¶ … Adoption Of Social Media by Small Business and Entrepreneurs in the Gulf Region
The internet technology has revolutionized the communication landscape among businesses in both developed and emerging economies because of the unprecedented growth of the social media. Social media is an interactive technology system that business and people use to collaborate, connect, and create personal and business profiles. A growing consensus among marketing professionals, business and academic communities shows that social media is very critical to the business communities. The social media has become a new phenomenon that has radically changed the strategy businesses communicate and operate. Through social media, businesses globally have been able to gain access to resources that would have been difficult to secure internally. An advanced in the internet technology has led to the rapid growth of social media with 1.5 billion active monthly users on Facebook, 359 million monthly active users on Google+, more than 270 million active users for LinkedIn, and 215 Million monthly active users for Twitter. Moreover, recent competitive landscapes among businesses make the big firms in the Fortune 1000 in the United States to turn to social media to achieve the competitive market advantages. (Ngugi et al., 2010; Jones and Holt, 2008). SMEs (small and medium enterprises) are also increasingly using social media to diffuse information about their products to achieve competitive market advantages. (Peltier, & Naidu, 2012). Thus, social media assist organizations to collaborate and get in contact with consumer, suppliers, distributors and consultants. Through social interactive networks, increasing numbers of SMEs are able to achieve the market advantages in the competitive and ever-changing market landscape. For example, 75% of the SMEs in the United States have networking pages in the social media. Moreover, 61% use the social media to attract a new customer, 57% use the LinkedIn to attract new customer, and 45% are using other social media to make profitable businesses. (Taneja, & Toombs, 2014). For example, Merchant Circle, which is one of the SMEs organizations, is using the Facebook (70.3%), Twitter (39.8%), LinkedIn (58. 2%), and Myspace (19.2%), and Bing (33.2%) to promote their businesses.
Thus, social media has become a source of networking information tool that organizations use to source for the new market opportunities. Similar to large firms, many SMEs have been able to use social media to reduce the transactional costs, and improve the communication platform. Based on the benefits derived from the social media, the SMEs that have subscribed to the top social media have increased their customer base by twofold. (Miller, & Washington, 2013). Thus, social media sites have the platforms that assist companies reaching people at a faster rate, building relationships and connecting potential customers.
Despite the market benefits that the SMEs in the advanced countries derive from the social media platforms, many small businesses in the Gulf Countries (GCC) have not yet taken the advantages of social media. The study develops the research objectives to enhance a greater understanding of how the small business and entrepreneurs in the gulf countries foster social media to achieve the competitive market advantages.
Research Objective
This study explores the motive and benefits that the small businesses and entrepreneurs in the Gulf Countries derive from the adoption of social media. The sub-research objectives are as follows:
1. Identifying, and discussing the status of social media tools among small businesses and entrepreneurs in the Gulf Countries.
2. Identifying and discussing the market benefits that small businesses and entrepreneurs in the GCC can achieve from the adoption of social media, and
3. Identifying and discussing social media tools and motivated factors that influence small business and entrepreneurs in GCC in adopting social media.
Research Questions
The gap in the literature with reference to the extent the entrepreneurs and small business in GCC states adopt social media lead to the following research questions:
1. How does adoption of social media provide benefits to small business and entrepreneur in the Gulf countries?
2. What are motivated factors that make small business and entrepreneurs in GCC adopting social media?
3. Are small business and entrepreneurs taking the advantages of the benefits of social media to expand the market shares?
4. Are small business and entrepreneurs taking the advantages of the benefits of social media adoption to increase sales?
5. Are small business and entrepreneurs taking the advantages of social media adoption to enhance communication with the customer?
