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The Impact of Social
Media Marketing on
MSMEs during the
Covid-19 Pandemic.
2021
UNIVERSITY OF DUNDEE - SCHOOL OF BUSINESS
Table of Contents
Abstract .................................................................................................................................................................. 2
1.0.Introduction ...................................................................................................................................................... 2
1.1. Background .................................................................................................................................................. 2
1.2. Statement of Purpose .................................................................................................................................. 4
2.0. Literature Review............................................................................................................................................. 4
2.1. Micro, Small and Medium Enterprises (MSMEs) ......................................................................................... 4
2.2. Social Media Marketing (SMM) ................................................................................................................... 5
2.3. The Impact of SMM on MSMEs During Covid-19 ........................................................................................ 8
2.4. Change in Consumer Behaviour................................................................................................................. 11
2.5. Critical Review ........................................................................................................................................... 12
3.0. Research Design ............................................................................................................................................. 14
3.1. Research Question ..................................................................................................................................... 14
3.2. Methodology ............................................................................................................................................. 14
3.3. Limitations ................................................................................................................................................. 14
3.4. Search Strategy .......................................................................................................................................... 14
4.0. Findings & Discussion .................................................................................................................................... 15
4.1. Implications of the Findings ....................................................................................................................... 15
4.2. Limitations and Future Recommendations ............................................................................................... 17
5.0. Conclusion ..................................................................................................................................................... 19
References ............................................................................................................................................................ 20
Abstract
The current Covid-19 pandemic has caused MSMEs to face hardship and their survival
is under threat. To address this concern, this research seeks to examine the impact that Social
Media Marketing (SMM) can have on MSMEs during the Covid-19 pandemic. The research
aims to identify strategies that will aid MSMEs use of SMM to better their performance and
increase their changes of remaining competitive. An extended literature review is the method
used to address this research question. After reviewing and analysing the literature, findings
reveal that SMM can have a positive impact on MSMEs during Covid-19. It also highlights
many methods that should be utilised my MSMEs to make their SMM most effective.
1.0. Introduction
1.1. Background
On March 11, 2020, the Covid-19 outbreak was declared by the World Health
Organisation (WHO) as a pandemic – the global spread of a new disease (WHO, 2020). As of
the 5th of August 2021, the total number of Covid-19 cases across the globe surpassed 200
million and sadly there have been over 4.3 million deaths (WHO, 2021). Although there have
recently been other viral outbreaks, such as Ebola or SARS, Covid-19 has caused significantly
more distribution globally, with it provoking unprecedented lockdowns and quarantines all
over the world, in order to reduce the spread of the virus and its strain on health systems (Sarkar
& Clegg, 2021). In addition to Covid-19 having an impact on public health, it has also caused
a significant economic shock. The virus was estimated to have reduced global economic growth
in 2020 by -3.4% to -7.6% and global trade was estimated to have fallen by 5.3%
(Congressional Research Service, 2021). Due to tight restrictions imposed by governments,
such as suggesting working from home and introducing strict social distancing policies, normal
business activities were brought to an abrupt halt. For example, employees not being able to
go to work caused a disruption in production and brought normal firm activity to a standstill
(Sarkar & Clegg, 2021). This resulted in a demand shock, meaning that various goods and
services were unable to be purchased by many households and businesses, plus consumers were
a lot less likely to leave their homes to visit shops, cafes and many other business
establishments (Didier, Huneeus, Larrain & Schmukler, 2020). This has resulted in many
businesses, especially Micro, Small, and Medium Enterprises (MSMEs), having suffered from
the decrease in demand (Nicola, Alsafi, Sohrabi, Kerwan, Al-Jabir, Iosifidie, Agha & Agha,
2020).
External environmental crises’ such as floods, epidemics diseases and earthquakes have
previously disrupted the running of business activities and ultimately, their survival (Eggers,
2020; Samantha, 2018). Since MSMEs are smaller in size and have fewer resources, they are
more financially fragile and thus, more vulnerable to such environmental crises than large
enterprises (Eggers, 2020; Samantha, 2018; Williams & Schaefer, 2013). The devastating
effects of such events on MSMEs have been highlighted by multiple studies. For example,
Bennett & Phillipson (2004) investigated the effect of a previous external environmental crisis,
the 2001 Foot and Mouth Disease (FMD) outbreak, on MSMEs within the UK and found that
the non-farming losses for MSMEs were estimated to be 5 billion pounds (Bennett &
Phillipson, 2004). Likewise, Auzzir, Haigh & Amaratunga (2018) investigated the effects of
the 2011 flooding in Thailand and found that it had detrimental effects on at least 557.637
enterprises, as well as creating 2.5 million job losses, with MSMEs accounting for 90% of these
businesses. As mentioned previously, since MSMEs have limited resources and capability to
recover from such a crisis, they are more likely to face financial decline and even go bankrupt
(Samantha, 2018). Since MSMEs play a crucial role within the UK and world economy (Purba,
Simanjutak, Malau, Sholihat & Ahmadi, 2021), they must adapt their business strategies to
survive.
