The Impact of Social Media Use on Entrepreneurial Opportunity: Evidence from Manipur, India

Abstract

Objective: The present study aims to investigate the transformative influence of social media usage on entrepreneurial opportunity, recognition and exploitation in the unique context of Manipur, a northeastern state of India. This research aims to offer valuable insights into the dynamics of social media and entrepreneurship in a region which is characterized by its unique opportunities and challenges, ultimately contributing to a deeper understanding of the role of digital technology in fostering entrepreneurial growth.   Theoretical Framework: This study is guided by seven hypotheses that lay the theoretical foundation, investigating the relationships among specific variables. The independent variable under study is the Social Media Usage (SMU) which is assumed to influence several aspects of entrepreneurial activity. Simultaneously, the study considers Prior Knowledge (PK), Entrepreneurial Alertness (EA) and Enhancing Social Networks (ESN) as intermediary variables, shaping the pathway from social media usage to entrepreneurial opportunity recognition and exploitation.   Method: The authors surveyed 185 entrepreneurs in Manipur, India. Our study applied quantitative approaches to process data through PLS SEM.   Results: The results of our study reveal that social media significantly enhances both entrepreneurial opportunity recognition and exploitation, as well as prior knowledge. However, Contrary to expectations, prior knowledge negatively influences entrepreneurial opportunity recognition and exploitation. Further, social media positively affects entrepreneurial alertness and has a significant impact on expanding social networks. However, the unexpected negative relationship between social networks and entrepreneurial opportunity recognition and exploitation was observed.   Conclusion: In the context of Manipur, India, our study highlights social media’s pivotal role in boosting entrepreneurial opportunity recognition and exploitation, alongside positively affecting prior knowledge and alertness. However, the unexpected negative influence of prior knowledge and the surprising negative relationship between social networks and opportunities necessities further investigation.