Author(s): Phuong Van Nguyen, An Thi Hong Nguyen, Hoa Doan Xuan Trieu, Quyen Ngoc Phuong Pham
This paper aims to investigate how small-medium enterprises (SMEs) in Vietnam pursue the strategic orientation, namely market orientation, and entrepreneurial orientation, to adopt social media for improving business performance. A comprehensive data set of 176 responses is collected from managers of SMEs in an emerging market, namely Vietnam. Partial least squares-structural equation modeling (PLS-SEM) is used to test measurement reliability and validity and research hypotheses proposed on the foundation of the literature review. The findings show that market orientation and social media adoption have a significant and positive impact on business performance, but entrepreneurial orientation has no direct effect on business performance at SMEs. The mediating analysis reveals that social media adoption has a mediating relevant impact on the relationship between the strategic orientation (market orientation and entrepreneurial orientation) and business performance. This paper offers valuable insights to help SMEs better understand the strategic orientation and its benefits for business success. These findings add to the extending body of evidence that market and entrepreneurial orientation, as the strategic orientation for SMEs, uses social media to improve business performance.