Based on these issues, a strategic move for MSMEs would be to diversify their sales
and marketing strategies to include social media (Syaifullah, Syaifudin, Sukendar & Junaedi,
2021). This could be a strategic business move since the Covid-19 pandemic has rapidly
increased social media usage among adults (Samet, 2020), as they are restricted on their
abilities to purchase goods and products from physical stores, plus if they are in a lockdown
they have a lot more free time to interact with companies online (Tayal & Bharathi, 2021). This
suggestion is driven by evidence suggesting that social media marketing (SMM) is a strategic
tool that companies should utilise to increase company profit, value and competitive advantage
(Aral & Weill, 2007). Moreover, recent studies have shown that the implementation of SMM
can attract new customers (Ahmad, Ahmad & Abu Bakar, 2018; Bailey, 2019; Chatterjee &
Kumar Kar, 2020), which can be vital to MSMEs to help them remain competitive during these
challenging times. However, recent studies have also indicated that the adoption rate of SMM
by MSMEs has remained low in comparison to large enterprises, due to a lack of knowledge
surrounding social media and being unsure on how best to implement it as part of their business
strategy (Dekker, Engbersen, Klaver & Vonk, 2018; Nguyen & Luu, 2020), thus highlighting
the importance of the current study.
1.2. Statement of Purpose
The purpose of this study is to investigate the impact that SMM has on MSMEs during
the Covid-19 pandemic. The aim is to identify strategies that will aid MSMEs use of social
media marketing to better their performance and increase their chances of remaining
competitive. This will be achieved by analysing exciting literature to gain insight into how
companies successfully utilise SMM, in order to allow MSMEs to implement these techniques
to their business strategies.
2.0. Literature Review
2.1. Micro, Small and Medium Enterprises (MSMEs)
MSMEs play a crucial role within the world’s economy and thus, the COVID-19
pandemic mustn't have a detrimental impact on these types of businesses (Purba, Simanjutak,
Malau, Sholihat & Ahmadi, 2021). For example, 50% of the total revenue generated by
businesses in the UK is accounted for by MSMEs, plus they also hold 44% of the county’s
labour force (UK Department for Business, Energy & Industrial Strategy, 2020). Covid-19 has
resulted in MSME’s experiencing a reduction in their labour force, as employees are either
becoming unwell, need to take care of their children due to the closure of schools or they may
have been forced to shield due to underlying health conditions (OECD, 2020). Further impacts
of the virus to MSMEs include there being a sudden and dramatic loss of demand and income,
which significantly affects their ability to function normally (OECD, 2020). For example,
consumers are more likely to have heightened uncertainty, fear of catching the virus and
possibly even experience a loss of income, which in turn reduces their purchasing of goods and
products (Abello, 2020). Specific sectors, such as, tourism and MSMEs catering to local
markets with strict containment protocols in place, are most likely to feel the greatest impact.
Abello (2020), states that these implications of Covid-19 are more likely to harm MSMEs than
any other companies, particularly due to their lower levels of resilience and higher levels of
vulnerability concerning their size. MSMEs may be less flexible and resilient when handling
the costs that these shocks, created by the virus, entail. These costs include changes to working
processes, such as shifting to working from home and having to implement new technologies,
such as applying QR codes for track and trace (OECD, 2020). Furthermore, if these changes in
business processes slow down their normal productions, then this cost of misspent labour and
capital will weigh heavier on MSMEs compared to larger firms (OECD, 2020).
These negative implications of Covid-19 to MSMEs has been highlighted by Albonico,
Mladenov & Sharma (2020), who conducted an online survey of 600 MSMEs across England,
Northern Ireland, Scotland and Wales and found that the effect of the Covid-19 pandemic on
the performance of these MSMEs is immense. Their findings conclude that 80% of the MSMEs
reported that their revenue was stable or growing in 2019 before the pandemic hit, yet today
80% of MSMEs say their revenues are declining. They also reported that they are concerned
about being able to retain employees (24%) and are planning to postpone growth projects
(36%) (Albonico et al., 2020). As Covid-19 is causing crises all over the world, it can be
expected that this decline in business for MSMEs will be the same globally. This is highlighted
by a survey conducted by the International Labour Organisation (ILO, 2020), which examined
one thousand MSMEs across eight countries and found that 70% have had to shut down
operations and more than 75% were expecting or already experiencing a decline in revenue
through 2020 (ILO, 2020). Hence, these negative trends for MSMEs convey a troubling future
for the world’s economy and thus these businesses must adopt a mindset of opportunity
recognition to survive (Liguori & Pittz, 2020).