6. Are small business and entrepreneurs taking the advantages of social media adoption to decrease cost?
Problems of Study
The GCC (Gulf Cooperation Council) compose of six oil-rich countries that include United Arab Emirate, Saudi Arabia, Oman, Qatar, Kuwait, and Bahrain. (Indrupati, & Henari, 2012, GICWED, 2013). Similar to the SMEs in the advanced countries, many small businesses and entrepreneurs in the GCC regions have altered their corporate landscapes by signifying their brands at the top social media in Facebook, Twitter and Google+.(Al Jenaibi, 2013). Typically, Facebook is the most widely adopted social media in the Gulf region with approximately 72% usage, Twitter, 27%, and YouTube 1%. While the literature have provided the extensive research on the extent the small businesses and entrepreneurs have adopted the social media in the western countries; nevertheless, there is still a paucity of academic research that investigates the relationships between social media and small business in the Golf countries.
Peltier et al. (2012) investigate the relationships between the SMEs and social media; however, their research only focuses on the method the SMEs adopt social media in the advanced countries. Moreover, Razak, et al. (2012) explore how SMEs adopt the Facebook to generate market values, however, their research is only based on the SMEs in the Asian and western countries. The authors did not mention the extent the SMEs in the gulf countries adopt the social media to generate market values. The limited research that investigates the relationship between the small business in the Gulf countries and social media generate the research problems, which this study attempts to address. This project fills the gap in the literature and provides the empirical research on how the small business and entrepreneurs foster social media in the Gulf countries.
Importance of Study
The research provides several contributions. First, the study has been able to fill the gap in the literature thereby enriching the knowledge of the academic communities on the method the small business and entrepreneurs foster social media in the Gulf countries. Several extensive types of research have already been covered on small business adoption of social media in the advanced countries; however, many small businesses and entrepreneurs in the Gulf countries have not yet taken the advantages of the social media for their business objectives. Thus, the research findings enhance a greater understanding of the business communities in the gulf countries and the benefits of social media in enhancing the cost advantages, increasing marketing advantages, establishing effective customers relationships, and product expansions. Finally, the thesis enhances the knowledge of the public about the business contributions of social media to small businesses in the gulf countries.
Literature Review
The paradigm shift in the technology advancement has not only transformed the strategy people access, store and diffuse information, the shift in the technology has also given rise to the new studies on the impact of social media on the development of new marketing strategies. (Zarrella, 2009 and Safko, 2010). However, social media as the tool for the marketing strategies still need to be proved before gaining a credibility. Two opposing groups have emerged. Those who believe that social media serve as the marketing strategies and the opposing group who still cling to the traditional method of marketing. Dutta (2010) is famous about his position based on his support for social media by believing that the YouTube is an effective marketing tool for the SMEs. The author believes that the YouTube can assist the SMEs to promote their businesses. On the other hand, Dunn, (2010) is still in doubt about the effectiveness of social media for the marketing tools by considering social media as a non-serious marketing tool for organizations.
By looking at the conceptual marketing theoretical framework, Romano and Ratnatunga (1995) classify marketing into the three categories. First, the organizational culture plays a central role in the marketing techniques. Moreover, marketing techniques such as targeting, positioning, and segmentation serve as the strategy for the competitive market advantages. Additionally, marketing tactics through 4Ps mix marketing have a positive impact on the marketing outcomes. Given the outcome of the theoretical framework, it is revealed there is still a gap between SMEs marketing practice and marketing theoretical practice.
Overview of GCC (Gulf Cooperation Council)
In the GCC countries, a small business consists of an organization between 5 and 50 employees. However, the textile firm with up to 150 employees is considered a small enterprise since the textiles sector is generally labor-intensive. (Ministry of Commerce & Industry, 2013).The small business and entrepreneurs are very critical to the development, and economic growth of the GCC states. Apart from providing the employment opportunities for the GCC resident, the small businesses generate revenue for the government. In the GCC states, the small businesses consist of more 95% of the active enterprises, moreover, the small businesses are the main drivers to the economic diversification, and innovation.
