The Mediating Effect of Social Media Adoption on the Relationship Between Entrepreneurial Orientation and Performance of Micro, Small and Medium Enterprises in Central Jamaica During the COVID-19 Pandemic

Micro, small, and medium enterprises (MSMEs) are known as the main economic driver in most countries’ economic growth. However, the COVID-19 pandemic caused a major global disruption that impacted this sector to the point where survival became critical to navigate the turbulent environment. The study set out to investigate social media adoption and entrepreneurial orientation impact on MSMEs during the pandemic. Social media adoption outlines how firms utilize the various digital platforms, whereas entrepreneurial orientation is the ability of a business to initiate the processes and use the resources to create sustainable and variable means of survival. A quantitative approach was used where 154 MSMEs in central Jamaica participated through the purposive non-probability sampling technique, with minimum criteria characteristic of operating more than two years pre-covid and should be registered. The Partial Least Squares Structural Equation Modelling was used for data analysis; the model produced beta, t-test analysis, and p-value results. Findings revealed that entrepreneurial orientation (EO) has no significant relation to MSMEs performance; however, EO being mediated by social media adoption indicates the full mediating effect of the relationship between EO, social media adoption, and MSMEs performance. The research reveals that entrepreneurial orientation can be triggered by social media adoption when utilized by MSMEs in crisis situations. All the dimensions of the Technology-Organization Environment (TOE) framework have a positive relation to social media adoption, which impacts overall performance. The findings hold expectations of adding theoretical and practical implications to MSMEs owners as to how to remain viable in crisis situations.