2.2. Social Media Marketing (SMM)
Liguori & Pittz (2020) argue that one of the most effective ways for MSMEs to employ
risk mitigation strategies to their business is to identify new customers and opportunities to
pursue growth, which they can achieve with social medial marketing (SMM) (Liguori & Pittz,
2020). SMM is a marketing strategy used by businesses to allow them to connect with their
customers by using one or more social media platforms (Schultz, 2017). This marketing
strategy involves businesses publishing content onto their social media platforms, engaging
and listening to their followers, keeping track of their results and engagement and running
social media advertisements (Solem & Pedersen, 2016). Using social media as a marketing tool
will become more important during the Covid-19 pandemic, as at a time when social distancing
is paramount, social media allows consumers to interact with businesses without any physical
contact (Mason, Narcum & Mason, 2021). This will likely cause a shift in consumer behaviour
(Mason, Narcum & Mason, 2021; Pena-Garcia, Gil-Saura, Rodriguez-Orejuela & Siqueira-
Junior, 2020) and thus, MSMEs may identify new opportunities by utilising SMM to create
engagement, trust and high levels of service to help them gain a competitive advantage during
these uncertain times.
Currently, there are multiple different forms of social media available for companies to
utilise with the most popular being, Facebook, Instagram, TikTok, Twitter, Snapchat,
YouTube, LinkedIn and Pinterest (Wahid & Asiati, 2021). Even though there is such a wide
range of social media platforms available, it may not be necessary for businesses to implement
all of them at once to attain successful SMM (Calder, Isaac & Malthouse, 2016). Voorveld,
Van Noort, Muntinga & Bronner (2018) highlight this point in their study, which examined
consumers engagement with social media and how it drives their engagement with advertising
within the platforms. Their results offer valuable contributions to the literature surrounding
social media engagement and advertising, as they conclude that the different characteristics
and functionalities of the social media platforms translate to different experiences for the
customer. These findings are similar to those arguing that “social media” shouldn’t be used as
an umbrella term but instead, each platform should be studied separately (Phillips, Miller &
McQuarrie 2014; Schweidel & Moe 2014; Smith, Fischer & Yongjian 2012). Thus, it can be
argued that each social media platform provides a unique experience, which in turn creates a
unique marketing opportunity, depending on which type of platform a business chooses to
utilise. Consequently, businesses should consider that SMM success may not come from using
as many of the social media platforms available as possible but will instead come from their
ability to determine which platform is most relevant to their business goals and what will
engage their target audience the most. These findings can be helpful for MSMEs, as instead of
their marketing teams putting time, money and resources into every single social media
account, they can instead focus on which type of social media they believe will be most
beneficial to their company overall. For example, if a company’s target audience is young
females, then Snapchat may be the best social media platform for them to utilise, as 59% of
their users are female and 82% are under the age of 34 (Olafson & Tran, 2021). Thus,
highlighting the importance for companies to research the demographics of the different social
media platforms to assess which would best match their target audience. This could result in
saved costs to the company, as they are less likely to waste time and resources, which is
especially important at a time where the majority of MSMEs are experiencing a decline in
revenue.
Evidence that companies are increasing their use of social media as a marketing strategy
comes from a B2B Marketing Mix Report by SageFrog (2021). They found that 60% of U.S.
B2B marketers use Instagram as part of their SMM, which is double the number reported from
the previous year and YouTube has increased by 20% (SageFrog, 2021). Moreover, WARC
Data (2021), revealed that the global ad spends rose by 23.6% in 2021 to $157.6 billion, which
is a record high. These figures, therefore, demonstrate that companies agree that SMM may
have a positive impact on their business This also highlights the importance of the current
research question, as it is vital to find out if this increase in attention to SMM will be of any
benefit to MSMEs, to reduce the risk of them wasting time, money and resources from
increasing their SMM. Evidence that an increase in usage of social media platforms, such as
Instagram and YouTube, will be beneficial to MSMEs is conveyed through a study conducted
by Ajismanto & Widyanto (2020). They investigated how effective Instagram, YouTube and
Facebook were at promoting MSMEs in Indonesia by assessing their effectiveness in the
dimensions of empathy, persuasion, interest and communication. They concluded that
advertisements on all three platforms were very effective, with Instagram rating the highest,
especially in dimensions of empathy, persuasion and communication. They stated that this was
due to products on Instagram looking more attractive, plus consumers found it easier to access
reviews of products, which helped influence their decision to purchase the product being
advertised. Thus, these might be important factors for MSMEs to consider when implementing
SMM into their business strategy. For example, companies looking to promote their art or
designers looking to promote their clothing may benefit from utilising Instagram if it is the
most successful at promoting the ascetics of products, as consumers may be more likely to
engage with this type of content and in turn, be more likely to make a purchase.