Compared to the United States (70%) and France (60%) of small businesses have established the online presence, the case is different with the small business in the Gulf region. Typically, more than 80% of the small businesses in the Gulf region do not have a website because over 90% of them do not understand the benefits their organizations are to derive from the internet. (Jones, 2013). Emirate News Agency (2011) delivers similar results by pointing out that only 5% of the small businesses in the Gulf region are taking the advantages of the social media platform for the marketing tool. The next section discusses the benefits that small business in the gulf countries can drive from adopting social media.
Benefits of Social Media to Small Business and Entrepreneur in the Gulf countries
The growth of the internet has changed the marketing philosophy in the contemporary business environment. Schaffer, (2013) point out that the internet has obviously changed the way businesses globally market their product. Ngugi, Johnsen, and Erde'lyi, (2010) also believe that the interactive social networking and web technology have assisted organizations to promote their brands. Through web technology, the consumer now reacts more positively to product's quality, brands, and market experience. Thus, the adoption of social media can provide several benefits for small businesses in the Gulf countries because it will assist them in promote their brands to prospective consumers. Moreover, the small business can use the social media to collect marketing experience of consumers, preference and behaviors. The data collected will assist the company to develop the product and services tailored to the consumer preferences. The social media can also assist small business to reduce transactional costs. Unlike the traditional marketing tool, the social media is a cost-effective marketing tool because some social media such as Facebook and LinkedIn allow the organizations to publish their web pages free of charges. However, some small businesses are still unable to take the advantages of social media because of lack of skills in the well-defined internet strategy. Moreover, limited resources and lack of technical expertise in the internet technology have been the setback to the use of social media. Some CEOs are often reluctant to use the social media because of lack control of the people's comments. Sometimes, some consumers may post comments on the social media platform about the quality of services that an organization offers, which may tarnish the firm's reputation.
Despite the negative view of the social media, the use of the social media can serve as a double edge sword for the organizational marketing advantages. Dutta (2010) believes that social media can assist firms with limited resources to foster customer loyalty, advertise and promote products and services. Moreover, social media can help firms to collect the feedback about the quality of their product and services. Additionally, social media can assist the small business to be closer to consumers thereby grasping the profile of consumer and differentiate their offers. Britt, (2011) argues that social media assist organizations to explore new market opportunities, exchange knowledge, enhance business image and reputations. In the present business environment, the CEO should connect to different social media because they serve a different purpose. Facebook is an effective tool to build a community of consumers; however, Twitter increases effective communication with people. The LinkedIn assists businesses to display their profiles to the business communities. According to Bulearca and Bulearca, (2010), social media is a powerful tool for a small business to build a consumer network.
Indrupati, & Henari, (2012) contribute to the argument by pointing out that if a small business intends to reach their customer they should do it through social media. Compared with the traditional media such as radio, television, and newspaper that have limited coverage, the small businesses can use social media to reach a large number of customers and large geographical areas at affordable costs. Based on the benefits that social media offers to businesses across the world, it will be difficult for small business to ignore the social media vehicle for their business advantages. However, the small businesses in the Gulf States have not yet taken the advantages of social media. While more than 1.5 billion people have subscribed to the Facebook globally, however, only 1.7 million users have only subscribed to the Facebook in the Gulf countries (Ramady, 2010, Indrupati, & Henari, 2012)
Peltier et al. (2012) believe that it is not prudent for a business to ignore the benefits that social media offer to organizations because the fundamental principle of social media is to create assets for the business organization. The social network theory reveals that an organization can have access to information, knowledge, resources and financing through social capital networking. Through social networking paradigms, the businesses will be able to receive support through businesses contacts, and have access to resources not available internally to achieve economic and business exchange. Anderson and Jack (2002) in their point-of-view believe that social media assists businesses to improve their performances by understanding the customers tastes and preferences. Some organizations go to the extent of using software to analyze people's communication and extract useful information for their business advantages. The strategy assists the businesses to monitor the tastes and preferences of people in a specific geographical location.
