Impact of Entrepreneurial Factors Influencing Social Commerce Adoption: Based on Sri Lankan Small and Medium Enterprises

Abstract

Small and Medium Enterprises (SMEs) are required to understand social media and strategies for using social commerce for business expansions in this new digital era. SMEs are important to the economic growth of any country since they play a major role in most international economies. In the same manner, the COVID-19 pandemic has reformed people's mode of lifestyle and dealing with information. This study has led to the expansion of social commerce especially related to entrepreneurs and SME owners. This study focuses on the impact of entrepreneurial factors when adopting social commerce by SMEs in Sri Lanka. The framework has been developed with the factors of Attitude (AT), Innovativeness (IN), and IT Knowledge (IK) under the entrepreneurial factors. The present research conducted a thorough quantitative study of the impact of entrepreneurial factors when adopting social commerce by SMEs. The simple random sampling technique was utilized to select SMEs from the target population of SMEs listed at chambers of commerce. 384 SMEs in the Western Province were selected for the data analysis of this research. Structural Equation Modelling (SEM) was used to test the developed hypotheses. The results indicated that adopting social commerce in Sri Lankan SMEs is practical and hugely beneficial to all parties involved. Entrepreneurs who are interested in applying social commerce for their businesses will find the study to be insightful. The study's findings showed the importance of utilizing social commerce in daily business activities as most SME owners hold the belief of possessing the required knowledge, skills, and resources in their business operations on social media as the focal point with a special emphasis on entrepreneurial factors.