An example of a small business finding success through implementing SMM, using the
strategies mentioned above, comes from Kelly Lester, the CEO of Easylunchboxes (Hornung,
2018). She identified the demographic of consumers who would be most interested in her
product as parents and educators, then she researched what social media platforms this
demographic engaged with most – Facebook and Pinterest (Gallegos, 2019). She utilised these
platforms by sharing the positive reviews from her customers, which resulted in her products
being the bestselling lunch boxes on Amazon, along with her business gaining more than 88
thousand followers on Pinterest, plus 250 thousand likes on Facebook. This example of a small
business gaining success from SMM supports the evidence that companies will gain more
success from SMM if they make sure to utilise the social media platform that best matches their
target audience, plus sharing reviews and feedback from customers increases the chance that
more people will purchase the product. However, it is also important to consider that these
findings are from before the Covid-19 pandemic and thus, they may not be as reflective on how
MSMEs can use SMM to gain success today.
2.3. The Impact of SMM on MSMEs During Covid-19
A range of findings and arguments surrounding the debate of whether SMM has an
impact on the performance of MSMEs during the Covid-19 pandemic was found during the
literature search. For example, Nurlinda, Sinuraya, Asmalidar, Hassan & Supriyanto (2021),
investigated whether there was a difference in sales made by offline/conventional methods
compared to sales made online, to determine the impact of having an online presence for
MSMEs. They conducted their research by asking 50 MSMEs within Indonesia to fill out a
questionnaire that reported their average sales both offline and online. Their findings concluded
that when MSMEs make use of online applications there is a significant difference in turnover
income, in other words, an online presence can increase a company’s sales. This supports
findings stating that online technology, particularly e-commerce, helps increase sales turnover
(Jovanovi, Vujadinovi, Mitreva, Fragassa & Vujovic, 2020), and it helps the entire workforce
run more efficiently (Yadiati & Meiryani, 2019). Nurlinda et al., (2021) highlight that these
findings are important, as due to the pandemic, there is a lot of uncertainty and thus, MSMEs
must adapt their business appropriately through the use of online applications, in order to
maintain or even improve their performance (Nurlinda et al., 2021). An online presence allows
for expansion of market share due to online applications being able to reach customers
worldwide and in turn, an increase in revenue (Nurlinda et al., 2021). These findings may not
specifically discuss the important role that SMM can have on MSMEs, however, it does
highlight the fact that having an online presence will increase a company’s sales and the most
successful way to have an online presence today is to be active on social media (Liguori &
Pittz, 2020).
Joseph, Tulung & Wangke (2020), also investigated the role of SMM on the
performance of 15 Indonesian MSMEs during the Covid-19 Pandemic. They analysed the
company’s profits before and after implementing SMM and found that the percentage of profits
for all the companies significantly increased after declining when Covid-19 first appeared.
They conclude that SMM is extremely impactful and influential for all their respondents within
their research and that even during a global pandemic, MSMEs will be able to successfully run
their business, interact with customers and produce sales and profit with the use of SMM. They
state that if companies fail to implement SMM into their business, especially during the global
pandemic, that their profits will decline and they will eventually go bankrupt (Joseph et al.,
2021). This is also supported by Purba, Simanjutak, Malau, Sholihat & Ahmadi (2021), who
analysed the effects of digital marketing on business sustainability and financial performance
during the Covid-19 Pandemic. They collected their data by distributing online questionnaires
to 120 MSMEs within Indonesia and found that digital marketing had a significant effect on
business sustainability and financial performance, as the use of digital marketing led to
increased customer awareness, which increased sales and profits. Thus, Purba et al., (2021)
conclude that the companies who integrate this type of marketing into their business strategy
and change the way they sell and promote their products will be more likely to survive the
impact of Covid-19 than those MSMEs who failed to adapt.
Literature was reviewed surrounding the current effects of MSMEs implementing
SMM as a business strategy during Covid-19 and a range of findings were analysed. A study
from Liguori & Pittz (2020), reviewed the data surrounding the impact that Covid-19 is having
on MSMEs and concluded that the economic fallout will get worse for the businesses and their
employees before it gets better. They, therefore, offer practical and tactical strategies to help
these businesses overcome the negative implications caused by the global pandemic. They state
that the biggest factor of success for MSMEs is to maintain focus and be aware of the needs
and desires of their customers and offer that the most effective way to do this, is through the
use of social media to engage with their consumers (Liguori & Pittz, 2020; Liguori,
Bendickson, Soloman & Mcdowell 2020). It is stated that this is the optimal way to avoid the
negative effects of Covid-19 on their business, as it allows for the identification of new
customers and new opportunities, allowing them to grow. One method that is offered for
businesses to best utilise social media, is by ensuring they regularly review their social media
accounts for any changes in engagement to keep track of what type of content is reaching the
largest audience (Liguori & Pittz, 2020; Liguori, Bendickson, Soloman & Mcdowell 2020).
They also state that to maintain current customer relationships and create new ones, they must
communicate any business operation changes through their SMM, for example, changes to
opening times, as this generates trust with the consumer and increases the likelihood of them
becoming a loyal customer (Liguori & Pittz, 2020; Liguori, Bendickson, Soloman & Mcdowell
2020). This is an important finding that links to previous research from Aaker (1997), who
states that without loyalty, a brand will become vulnerable and easily replaced. Schiffman &
Kanuk (2009), state that brand loyalty is when a consumer consistently chooses to purchase a
product from the same brand, in other words, the consumers have a strong commitment and
are likely to consistently purchase from the same brand in the future. Findings from Liguori &
Pittz, (2020) are also supported by Ahmed & Zahid (2014), who state that SMM is an
economical way to increase brand loyalty through networking, socialising and communication.