While the entrepreneurs and small businesses in the advanced countries have taken the advantages of social media to enhance businesses performances, however, a current usage of social media is still low in the gulf countries. (Schmengler, & Kraus, 2010). The major factor that leads to a low use of social media among business organizations is based on the rules and regulations in the region. Al Jenaib, (2013) argue that while increasing numbers of organizations are signifying their presences in the top social media, however, the government continues to censor the accessibility of popular social media websites. Typically, women privacy is a critical issue in the Arab world, and social media such as Facebook and YouTube allow users to display any picture or video that includes pictures of naked women. In the GCC countries, Sharia law forbids exposing or watching these types of videos or pictures.
Summary
The chapter reviews the literature to enhance a greater understanding about the extent entrepreneurs and small business in the Gulf region have fostered the social media tools for the marketing advantages. The findings reveal that there is still a gap between the level of social media adoption in the advanced countries and Gulf regions. The findings from the literature also reveal that the small business and entrepreneurs in the Gulf region have not yet taken the advantages of the social media to cut the cost of operations, enhancing customer relations, communication and achieving the competitive market advantages. The study collects the primary data through the quantitative technique to substantiate the findings of the secondary research.
Methodology
The research collects and analyzes data through the quantitative technique, which refers to the systematic investigation of empirical data using the mathematical and statistical tools to test the hypothesis. The quantitative research provides the connection between the mathematical expression and empirical observation of quantitative relationships. Thus, quantitative data are the data in a numerical form, and the researcher is able to deliver the unbiased results that can be applicable to the larger population by using the statistical method for the analysis. Unlike the qualitative research that collects data in text and words, the quantitative research collects numerical data. (Denzin, & Lincoln, 1994). One of the benefits of the quantitative research over the qualitative research is that is its cost effectiveness saving the researcher a considerable time. Another robust benefit of the quantitative research is that it assists in presenting the results in charts, graphs, and tables to enhancing the visual presentation of the results. However, quantitative research does not allow the researcher to immense in the phenomenon, which has been identified as the shortcoming of the quantitative research. Despite the identified shortcoming of the quantitative technique, however, it is more appropriate to collect and analyze data for this research because its benefits outweigh the shortcoming.
Method
The researcher uses the survey method to collect data from 1000 small business owners and entrepreneurs in the Gulf region. The study uses the Likert scale as the survey instrument, which has been displayed in Appendix 1. Moreover, the researcher distributes the survey to the sample population by hand and through emails, and collect the entire data after 30 days of distribution.
Hypothesis
The study develops five hypothesis as follows:
H1: There is a statistical significant between social media adoption by small business and entrepreneurs and customer relationships.
H2: There is a statistical significant between social media adoption by small business and entrepreneurs and global expansion
H3 There is a statistical significant between social media adoption by small business and entrepreneurs and product expansion.
H4 There is a statistical significant between social media adoption by small business and entrepreneurs and the market shares.
H5 There is a statistical significant between social media adoption by small business and entrepreneurs and cost decline.
Proposed Model
The study uses the statistical model for the analysis by using the frequency distribution, Cronbach model, descriptive statistics, correlation, and t-test. The model assists in testing the hypothesis to enhance the reliability of the research findings.
The research uses different statistical tools for the analysis. First, the descriptive statistics are used to summarize the data in a manageable form. By using the mean and standard deviations, the researcher is able to compare variables, provides the valid research findings. The study also uses the frequency distributions to compare the type of the social media that the small businesses use to engage their customer. The Cronbach's Alpha is used to test reliability and validity of the data. The cross-tabulation of the data is carried out for further analysis and enhancing a greater understanding of how small business uses social media to decrease costs, and enhance customer relations.
Findings
The study provides the findings to present motives for adopting the social media and benefits that the small business and entrepreneurs enjoy from adopting the social media. The findings assist in testing the hypothesis and answering the research questions. The study presents the findings in tables, chart and graphical methods.
Findings
Table 1: Does your business use social media as a method of engaging with the customers?
