Social Media Marketing and Its Influence on the Performance of Micro, Small, and Medium-Sized Tourism Enterprises: Mediation of Innovation Capabilities

The study aims to identify the determinants of social media marketing (SMM) and analyze its influence on the performance of micro, small, and medium-sized tourism enterprises (MSMT Es) using the innovation capabilities (IC) of the firm as a mediating variable. Therefore, responses were collected from 401 MSMT Es for quantitative analysis using structural equation modelling (Smart-P LS4). The findings reveal that perceived usefulness, perceived ease of use, cost-effectiveness, competitive pressure, and entrepreneurial orientation all have a significant effect on the adoption of SMM by MSMT Es. This in turn leads to the progression in the performance of MSMT Es, supplemented by their innovation capabilities. This study provides decision-makers and managers to have a thorough understanding of elements influencing the adoption of SMM and hence realizing its true value in improving the performance of MSMT Es. It also emphasizes how significant it is for business firms to include IC to supplement their operational effectiveness.