Webology 19 (3) - 66 PDF

Webology (ISSN: 1735-188X)
Volume 19, Number 3, 2022
The Impact Of Social Media Marketing Channel Usage On Business

Performance In SME’s
Muhammad Haris Mirza
Lecturer Department of Business Administration Federal Urdu University of Arts, Science and
Technology.
Abstract
This study aims to investigate the relationship between social media marketing channel usage and
business performance of SME’s along with the mediators of cost reduction, innovation, and
marketing capabilities in the context of Pakistan. The research applies quantitative analysis via
PLS-SEM for finding out the structural relationships among study constructs. The sample size
consisted of 322 respondents who are either owners or workers at a decision-making level
belonging to SMEs’ in Pakistan. The purposive sampling technique is used to reach the
respondents. The findings of the structural model indicate a statistically significant effect of social
media marketing channel usage on the business performance of small business enterprises. The
two mediating effects of cost reduction and innovation in between social media marketing channel
usage and business performance proved statistically significant. Also, the moderating role of age
in the relationship between innovation and business performance is supported by data. Further
research may incorporate the role of moderators like culture to investigate the interaction effect of
culture and social media marketing channel usage on the business performance of SME’s. This
study will help construction managers and policymakers to adopt social media marketing to
enhance their business performance.
Keywords: SME’s, Business Performance, Social Media Marketing, Innovation, Cost.
Reduction.
Introduction
The marketing world has witnessed a big adjustment over the previous few decades, as it conducts
itself and changes its marketing strategy for client engagement. The dynamics of market and
business activities through the internet, electronic commerce and personal computers is now
common (Alves et al. 2018; Porter, 2001), and have been profoundly affected to those businesses
who are less adaptable (Porter, 2001). The internet and media portals have revolutionized
consumer buying and eating habits by making product evaluation, selection, and purchase easier
(Albors et al., 2008). Companies have created their own marketing channels because of the
895 http://www.webology.org
popularity of social media marketing. A strong position and following current market trends
necessitates complex, strengthened and diversified integrated marketing relationships with
consumers (Li et al., 2020). Companies and consumers are increasingly expending on social media
marketing as a means instead of a source of entertainment (Guttman, 2019).
Marketing with social media allows consumers to connect and share content (Kaplan & Haenlein,
2010). Social networking has facilitated three major market developments. To begin with,
consumers can connect to their favourite platforms via social media, something which was
previously difficult. Many platforms have enabled social networking, including Facebook, Twitter,
and YouTube (Content communities). In addition, these tools enable people to develop social
networks based on shared values (Kaplan & Haenlein, 2010). Second, social media has changed
how businesses engage with and influence customers (Chen et al. 2011). The data can also be
utilised to track customer purchases. Social media can thus be a significant source of consumer
data, statistical surveys, and popular support for new ideas, while simultaneously enhancing
marketing methods (Gnizy, 2019).
When companies cooperate to create marketing literature, they expand their marketing capabilities
by pooling their knowledge, skills and available resources to achieve the company's profitability
and long-term growth, which constitute the strategic goals. Capabilities are hence intrinsically
linked information trends and knowledge, which are integrated into routine organizational over-
time operations (Parveen et al. 2015) and distinguished when performed more efficiently than
competitors (Krasnikov & Jayachandran, 2008). Successful companies have in recent years
adopted cross-functional marketing skills, which require a smart merge of highly specialized
marketing skills (Theodosiou et al., 2012). Product, pricing, location, and promotion are the four
components of marketing skill (Morgan et al. 2009).
The low cost and ease with which SMMCU can be integrated into business practises are major
considerations (Kaplan and Haenlein, 2010). SMMCU makes it possible for small and medium-
sized businesses to create a coordinated marketing plan for a lesser price (Kim and Ko., 2012).
SMMC-based businesses benefit from low costs, high output, and efficient operations
(Tobing&Siregar, 2020). A study by Parveen et al. (2016) found that by decreasing costs,
enhancing customer relations, and offering material contacts through market sensing, SMMCU
boosts company performance. It is possible that SMMCU will have a substantial impact on small
and medium-sized enterprises' internet advertising and promotion, customer service and problem
solving, and customer service management, as well as on innovative company strategies (Solis,
2010). SMEs benefit from SMMCU adoption since it is simple and low-cost to implement. It is as
a result of this growth that SMMCU is becoming increasingly popular, especially among start-up
businesses (Mourtada and Alkhatib., 2014).
With the quick advent of social media marketing, marketers have changed their tactics. Social
media marketing benefits firms, according to Dodokh and al Maaitah (2019); Kumar et al., (2013).
So companies that adapt to marketing skills and are prepared to include new marketing tactics on
the market (Dodokh and Al Maaitah, 2019) are able to compete efficiently to reach its objectives
(Kumar et al., 2013). Marketers should have technical knowledge and abilities in today's
competitive climate and constantly seek technology opportunities (Huang, 2011).
According to Ainen et al., (2015), adopting SMMCU at work provides several benefits. Many
academics have discovered that SMMCU improves corporate performance. Over the last two
decades, development of internet has been critical for companies looking to improve (Tajvidi &
Karami, 2017; Kim et al., 2014). In order to fulfil their business objectives, most companies use a
social media platform that incorporates their marketing expertise. Numerous web applications
enable small and medium-sized businesses to create and improve client relations using social
media marketing channels (Tajvidi & Karami, 2017). With SMMCU, you get major benefits
including the lack of a physical point of sale and low costs. It's possible to reach a significant
number of people using free programmes like Facebook, Twitter, and Instagram. Several countries,
including Switzerland, have recently published research on this topic. Companies need to be more
imaginative and adaptable to new technology if they want to stay competitive (Dodokh & Al
Maaitah, 2019). Customers are influenced by SMMCU because it ensures that the brand adheres
to current market norms and client requirements. As long as this effect persists, the customer
relationship will be profitable for the business. Using SMMCU improves a company's profitability
and long-term growth, according to the findings of the research.
The age of the organisation also influences creativity and learning (Hitt et al. 1997). The age of a
company affects the availability of relevant market information (Sinkula, 1994). Customers and
stakeholders, internal and external, can generate innovative company ideas in numerous ways.
New enterprises tend to be disadvantageous because connections with existing and older
enterprises take longer. Current and established companies are able to select and utilize pre-
