Social media technology for the strategic positioning of small and medium-sized enterprises: Empirical evidence from Kenya

Abstract

As the complexity of the market environment increases, so does the need for small and medium-sized enterprises (SMEs) to devise new innovative ways of strategically positioning themselves. Owing to resource constraints, it would be sensible for SMEs to adopt technologies that are relatively cheap and easily manageable, yet richly rewarding. Social media technology comes in handy in such scenarios; however, little is known about how SMEs are embracing this technology, especially in developing countries. This study presents the results of exploratory research conducted using semistructured interviews with 15 SME owners in Kenya. The findings suggest that social media technology appears to be particularly beneficial for supporting SMEs to position themselves better strategically. However, the adoption of such technologies in many cases has not been driven by a purposeful and thoughtful agenda, as external factors such as customers' and competitors' use of technology have influenced the initial adoption decision. Additionally, most of the SMEs are yet to fully exploit the capabilities of social media technology. The findings of this study not only advance an understanding of how the SMEs in developing countries are embracing social media technology but also offer an understanding of the strategies that SMEs can employ to enhance their social media experience for better strategic positioning.