-term development of Bangladesh’s SME sector (Senathirajah et al., 2024). In addition, we offered a complete assessment of the elements that may impact the long-term survival of SMEs and the growth-promoting measures. We recognize that there are still significant gaps in the study on the degree to which e-commerce is embraced in developing nations (Makiwa & Steyn, 2020). Several significant factors influence them in Bangladesh, including the availability of educational opportunities, public awareness, the availability of information, and maybe the sophistication of the country’s e-commerce infrastructure (Makiwa & Steyn, 2020; Almuhatresh et al., 2022).

1.1. Research Objective

The aim of this study is to identify the following relationships-

a. To identify the influences of Perceived Usefulness, Perceived ease of use, The adoption of e-business technologies, social media marketing on SMEs’ sustainability (Bin et al., 2022).

b. To what extent the adoption of e-business mediates the relationship of Perceived Usefulness, Perceived ease of use technologies on SMEs’ sustainability (Jye et al., 2022).

c. To what extent social media marketing mediates the relationship of Perceived Usefulness, Perceived ease of use technologies on SMEs’ sustainability (Khalil et al., 2022).

2. Theoretical review and hypotheses

2.1. Perceived Usefulness

Davis (1989) created the Technology Adoption Model (TAM) to forecast how rapidly people will adopt new types of technology. (PEU). If properly adopted and executed, a quality management system can benefit SMEs in achieving PEU criteria (Davis, 1989). Small and medium-sized businesses (SMEs) would likely adopt SMM if they knew its potential financial benefits. According to studies by Chatterjee and Kumar Kar (2020) and Qalati et al. (2021), SMEs may increase their production using SMM. Numerous studies have shown a link between PEU and customers’ enthusiasm to test cutting-edge technology (Qalati et al., 2021). A recent study demonstrates that the rising usage of smartphones by the PEU is closely proportional to their greater engagement in social networking sites. The following are some of the proposed hypotheses:

H1: 

There is a positive relationship between Perceived Usefulness and e-business technology.

H2: 

There is a positive relationship between Perceived Usefulness and social media marketing.

2.2. Perceived Ease of Use

The Davis et al. (1989) notion of perceived ease of use (PEOU) has been extensively used to examine the proliferation of new technologies in business and other settings. Multiple studies indicate that the adoption of Internet and e-business technologies is impacted by their perceived simplicity of use (Chong & Pervan, 2007; Hair et al., 2013). This is because novices are hesitant to use cutting-edge technologies due to their perceived complexity, even though they stand to benefit much from doing so (Wangyanwen et al., 2023). When it comes to expanding their businesses, entrepreneurs are more open to adopting cutting-edge technology if it is easy to use (Chung et al., 2020; Shareef et al., 2018). Businesses may boost their productivity and revenue by maximizing their use of social media tools.

Consequently, many SMBs are incorporating social media into their strategic planning. As a result of this improvement in usability, there will be a larger adoption of cutting-edge technology. PEOU’s future performance is influenced by its cutting-edge technologies (Barbosa et al., 2020; Shareef et al., 2019). According to the findings of their respective studies, Chatterjee and Kumar Kar (2020) and Kraus et al. (2019). For this debate, the following hypotheses will be accepted:

H3: 

There is a positive relationship between Perceived ease of use and e-business technology.

H4: 

There is a positive relationship between Perceived ease of use and social media marketing.

2.3. The Adoption of e-Business Technologies

The rate at which SMEs embrace new ideas is influenced by various variables, including organizational structure, environment, and accessible technology (Chatterjee & Kumar Kar, 2020). The notion of technology-organization-environment (TOE) blending offers an integrative framework for coupling technical elements, contextual organizational characteristics, and broad environmental concerns. Innovation amplifies the benefits of existing processes and technologies, and SMEs are aware of this (Chatterjee & Kumar Kar, 2020; Dwivedi et al., 2021). As a result, it is projected that e-commerce and Internet technologies would stimulate increasing output. Adopting EBT may influence profitability immediately and in the long term due to its capacity to maximize resource use. Earlier studies by scholars such as Abd Rahman et al. (2015) demonstrate that similar benefit is a significant predictor of IEBT and associated technologies among SMEs. Specifically, our perspective on adopting IEBT by SMBs is modified (Müller & Voigt, 2018; Francis et al., 2023).