Frequency
Percent
Yes
98.0
No
20
2.0
Total
As being revealed in table 1, 98% of the sample population admit using the social media to engage the customer revealing that large percentages of the small business in the Gulf countries have realized the importance of social media to enhance competitive market advantages.
Table 2: Which social media do you adopt as a way of doing business? (Multi Choices)
Frequency
Percent
37.5
27.59
29.31
Other
5.6
The findings in table 2 show that 37.5% of the participant use the Facebook to do business while 29.31% use Instagram to do businesses and 27.59% use the Twitter to do business. The results show that Facebook, Instagram and Twitter are the top three social media that the Gulf countries use to do business. The results show that many small businesses in the Golf countries have not yet considered using the LinkedIn as a way of communicating with the customer.
Table 3: Test validity and reliability (Cronbach's Alpha)
No
Classifications
No for items
Reliability (Cronbach's Alpha)
Validity
1
Customer Relationships
6
0.788
0.888
2
Market and Product Expansion
6
0.827
0.909
3
Decreased Cost
3
0.513
0.716
Total
15
0.911
0.954
As being revealed in table 3, the data collected for the analysis is reliable and valid based on the Cronbach's Alpha results. Tavakol, & Dennick, (2011) point out that Cronbach model is an effective tool to measure the reliability, validity and internal consistency of the research findings. The Cronbach scale is expressed between 0 and 1. The more the data is closer to 1 the more reliable the data. "As the estimate of reliability and validity increases, the fraction of a test score that is attributable to error will decrease." (Tavakol, & Dennick, 2011 p 53). Meanwhile, the reliability and validity of the research data are closer to 1 based on the Cronbach's Alpha score. However, Cronbach's Alpha score on the use of the social media to decrease costs is the lowest with the reliability score of 0.513. However, reliability and validity scores of the overall data are 0.911 and 0.954 respectively.
Table 4: Likert Scale
Opinion
Weight mean
Strongly disagree
From 1.00 to 1.79
Disagree
From 1.80 to 2..59
Neutral
From 2.60 to 3.39
Agree
From 3.40 to 4.19
Strongly agree
From 4.20 to 5.00
Table 5: Using Likert scale above, the first axis (Customer Relationships):
First axis phrases (Customer Relationships)
Strongly disagree disagree neutral agree
Strongly agree
Weight mean
Std. Deviation
attitude
Frequency
Frequency
Frequency
Frequency
Frequency
Social media provides easily access to customers
0
0
20
4.64
0.523
Strongly agree
0.0%
0.0%
2.0%
32.0%
66.0%
Social media helps me in getting more feedback from my customer
10
20
50
4.27
0.737
Strongly agree
1.0%
2.0%
5.0%
53.0%
39.0%
Social media helps me increase communication with my customer
0
20
4.21
0.743
Strongly agree
0.0%
2.0%
13.0%
47.0%
38.0%
Social media changes the attitude of the customers toward my business
0
50
4.07
0.832
agree
0.0%
5.0%
16.0%
46.0%
33.0%
Social media makes my customer more satisfied
10
40
3.97
0.834
agree
1.0%
4.0%
18.0%
51.0%
26.0%
Social media makes order much easier by customers
20
70
3.93
1.008
agree
2.0%
7.0%
21.0%
36.0%
34.0%
The result of the first axis
40
4.18
0.552
Agree
0.7%
3.3%
12.5%
44.2%
39.3%
The findings from the tables 5 and 6 answers all the research questions based on the weighted mean. The findings in the table reveal that 83.5% (weighted mean=4.18) of the participants agree and strongly agree that using social media enhances the customer relationships. For example, 83.5% of the participants agree that social media assist them:
in providing easily access to customers
in getting more feedback from my customer
In increasing communication with my customer
In changing the attitude of the customers toward my business
In making my customer more satisfied
In making order much easier by customers.