existing relationship information. With its organizational competencies and expertise, age-related
companies are able to adjust performance-related innovations to improve their operational
efficiency.
Social media marketing networks use a variety of key resolves, and the academic study of their
impact on organisational performance is far from comprehensive in connection to these resolutions
(Schultz et al., 2012). Studies on the genuine influence of social media on businesses performance
are rare (Parveen et al. 2015; 2016). Few studies have explored the elements affecting business
success in small and medium-sized companies using social media platforms as an exogenous
variable, including their marketing capability, cost reduction and innovation. This study examines
SMEs' social media marketing channel usage in Pakistan. This study looked at SMMCU's
influence on SMEs. Marketing capability, cost reduction, and innovation impact a company's
growth. Pakistan hasn't explored using social media for small and medium-sized businesses. Thus,
more research is required to produce supporting literature from many contexts and locations
globally (Berthon et al., 2012; Al Tawara& Gide, 2017). Small and medium-sized businesses in
Pakistan aren't exactly new to the concept of social media marketing. SMEs still need to find out
more about the methods and tools of SMMCU. Such knowledge enables them to gain insight into
the market and to minimize expenses by improving consumer engagement, market sense and
appeal. The purchasing behavior of customers in general differs depending on geographical and
demographic variables. Most of the research cited in this publication has been conducted in other
countries.
SMEs in Pakistan will benefit from this research by better understanding the relevance of SMMCU
and how to use it to their advantage. The theoretical component of this study further demonstrates
the significance of the findings, as it is the first to present a complete picture of how SMMCU
affects Pakistan's performance.
The study’s objectives include:
1. Examine the relationship between social media marketing channel usage and business
performance.
2. To examine the importance of marketing, cost reduction, and innovation and its
relationship with social media marketing usage and small business performance.
3. To learn more about how ageing influences innovation and company performance.
Following are the questions:
RQ1: Does the usage of social media platforms by small businesses is linked to marketing
capability, cost-reduction, and innovation?
RQ2: How significant are marketing capability, cost reduction, and innovation in determining
SME performance using social media marketing channels?
RQ3: Does age affect the relationship between innovation and performance?
There are a number of useful insights presented in this research that can assist SMEs in making
better use of social media technology and working more creatively. In order for SMEs to compete
with enterprises that have already profited from new developments, they must implement
SMMCU, as this paper shows. Many businesses, both new and old, engage with their customers
through social media platforms. Because old companies have a large consumer database hence
they have a bigger edge in an unsteady economic and highly competitive market. The deployment
of a highly effective set of integrated strategies can maintain a company. SMEs and household
enterprises benefit from connecting with their customers through SMMCU. The Food Panda app
is the best example. Clients can read and order meals from many of the best food corporations and
independent home-based cooks. Most women today run their small businesses using social media
marketing channels and, with this research paper, they may improve their usage of these platforms.
Each structure helps to explain the greatest possible use of marketing channels.
The study covers Pakistani SMEs. Large industrial and service businesses are excluded. On the
other hand, future research can include multinationals and other major firms to replicate the study
using the same factors. The significant majority of people surveyed come from Karachi, the most
populated metropolis in Pakistan. Also, this study does not claim to have ruled out all confounding
variables that could impact a company's success.
Literature review
People all over the world can now connect with each other with the help of social media marketing
tools. Millions of discussion currently take place on social media. Users can create fresh material,
share it with millions of people, and bookmark it. Nowadays, there are various social media
networks. They allow people to advertise their ideas and products in a dynamic commercial
environment with dynamic communities (Roberts & Kraynak, 2008).
These social media channels offer several platforms for posting, editing, tagging, blogging,
uploading, downloading and performing multiple functions. The type of content developed
through the utilising social media as a resource lately made available to people. The potential
customers can use this resource to learn a certain topic that is linked to products, promotions,
branding, various services and any challenges they confront (Xiang & Gretzel, 2010). For example,
Facebook, Twitter, Snapchat, LinkedIn and Instagram are several social media channels. These
channels are user-friendly, reach thousands of people instantly and are easy to utilize.
The social media’s wealth makes it a trendsetter for issues throughout the world related to the
environment, the weather, politics, tourism, technology, etc. In this way, social media outlets are
essentially self-promoting instruments. Many special functions make social media an enticing tool
to advertise their brand, products and services by companies. (Xiang&Gretzel,2010).
Because of these features, social media platforms are gradually becoming a marketing
phenomenon to increase company performance. Businesses are starting to learn how to use social
media to efficiently promote to as many customers as possible.
While companies used to consider social media marketing an unqualified success, this has all
changed. For instance, the internet is now used by over 4 billion people, with over 3 billion
individuals utilising social media (Chaffey, 2020). The outcome is that organisations must learn
how to sell their products using social media as well as enhance traffic to their websites using
websites and other social media (Weinberg, 2009).
According to Kaplan and Haenlein(2010), people can create and share content using social media's
web-based capabilities. Other social media include review and polling websites, as well as virtual
worlds and social networks (Zarella, 2010). In terms of changing user views, social media
outperforms traditional marketing communications since it is created by users and shared online.
As the popularity of social media expanded, so did the views on its application in business.
At various times in today's marketing literature, marketing capabilities (MC) is a crucial aspect in
determining the performance of the organization (Su et al.,2013). Thus, 'immobile', 'non-
replaceable' and 'unique' marketing skills are marketing capabilities (Bharadwaj et al., 1993).
Long-term, marketing-savvy firms outperform their competitors (Wong & Karia,2010). A
company's marketing skills are defined by its marketing strategy and execution (MC). However,
Morgan (2012) maintains that the ability to market a product or service directly affects profit
growth.The researchers found that the capacity to advertise favourably mediates the link between
customer relations (CRM) and company performance. Further research reveals that marketing
competence positively impacts corporate profitability in a number of economic situations (Ahmed
et al., 2014).
H1: Marketing Capabilities has a positive direct relationship as a mediator