H5: 

There is a positive relationship between adopting e-business technologies and social media marketing.

H6: 

There is a positive relationship between adopting e-business technologies and SMEs sustainability.

2.4. Social Media Marketing and SMEs’ Sustainability

Social presence theory refers to research that studies the consequences of a single social encounter on future encounters. Social media marketing (SMM) is the relatively new activity of advertising one’s company, causes, or ideas using social networking sites and other online communities (Akpan et al., 2022; Amoah & Jibril, 2021). Consumers and group members use a smartphone and web-based technology on online marketing platforms to share, co-create, discuss, and alter content, promoting the dissemination of information and developing interpersonal ties among the persons involved (Ifedi et al., 2024). User-generated material has helped increase the popularity of brand posts (Mason et al., 2021; Odoom et al., 2017), attract new customers, increase brand exposure and revenue, build customer loyalty, and even predict users’ future purchase be saviors. Despite constituting the vast majority of businesses globally, it is believed that SMEs are accountable for more than 70 percent of all global pollution (Jacobson et al., 2020; Marshall et al., 2015).

Due to the emphasis on big, multinational businesses, the sustainability detour made by small and medium-sized enterprises (SMEs) is not often acknowledged or documented in the literature on sustainable development and corporate innovation. Compared to major organizations, small and medium-sized businesses (SMEs) have a lower green incentive endowment (Kim & Ko, 2012), which causes problems in the form of financial limits, personnel and resource management issues, and other obstacles. According to preliminary research conducted by Barbosa et al. (2020), small businesses struggle with conceptual knowledge and equipment to measure and organize environmental outcomes due to the misconception that sustainability increases costs. However, sustainable practices may improve ecosystem health, community vitality, and economic prosperity (Kervin et al., 2012; Jing et al., 2023).

Implementing sustainable strategies may be beneficial for businesses and other groups. The researchers in this study (Raut et al., 2017) also found that adopting SOM boosted business performance and decreased the company’s negative consequences on society and the environment (Ojo et al., 2019; Shibin et al., 2018). According to Ahmed et al. (2022) a strong relationship exists between a corporation’s internal corporate activities and its long-term economic, environmental, and social performance and benefit. Companies would do well to see the green challenge as a competitive advantage in today’s market, as environmentally conscious customers increasingly choose eco-friendly goods (Ahmed et al., 2024). It is conceivable for a company’s community standing to improve due to its efforts to promote social responsibility (Osman et al., 2024). Therefore, it is reasonable to assume that the SOM approach enhances longevity, a characteristic essential to the success of business operations (Senathirajah et al., 2023).

H7: 

There is a positive relationship between social media marketing and SMEs sustainability.

3. Research Methodology

To understand more about the function of EBT and Social Media Marketing as a mediator of the relationship between perceived utility and ease of use and SME sustainability, we used a quantitative method based on partial least squares structural equation modeling (PLS-SEM) (Hair et al., 2020).

There was a survey of small and medium-sized company owners in Dhaka, Bangladesh. We suggested 195 Google Forms questions, which would be sent using WhatsApp’s instant messaging platform. Seven completed surveys included inadequate or erroneous data for analysis (Valaei et al., 2017). In September and October of 2022, we did our study. The identity of persons who participated in this research cannot be disclosed for ethical reasons (Sirajuddin et al., 2023).

