Examining the Impacts of Social Media to Non-Financial Performance of SMEs In Malaysia

Abstract

Small and Medium-Sized Enterprises (SMEs) have become crucial drivers of economic growth, significantly increasing employment rates by creating numerous job opportunities. SMEs extensively utilise social media platforms to promote their products and services to targeted audiences. This study aims to identify the relationship between the competitor influence, cost-effectiveness, and brand exposure on SME performance. A quantitative analysis was conducted, with around 600 questionnaires distributed to the targeted group, yielding 208 responses. Data analysis was performed using SPSS software. The results indicate that both competitor influence and cost-effectiveness have a positive and significant relationship with SMEs' non-financial performance. This suggests that SMEs that effectively respond to competitor actions and manage costs efficiently tend to perform better in terms of non-financial metrics, such as customer satisfaction and operational efficiency. However, the study found that brand exposure has an insignificant relationship with SMEs' non-financial performance. This implies that merely increasing brand visibility through social media and other channels not necessarily translate into improved performance metrics for SMEs. These findings highlight the importance of strategic responses to competitors and cost management over mere brand exposure in enhancing SME performance. In conclusion, while competitor influence and cost-effectiveness are critical factors in driving non-financial performance for SMEs, brand exposure alone does not significantly impact performance. These insights underscore the need for SMEs to focus on competitive strategies and cost management to achieve better non-financial outcomes, supporting the broader economic role of SMEs in job creation and economic development.