Also, firms are more likely to include end users more regularly, immediately, and efficiently via
social media than via traditional communication channels (Parveen et al., 2016). Several
companies, including multinationals, SMEs, non-profits, and governments, have taken advantage
of the low cost of accessing social media (Kaplan & Haenlein, 2010).In addition, companies can
integrate marketing activities by using social media as a marketing channel with minimum time
and expenses. (Kim &Ko, 2012). Companies who use and adopt the newest and most advanced
social media channels to market seem to gain competitive edge and outperform their competitors,
as well as get extra benefits like lower costs and more efficient business performance (Harris &
Rea,2009).It enhances consumer interactions and information accessibility. Businesses who use
digital marketing to address customer service concerns, generate new ideas, and strengthen client
relationships area huge impact because of social media marketing channel usage (Solis, 2010).
H2: Cost Reduction has a positive direct relationship as a mediator

Experts sharing ideas and using user-generated content help develop new products and services
(Bell & Loane,2010). Tools help professionals collaborate globally (Schenckenberg, 2009).
Innovation is used to gauge success, growth, and efficiency. The goal of the research is to discover
how much innovation helps to explain corporate performance and use of social media.
Technological and technical expertise in highly competitive industries is crucial for the effective
and speedy improvement of corporate performance. The capability to analyse technology
opportunities, dynamic business processes, basic technical and technological capabilities, and
make independent, innovative R&D decisions (Huang, 2011).
Using technology which incorporates social media platforms, companies may communicate with
their customers openly, answer to their grievances and monitor their input continuously for
improved results. All of these efforts effect an organization's brand image as innovators and
superior to competitors (Zyl, 2009). Several social media apps exist. One of the most important
thing is that consumer comments, complaints, requests, and opinions can spur innovation
(Matuszak, 2007; Tapscott& Williams,2006).
H3:Innovation has a direct positive relationship as a mediator.

According to previous studies, a company's success and competitive advantage are mostly
determined by its skills (Wong & Karia, 2010). According to studies, business success and
improved performance depend heavily on intercompany competencies including technology,
marketing, and operations (Barney, 2001). Marketing capabilities (MC) are also major predictors
of firm performance in existing marketing literature. They all got the same findings from four
different groups. Chang et al., (2010) concluded from a meta-analysis of previous research that
marketing capabilities improve customer connections and business performance. Marketing