We resorted to a survey approach to better comprehend the social media marketing and long-term success of Bangladesh’s small and medium-sized enterprises. The questionnaires and interviews used in this study were refined versions of those employed in previous research (Ramalingam et al., 2024). Respondents were given a five-point Likert scale to rate their degree of agreement with each statement (strongly agree). This study evaluated data using a PLS-SEM model, with Smart PLS employed for data cleaning and preprocessing (version 4.0). In order to complete this study, the researcher selected a quantitative data collection method commonly used in many studies (Wider, 2023; Jiang et al., 2023).

4. Data Analysis

4.1. Reliability Analysis

The unwavering quality investigation evaluates the questionnaire’s content for internal consistency. Cronbach’s Alpha values over 0.5 are dependable (Amoah & Jibril, 2020; Khalil et al., 2023). Calculating Cronbach’s Alpha boosts the dependability of the development estimation factors. If, however, Cronbach’s Alpha is less than 0.50, the variables are deemed unreliable.

Indicator reliability is synonymous with the outside loading dimension. We estimated loadings, cross-loadings, composite reliability, and AVE for the indicators using the SmartPLS 3.0 default PLS approach. According to conventional procedure, each item’s loading must exceed 0.70. (Taherdoost, 2017; Wai et al., 2024).

A scale’s dependability may be determined by its internal consistency, which is “the degree to which all items on a single subscale evaluate the same concept.”

Cronbach’s alpha is often used to determine the dependability of internal consistency (Sim et al., 2018; Taherdoost, 2017; Fei et al., 2024). This section’s estimate method uses indicators of manifest variable intercorrelations; all indicators have identical outer loadings.

		VIF	Cronbach’s alpha	Composite reliability	Average variance extracted
E- business technology adoption	ETA1	1.493	0.829	0.830	0.595
	ETA2	1.679
	ETA3	1.640
	ETA4	1.752
	ETA5	1.933
Perceived Ease of Use	PEU1	1.223	0.780	0.808	0.540
	PEU2	1.533
	PEU3	1.494
	PEU4	1.568
	PEU5	2.268
Perceived Usefulness	PU1	1.499	0.821	0.836	0.584
	PU2	1.607
	PU3	1.493
	PU4	1.648
	PU5	2.258
SMEs sustainability	SM1	1.380	0.832	0.845	0.666
	SM2	1.825
	SM3	1.700
	SM4	1.649
	SM5	3.107
	SM6	2.987
Social Media Marketing	SS1	1.581	0.864	0.882	0.600
	SS2	1.660
	SS3	1.962
	SS4	2.483

4.2. Collinearity Test

The Variance Inflation Factor-based collinearity test determines the degree of correlation between a given collection of variables (VIF). Therefore, these criteria may assess whether the VIF is collinear with the dependent variable (Hair et al., 2014). The broad range of VIF coefficient values (1.138 to 3.664, or 5.00) indicates no collinearity among the construct variables, indicating that the assessment is legitimate.

4.3. Hypothesis Testing

We used structural equation modeling to examine the underlying assumptions of the model. We provided information from a random sample of 5000 persons and advised utilizing the t-test. The t-values for each association in Table 4 are all larger than or equal to 1.96, suggesting that all seven hypotheses formulated for this investigation are accurate.

	Original sample	Sample mean	Standard deviation	T statistics	P values
E- business technology adoption -> SMEs sustainability	0.317	0.315	0.085	3.710	0.000
E- business technology adoption -> Social Media Marketing	0.178	0.180	0.074	2.393	0.017
Perceived Ease of Use -> E- business technology adoption	0.589	0.586	0.084	7.045	0.000
Perceived Ease of Use -> Social Media Marketing	0.440	0.444	0.058	7.578	0.000
Perceived Usefulness -> E- business technology adoption	0.309	0.312	0.084	3.694	0.000
Perceived Usefulness -> Social Media Marketing	0.517	0.514	0.055	9.344	0.000
Social Media Marketing -> SMEs sustainability	0.730	0.737	0.084	8.727	0.000

4.4. Model Fit

4.4.1. R-Square

R-squared (R2) is a statistic used by statisticians to determine how well a model can predict an event (Hair et al., 2020). R2 levels of 0.75 or above are considered significant, and values between 0.50 and 0.25 are considered moderate (Hair et al., 2014). PEU, PEOU, and COST have been demonstrated to collectively account for 49.6% of the IEBT variance, which is not unexpected. To a lesser degree, PEU, PEOU, COST, and IEBT explained further variation in SMM (61.9 percent). PEU, PEOU, COST, IEBT, and SMM all partially explained differences in SMM.