They also argue that creating regular content will lead to consumers experiencing an emotional
bond to the brand, in turn creating loyalty. Thus, if MSMEs utilise SMM in a way that builds
loyalty and trust, such as through open and regular communication, their consumers are more
likely to make repeat purchases, which could greatly help the survival of many MSMEs.
Furthermore, Syaifullah, Syaifudin, Sukendar & Junaedi (2021), investigated the role
of SMM on the performance of MSMEs during the Covid-19 pandemic by sending out
questionnaires to 254 MSMEs in Indonesia. The social media that was being used by the
MSMEs included Facebook, Instagram and Whatsapp. Syaifullah et al., (2021) found that
overall, social media usage has a positive effect on a company’s performance, particularly in
improving sales, productivity, customer relationships and creativity. They also conclude that
the companies in their sample were more likely to make use of social media marketing if they
felt it was compatible with their work application systems if they perceived it to be useful and
easy to use. These are similar to findings stating that several factors, such as the condition of
facilities, technology related to using and cost, will influence a company’s decision to use
SMM (Chatterjee & Kumar Kar, 2020). Thus, they argue the importance of MSMEs having a
marketing team that is well trained with great expertise, as this will ensure their use of social
media can be maximised for marketing, which will, in turn, improve the company’s
performance. Syaifullah et al., (2021) also highlight the fact that MSMEs may be at a
disadvantage compared to larger organisations when implementing SMM due to the costs
involved, as they are likely to have a smaller advertising budget (Syaifullah et al., 2021). For
example, larger organisations may make use of paid advertising, such as paying social media
influencers to promote their products, which will allow them to reach a larger audience
(Shareef, Mukerji, Rana & Islam 2019). Nonetheless, Syaifullah et al., (2021) recommend that
the use of social media will be a very effective method for MSMEs to improve their
performance during the Covid-19 pandemic and successful strategies for them to implement,
are to increase their knowledge and skills surrounding effective social media marketing, as they
found that employees were more likely to use social media as a tool for marketing if they found
it easy to use and compatible with their current work applications. These findings could
therefore be of benefit to MSMEs when using SMM as a business strategy, as they may
consider hiring an experienced marketing team or individual if they feel they would find social
media challenging to use due to lack of experience.
2.4. Change in Consumer Behaviour
Understanding why consumer behaviour has shifted during the Covid-19 pandemic
might add depth to understanding why and how MSMEs should choose to implement SMM as
part of their business strategy going forward. Mason, Narcum & Mason (2021), conducted
exploratory research to examine what caused the Covid-19 pandemic to increase consumers’
social media marketing behaviours within the United States (U.S.). A questionnaire was used
to collect the data for their study from 327 U.S. consumers. They used the Consumer Decision-
Making Model (Nicosia, 1982) as a framework to analyse these changes in the participants as
they performed different consumer decision-making processes. The findings show further
support for the importance of SMM for MSMEs during the pandemic, as they conclude that
consumers have increased their social media usage as a method to identify products, gather
information on products, evaluate products and purchase products (Mason, Narcum & Mason,
2021), Whereas, before the Covid-19 pandemic, consumers were more likely to go into stores
to conduct some or all these consumer behaviours, instead of now conducting them all online
due to restrictions that have been put in place to stop the spread of Covid-19 (Mason et al.,
2021). Mason et al., (2021) use the Consumer Decision-Making Model to explain this change
in consumer behaviour, which states that consumers are influenced by external entities. The
obvious one being Covid-19 but also the fact that consumers are often subject to social
influence and thus, are susceptible to imitating the behaviours of others. Therefore, if a
consumer reads a positive review on social media, or if they receive recommendations from a
company they trust or are given product usage tips, they are more likely to purchase a product.
These findings support those previously discussed by Ajismanto & Widyanto (2020), who
found that consumers were more likely to purchase products from Instagram, as they could
easily access reviews and comments about the products before deciding to make a purchase.
This therefore further highlights the increasing importance for MSMEs to use social media as
a marketing tool, as they illustrate the impact that social media has on the consumer decision-
making process. Thus, Mason et al., (2021) conclude that SMM should be effectively applied
to MSMEs business’ marketing strategies and that the most effective ways to utilise this are
through promotional activities, sharing positive feedback from their customers and also using
social media influencers to promote their products to positively influence the buying
behaviours of consumers. However, as previously mentioned by Syaifullah et al., (2021), this
may not be as achievable for a smaller business with smaller budgets, although these findings
may influence companies to priorities their spending, as in the long run, the investment may be
worth it.