Table 6: Attitude of the Second axis (Market and Product Expansion):
Second axis phrases (Market and Product Expansion)
Strongly disagree disagree neutral agree
Strongly agree
Weight mean
Std. Deviation
attitude
Frequency
Frequency
Frequency
Frequency
Frequency
Social media helps me increase my sales
0
30
4.12
0.832
agree
0.0
3.0
20.0
39.0
38.0
Social media helps me to demonstrate my product without physical place
10
60
4.02
0.910
agree
1.0
6.0
16.0
44.0
33.0
Social media helps me to be global (New market)
0
10
4.19
0.755
agree
0.0
1.0
19.0
40.0
40.0
Social media helps me to provide more efficient services to my customer
0
20
4.00
0.765
agree
0.0
2.0
23.0
48.0
27.0
Social media expands my product
0
40
4.04
0.803
agree
0.0
4.0
18.0
48.0
30.0
Social media helps my small business to become popular
10
30
4.04
8.52
agree
1.0
3.0
19.0
45.0
32.0
Result of the second axis
20
2000
4.07
0.604
agree
0.3%
3.2%
19.2%
44.0%
33.3%
The findings in table 6 reveal that 81.4% (weighted mean=4.07) of the participants agree that social media assists them in enhancing market and product expansion.
Table 7: Attitude of the Second axis (Decreased Cost)
Third axis phases (Decreased Cost)
Strongly disagree disagree neutral agree
Strongly agree
Weight mean
Std. Deviation
attitude
Frequency
Frequency
Frequency
Frequency
Frequency
Social media have low or no cost
0
60
60
4.23
0.815
Strongly agree
0.0
6.0
6.0
47.0
41.0
Social media helps me in advertisement
0
0
4.35
0.687
Strongly agree
0.0
0.0
12.0
41.0
47.0
Social media gives my business a competitive advantage
10
40
4.03
0.858
agree
1.0
4.0
17.0
47.0
31.0
Decreased Cost
10
4.20
0.562
Strongly agree
0.3%
3.3%
11.7%
45.0%
39.7%
The findings in table 7 show that 84.7% (weighted mean=4.20) of the participants strongly agree that social media assist them to decrease costs. Appendix 2 provides the cross tabulation of the results.
Statistical Tests
Table 8: Correlate test: Correlation coefficient between all axes and two axes closely and less closely linked
Correlations
Customer Relationships
Market and Product Expansion
Decreased Cost
Customer Relationships
Pearson Correlation
1
.843**
.773**
Sig. (2-tailed)
.000
.000
Market and Product Expansion
Pearson Correlation
.843**
1
.746**
Sig. (2-tailed)
.000
.000
Decreased Cost
Pearson Correlation
.773**
.746**
1
Sig. (2-tailed)
.000
.000
Its observed from above table the Relations between all axes are positive and very high significant statistical relationship (less than or equal 0.000)
The correlation test measures the level of the relation of the data. In other words, the Pearson correlation tests the strength of the linear relationship between a set of data. The more the value of the Pearson correlation is close to 1 the more correlated the data. The findings of the Correlation test reveals that the variables Customer Relationships and Market and Product Expansion are closely related and have high statistical significant . However, the variables the decreased costs and market and product expansion have low statistical significant
T-test:
Table 9: Independent Samples t-Test
Independent Samples Test
"Levene's Test for Equality of Variances"
"t-test for Equality of Means"
F
Sig.