capabilities can increase business performance in many economic conditions, according to Ahmed
et al., (2014). Thus, businesses may easily communicate with customers and other businesses via
social media. Thus, online marketing improves business performance, creating strong client ties to
impact purchasing decisions and general knowledge (Walter et al., 2006). The impact of marketing
capabilities on business performance has not been investigated in the research literature
(Ramanathan et al., 2016; Tajvidi and Karami, 2017).Moreover, most studies on how marketing
capabilities effect firm performance have ignored advanced marketing capabilities (Merrilees at
al,, 2011). To be specific, this study looked at CRM, brand management and market sensing
(Merrilees et al., 2011). These qualities are essential to maintain a business competitive
(Hogan&Coote,2014). This study's purpose is to examine how social media marketing abilities
effect business performance.
H4: Marketing capabilities have a positive direct relationship as a mediator between social media
marketing usage and business performance.
The cost reduction target is usually under the realm of the production department, where
expenditures are allocated and income is matched. On the reverse side, the marketing department
concentrates more on developing sales income by price, market segmentation, product positioning.
The recent study signifies a challenge to traditional knowledge. The marketing department may
want to take into account reduction in production costs per unit. It might be a useful tool for the
success of the company. Also, how much investment is required to optimise cost reduction? In
summary, lowering unit costs increased return. Cost reductions lead to increased sales, lower
distribution channel expenses, and maybe better quality and strategic management. These benefits
should be carefully examined, as should the investments required to achieve unit cost reductions.
While lowering unit costs normally targets the company's production department, subsequent
research and analysis shows that it can boost any organization's success and business performance.
H5: Cost reduction has a positive direct relationship as a mediator between social media marketing
usage and business performance
Evidence from earlier studies reveals that innovation has a strong connection with corporate
performance. The fundamental question, though, is how can innovation be linked to better
corporate performance? Geroski (1995) proposes two distinct ways of answering this question.
The initial view is to invent new and improved products and finally to boost the competitive
position of each company over its competitors. Profitability and growth, on the other hand, will
only last as long as the concept is original and the business can hold its own against its rivals.
On the other side, though, the position stresses the value of innovation and its impact. It shows that
the innovation process will likely transform organizations primarily by increasing their internal
capacities, which makes companies more adaptable and flexible to market forces than companies
which do not participate in innovation. It can therefore be proved that innovation tends to improve
the performance of any firm as innovation enhances the competitiveness of any business in the
market. The innovation process transforms flexibility and internal capacity.
If every organisation can benefit from innovation, it's reasonable to say that performance and
innovation are on an equal footing. Previous research and a review of the literature support this
assertion. However, it is important to stress that corporate performance is not defined simply by
innovation. In invention, both success and failure can occur. Innovation must therefore be seen as
an essential but inadequate tool for improving corporate performance and guaranteeing existence.
In the past, numerous studies have been carried out to study the relationship between innovation
and corporate performance, directly or indirectly. The results of these research demonstrate a high
correlation between the two components of innovation and business performance.
H6: Innovation has a positive direct relationship as a mediator between social media marketing
usage and business performance.
The impact of organisational size and age on innovation and commercial performance has been
proven. The age and size of each firm also contribute to the beneficial relationship (Damanpour&
Evan, 1984). However, larger or older companies have shown that innovation and firm success go
hand in hand since they can invest more in R&D and innovation. Smaller and newer businesses
typically lack the resources and funds required to innovate.
Previous study suggests that ageing may improve the links between innovation and corporate
performance (Aiken & Hage, 1971; Sorensen & Stuart, 2000). The findings show that businesses
can build skills, organisational structures, and routines through time, allowing them to run more
successfully and efficiently. As a result, a younger organization is likely to suffer from comparable
routines and structures that are lacking, meaning that innovation takes more attention and work.
(Abd Aziz &Samad, 2015). In addition, this study also demonstrated that the effects of any
business age on innovation can be totally moderated and made competitive.
So, if a company is under five years old, innovation is more important for gaining a competitive
advantage. The importance of innovation increases with the age of the company. That any business
age has a big impact on the link between innovation and performance is supported by these data.
Companies should focus on new strategies to get a competitive edge and improve company
success.
H7: Age has a positive direct relationship as a moderator between innovation and business
performance.
The most effective approach of examining the correlations previously created between the
variables in the study may be analysed after comparing the conceptual framework with the existing
literature. I studied social media, marketing, cost-reduction, profit-growth, customer interactions,
organisational performance, rapid adaptability, and social media. All firms in today's dynamic
business world undergo rapid changes in everyday activities irrespective of location, size, industry
or age. As the world in which we live evolves, companies have to retain their competitive
advantage and adapt to it. As a result, organisations that adapt well to change frequently thrive in
a fast-paced commercial world. The proposed conceptual model has six components: one
independent variable, one dependent variable, three mediators, and one moderator. • Age •
Business performance • Cost reduction • Innovation • Marketing capabilities• Social media
marketing channel usage •innovation.
Methodology
Sarantakos (2005) claims that philosophy in research is the main motivation for social science
research. Many notable scholars like Easter by-Smith as al. (2008) stress the importance of the
philosophical framework on three fundamental points which must be taken into account when
adopting a philosophical context. These points are (1) knowledge of the philosophical basis, (2)
design and setting of research and (3) researchers' capabilities. Using natural science principles,
practises, methodologies, and ethics to investigate social sciences is a beneficial component,
