Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)

Abstract

Social Media Usage and Its Impact on Business Performance: An Application of Diffusion of Innovation (DoI) Theory

Author(s): Yewande Yayock, Henry Okundalaiye, & Olumuyiwa Abiodun

The purpose of this research was to assess how social media affects business performance in Grat Nigerian Insurance Plc. It focused on marketing, and customer relationship as social media constructs, and satisfaction, business creativity and fast adaptation, as performance constructs. The study was built on Diffusion of Innovation Theory. Survey research design was adopted with 67 randomly selected employees. Structured questionnaire adapted from past studies was used to collected the data used. Pearson product-moment correlation and SPSS were used to test the hypotheses. The results revealed that social media (marketing purpose) has a positive relationship with fast adaptation and business creativity, but a negative relationship with satisfaction, with significant relationship with business creativity only. Social media (customer relationship) showed a positive relationship with fast adaptation, business creativity and satisfaction, with significant relationships with fast adaptation and business creativity. he results of this study, which applied the Diffusion of Innovation (DOI) theory, reveal that the usage of social media can have a positive impact on business performance, but it is necessary to regulate it in order to maximize its potential.

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