T
df
Sig. (2-tailed)
Mean Difference
Std. Error Difference
95% Confidence Interval of the Difference
Lower
Upper
Customer Relationships
Equal variances assumed
1.755
.188
-1.267
.208
-.15703
.12397
-.40304
.08899
Equal variances not assumed
-1.473
64.924
.146
-.15703
.10659
-.36991
.05586
Market and Product Expansion
Equal variances assumed
.888
.348
-1.370
.174
-.18544
.13534
-.45403
.08315
Equal variances not assumed
-1.558
61.497
.124
-.18544
.11900
-.42335
.05247
Decreased Cost
Equal variances assumed
2.229
.139
-2.541
.013
-.31338
.12332
-.55810
-.06866
Equal variances not assumed
-2.913
62.676
.005
-.31338
.10757
-.52837
-.09839
The sample t-test assists in testing the hypothesis. The study uses the "Levene's Test for Equality of Variances and t-test for Equality of Means" (Kent State University, 2016 p 1) to test the hypothesis. The outcome of the T- test makes this study to accept the null hypothesis for the Levene's Test because their p-value is greater than the chosen significance level ? = 0.05. The p-value for the customer relationships is p < 0.188, the p-value for the market, product expansion is p < 0.348, and the p < 0.239 is the p-value for the decreased costs. However, the results of the Equality of Means test are all negative revealing that Market and Product Expansion is significantly greater than the customer relations. The T-test results provide the findings of the following hypotheses:
1. H1: There is a statistical significant between social media adoption by small business and entrepreneurs and customer relationships. Accepted 2. H2: There is a statistical significant between social media adoption by small business and entrepreneurs and global expansion Accepted
3. H3 There is a statistical significant between social media adoption by small business and entrepreneurs and product expansion. Accepted 4. H4 There is a statistical significant between social media adoption by small business and entrepreneurs and the market shares. Accepted 5. H5 There is a statistical significant between social media adoption by small business and entrepreneurs and cost decline. Accepted Results of the Cross Tabulation
CUSTOMER RELATIONSHIPS
Social media provides easy access to customer
The results of the cross tabulation in Appendix 2 show that 98.1% of the participants strongly agree that social media assists them having easy access to the customer. However, Facebook (38.8%) is the top social media that the small business adopts while the Instagram ranks second with 30.6% and Twitter ranks third with 28.7%.
Social media helps me in getting more feedback from my customer
The results show that 92.7% of the participants agree that social media assist them getting more feedback from the customer. However, 36.5% of the participants prefer using the Facebook; however, 28.2% prefer using the Instagram making the Instagram be ranked second. The Twitter ranks third with 27% of the participants prefer using the Twitter collecting feedback from the customer.
Social media helps me increase communication with my customer
Similarly, 85.9% of the participants agree that social media helps them increasing communication with the customer. Facebook top the list with 33.8%. However, Instagram ranks second with 27.9%, and Twitter ranks third with 26.2%.
Social media helps me to provide more services that are efficient to my customer
The results reveal that 78% agree that social media assist them providing more efficient services to customers. The Facebook ranks first with 30.6%, Instagram ranks second with 26.1%, and Twitter ranks third with 22.3%.
Social media changes the attitude of the customers toward my business
The results also reveal that 83.6% of the participants agree that social media changes the attitude of customers toward their business. However, 33.3% prefer using the Facebook, 24.2% prefer using the Twitter and 26.1% prefer using the Instagram.
Social media makes my customer more satisfied
The results reveal that 81.7% of the participants agree that social media makes their customer more satisfied. However, 31.5% prefer using the Facebook, 25.5% prefer using the Instagram and 24.6% prefer using the Twitter.
Social media makes order much easier by customers
The results show that 71.7% agree that social media makes command much easier. Similarly, 24.4% prefer using the Facebook, 22.4% prefer using Instagram, and 21% prefer using Twitter.
DECREASED COST
Social media have low or no cost
The results reveal that 90.9% agree that social media assist them decreasing the cost of operations because of its low cost. Facebook top the list with 36.6%, 27.8% prefer using Instagram and 26.5% prefer using the Twitter.
Social media helps with the advertisement
The findings show that 87.6% of the participants agree that social media helps them with the advertisement. Similarly, 35.6% of the participants prefer the Facebook, 27.8% prefer the Instagram and 25.1% prefer the Twitter.
Social media helps me increase my sales
The results show 77.1% of the participants agree that social media assist them increasing sales. Similarly, 30.6% of them prefer using the Facebook, 24.2% prefer using the Instagram and 22.5% prefer using the Twitter.
