Effect Of Social Media Platforms On Business Performance

1.0 INTRODUCTION
1.1 Background Information to the Study
In the last two decades, internet innovations have played an important role in business performances (Kim, Li, & Brymer, 2016). Web applications provide the opportunity to transfer internet capability to the social environment where individuals are able to interact online by using social media (Sigala & Chalkiti, 2014). Social media is an effective cyberspace for accessing reliable and update information (Sigala, 2012). The popularity and enormous use of social media facilitates the online learning and the sharing information (Hur, Kim, Karatepe, & Lee, 2017). Social media allows the users, without any need to physical presence, to communicate and generate content (Zhang, Guo, Hu, & Liu, 2017). Moreover, social media has been seen as an effective billboard for a firm’s commercial goals and better business performance (Rapp, Beitelspacher, Grewal, & Hughes, 2013). Most firms are using social media to increase business brand image and brand awareness (Nisar & Whitehead, 2016; Pentina, Gammoh, Zhang, & Mallin, 2013). Furthermore, the social media influence company branding strategies which leads to e-WOM (electronic word of mouth) (Barreda, Bilgihan, Nusair, & Okumus, 2015). Therefore, e-WOM attracts consumers and enhances their purchasing intention (Xie et al., 2016).

By using social media, customers have access to different sources of shared information from other customers in regard to their experiences and recommendations. This influences their purchasing decisions (Chen, Fay & Wang, 2011). Therefore, the important role of social media in developing relationship and trust with customers, suppliers and potential partners is a significant consideration for firms (Rappetal, 2013). A firm’s involvement in social media offers values for their business including enhanced brand value, sales growth, commerce and social commerce (Hajli, 2014); customer trust and stickiness (Zhang et al, 2017); innovation and new product development. The internet is playing crucial role for the growth of business by using different tools of social media, for example Facebook, twitter etc. Millions of people are using social media not only daily basis but on hourly basis, so it is considered a good source to publicize their business among general mass (Qualman, 2009).

In this modern era, information technology develops rapidly and influences the behavior of many people. Everyone is dependent on the internet to connect with other people and to find the information quickly. This makes smartphones a necessity in their daily activities. Several applications such as online shopping, online transportation and social media can be downloaded by smartphone users. Although previous studies have showed interest in social media values for organizations, there are very limited empirical studies on finding the influence of using social media on the performance of SMEs in the hospitality industry. Kim, Lim, and Brymer (2015), argue that researchers should try to focus on the identification of derivers and moderators that produce impact on business performance rather than focusing on social media principles. Moreover, according to the resources base view (RBV), firm capabilities and resources could create sustained competitive advantages (Davick & Sharma 2016). Therefore, social media enhance SMEs capabilities to increase their performance (Trainor, & Zulius, Rapp, & Agnihotri 2014).