according to Kolakowski (1993) and Von Wright (1993). It also uses the same behavioural
research methods. Positivism's principal function in social science must be external, according to
Easterby-Smith et al., (2008). Research objectives, as well as research philosophy and hypothesis
testing, all meet quantitative research requirements. However, only if the characteristics of each
are examined with the requirements of the research and its other features can no one approach be
considered as best. For these reasons, it is considered that quantitative approaches are superior and
more suitable in comparison with qualitative methods for this specific study. It is essential that
researchers calculate the importance of variables in order to arrive at a positive and unfair
conclusion. The sample method and size must be chosen carefully because a proportion of the
population represents the entire population. Many academics agree that sampling is the act of
selecting appropriate units from huge populations, organisations, or people. Sample units are
selected to collect and analyse data for universal outcomes. These results must properly reflect the
behaviour, although based on sample size, of the entire population. The sampling strategy is a four-
stage process, according to Aaker et al. (2001). These are the four steps: (2) Select the sample
frame, (3) the sampling method, and (4) the sample size. Sekaran (2000) distinguished between
probability sampling and non-probability sampling. Despite the small sample size, the 10-time rule
implies PLS-SEM is highly productive. But the study's purpose is to select a target group sample
size. It was picked using current research findings, researcher proposals, and researcher opinions.
The questionnaire begins with the "Qualification questions." These questions are essentially
inquiries that demand either a yes or a no. If the answer is not what the questionnaire needs to do,
the form will be stopped. If the expectations are necessary, the person can move to the following
phase.
This research has utilized a technique called the partial lower square (PLS) variance-based model
in order to satisfy the data analysis requirements and to confirm that the conceptual framework is
valid. Structural equation (SEM) is parented to PLS and is therefore considered a second-
generation approach. However, researchers may benefit from SEM's adaptability (Hair et al.,
2010). PLS is also known as SEM since it produces predictable results. The research's goals and
assumptions fit with PLS-SEM data analysis. Also, because this study meets the above criteria,
the researcher used PLS-SEM for data analysis. This study also adheres to contemporary
management science research techniques and tactics, addressing covariance-based flaws
(CBSEM) (Hair et al., 2014).
This section pertains to both the owner's and business's "demographics," which also require
questions to be answered. These questions mainly answer a few options that need to be ticked to
progress with the questionnaire. These questions deal about the owner's demographics and then on
the company's "effect on business by the social media." The Likert scale ranges from 'Never' to
'Always,' and those responses can be found in the section "SMMCU." Social media utilisation as
a platform for marketing the company's brand is the first factor to consider. All these problems
must be acknowledged and taken into consideration when a firm use social media. This dimension
also follows the Likert scale from "never" to "always," with "rare, occasionally, and frequently" in
between. It's called the "rare, occasionally, and regularly" dimension. This section focuses on
customer service difficulties relating to social media. It considers the link between the business
and the client. Following this are section II "MC," which again follows the Likert scale, from
"strictly unanimous" to "very unanimous." The first component raises problems concerning the
management of consumer relationships. The second component raises problems concerning brand
management and the way in which social media is employed. The third component is market
awareness and how the company uses this platform to function. The choices are 'strongly disagree,'
'not agree or disagree,' 'agree' and 'strongly agree. 'On the Likert scale, "Never True" is the least
likely to be true, while "Rarely True" is the most likely to be true. The dimension asks how the
company saves money via social media. Section 4 "INN" has all questions from "Never" to
"Great." To begin, social media adds to new and creative ideas. Section V "BP" likewise uses an
approach similar to those above, i.e. ranging from 'not' to 'high.' The first component concerns the
company's growth through social media platforms, while the second concerns the company's
profitability.
Results and discussion
The study found no abnormalities. Skewness and Kurtosis were used to test normality. All data
are within 1.5 standard deviation (Table 1). All variations are excessive Kurtosis and skewness of
-3 or +3, demonstrating the regularity of the variations.
Table 1 Item Level Descriptive Analysis
Standar
d Excess
Missi Mea Medi Ma Deviatio Kurtosi Skewne
ng n an Min x n s ss
4.01
SMMCUM1 0 6 4 1 5 1.157 0.045 -0.986
3.83
SMMCUM2 0 2 4 1 5 1.22 -0.287 -0.821
3.81
SMMCUM3 0 1 4 1 5 1.215 -0.427 -0.749
3.93
SMMCUM4 0 8 4 1 5 1.159 0.126 -0.948
3.85
SMMCUCR1 0 4 4 1 5 1.216 -0.338 -0.811
3.97
SMMCUCR2 0 5 4 1 5 1.153 -0.054 -0.942
3.94
SMMCUCR3 0 1 4 1 5 1.147 -0.302 -0.826
4.06
SMMCUCR4 0 5 5 1 5 1.133 -0.101 -0.977
3.98
SMMCUCR5 0 4 4 1 5 1.165 0.213 -1.036
SMMCUIA1 0 4.05 5 1 5 1.165 -0.178 -0.937
3.90
SMMCUIA2 0 1 4 1 5 1.167 -0.28 -0.818
4.08
SMMCUIA3 0 4 4 1 5 1.099 0.377 -1.084
4.04
SMMCUIA4 0 7 4 1 5 1.153 0.142 -1.031
3.83
SMMCUIA5 0 2 4 1 5 1.313 -0.307 -0.904
4.05
MCCRM2 0 9 4 1 5 0.877 2.491 -1.584
4.08
MCCRM3 0 7 4 1 5 0.87 2.542 -1.592
4.02
MCCRM4 0 5 4 1 5 0.881 2.776 -1.391
4.15
MCCRM5 0 2 4 1 5 0.775 3.716 -1.436
3.95
MCBM1 0 7 4 1 5 0.825 2.275 -1.184
3.96
MCBM2 0 6 4 1 5 0.824 2.757 -1.308
4.15
MCBM3 0 2 4 1 5 0.873 2.848 -1.707
4.07
MCBM4 0 8 4 1 5 0.794 2.955 -1.299
4.07
MCBM5 0 5 4 1 5 0.769 2.524 -1.365
3.94
MCMS1 0 7 4 1 5 0.871 2.818 -1.429
3.51
MCMS2 0 6 4 1 5 1.148 -0.479 -0.681
3.90
MCMS3 0 7 4 1 5 0.81 2.169 -1.414
4.01
MCMS4 0 2 4 1 5 0.792 2.123 -1.078
CR1 0 3.63 4 1 5 1.076 0.107 -0.724
3.98
CR2 0 1 4 1 5 1.009 0.341 -0.965
3.84
CR3 0 2 4 1 5 1.113 0.704 -1.096
3.80
CR4 0 1 4 1 5 0.98 0.22 -0.726
3.80
CR5 0 7 4 1 5 1.069 0.247 -0.866
3.34
INN1 0 5 4 1 5 1.264 -1.445 -0.198
3.60
INN2 0 2 4 1 5 1.26 -1.19 -0.5
3.61
INN3 0 5 4 1 5 1.239 -1.215 -0.487
3.51
INN4 0 9 4 1 5 1.249 -1.366 -0.355
3.80
INN5 0 7 4 1 5 1.249 -0.905 -0.727
3.37
BPG1 0 3 4 1 5 1.228 -0.793 -0.437
3.44
BPG2 0 1 4 1 5 1.122 -0.612 -0.415
3.24
BPG3 0 5 3 1 5 1.223 -0.968 -0.243
3.46
BPG4 0 3 4 1 5 1.153 -0.685 -0.409
BPP1 0 3.55 4 1 5 1.111 -0.676 -0.46
3.55
BPP2 0 3 4 1 5 1.136 -0.694 -0.438
3.45
BPP3 0 7 4 1 5 1.125 -0.774 -0.311
We next computed univariate skewness and Kurtosis for all latent variables. They were all
univariate normal, with skewness and Kurtosis in the -3 and 3 ranges. The following are the
univariate skewness and Kurtosis of the variables.
The multivariate skew and kurtosis of the latent variables indicate a significant degree of
skewedness and kurtosis. Determining whether all variables are skewed and kurtosis (p 0.001) is
not rejected.
Univariate skewness and kurtosis

