Small retail businesses' social media adoption amid a crisis

Abstract

PurposeWhen retail businesses, especially small businesses with greater vulnerability, could not meet consumers in person during the recent pandemic crisis, how did they adapt to the situation? This study examined how small business practitioners (SBPs’) perceptions, trust and adoption intention levels for social media, as well as the relationships among these variables, changed before and during the crisis based on the integration of the contingency theory and the diffusion of innovation theory (DIT).Design/methodology/approachOnline surveys were conducted with USA SBPs before (n = 175) and during (n = 225) the recent pandemic. The hypotheses were tested using structural equation modeling (SEM), multivariate analysis of variance (MANOVA) and multiple-group SEM analysis.FindingsThe results confirmed significant sequential positive relationships between SBPs’ perceived external pressure and perceived benefits of adopting social media, which in turn led to their trust in and then adoption intentions for social media. Further, the comparisons between the pre- and in-pandemic samples revealed that SBPs’ perceptions and adoption intentions all became significantly higher during (vs before) the pandemic, but the structural relationships among these variables weakened during the pandemic.Originality/valueThis study uses a novel approach to integrate the contingency theory with the DIT to propose small businesses' perceptions, trust and adoption intentions for social media during the innovation decision process under rapid contingency changes. Our findings also offer practical implications including recommendations for small businesses’ innovation management as well as training programs.