The Impact of Social Media Usage for Work Purposes on Innovation in SMEs: The Role of Human Capital and Knowledge Sharing

Abstract

With the advent of the technology era, social media is considered a useful platform that has contributed actively to social interaction and a wealth of knowledge for both individuals and groups. Many organisations have begun to take into consideration the benefits of such platforms. However, there remains very limited understanding as to social media usage for work purposes in the organisational context. This study therefore investigates the debate surrounding whether or not the use of social media for work purposes adds value to firms. This is has been done by examining the impact of social media usage on innovation through knowledge-sharing and human capital, and the role of the overall perceived usefulness of SMU experience and perceived supervisor support in enhancing the adoption of social media for work purposes. The theoretical framework of this study was based on two theories, namely social capital and knowledge-based view. The positivism philosophy had been adopted in this study, with a sample size of 506 cases, all of which have been gathered from SMEs in Saudi Arabia. These were analysed through a multivariate analysis using a variance-based statistical technique known as ‘Partial Least Squares—Structural Equation Modelling’. The findings indicate that social media usage, notably for work purposes, has a positive impact on innovation through the effect of both mediators, i.e. knowledge sharing and Page | II human capital, as well as the overall perceived usefulness of social media usage experience and supervisor support, which have had a positive impact on social media adoption in Saudi Arabian SMEs. This study has developed a comprehensive model that contributes to the body of knowledge on the value added by social media usage in the workplace. In addition, the study has also contributed to human capital development and the knowledge sharing process, thus leading to innovation success and competitive advantages for SMEs