THE IMPACT OF SOCIAL MEDIA MARKETING ON THE SALES PERFORMANCE OF SMES IN SRI LANKA

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.