MARKET AND PRODUCT EXPANSION
Social media helps me to demonstrate my product without physical place
The results show that 78.1% of the participants agree that social media assist them demonstrating their product without using the physical space. The Facebook tops the list with 31.5%, 25.1% prefer using the Instagram, and 21.5% prefer using the Twitter.
Social media helps me to be global and secure new market
The results show that 83.5% of the participants agree that social media assists them securing new market and making them engaging in the global business. The 32% prefer using Facebook, the 27.4% prefer using the Instagram, and 24.2% prefer using the Twitter.
Social media gives my business a competitive advantage
The results show that 81.8% of the participants agree using the social media to achieve the business competitive advantages. However, 31.5% prefer using the Facebook, 26.5% prefer using the Instagram, and 23.7% prefer using the Twitter.
Social media expands my product
The results reveal that 79% of the participants agree using the social media to expand their product. However, 31.5% prefer using the Facebook, 24.7% prefer using the Instagram, and 22.8% prefer using the Twitter.
Social media helps my small business to become popular
The results show that 79% of the participants agree that social media make their business becoming popular. The 31.2% of the participant prefer using Facebook, 24.7% prefer using the Instagram and 22.9% prefer using the Twitter.
Discussion, Conclusion and Recommendation
The study investigates the extent the small business and entrepreneurs in the Gulf countries adopt social media to decrease costs, increase customer relationships and enhance product expansion. The research collects primary and secondary data to answer the research questions and tests the hypothesis. The findings of the secondary research reveal that the level adoption of social media is still low among small business in Gulf countries. However, the results of the primary data provide the contrary findings, it is revealed that large percentages of small businesses in the GCC are currently adopting social media to decrease costs, improve customer relations and expand the product. The study uses the primary data to answer the research question and test the hypothesis because the data are still recent.
The findings reveal that the small business in the gulf countries is now emulating the SMEs in the advanced countries by taking the advantages of social media to achieve competitive market advantages. The findings have shown the small business in the GCC have understood the importance of social media for their business advantages, which has been confirmed by the results where more than 80% of the small business use the social media to enhance customer relations. Additionally, the study demonstrates that more than 80% of the small business in the Gulf countries use social media to decline costs, expand market shares increase sales, and enhancing effective communication with the customer. The results also confirm that Facebook is the top social media that the small business prefers in the Gulf countries, which is followed by Instagram, and Twitter. A recent study on the growth of social media in the Gulf countries (Reyaee, & Ahmed, 2015) supports the results of this study by demonstrating that social media has affected the operation of every business in the Gulf region. Typically, large percentages of entrepreneurs in the Gulf regions use social media to enhance business advantages. Similar to the results of this study, Reyaee, & Ahmed, (2015) argue that small business in the GCC prefer using Facebook, Twitter and YouTube to enhance business advantages. The authors reveal that Facebook commands the leading position, and Twitter is becoming popular in the Gulf region. Thus, this study concludes that the intensive use of social media in the Gulf region shows that the internet has become the dominant communication platform in the Gulf region, and business are taking its advantages to expanding enhance their business advantages. Similarly, the findings accept all the hypotheses confirming that social media assists the small business to enhance customer relations, enhancing product expansions and decrease costs.
Chapter 1 provides the introduction that reveals the research questions, research objective and research significant.
Chapter 2 provides the literature review that explores similar literature on the topic.
Chapter 3 discusses the method of data collection and analysis
Chapter 4 presents the results in tables and graphical form.
Chapter 5 provides the discussion, conclusion and recommendations.
The study suggests that there is a need for a future research on how each country in the gulf region adopts social media for the customer relations, product expansion and decreased costs. The research should provide the comparative analysis of how each country in the region adopts the social media.
Limitation of Study
The findings are limited to the impact of social media in the Gulf region and the results may not be applicable to other regions in another part of the world.
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Appendices
Appendix 1: Survey Instrument
SOCIAL MEDIA FOSTERING SMALL Business AND ENTRUPREUNERSIP:
Part one:
1- Age
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