Social Media Digital Adoption of

Small and Micro Enterprises in

Metro Manila, Philippines
Aaron Dustin Chua WSZS2019003 蔡明锦
01. 02.
INTRODUCTION LITERATURE
A brief background An overview of the related literature
information on the topic of
choice
03.
RESEARCH METHOD
Research approach and
04. methodology 05.
RESULTS CONCLUSION
A summary on the results of the Brief conclusion on the research
study aim of the study
INTRODUCTION
Philippines internet economy and how does it
compare to other countries in Southeast Asia

Did you know: Philippines ranks #1 on active users

in Social Media? That’s why its coined as the
”Social Media Capital of the World”.
PHILIPPINES
SOCIAL MEDIA PENETRATION → 75%
WORLD AVERAGE → 45%
350% internet economy growth in 4 years
PH Internet Economy Growth
OBJECTIVES
To determine the current adoption status
and level of social media use of small and
micro enterprises in Metro Manila.
To determine the main uses and
challenges of adopting social media.

Measuring the effect of adoption of social

media marketing and tools of SMEs on their
business development efforts

2015 2019
 LITERATURE
A deeper understanding on Social Media

Did you know: A typical Filipino on average spend

around 10:02 hours a day on the internet connecting
with friends on social media,
MSME SECTOR OF THE PHILIPPINES
MSME → 99.57% of the enterprises in the PH (942,916 enterprises)
- Limited financial, human, technical resources Overview of PhilippineMSMEs
- More risk averse
+ Enjoy a flatter hierarchy 3.79%
4.13%
Large Enterprises → 0.43% (4072 enterprises)
+ Has access to financial, human and technical resources
+ Less risk averse 12.48%
- Strict hierarchy 46.37%
Distribution of Establishments by EnterpriseSize 13.52%

89.94%
Wholesaleand RetailTrade Accomodation and Food Service
Manufacturing Activities
9.22% FinancialandInsurance Information and Communication
Activities
0.41%
0.43%
M icro Small Medium Large
SOCIAL MEDIA

WEB 2.0 Technology → Highlighted by UGC (User-Generated Content)

Initially designed for individual use, but has evolved to become a major tool in e-commerce

Social media connects millions of users as seen on its platforms.

 FACEBOOK TWITTER
Largest, most effective social media platform Micro – blogging platform

2.45 billion active users in 2020 More of ‘in the moment ‘ and is primarily meant for sharing ideas

Centered on communication, developing relationships and 330 million active users in 2020.
creating communities
Businesses usually post around-the-clock and improve the chance
Businesses usually have a Facebook page that acts as a of engaging followers beyond the national maybe time zone
storefront and engage with consumers on that platform. (Chitwood, 2014).
Businesses also use digital advertisements on Facebook to get
more reach and engage more consumers.

INSTAGRAM LINKEDIN
Largest Photo-sharing platform
Online professional networking
Almost exist and operates entirely in mobile phones.
Growing connections in the business world
Usage is dominated by the younger generations.
260 million active users in 2020.
1 billion active users in 2020
Businesses usually use this platform to employ professionals and
Business usually use Instagram to share media posts about give the professional background of their business.
their busines and also use advertisements to target
audiences in Instagram
INTEGRATION OF ECOMMERCE AND SOCIAL COMMERCE
E-Commerce
● consumer – driven online markets in which
consumers’ needs are displayed and sold
through a communitywebsite
Social Commerce
● Concerns itself with social media management,
social media tools andhow social media
supports the e – commerce aspect of an
organization
Opportunity and Integration
● Social media acts as a storefront for an
organization’s online sellingplatform.
● Social media elements → customer reviews,
ratings, user recommendations, social
shopping tools, online communities and
marketplaces
● E – commerce elements maximizing
efficiency, one-click buying, specification-
driven virtual catalogs, recommendations
based on consumers’ past shopping behavior
COVID-19 PANDEMIC: FUNDAMENTAL CHANGE IN
CONSUMER BEHAVIOR
% of Consumers Who Increased Use of Apps
● Resulted in a vast – increase for online
purchases and social media usage 45%
40%
35%
● Shift of business strategies → ”online first” 30%
model 25%
20%
15%
10%
● Pandemic → Catalyst for change 5%
0%

● Social distancing → Contactless

innovation
● Southeast Asia experience a surge in
% of Consumers Who Increased Use of Apps 18 - 24 25 - 34 35 - 44 45 - 54 55 +
THE TECHNOLOGY-ORGANIZATION-ENVIRONMENTAL
(TOE) FRAMEWORK
Three types of Context Organizational Context Factors
● Size of Enterprise
● Technological (Internal)
● Top Management Support
● Organizational (Internal)
● CEO’s Willingness to Adopt and Innovativeness
● Environmental (External)
● Prior Experience
● The TOE – model is used to determine internet
● Lack of Managerial Time
technology adoption like social media

Technological Context Factors Environmental Context Factors

● Reach
● Industry
● Time and Money Savings
● Market Scope
● Effective Methods to Find New Markets
● Competitive Pressure
● Feedback
● Customer Pressure
● Cost-Reduction in terms of advertising and
● Family and Friends’ Support
promotion
RESEARCH METHOD
Research Approach and Methodology

Did you know: Even surveys have shifted its method to

online based as it can reach its target consumers on
onlineadvertisements?
RESEARCH METHOD