Skewness SE_skew Kurtosis SE_kurt
BP -0.3352646 0.1358746 -0.10679601 0.2709273
BPG -0.2178880 0.1358746 -0.39398277 0.2709273
BPP -0.4080463 0.1358746 -0.43661634 0.2709273
CR -0.7523607 0.1358746 0.86852624 0.2709273
INN -0.4045197 0.1358746 -0.58774364 0.2709273
MC -1.3218534 0.1358746 3.82510463 0.2709273
MCBM -1.3487107 0.1358746 3.59007802 0.2709273
MCCRM -1.6091525 0.1358746 4.61368481 0.2709273
MCMS -1.0605425 0.1358746 2.70275553 0.2709273
SMMCU -0.7940095 0.1358746 0.12718170 0.2709273
SMMCUCR -0.8568660 0.1358746 0.02382414 0.2709273
SMMCUIA -0.8353418 0.1358746 0.09926876 0.2709273
SMMCUM -0.8416758 0.1358746 0.08020245 0.2709273
Mardia's multivariate skewness and kurtosis

b z p-value
Skewness 34.02485 1826.00025 0
Kurtosis 279.65879 38.46252 0
Following the population study, the measurement model was examined. PLS-SEM begins with a
first-order measurement model analysis. Assessment of internal variables' reliability, internal
consistency, convergence validity, and discriminating validity are all required as part of the
process.
First order measurement model
External loadings assess structural integrity. After 200 samples, all manifest variables should be
externally loaded. Hair et al. With 322 samples, the lowest external loading is 0.55.
Table 2 First order model (Outer Loadings)
BP MCB MCC MC SMMC SMMC SMMC

