INTRODUCTION
Significance of the study
This study is expected to contribute knowledge to the effective and efficient management of labour exports; hence, it will benefit the following sectors:
Vietnam's government is set to develop targeted action plans aimed at enhancing the competitiveness of its workforce As a result, international employers can expect to access a more skilled and competitive labor pool in the future.
This study aims to empower Vietnamese workers by highlighting their strengths and weaknesses while informing them about the expectations of international employers Key factors such as academic qualifications, technical expertise, communication skills, past performance ratings, work experience, and personal attributes will be emphasized By understanding these requirements, Vietnamese workers can enhance their skills and increase their chances of success in the global job market, ultimately guiding them in their future applications for overseas employment.
This research aims to assist managers of labor export in comprehending the requirements of international employers, offering crucial recommendations for developing action plans that enhance the competitiveness of Vietnamese labor By focusing on superior innovation, the findings could bolster the reputation and competitive edge of Vietnamese workers, aligning their skills with the expectations of global employers.
This article examines the current state of labor in Vietnam, highlighting both its strengths and weaknesses It aims to offer valuable insights into the needs of foreign labor importers, serving as a foundational resource for the Vietnamese government in strategizing labor development and enhancing export activities.
This study will provide valuable insights for other researchers, aiding them in gathering essential information pertinent to their respective fields Additionally, it will highlight the limitations encountered, which can inform and guide future research endeavors within this area of study.
Research questions and objectives of the study
There are two important questions that need to be studied:
(1) What is the status of using social media by small and medium-sized enterprises (SMEs) in Vietnam?
(2) How does social media influence business performance?
This thesis evaluates the current use of social media by Vietnamese SMEs through an enterprise survey, highlighting both the advantages and disadvantages of social media marketing It specifically examines the influence of social media on the business performance of these enterprises Based on the findings, the thesis offers recommendations for businesses to enhance their social media marketing effectiveness.
The thesis is structured into five chapters, with Chapter 1 focusing on the significance of social media for businesses, addressing current challenges in the social media discourse, outlining research objectives, and defining the research scope.
Chapter 2 focuses on the basics of social media and business performance and business performance indicators, as well as research on the relationship between social media and business performance both theoretically and practically From this literature review, the author presents the proposed research model
Chapter 3 introduces the research methodology, sample selection and sampling procedures, as well as the analytical methods used to answer the research questions
Chapter 4 examines the utilization of social media marketing by SMEs in Vietnam, drawing insights from survey results It further employs multivariate regression analysis to evaluate the influence of social media on the business performance of these Vietnamese SMEs.
Chapter 5 summarises the results of the research and provides solutions to improve the effectiveness of using social media for SMEs in Vietnam.
LITERATURE REVIEW
Overview of social media
Social media is a crucial topic for businesses, executives, and policymakers, yet its definition and potential benefits for corporations remain somewhat limited (Kaplan & Haenlein, 2010) It is primarily associated with Web 2.0 and user-generated content, and Kaplan and Haenlein categorize it into several groups, including collaborative projects, social networking sites, virtual game worlds, social worlds, blogs, and content communities Among these, social networking sites represent the largest and most significant segment of social media The term "social media" is often used interchangeably with "Web 2.0" and can be classified into key categories (Constantinides & Fountain, 2008).
• Blogs: Encompassing individuals’ or enterprises’ online journals and often combined with audio or video podcasts
• Social network: Applications allowing users to build personal websites accessible to other users for exchanging content
• Content communities: Websites organising and sharing particular types of content
• Forums: Sites for exchanging ideas usually around special interests
• Content aggregators: Applications allowing users to customise fully the web content they wish to access
2.1.2 The role of social media
Social media plays a crucial role in business by enabling immediate, interactive, and cost-effective communication, fostering connections among individuals Its significance is underscored by three key reasons that highlight its necessity in the modern business landscape.
Social media is a powerful tool for businesses to enhance brand awareness, a primary objective in many marketing campaigns E-commerce brands often struggle to forge emotional connections with customers, but social media offers a solution By utilizing creative strategies and maintaining consistent content, brands can effectively engage their audience and bring their identity to life.
Social media significantly boosts website traffic, with platforms like Facebook now seen as more influential than Google in driving users to business sites This surge in traffic is closely linked to enhanced sales effectiveness, demonstrating the vital role of social media in online marketing strategies.