RESEARCH APPROACH

● Deductive
● Existing research + New Research (Secondary Data + Primary Data)
● TOE-Model

RESEARCH METHOD

● WEB – based surveys

● Facilitated thru email and social media
● Nominal and ordinal scale data
RESULTS
Results of the Descriptive Analysis
DEMOGRAPHIC ANALYSIS ENTERPRISE DEMOGRAPHIC
ANALYSIS
Enterprise Asset Size No of Employees Percentage in
Gender the Philippines
Male – 56%
Micro Up to P3,000,000 1 – 9 Employees 89.94%
Female – 44%
Small P3,000,000 – P15,000,000 10 – 99 Employees 9.22%

Age Group Medium P15,000,001 – P100,000,000 100 – 199 Employees 0.41%

Less than 25 – 40% Large Greater than P100,000,000 More than 200 Employees 0.43%
25 to 34 – 29%
69% belong to the age group of up to 34 years old Workforce
● Employees: 1 -99 – 87% of sample
Educational Attainment
● 100 – 199 – 10% of sample
At least tertiary level – 83%
● More than 200 – 3% of sample
Overall 90% are degree holders
7% are non – degree holders
Annual Revenue
Employment Status ● Less than 3 million php – 71%
Self – employed – 49% ● More than 3 million – 29%
Working full time in private sector – 28%
Working full time in public sector – 12% Market Scope
● Local – 42% 77%
● Regional – 35%
● Regional – 13% 23%
● International – 10%
 SOCIAL MEDIA Purpose of Adoption

Adoption Status Selling Page 40.54%

• Adopter – 74% Getting Referrals 20.27%
• Non-adopter – 26% Reach New Customers 69.92%
Conduct Market Research 12.16%
Customer Relations/Service 64.86%
Advertising and Promotions 89.19%
Information and Branding 85.14%
Information Advertising Customer Conduct
Reach New Getting Selling
and and Relations/S Market
Customers Referrals Page
Branding Promotions ervice Research
Purpose of Adoption 85.14% 89.19% 64.86% 12.16% 69.92% 20.27% 40.54%

Adopter Non-Adopter
Barriers of Adoption

Others 34.62%
Fear of Critique and Negative Feedback 11.54%
Platform Usage Rate
Risk of Information Security 11.54%
Others 10.81% Client Based Business 23.08%
Twitter 17.57% Compatibility of the Business 38.46%
LinkedIn 14.86% Complexity and need of IT Skills 46.15%

Instagram 56.76% Fear of

Complexity Compatibility Risk of
Facebook 85.14% Client Based Critique and
and need of of the Information Others
Business Negative
IT Skills Business Security
Facebook Instagram LinkedIn Twitter Others Feedback
Platform Usage Rate 85.14% 56.76% 14.86% 17.57% 10.81% Barriers of Adoption 46.15% 38.46% 23.08% 11.54% 11.54% 34.62%
SOCIAL MEDIA
TOE-Model (Technological, Organizational, Environmental) Technological Context Factors
● Reach
Out of the 74 enterprises that adopted social media: ● Time and Money Savings
● Effective Methods to Find New Markets
Technological Context –
• The Variable “Reach” was the most significant factor in ● Feedback
influencing social media adoption for this context. ● Cost-Reduction in terms of advertising and promotion
• The Variable “Feedback” was found to be the least significant
factor of influencing social media adoption Organizational Context Factors
● Size of Enterprise
Organizational Context – ● Top Management Support
• The Variable “Size of Enterprise” and “Top Management
● CEO’s Willingness to Adopt and Innovativeness
Support” were strong predictors of whether an organization
will adopt a social media plan. ● Prior Experience
• The Variable “Lack of Managerial Time” was the least ● Lack of Managerial Time
significant in predicting whether an organization will adopt
social media. Environmental Context Factors
● Industry
Environmental Context –
● Market Scope
• The Variable “Competitive Pressure” is shown to have a
significant influence on social media adoption. ● Competitive Pressure
• The Variable “Friends and Family Support” was the most ● Customer Pressure
insignificant variable found for this external context.
● Family and Friends’ Support
 CONCLUSION
Brief conclusion on the research aim of the study
Out of the 74 enterprises that adopted social media:

Research Aim 1 → To determine the current adoption status and level of social media usage by small and micro enterprises

• Out of 100, 74% were social media adopters with at least one social media platform
• 87% of the sample belong to micro and small enterprises
• 90% of the micro and small enterprises adopt social media

Research Aim 2 → To determine the main uses and challenges of social media adoption in Metro Manila.

• MSMEs primarily use social media for advertising and promotion (89.19%)
• MSMEs show great understanding of what social media can do with “Reach” being the third of importance in the adoption of social
media
• Individuals indicated too that around 40% uses social media as a means to sell their goods/services
• “Complexity and the need for IT skills” was identified as being the main barrier to adopt social media (40.54%) Almost 50%. Ending
second is “Compatibility of the business” comes at second at 38.46%

Research Aim 3 → To determine the TOE Framework factors that influenced the adoption of social media among small and micro
enterprises in Metro Manila.

• Technological Context – “Reach” most important

• Organizational Context – “Top management Support” most important
• Environmental Context – “Competitive Pressure” most important