	R-square	R-square adjusted
E- business technology adoption	0.763	0.761
SMEs sustainability	0.801	0.799
Social Media Marketing	0.870	0.868

4.4.2. f-Square

Similarly, the f 2 test was conducted to determine if the introduction of foreign structures substantially affected the operation of endogenous ones. The f 2 values of 0.02, 0.15, and 0.35 indicate that external constructions may have a minor, moderate, or significant impact on endogenous constructions, respectively (Hair et al., 2014). Furthermore, PU and PEOU substantially impacted EBT (f 2 value was 0.978). In addition, PEU, PEOU, and EBT have all had substantial effects on SMM (f 2 value was 0.381). We conclude that the EBT and SMM sizes on SS are modest as this section concludes (f 2 value 0.321)

	E- business technology adoption	SMEs sustainability	Social Media Marketing
E- business technology adoption		0.049	0.058
Perceived Ease of Use	0.321		0.144
Perceived Usefulness	0.089		0.332
Social Media Marketing		0.744

5. Discussion

Hypothesis	T statistics	P values	Support
H1: There is a positive relationship between Perceived Usefulness and e-business technology.	3.694	0.000	Supported
H2: There is a positive relationship between Perceived Usefulness and social media marketing.	9.344	0.000	Supported
H3: There is a positive relationship between Perceived ease of use and e-business technology.	7.045	0.000	Supported
H4: There is a positive relationship between Perceived ease of use and social media marketing.	7.578	0.000	Supported
H5: There is a positive relationship between adopting e-business technologies and social media marketing.	2.393	0.017	Supported
H6: There is a positive relationship between adopting e-business technologies and SMEs sustainability.	3.710	0.000	Supported
H7: There is a positive relationship between social media marketing and SMEs sustainability.	8.727	0.000	Supported

The findings validated each of the seven hypotheses that were explored. Initially, it was shown that the link between PU and EBT adoption had a p-value of 0.000, which is quite insignificant. Consequently, PU also has a very significant influence on SMM (p=0.000). Many small and medium-sized businesses (SMEs) see social media as an effective marketing tool. Utilizing social media properly may provide organizations various benefits, including increased productivity, enhanced question management, and delighted customers. Our results concur with those of Elbanna et al. (2019), Chatterjee and Kumar (2019), and Chung et al. (2020). Online sales and payments have become the principal mode of EBT acceptance for several SMBs (Chatterjee & Kumar, 2020; Elbanna et al., 2019). Internal networks have been well-received by SMBs, particularly those who conduct mission-critical operations or other business activities needing a high EBT (Yu et al., 2023). The results of this research confirm those of Chong and Pervan (2007) and Khalil et al. (2022), who discovered that SMM boosted SME product marketing and service delivery. SMBs may greatly benefit from SMM methods.