Social media serves as a vital source of information and knowledge, allowing users to access updates without relying on traditional news outlets Businesses leverage this wealth of data to gain insights into user behavior and emerging trends within the community By utilizing social listening tools, companies can monitor conversations and activities on social networks, enabling them to enhance their marketing campaigns and operational processes based on the gathered insights.
Business performance and its measurement
Business performance, or organisational performance as the broader term, is widely accepted as the actual outcome or results of a company as measured against its inputs
Business performance, as outlined by Richard et al (2009), can be categorized into three key areas: financial performance, which includes metrics such as profits, return on assets, and return on investment; product and market performance, encompassing sales and market share; and shareholder return, which covers total shareholder return and economic value added.
Measuring business performance is complex, as it encompasses various aspects of a firm's operations A key factor in determining this performance lies in the effective utilization of enterprise resources, which can be transformed into a competitive advantage.
Key indicators of business performance include financial capacity, operational optimization, and social performance Financial performance emphasizes sales growth, customer acquisition, and profitability Operational performance pertains to efficiency, market share, and customer satisfaction Meanwhile, social performance encompasses a company's reputation, brand awareness, and public image.
Needly (2002) and Taticchi (2010) synthetize some business performance indicators and their formulas as follows:
Return on Investment = Revenue − Expenses
Return on Asset = Net Profit
Return on Equity = Net Profit
Return on Equity = Net Profit
* Market performance and Business Growth:
This study emphasizes the critical aspects of financial performance, specifically focusing on the growth of sales and customer acquisition, which are essential for the survival of any enterprise, especially given the constraints of time and budget.
Theoretical perspective on the relationship between social media and business
Social media has become an essential tool in marketing, facilitating communication and connection with customers While marketing encompasses a wide range of activities aimed at boosting sales of goods and services, the impact of social media on business performance remains underexplored This section delves into various theories to understand the influence of social media on business outcomes.
The concept of marketing theory was first introduced at an American Marketing Association conference in Pittsburgh in 1946, aiming to define marketing's essence and establish a framework for modern economics Alderson and Cox (1948) emphasized the necessity for a unified marketing theory, advocating for a comprehensive approach applicable across various sectors Similarly, Bartels (1968) supported the development of marketing theory, proposing a "cumulative approach" to synthesize general marketing principles from seven distinct theories.
• The theory of social initiative; economic separations
• The theory of market roles, expectations, interactions
• The theory of social control
Two years later, Bartels (1970) restated his view of marketing in terms of five theories, which all remain relevant:
• Small versus large-scale activity
Hunt (1983, p 24) continued to develop the theory of marketing with a combination of four important theories:
• Behaviours of buyers, sellers and institutional frameworks
Marketing is described as “a behavioural system of exchange” (Bagozzi, 1979) or
“exchange process” of the company to the market and what is exchanged here can be products, services, ideas, messages and even emotions
Marketing encompasses various strategies, with Kuhn (1996) defining it as a "set of sales and distribution practices." Additionally, Levitt (1960) and Keith (1960) emphasize a customer-centered approach over a product-centered one Furthermore, multiple marketing paradigms have been identified, as noted by Fournier (1998) and Palmer & Ponsonby (2002).
The American Marketing Association first officially defined marketing in the 1960s as
“performance of business activities that direct the flow of goods and services from the producer to the consumer or user” (AMA 1960, in Keefe 2004) In 1985, the concept was refined into
Marketing involves planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to meet individual and organizational goals According to the American Marketing Association (AMA), marketing is defined as an organizational function that creates, communicates, and delivers value to customers while benefiting the organization and its stakeholders Key marketing tasks include public relations, branding, marketing communications, customer relationship management, and sales channel development, as highlighted by Belz and Tomczak and Brexendorf.
Social media serves as a powerful marketing tool, enabling companies to convey messages that promote purchases, enhance public relations, build brand identity, and introduce new products These strategic communications can significantly shape customer perceptions and engagement while amplifying the dissemination of information regarding the company and its offerings.