G BPP CR INN M RM MS UCR UIA UM
0.84
BPG1 9
0.85
BPG2 8
0.81
BPG3 1
0.77
BPG4 6
0.86
BPP1 6
0.89
BPP2 7
0.86
BPP3 8
0.70
CR1 2
0.77
CR2 9
0.77
CR3 6
0.82
CR4 9
0.80
CR5 3
INN1 0.75
0.78
INN2 9
0.75
INN3 2
0.74
INN4 7
0.69
INN5 9
MCBM1 0.762
MCBM2 0.832
MCBM3 0.867
MCBM4 0.86
MCBM5 0.81
MCCRM
1 0.771
MCCRM
2 0.814
MCCRM
3 0.805
MCCRM
4 0.788
MCCRM
5 0.806
0.83
MCMS1 5
0.56
MCMS2 9
0.84
MCMS3 9
0.83
MCMS4 5
SMMCU
CR1 0.782
SMMCU
CR2 0.832
SMMCU
CR3 0.863
SMMCU
CR4 0.857
SMMCU
CR5 0.821
SMMCU
IA1 0.803
SMMCU
IA2 0.821
SMMCU
IA3 0.799
SMMCU
IA4 0.8
SMMCU
IA5 0.773
SMMCU
M1 0.85
SMMCU
M2 0.894
SMMCU
M3 0.842
SMMCU
M4 0.818
Validity reveals how close the indicator measurement is. The extracted average variance is used
to validate the structure (AVE). All first order structures have AVEs above 0.5, indicating
convergence (Fornell & Larcker, 1981).
Average Variance Extracted (AVE)

BPG 0.679
BPP 0.77
CR 0.607
INN 0.56
MCBM 0.684
MCCRM 0.635
MCMS 0.61
SMMCU
CR 0.691
SMMCU
IA 0.639
SMMCU
M 0.725
The indicator's explanatory capacity is assessed via discriminant validity. The Fornell Larcker
condition and HTMT correlation ratios are calculated. AVE should exceed squared correlation
with other latent variables, according to Fornell Larcker, (1981). The study's first-order structures
all meet the criteria for discriminatory validity. HTMT ratios below 0.85 indicate discriminating
validity (Henseler et al., 2015).
Second-Order Measurement Model
After evaluating the first order model, latent variables were found. The two-stage technique for
second-order reflective model evaluation was adopted.
External loads test the structures' internal reliability. If the sample size is over 200, the external
loading of all manifest variables should be over 0.7. (Joseph Hair et al., 2016). The study's sample
size is 322, hence the lowest external loading is 0.74.
SMMC
BP CR INN MC U
BPG 0.927
BPP 0.914
CR2 0.784
CR3 0.788
CR4 0.858
CR5 0.832
INN1 0.751
INN2 0.789
INN3 0.752
INN4 0.747
INN5 0.699
MCB
M 0.908
MCCR
M 0.884
MCMS 0.838
SMMCUCR 0.949
SMMCUIA 0.902
SMMCUM 0.91
They were assessed using Cronbach's Alpha, Rho and Composite. Cronbach's alpha provides
construct variation range and meaning (Cronbach, 1946). Cronbach's Alpha >0.7 for all manifest
variables in second order models. Composite reliability with external load is 0.7-0.9 in an
explanatory model (Gefen et al., 2000). Internal consistency is validated and CR is 0.7-0.9. The
indicators' RH values are also over 0.7; hens meet the highest consistency criterion (Henseler et
al., 2016).
Table 3 Second-Order Model (Internal Reliability)
Composite
Cronbach's Alpha rho_A Reliability
BP 0.821 0.825 0.918
CR 0.833 0.838 0.888
INN 0.804 0.812 0.864
MC 0.85 0.85 0.909
SMMC
U 0.91 0.91 0.943
The convergent validity shows how far the indicator measurement converges. The average
extracted variance (AVE) of the structure is used to assess its convergent validity. The authenticity
of all first-order constructions is certified (Fornell & Larcker, 1981).
Table 4 Validity Convergent
Average Variance Extracted (AVE)

BP 0.848
CR 0.666
INN 0.56
MC 0.769
SMMC
U 0.847
Every building of the second order has discriminatory validity. The HTMT ratio values below 0.85
show that the (Henseler et al., 2015).
Table 5 HTMT Ratio
SMMC
BP CR INN MC U
BP
CR 0.584
INN 0.7 0.671
MC 0.558 0.626 0.599
SMMC
U 0.587 0.598 0.673 0.614
For each indicator, see Table 4.15. It is externally loaded more than other latent variables. This
analysis confirms that all latent variables are discriminatory.
Table 6 Second-order model (Cross Loadings)
SMMC
BP CR INN MC U
BPG 0.932 0.5 0.543 0.463 0.527
BPP 0.91 0.443 0.523 0.4 0.409
CR1 0.412 0.702 0.391 0.46 0.405
CR2 0.355 0.779 0.435 0.44 0.42
CR3 0.361 0.776 0.332 0.372 0.391
CR4 0.425 0.83 0.503 0.443 0.459
CR5 0.439 0.803 0.551 0.467 0.43
INN1 0.519 0.497 0.751 0.419 0.475
INN2 0.495 0.45 0.789 0.421 0.477
INN3 0.364 0.479 0.752 0.41 0.453
INN4 0.398 0.419 0.747 0.337 0.419
INN5 0.358 0.263 0.699 0.274 0.332
MCBM 0.41 0.47 0.465 0.907 0.472
MCCRM 0.351 0.465 0.397 0.884 0.492
MCMS 0.471 0.538 0.462 0.838 0.454
SMMCU
CR 0.486 0.503 0.56 0.493 0.949
SMMCU
IA 0.431 0.446 0.528 0.509 0.899
SMMCU
M 0.495 0.545 0.522 0.488 0.912
The structural model was assessed after the first and second order measurement models.
In order to evaluate the hypothesis test results, the bootstrapping process with 5000 samples was
conducted. The structural model is illustrated below.
SMMCU has a favourable direct effect on BP (=0.165, t-stat > 1.64, p0.001). No SMMCU value
has a statistically significant effect on BP in the class interval (Table 7). So the data confirms the
theory.
Table 7 Effect on Direct
Coefficie P 95.00 Decision

