Business Performance Framework: Social Media as a Strategic Tool in Optimizing the Bumiputera Micro-Entrepreneurs in Malaysia

Abstract

In recent times, social media usage has surged significantly, expanding beyond social interactions to include business applications as well. Businesses found that social media served a dynamic business landscape, especially in engaging with customers and business partners. Therefore, in this study, Researchers explore the factors influencing businesses, particularly those run by micro-entrepreneurs, to integrate social media into their business operations. The Unified Theory of Acceptance and Use of Technology (UTAUT) was used as the study model, with the extension of business performance as the measurement of the adoption consequence variable. A set of questionnaires was then distributed among the 239 respondents who identified as Bumiputera micro-entrepreneurs and used social media to manage their business operations. The data was interpreted using SmartPLS in two manners; (1) analysis of measurement model and (2) analysis of structural model. The outcome of the study has figured out that the outcome three variables (performance expectancy, social influence, and facilitating conditions) positively and significantly influenced social media adoption. However, there was a contrasting result from the previous studies, which this study identified that effort expectancy does not significantly contribute to social media adoption, and this result is unique to investigate further.