The marketing mix is a strategic tool that assists businesses in selecting the right products or brands to offer, as defined by Kotler (2000) as "the set of marketing tools that the company uses to pursue its marketing objectives in the target." McCarthy (1964) originally introduced the concept with the 4 Ps: Product, which should meet customer demands; Place, ensuring easy access for customers; Price, which needs to be reasonable; and Promotion, where companies utilize advertising, public relations, sales promotions, and social media to effectively reach potential customers.
Booms and Bitner (1981), Kotler (2012) expanded the marketing mix model and added
To effectively engage customers, companies must focus on the 4 Ps: People, Processes, Physical Evidence, and Performance First, ensuring high-quality human resources and fostering positive customer relationships is essential Second, delivering goods and services efficiently encourages customer loyalty and repeat business Third, customers expect tangible proof of their transactions, such as contracts or manuals, regardless of whether they purchase a product or service Finally, businesses should strive for performance that aligns with their core values, ultimately providing real benefits to customers.
The theory of buyer behaviour was first introduced by Howard in 1963 as a consumer decision model The model was developed by Howard and Sheth (1969) and aims to provide
The intricate interplay of social, psychological, and marketing factors significantly shapes consumer choice, as highlighted by Foxall (1990) To comprehensively illustrate the elements that affect buyer behavior, Loudon and Della Bitta (1993) provide a detailed theory and model, visually represented in the accompanying diagram.
Figure 1: The model of buyer behaviour (Loudon and Della Bitta (1993)
The factors that influence the behaviour of buyers can be grouped into two categories: perception constructs and learning constructs Perception of components consist of three issues:
(i) Sensitivity to information, which reflects the ability to capture stimulus information
(ii) Perception of bias, which reflects changes and disturbances of prior perception (iii) Search for information, which reflects the proactive search for information on selected products or services
The perception of constructs shapes how buyers gather, filter, and process information, significantly influencing their purchasing decisions Individual factors play a crucial role in this learning process, affecting how consumers interpret and respond to the information they encounter.
(i) Motive, which reflects the motivation or purpose of the purchase
(ii) Evoked set, which is the buyer’s assessment of the ability to meet the expectations, objectives when using the product or service
(iii) Decision mediators, which reflect buying psychology and alternatives
(iv) Predispositions, which reflect the perception and preference of brands
(v) Inhibitors, which reflects the limitation of resources to meet procurement needs (vi) Satisfaction, which is a reflection of satisfaction from previous purchase decisions or from other buyers
Loudon and Della Bitta (1993) highlight that customer perception significantly influences purchase decisions, which is largely shaped by customer knowledge Effective information dissemination and customer interaction play crucial roles in the buying process, while reviews from other customers serve as a vital reference channel.
Loudon and Della Bitta (1993) identify several key factors that influence buyer behavior, such as the significance of the purchase, personality traits, social class, cultural background, organizational context, time constraints, and financial status They outline a five-step process that buyers typically follow in response to these variables.
(i) Attention – access to information about goods and services
(ii) Comprehension – the process of selection and processing of information (iii) Attitudes – customer perceptions and evaluations of specific brands
(iv) Intention – the perception and forecast about the to-be-purchased products (v) Purchase behaviour – making an actual purchase
Decision-making theory was firstly introduced by Edwards (1954), and it reflects “how people make choices among desirable alternatives.” This theory was later developed by Nicosia
The purchase decision process, as outlined by scholars since 1966, encompasses various sub-decisions that demand significant time and effort For example, consumers may choose from various sales outlets, such as department stores This decision-making process is inherently risky, with the level of risk varying based on the product and purchasing conditions To mitigate these risks, consumers strive to make informed decisions to the best of their knowledge.
The buying decision process involves a sequence of choices made by consumers before a purchase, starting with their willingness to buy Consumers must determine the purchase location, select the brand, model, or size, decide on the timing, set a budget, and choose a payment method Marketers aim to influence each of these critical decisions.
According to Engel et al (1968) and Kotler (2012), the buying decision process can be explained as below five steps:
Figure 2: The buying decision process (Kotler, 2012)
* Need recognition and problem awareness:
The buying process begins when a buyer recognizes a problem or need, which can be triggered by internal factors like hunger or external stimuli such as the sight or smell of appealing food Marketers aim to stimulate these needs and assist consumers in identifying them through strategic use of product offerings, including effective packaging, pricing, and promotions.
