Determinants of SME performance in the digital era: insights from e-commerce implementation and social media marketing in Nigeria

Abstract This study investigates how e-commerce implementation (ECI) and social media marketing (SMM) influence the performance of small- and medium-sized enterprises (SMEs) in Nigeria, addressing persistent performance challenges linked to low digital skills, inadequate infrastructure, and limited marketing resources. Grounded in the TOE framework and resource-based view, the study focuses on key SMM dimensions (informativeness, interactivity, personalization, trendiness, and word of mouth) to understand their role in enhancing or moderating e-commerce outcomes. A descriptive survey design was adopted, and data were collected from 370 SMEs in Oyo State using a structured questionnaire. PLS-SEM results show that e-commerce implementation significantly improves SME performance. However, only informativeness and interactivity positively moderated this relationship, while personalization, trendiness, and word of mouth showed no significant moderating effects. These findings highlight that although e-commerce enhances business outcomes, only specific SMM attributes strengthen its impact within Nigeria’s institutional context. The study underscores the need for SMEs to prioritize informative and interactive digital marketing strategies and for policymakers, particularly SMEDAN, to strengthen digital literacy, infrastructural support, and SME-focused digital policies.