22.08.2018 Views

May-June-issue

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

INFORMATION TECHNOLOGY<br />

financial resources (Braojos-Gomez,<br />

Benitez-Amado, & Llorens-Montes,<br />

2015) and because marketing is relatively<br />

expensive, digital marketing had become<br />

very popular (Tiago & Veríssimo, 2014).<br />

Specifically on social media, (Ainin,<br />

Parveen, Moghavvemi, Jaafar, & Mohd<br />

Shuib, 2015) and his group discovered<br />

that there were factors that influenced<br />

the adoption of Facebook (the most<br />

popular among social media) for SME<br />

business in Malaysia. Similar interviews<br />

with 453 SME managers tracked the<br />

same Facebook phenomenon (Wamba<br />

& Carter, 2016). One can easily find over<br />

50 research articles on social media in<br />

the last three years alone; some praising<br />

the phenomenon, others criticizing its<br />

overzealous usage.<br />

In respect to the descriptive statistics<br />

about the 1200 SMPs in East Africa;<br />

Kenya had 65% of that number, Uganda<br />

18% and Tanzania at 17%. The study<br />

excluded Rwanda as the scope is linked<br />

to another study on human capital<br />

strategies where only countries with at<br />

least 100 regulated accounting firms have<br />

been scoped - so as to enable sampling<br />

and further interviews at a later stage.<br />

Rwanda has less than 50 firms. South<br />

Sudan and Burundi had not yet become<br />

members of the International Federation<br />

of Accountants (IFAC).<br />

Table 1 – Adoption of Websites, Facebook® and Twitter® per country<br />

Country Website Facebook Twitter<br />

Kenya 102 51 19<br />

Tanzania 49 22 15<br />

Uganda 37 37 10<br />

188 110 44<br />

%age 16% 9% 4%<br />

Source: Researchers’ analytics and compilation<br />

Table 2 – Assessment of firm presence levels per country<br />

Country<br />

No of firms Total firms %age<br />

No presence Kenya 660<br />

981<br />

81%<br />

Tanzania 161<br />

Uganda 160<br />

Only one of the three Kenya 74<br />

135<br />

12%<br />

Tanzania 28<br />

Uganda 33<br />

Two of the three Kenya 25<br />

45<br />

4%<br />

Tanzania 8<br />

Uganda 12<br />

All three Kenya 16<br />

39<br />

3%<br />

Tanzania 14<br />

Uganda 9<br />

Source: Researchers’ analytics and compilation<br />

The Skewness (Sk) and Kurtosis (Ku)<br />

for adoption of Websites, Facebook and<br />

Twitter were calculated using STATA15®<br />

statistical software. The study noted that<br />

the statistics were not normal as follows:<br />

Websites: Sk = +1.9, Ku = 4.5 (normal<br />

distribution has Sk = 0, Ku = 3)<br />

Facebook: Sk = +2.8, Ku = 9.0<br />

Twitter: Sk = +4.9, Ku = 25.3<br />

The study revealed that 81% of the<br />

SMPs (981 of them) did not have any<br />

Website and were also not found on<br />

Facebook® and Twitter®. Some firms had<br />

only a Website while some were content<br />

with Facebook account only; but no firm<br />

was only on Twitter. As noted from above<br />

skewness and kurtosis, most firms had<br />

adopted Websites, followed by Facebook<br />

while Twitter had the least appeal. The<br />

right skewness is to be expected because<br />

all observations would be either 0 or<br />

positive. The kurtosis reveal that the data<br />

is heavy-tailed compared to a normal<br />

distribution because we have outlier data,<br />

especially the very high number of firms<br />

that do not have any of the three media.<br />

There is need to enrich this area of research<br />

specifically for East Africa because<br />

Information Technology has come to<br />

disrupt the way business is conducted and<br />

consumers/customers are migrating to<br />

the Internet. Therefore, an SMP firm that<br />

does not appear on the Internet radar may<br />

remain little known (lacking followers) or<br />

may also learn little from others (those<br />

that they follow). Further research will<br />

be required to find out why this is the<br />

case and also undertake content analysis<br />

to understand the potential influence of<br />

such presence on the competitiveness of<br />

those SMPs.<br />

References<br />

Ainin, S., Parveen, F., Moghavvemi, S.,<br />

Jaafar, N. I., & Mohd Shuib, N. L. (2015).<br />

Factors influencing the use of social media<br />

by SMEs and its performance outcomes.<br />

Industrial Management & Data Systems,<br />

115(3), 570–588. http://doi.org/10.1108/<br />

IMDS-07-2014-0205<br />

Braojos-Gomez, J., Benitez-Amado, J.,<br />

& Llorens-Montes, F. J. (2015). How<br />

do small firms learn to develop a social<br />

media competence? International Journal<br />

of Information Management, 35(4),<br />

443–458. http://doi.org/10.1016/j.<br />

ijinfomgt.2015.04.003<br />

Tiago, M. T. P. M. B., & Veríssimo, J. M.<br />

C. (2014). Digital marketing and social<br />

media: Why bother? Business Horizons,<br />

57(6), 703–708. http://doi.org/10.1016/j.<br />

bushor.2014.07.002<br />

Wamba, S. F., & Carter, L. (2016). Social<br />

media tools adoption and use by SMES:<br />

An empirical study. In Social Media and<br />

Networking: Concepts, Methodologies,<br />

Tools, and Applications (pp. 791–806).<br />

IGI Global. http://doi.org/10.4018/978-<br />

1-4666-8614-4.ch035<br />

The writer is a Doctorate candidate at<br />

University Institute of European and<br />

International Studies (www.unies.de) and<br />

ESAMI Business School (www.esamiafrica.org)<br />

aro@jsamuelrichards.com<br />

MAY - JUNE 2018 43

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!