2.5. Critical Review
The study by Nurlinda et al., (2021) may have concluded that having an online presence
will increase a company’s sales, however, they might have had too many open variables when
investigating the impact of having an online presence on MSMEs performance. They issued
out a questionnaire to MSMEs asking to state their sales offline and online, yet they failed to
ask what type of online method they used. This would have allowed them to gain a greater
insight into what they were doing online to cause this increase in sales. Thus, the results only
indicate that being online can improve sales, but it fails to investigate what companies need to
do whilst they are online to make a difference. For example, if they are promoting their products
on social media or using the platforms to interact with customers. This is important, as being
online will automatically open you up to a wider audience and this factor alone can improve
sales. The study, therefore, fails to zone in on what exactly the companies within their study
are doing whist online to create this increase in sales and thus, the results may not be that
beneficial to MSMEs in their quest to remain competitive during Covid-19, as it is not offering
specific actions for them to take. Furthermore, only 34 MSMEs out of the 50 approached
completed the questionnaire, therefore this small sample size may mean the results are very
unrepresentative of the population and thus, may not be reliable.
Furthermore, the study by Joseph et al., (2021), similar to Nurlinda et al., (2021), also
had a very small sample size of only 15 MSMEs, therefore again making the results unlikely
to be generalisable to the wider population. They also employed purposive sampling, meaning
that the researcher relied on their judgement when choosing which MSMEs would take part in
their study, hence creating a high level of bias. Thus, re-doing the study with a larger and
randomly selected sample would help verify the reliability of the findings.
Syaifullah et al., (2021) on the other hand had a sample of 254 MSMEs and thus, their
findings that social media usage has a positive effect on companies’ performance may be more
generalisable to the wider population as it allows a more accurate estimate of the effect of SMM
on MSMEs. They also delved deeper into understanding how and why SMM had a positive
effect through their data collection method, which used an online questionnaire that was
distributed through the social media platforms, Facebook, Instagram and Whatsapp. This
therefore could arguably make their findings more robust, as the companies are directly having
to utilise social media platforms to participate. However, it is also important to consider that
the study failed to include demographic variables as moderating the use of social media to
improve MSMEs performance. This could have allowed for wider findings, such as if
employees age or race influenced their knowledge and ability to use SMM as part of their
business strategy. This is also important as it has been previously stated that different age
groups and genders interact differently with varied forms of social media, therefore including
demographics variables may have allowed more insight into how MSMEs may best implement
their SMM depending on the age and gender of their employees and target audience.
Mason, et al., (2021), strived to show that SMM could be effectively applied to MSMEs
business’ marketing strategies, to positively influence the buying behaviours of consumers,
however, there may be issues with their chosen data collection method. The data collected from
their sample of 327 U.S consumers, was based upon self-reported perceptions. Thus, the true
validity of the results cannot be assessed, as it could be argued that the subjects gave responses
that they believed to be more socially acceptable, rather than responding with their truth. It
could also be suggested that the subjects were unable to assess themselves accurately, thus
making their responses imprecise and unreliable. Future research may therefore benefit from
obtaining actual figures on consumers social media behaviours, such as which platform they
use the most to interact with companies, and how much time they spend on them. Nonetheless,
the fact that this study collected information from consumers themselves instead of from
MSMEs, may add greater depth to this current study. It offers a point of view from the people
who are interacting with the companies online and thus, offers more insight into the reasoning
behind their purchasing behaviours (what they like and don’t like). This can hence be of great
benefit to MSMEs, as they can tailor their SMM depending on what the consumers report to
enjoy interacting with the most, rather than only learning from the experiences of other
MSMEs.
3.0. Research Design
3.1. Research Question
The research will aim to answer the question: What is the impact of social media
marketing on MSMEs during the Covid-19 Pandemic?
3.2. Methodology
An extended literature view was conducted to answer the research question. Qualitative
and quantitative research articles surrounding the research topic were reviewed along with
online sources to review marketing reports and company statistics. The core inclusion criteria
whilst searching for secondary and primary sources and literature is that they are published
from 2015 onwards and are relevant to the research topic. The most appropriate sources for the
research were located using online databases such as Google Scholar, Scopus, Dundee Library
online search and Business Source Complete. After identifying the most appropriate sources
surrounding the research topic, they were summarised, critically analysed and conclusions were
drawn.
3.3. Limitations
Factors limiting the research design of the current study include that no primary data in
the form of questionnaires, surveys or interviews, for example, could be collected by the author,
which may have limited the findings. It was also unfeasible for the scope of the research to
cover every industry, due to the large variety of MSMEs that exist. The limitations of the
selected data also raised difficulties in terms of being able to generalise it across locations,
companies and industries.
3.4. Search Strategy
The following mixture of keywords were used as the search strategy, in order to find
the most relevant articles for this study.
Keywords: Covid-19/ social media/ social media marketing/ MSMEs performance/ consumer
behaviour.
