Abstract:
This study examines the impact of social media marketing on the sales
performance of Small and Medium Enterprises in Sri Lanka. SMEs in Sri
Lanka play a significant role in driving economic growth, contributing 52% to
the GDP and generating employment opportunities for 45% of the workforce.
Emphasizing the importance of social media marketing for these businesses,
it can greatly enhance profitability, especially in terms of boosting sales
performance. The main purpose of in this study to examine the relationship
between social media marketing and sales performance in small and medium
enterprises and specific purpose of this study is identifying the most influence
factors for social media marketing. The quantitative research design was used
in this research and Dodangoda Divisional Secretariat Division was chosen in
the study area. Both primary data and secondary data were employed. The
primary data was collected by a structured questionnaire. Secondary data was
collected from divisional secretarial division reports. The sample for the
analysis consisted of 100 small and medium enterprises entrepreneurs who
were randomly selected. Descriptive Statistic Analysis, Pearson’s Correlation
Analysis, and Multiple Regression Analysis were used to analyze. The data
analysis technique is used in Statistical Package for Social Sciences software.
The result obtained through regression analysis established that social media
marketing has impacts on the sales performance of small and medium
enterprises. The findings indicate that compatibility, perceived usefulness, and
perceived ease of use have a positive impact on the influence of social media
marketing adoption by SMEs. Albeit, the cost has a significant and negative
impact on social media marketing used by SMEs. The study recommends
further studies to be conducted on the strategies to be used to improve the
application of social media marketing in the small and medium enterprises.