According to the results, PEOU had a statistically significant effect on both the scatterplots of EBT and SMM (p0.0001 and p0.001, respectively), disproving the first and second hypotheses. The premise of SMM is that the instructional content and menu are simple to navigate. Small and medium-sized enterprises (SMEs) that are active on social media have an advantage over their competitors regarding gaining new customers via this channel (Azhari et al., 2023). Using social media to promote a company sounds simple and may lead to access to important customer data (Dwivedi et al., 2021; Kapoor et al., 2018; Rana et al., 2019; Shareef et al., 2019). The fifth hypothesis asserts a causal link between pricing and the widespread adoption of IEBTs. The data estimate has a p-value of 0.00, which indicates that pricing is a significant factor in determining whether or not consumers utilize EBT. The results make sense, given that SMM is believed to have reduced the cost of responding to consumer inquiries by SME owners. Quality management services have decreased the costs involved with obtaining new consumers (Haibao & Haque, 2023). Due to the effective management services supplied, we reduced our expenditure on marketing and training new staff (Lee et al., 2023). The price of public relations and advertising has decreased due to the efforts of a qualified management team. Utilizing quality management services has a comparable impact on the cost of resolving customer concerns for small and medium-sized enterprises (SMEs). Previous research by Chung et al. (2020), Zhang et al. (2019), and Chatterjee and Kumar (1998) yielded similar findings (2020).

The p-value of 0.000 suggests that IEBT’s implementation impacts SMM. The implementation of EBT increased the long-term success of SMEs, according to this research. If SMEs include EBT in their SMM strategy, the outcomes of this research imply they stand to gain a great deal. SMBs have swiftly adopted the EBT for use in advertising, consumer spending, and other commercial endeavors. They might employ EBT for a variety of treatments. This suggests that the initial research conducted by Chong and Pervan (2007) and Ifinedo (2011) should be safely rejected as Kotler & Mantrala (1985). In recent years, the use of social media marketing to enhance income by small and medium-sized enterprises has gained appeal (SMM). Finally, the data revealed that SMM affects the long-term sustainability of SMEs. Increased social media usage has been associated with higher performance among SMEs, which might explain these results. Even when compared to other small and medium-sized businesses whose advertising strategies do not include social media, the average daily sales volume is above average. Social media users are more likely to receive promotional communications and offer feedback on their purchases as personal remarks.

The faster examination of client needs has been made possible by quality management services. Due to SMM’s constant desire for unique product marketing techniques, employees have grown more imaginative. Elbanna et al. (2019) and Chatterjee and Kumar (2019) both discovered comparable results.

6. Conclusion

Perceived utility and usability influence the adoption rate of e-businesses, the efficacy of social media marketing, and the long-term profitability of small and medium-sized enterprises (SMEs). The results of this research indicate that user feedback on the utility and simplicity of a new piece of corporate technology does not affect the performance of social media marketing, but it may alter the rate of technology adoption. This article contains valuable information for Bangladesh’s SMEs on long-term success, e-business adoption, and social media marketing (SMEs). Both theory and practice may be affected by these findings. Firstly, if the results of this study are accurate, they might assist SMEs in both emerging and developed nations in strengthening their digital marketing strategy (Almonawer et al., 2023). This shows the importance of social media advertising in the fast-paced business environment of the present day. Institutions and SMEs may collaborate effectively via a community service program in which universities provide social media marketing courses, and small and medium-sized enterprises get social media marketing instruction (Wickneswary et al., 2024). There may be further measures the federal government may take to assist small and medium-sized businesses, such as making it easier for them to get financing. Thirdly, SME marketing needs a data exchange and digital marketplace tailored precisely to their requirements. The agency may get direct assistance from the Department of Industry and Trade, particularly in the marketing field, to help develop its clientele via the intelligent use of social media (Wan et al., 2023). This research supports the notion that social media marketing is better than more traditional forms of advertising if it wants to reach a target audience. Small and medium-sized businesses must be schooled in social media marketing to increase their revenue. In certain instances, the government may play a role in providing this training and highlighting the infrastructure that supports social media marketing strategies. Combining the two approaches will provide information that may be used during the Covid-19 outbreak and in international athletic competitions. This study analyzed 195 small businesses (SMBs) in Dhaka, Bangladesh. Consequently, a more in-depth examination of the SME ecosystem in Bangladesh will show a complete collection of characteristics and factors that contribute to long-term sustainability (Annathurai et al., 2023). This research on the success of small and medium-sized enterprises (SMEs) has a wealth of information that applies to the Bangladeshi environment.