4.0. Findings & Discussion
4.1. Implications of the Findings
The current study aimed to investigate the impact of SMM on MSMEs during the
Covid-19 pandemic, to identify strategies that will aid their use of social media marketing. The
findings hope to offer ways in which MSMEs can utilise SMM to better their performance and
increase their chances of remaining competitive, during the current economic crisis caused by
Covid-19. Evidence concludes that MSMEs are facing hardships, for example, with 24%
struggling to retain employees and 36% planning to postpone growth projects (Albonico et al.,
2020), and since they contribute a major part of the global economy, they must adapt their
business strategies to survive.
Analysis of the extensive literature surrounding the research question reveals that SMM
has a positive impact on MSMEs in helping them survive the effects of the Covid-19 pandemic.
Findings previous to the Covid-19 pandemic showed support for SMM and offered tools for
the best ways for MSMEs to implement SMM. Voorveld et al., (2018), for example, states that
SMM success may not come from using as many of the social media platforms available as
possible, but will instead come from their ability to determine which platform is most relevant
to their business goals and what will engage their target audience the most. This finding will
offer aid to MSMEs, as if they have little knowledge of social media, it may be less
overwhelming for them to know that they do not have to use every social media platform that
is out there, but instead can choose whatever one is most in line with their business goals. This
reduces the amount of knowledge and skills that they need to learn surrounding social media
platforms and can instead become experts in just one or two. The findings from Voorveld et
al., (2018) also highlight the importance for MSMEs to ensure that they choose the correct
social media platform in line with their business. For example, it will be helpful for them to
match the demographic of their target audience with the social media platform that they use
most. This will increase their chance of reaching their target audience, increasing the likelihood
of their products being purchased and decrease the chance of MSMEs wasting time and
resources. It was then important to investigate the research and determine whether studies
conducted during the Covid-19 pandemic would offer similar results.
It can be concluded from the literature review that current studies also show support for
SMM being a successful method in helping MSMEs survive the Covid-19 pandemic. This is
supported by the findings from Nurlinda et al., (2021). Joseph et al., (2021) and (Purba et al.,
2021) all conclude that having an online presence and implementing SMM to business
strategies will have a positive impact on financial performance, making them more likely to
survive the impact of Covid-19. Nurlinda et al., (2021) state that this is due to an online
presence allowing for the expansion of market share, as online applications will reach
customers worldwide and in turn, there will be an increase in revenue. Thus, supporting
previous research, stating that companies are increasingly taking advantage of SMM and
implementing it as a strategic tool to increase their company profitability, value and
competitive advantage (Aral & Weill, 2007) and also that SMM is a useful tool that will help
companies attract new customers, in turn helping their business grow (Ahmad et al., 2018;
Bailey, 2019; Chatterjee & Kar, 2020). Thus, highlighting the importance of MSMEs
implementing SMM in their business to attract more customers and generate more sales,
increasing their chance of survival. However, it is also important to consider that these studies
fail to zone in on exactly what the MSMEs are doing online to contribute to this increase in
sales. Thus, they fail to offer specific actions that MSMEs can use when implementing SMM
to make it most effective.
Further findings, however, do offer some of the best ways that MSMEs can utilise
SMM, which is important as previous studies have shown that MSMEs are less likely to
implement SMM due to a lack of knowledge surrounding social media (Dekker et al., 2018;
Nguyen & Luu, 2020). For example, Liguori & Pittz, (2020) offer one method for businesses
to best utilise social media, is by ensuring they regularly review their social media accounts for
any changes in engagement, to keep track of what type of content is reaching the largest
audience. They also highlight the importance of maintaining current customer relationships
and creating new ones, by building trust with consumers, which is especially important with
all the uncertainty caused by Covid-19. If they use social media to regularly communicate
changes to the business, such as opening times, they are more likely to gain consumer trust,
and as stated by Schiffman and Kanuk (2009), the consumers who feel a sense of loyalty to a
brand are more likely to consistently purchase from them in the future. Thus, this offers greater
insight to MSMEs and may help them understand the influence that SMM can have on their
business in the long run, as loyal returning customers can help their business remain
competitive against competition.
Understanding why consumer behaviour has shifted during the Covid-19 pandemic was
highlighted by Mason et al., (2021). By using the Consumer Decision-Making Model (Nicosia,
1982) as a framework, they concluded that consumers have increased their social media usage
as a method to identify products, gather information on products, evaluate products and
purchase products, as they can no longer go into physical stores to do so. They state that the
most effective ways for MSMEs to use SMM to meet these changed behaviours of consumers
is through promotional activities and sharing positive feedback from their customers. This
shows further support from the previous research stating that customers are more likely to
purchase a product if they see positive reviews regarding it (Ajismanto & Widyanto, 2020).
More importantly, Mason et al., (2021) give a reason as to why consumers are influenced by
feedback and reviews through the Consumer Decision-Making Model (Nicosia, 1982). This
model states that consumers are influenced by external entities, such as being subject to social
influence and thus, are susceptible to imitating the behaviours of others. This therefore further
highlights the importance of MSMEs implementing this method with their SMM. However, it
should also be considered that as the world returns to normal, with restrictions lifting and
businesses reopening, consumers may return to their old consumer's behaviours. Therefore,
consumers may be less influenced by reviews and feedback as they will be able to go into stores
to physical touch and evaluate products themselves.