nt T Statistics Values 5.00% %
SMMCU -> Supported

BP 0.165 2.971 0.001 0.07 0.255
The experiment involves SMMCU's CR, INN, and MC effects on BP. Indirect effects (= 0.165, t-
stat > 1.63, p 0.001) and INN (= 0.165, t-stat > 1.64, p 0.001) were found in CR. Notably, the t-
stat > 1.64, p 0.001). The relationship's top and lower limits also include zero. (=0.058, t-stat 1.64,
p>0.05). Figure 5.11 depicts the overall indirect effect of SMMCU on BP.
Table 8 Mediation Effects
Coefficien T P 5.00 95.00 Decision

t Statistics Values % %
SMMCU -> CR -> BP 0.068 1.913 0.028 0.03 0.146 Supported
SMMCU -> INN -> Supported
BP 0.199 4.693 0.000 0.13 0.269
SMMCU -> MC -> - Not
BP 0.058 1.583 0.057 0.002 0.114 Supported
They examined a moderate hypothesis. ( = 0.136, t-stat > 1.64, p0.01). The confidence interval for
the moderated effect is not zero. That's good info.
Table 9 Moderation Effects
Coeffici T P 95.00 Decision

ent Statistics Values 5.00% %
INN_Age -> Supported
BP 0.136 3.132 0.001 0.069 0.207
Discussion
This study will look at how social media marketing affects marketing, cost savings, and innovation.
It confirmed four of the five main hypotheses. Social media marketing improves company
performance through innovation and cost reduction. Also, age hinders inventiveness. This study's
innovation is mediated via social media marketing.
This was evident in the sample results (=0.165, t>1.645, p0.05). The success of a company is
directly influenced by social media marketing.
This study's findings are conclusive, as in previous studies. Businesses saved money by employing
social media marketing tools. Unexpected findings from a cosmetics study Using social media
sources also helps decrease expenditures (Dodokh & Al-Maaitah, 2019). Another US production
study shows the correlation between lower costs and better business performance (Maiga et al.,
2014). Our study's goal is to first measure and mediate the cost savings associated with the use of
social media marketing platforms.
Social media marketing increases marketing capabilities, according to a study titled "The Impact
of Social Media on Corporate Performance" (Tajvidi & Karami, 2021). Notably, our analysis
discovered no indication of a relationship (p-stat 1.64, =0.058). The conclusions may differ due to
the study' economic and cultural origins. Marketer capabilities and firm performance are all
context-dependent.
This study found a link between social media marketing and new product creation. There is
evidence that social media influences Jordanian cosmetics innovation. Despite similar findings,
their effects were far bigger (Dodokh & Al-Maaitah, 2019). A Malaysian study of 254 SMEs found
that innovation improves performance (Rosli & Sidek, 2013). The literature benefits from social
media's role in innovation mediation.
Conclusion
This paper examines the impact of social media on company performance. Scholars include those
who believe that (Siamagka et al., 2015). This has to be clarified further. There are no other studies
like this one that have looked at the impact of SMMCU on business performance. These objectives
were met and were empirically evaluated, with a high degree of predictive value.
This conceptual framework added additional dimensions to understanding the SMMCU, which
should summarise the findings. Following the hypothesis study and specific findings, this section
should focus on the overarching thesis results.
According to the findings of this paper, marketing talents have a significant impact. According to
research, organisations who have greater marketing skills perform better than their counterparts
(Wong & Karia,2010). A company's ability to sell itself and to attract customers, as outlined by
Morgan et al. According to Morgan (2012), a company's ability to advertise itself is helpful for the
growth of the business. Marketing skills have little bearing on a company's ability to perform,
according to this study. They show the influence of the SMMCU on marketing capability in Tajvidi
and Karami (2011a). Economic and cultural factors influenced the findings of these two
investigations.
This study's findings show that social media marketing costs must be reduced. A study indicated
that cost-cutting mediated the association between social media marketing and company outcomes.
While prior research has shown a link between cost savings and social media marketing, this is the
first study to focus on cost-saving mediation tactics. As a result, this study's findings are unique.
It appears that employing social media marketing platforms encourages creativity. (Rosil, 2013)
This information is enhanced by using social media marketing channels to connect innovators.
The paper focused on adding to marketing research theory development. This thesis integrates,
invents, and expands the concept of social media marketing.
Experts exchanging ideas, powered by user-generated material, results in innovation (Bell &
Loane,2010). It enables speedier cross-border and knowledge-based innovation (Schenckenberg,
2009). Marketing innovation often involves a continual commitment to new and past clients via
social media networks (Harris & Rae, 2009).
The goals of this study have been reached by adopting a proper research methodology and
approach adopted following a review and suggestion by multiple experts (e.g. Bryman and Bell,
2011; Hammersley, 1995). It's clear that all three lines of evidence point to positivism as the best
framework for doing research. According to Ladik and Stewart (2008), researchers make a positive
impact on their field by developing or refining current methods. An important contribution to
technique is made in this study by using PLS-SEM to model structural equations and introducing
new designs, sample procedures, and a revised measurement scale. It was chosen since it's relevant
to the study's objectives and helps to broaden people's perspective on things.
Given the nature of the study, positivism is the preferred approach. This study's goal is to collect
data to support the conceptual model. Techniques and approaches aid in proving the research
decision. The novel study design and approach assist support this theory on the impact of social
media marketing on business performance.
This study used a simply random procedure that is more rigorous and dependable compared to
convenience sampling. This approach is in line with the study's overall goal of improving the
findings in a broader context. We can better understand how variables interact with one another
thanks to the research methodologies and strategy employed.
Hair et al. (2014), Henseler et al. (2009) use of PLS-SEM worked well for this inquiry. A number
of model evaluations were developed by using the step-by-step evaluation model and the structural
model in conjunction with this study goal. The explanatory power was assessed using Henseler et
al. PLS-SEM relies on covariance, which has been severely criticised (e.g. Chin and Newsted,
1999; Hair et al., 2014; Henseler et al., 2009).
As noted in this paper, contextual contributions should be made. The reason for choosing a city in
Pakistan is that the contextual input is extensive. In the studies it has been highlighted that the
contribution only refers to a single context, which is the least contributing to knowledge (Ladik
and Stewart, 2008).
People in impoverished countries like Pakistan, where social interactions have a significant impact,
look forward to receiving social help. The advancement of scientific study, at least in relation to a
theoretical contextualization, is important to many academics including John (2001), Tsui (2006)
and Rousseau and Fried (2001). The concept of trivial improvements should be understood
incrementally, as well (Kuhn,1970). In addition to the United States and Canada, both Europe and
Asia are extremely diverse culturally. The findings may help researchers better understand how
organisations use social media marketing platforms to reach their target customers.
The research findings could be used in other developing countries besides Pakistan. This study
adds to a little explored subject. This thesis may help small and medium-sized firms understand
the SMMCU. As a result, this study's conclusions will benefit both individuals and businesses.
This theory will help us understand its practical consequences.
The key to a study's success is that its theories be not just right but also engaging and useful
(Davis, 1971). A hypothesis is useless, according to Bennis and O'Toole (2005), if it has no
application. This section highlights the practical implications of the study's findings.
1. Findings of this will help SMEs to develop business strategies.
2. It will also aid future SMMCU companies and researchers
This study will enable SMEs to develop strategies for their product marketing. By developing
well-integrated strategies, SMMCU may allow domestically based enterprises to communicate
with their customers. Most women operate business at home and this marketing channel helps
them earn revenues and improve their performance. It also allows marketing companies to
strategize by using the social media channel. Discussion will now proceed with the implications
for academics.
As stated previously, this study tries to fill a vacuum in SMMCU literature. Academics should
instead focus on areas that require more theoretical understanding and are crucial to
organisations and society (Corley and Gioia, 2011). Students should also expand their role and
suggest valuable theories to broaden the scope. This study provided new research options. The
study's findings are explanatory and must be understood. The model can help researchers better
understand. We shall now explore the study's limitations.
This study met certain limits during the research process, despite a number of attempts to ensure
the integrity of the study by using the highest possible resources and the latest software
versions. In order to offer a framework for future research, this study needs to be summarised.
Furthermore, the identification of these constraints is predicted to help other researchers
undertake more extensive studies. Several of these limitations include:
While the sample size was suitable for PLS-SEM analysis, it would have been better if the
sample were big because a broader group sample produced more precise results, but this was
seen as a limit due to the time constraints of the study.
Because of the nature of this study, the respondents can give incorrect responses (self-
administered questionnaire and the quantitative research approach). In addition, due to the
quantitative nature and the research methodology, a closed-end questionnaire was employed to
collect data that prevents extensive comments by respondents and could lead to prejudices.
This thesis uses a basic random sample procedure and a self-administered survey questionnaire
to collect answers from Pakistan. While this method is appropriate, it might be maintained that
it cannot be generalised to other culturally varied individuals.
A study's value is also determined by its ability to spur new research and train future researchers
(Ladik and Stewart, 2008). This report is expected to spark more discussion on social media
marketing. But these structures can be evaluated more carefully elsewhere. As a result of this
investigation, numerous pathways can be investigated. Unforeseen results from this
investigation could lead to further research. The previous portion of this chapter explored
numerous research restrictions during the study process and may therefore cover these
limitations. The following directions can be derived for further research:
In this study, the function of SMMCU in company performance due to resource restrictions
and time constraints was clarified. These characteristics may be used by future researchers to
measure the influence of SME performance.
A comparative analysis of different segments of responders could be another way for future
research. Because the responses were limited to a single city, respondents from varied cultural
backgrounds could not be accommodated. Consequently, future researchers can tackle this
problem by using a bigger sample size in their analysis.
The scope of the data gathering in this study was confined to one city due to its limited
resources. In addition to the outcomes of this study, other countries' cultures and societal values
must also be considered.
The chapter dealt with the conclusions of the investigation. Conclusions that address in
particular the importance of these constructions. In general, the discussions centered on the
constructions and their importance and new results. The outcomes of these structures lead to
the conclusion that each building is vital for understanding the SMMCU idea.
In addition, empirical testing of this model has demonstrated its applicability to properly
address the research problem. Dure questions were made and addressed using empirical results
during the discussion of the problem statement. Furthermore, the conclusions from this thesis
show his achievements. On the basis of these results, we can infer that the study's objectives
were satisfied. The results were acquired using adequate research methods and instruments.
The researchers' method and technique influenced the SMMCU model testing, according to
this thesis' results.
As a result, it is fair to state that this thesis' approach, technique, and design were successful.
The suggested model's connectivity and predictability were best assessed using PLS-SEM.
In order to underline SMMCU, the importance of these findings on SMEs is also discussed.
This chapter outlines further guidelines for future researchers to undertake further research into
SMMCU and its impact on company success in this country.
Despite a few limitations, this study's success in estimating the value of social media marketing
is an enormous accomplishment. The thesis also confirms knowledge's theoretical,
methodological, and contextual contributions, as well as their logical and meaningful
discussion.
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Webology (ISSN: 1735-188X)

Volume 19, Number 3, 2022

The Impact Of Social Media Marketing Channel Usage On Business

Muhammad Haris Mirza

H1: Marketing Capabilities has a positive direct relationship as a mediator

H2: Cost Reduction has a positive direct relationship as a mediator

H3:Innovation has a direct positive relationship as a mediator.

marketing capabilities improve customer connections and business performance. Marketing

Univariate skewness and kurtosis

Mardia's multivariate skewness and kurtosis

BP MCB MCC MC SMMC SMMC SMMC

Average Variance Extracted (AVE)

Average Variance Extracted (AVE)

Coefficie P 95.00 Decision

SMMCU -> Supported

Coefficien T P 5.00 95.00 Decision

Coeffici T P 95.00 Decision

Solis, B. (2011). Engage!. Hoboken, N.J.: J. Wiley & Sons.

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