Overall, the main findings highlight that SMM can help MSMEs survive Covid-19 as
it opens them up to a larger market and allows them to create loyal customers who are likely
to make repeat purchases. Some of the ways that MSMEs can successfully utilise SMM, is to
ensure that they use a platform that matches the demographics of their target audience and to
ensure that they repost customer reviews on a regular occurrence. It may also be a good idea
to have a section within their social media, specially dedicated to reviews and feedback.
However, the validity of these results may be low due to the ever-changing business
environment caused by the Covid-19 pandemic.
4.2. Limitations and Future Recommendations
It is important that the limitations of the current study are considered, in order to fully
understand the validity of the results and if they can be generalised across locations and
industries. One major limitation of the current study is that all the findings discussed and
analysed within the literature review only come from Indonesian or American studies. Since
the Covid-19 Pandemic is still an ongoing crisis, the literature surrounding the issues caused
by the virus are limited and thus, there were only a small number of studies that related to the
research topic. The validity of the results may therefore be affected due to the differing impact
of Covid-19 on MSMEs in different countries. For example, according to the United Nations
Development Programme (UNDP), Covid-19 will have much more detrimental effects in
developing countries, such as within South Asia, than westernised countries, such and the U.S
and U.K (UNCTAD, 2020). This is due to them having much weaker health care systems, being
severely dependant on trade and tourism sectors and receiving less financial support from their
government (World Bank, 2021). It has hence been predicted that half of the countries within
South Asia could fall into a deep recession, which would be their worst economic disaster in
40 years (World Bank, 2021). Thus, MSMEs are going to have to react differently to remain
successful, depending on what country they operate in. Since most of the studies analysed in
this study were from Indonesia, it can be argued that their findings won’t translate to MSMEs
within the UK and other westernised countries. It is also important to consider that some
governments may have offered more financial help to MSMEs than others. Thus, this may have
had an impact on MSMEs ability to survive during the pandemic. Future studies should
therefore consider this as a variable for the results to be more representative of the impact that
SMM has on MSMEs.
Moreover, since the Covid-19 pandemic is still ongoing, the studies that have been
published may not convey a true account of how SMM can help MSMEs. Since much of the
research was conducted at a time where consumers were naturally using social media more due
to the restrictions implemented by governments, the findings might not give a true
representation of how SMM can help MSMEs. When the world starts to return to normal, with
more people visiting stores to purchase goods and products, their social media use may decline.
Thus, future research may benefit from conducting longitudinal studies to analyse the impact
of SMM on MSMEs in the post-Covid-19 era. This will allow for a more accurate account of
the effects that SMM adoption can have during and after a crisis. This may be more beneficial
to MSMEs as it could provide evidence of how to have a sustainable business for many years,
rather than the current findings possibly only offering solutions on how to recover within the
time of a global crisis.
Finally, whilst the methodology adopted in the current study allowed the research
question to be answered, the findings were all based on secondary data as there were no direct
communications between the researcher and MSMEs. Primary data, such as from
questionnaires and interviews may have allowed the findings to be more robust, whilst also
offering an insight to MSMEs within the UK, which this current study lacks. Most of the studies
had a weakness, such as small sample size, sample selection plus not covering a range of
demographics and locations. In future, researchers looking to investigate the impact of SMM
on MSMEs should consider using primary data, by seeking the insights of MSMEs, along with
the viewpoints of consumers. The sample should be large enough to capture a true
representation of the location, whilst being randomly selected to reduce bias for the findings to
be more conclusive and able to be generalised.
5.0. Conclusion
The research sought to answer the question, “What is the impact of SMM on MSMEs
during Covid-19” and through an extensive literature review, this question has been addressed.
From most of the reviewed literature, including that by Liguori & Pittz, (2020), Nurlinda et al.,
(2021), Joseph et al., (2021) and Purba et al., (2021) it is clear that SMM has a positive impact
on MSMEs during the Covid-19 pandemic. This is due to many factors such as it helps improve
company’s financial performance through opening them up to a wider market, its ability to
create returning customers by improving brand loyalty plus it meets the change in consumers
purchasing behaviours during Covid-19. The findings also offer aid to MSMEs on how to best
implement SMM to their business, for example, by ensuring they choose the social media
platform most in line with the business goals and target audience, plus ensuring to regularly
share positive reviews and feedback about their products on their social media platforms, to
influence more customers to buy. However, there is scope for further research to identify more
methods that MSMEs could utilise when implementing SMM since the current research is
limited by the fact that the Covid-19 pandemic is still an ongoing crisis and thus, the findings
from the current studies may not reflect the best ways for MSMEs to utilise SMM when the
world economy returns to normal.
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