When customers recognize their need for a product, they actively seek information to enhance their understanding and become aware of competing brands Previous purchasing experiences can significantly shorten the time spent on this information search Customers can gather insights from various sources, ensuring they make informed decisions.
• Personal sources – family, friends, neighbours, acquaintances
• Commercial sources – advertising, salespersons, dealers, packaging, displays
• Public sources – mass media, research organisations
• Experiential factors – past experiences, free trials
Empirical evidence on the impact of social media on business performance
Social media has revolutionized business practices for companies of all sizes, from small businesses to large enterprises, according to Dutta (2010) The shift towards social media is driven by its significant advantages, including low costs, easy accessibility, and the ability to reach a vast audience without limitations These factors facilitate customer outreach and enhance brand recognition Additionally, social media fosters easy and diverse participation among employees, clients, colleagues, and the public, enabling companies to cultivate relationships and improve public relations Furthermore, the online platform allows for rapid two-way feedback between companies and their customers or partners, benefiting both parties.
Social media serves not only as a platform for sharing product information and company events but also as an effective recruitment tool for businesses According to Hunt (2010), companies can utilize social media to post job openings while job seekers can discover employment opportunities LinkedIn exemplifies this, being a dedicated networking site for human resources that fosters two-way communication Hunt (2010) emphasizes that companies that neglect to engage on these platforms risk losing out on talented candidates who might be a perfect fit but remain unaware of available positions.
According to Corconran and Feugere (2009), brands and retailers in the US are leveraging social networks to boost sales and increase brand awareness, with high-end brands particularly focusing on fostering customer loyalty through platforms like Facebook User ratings and high online transaction success rates serve as crucial tools for improving customer engagement.
Social media, particularly Facebook and Twitter, has significantly influenced business operations, as demonstrated by the Small Business Saturday program launched by American Express in 2010 This initiative garnered over one million Facebook likes and approximately 30,000 tweets in its first year According to Markowitz (2013), the program has contributed to a 28% growth in small businesses and generated an impressive $5.5 billion USD in sales by 2013.
Social media significantly influences market orientation, leading to improved business performance, particularly for SMEs globally, including in the UK and the US Both manufacturing and service companies reap these benefits, although some studies, like that of Alvarez et al (2000), indicate a lack of correlation between market orientation and business performance in certain instances.
Bruhn et al (2012) found that while social media cannot immediately replace traditional media due to their distinct advantages and disadvantages, a long-term shift towards social media is feasible Therefore, businesses are encouraged to engage with and utilize social media platforms.
The relationship between the Internet, social media, and business performance is complex and influenced by various factors According to Chen (2011), this complexity arises from both internal factors, such as product type and characteristics, and external factors Additionally, the role of brands varies in different contexts, leading to differing impacts of social media on performance Furthermore, the diversity of internet technologies and social media platforms results in varying effects on company performance.
Social media can pose significant threats to a company's reputation, as highlighted by Aula (2010), who analyzes various situations on platforms like Facebook that demonstrate the public's negative influence While social media expands a company's reach and opportunities, it simultaneously increases the risks associated with its reputation.
Kietzmann et al (2011) proposed a comprehensive framework for analyzing social media, highlighting seven essential facets: identity, conversations, sharing, presence, relationships, reputation, and groups To maximize effectiveness, businesses must develop targeted strategies for each aspect of their social media activities.
The strategic utilization of social media is crucial for businesses, particularly in the commercial and service sectors Research by Hanna et al (2011) and Parent et al (2011) highlights that social consumers are not only skilled but also generous, showing a willingness to purchase or participate in social media events when satisfied Their preferences are significantly shaped by social media interactions, representing a substantial market opportunity that companies must seize.
Despite its potential, social media often receives insufficient focus and limited budgets, resulting in a lack of comprehensive research on its impact on business performance Consequently, many enterprises rely on subjective experiences to guide their social media campaigns, rather than a solid scientific foundation.
2011) Therefore, the comprehensive study of the influence of social media on business performance is necessary and urgent
Customer engagement and business performance
Customer engagement plays a crucial role in shaping purchasing decisions, characterized by meaningful, two-way interactions between customers and companies This engagement fosters a stronger connection and preference for the company's products and services, ultimately driving revenue growth and expanding the customer base As a result, it is anticipated that enhancing customer engagement will positively influence overall business performance.
Brand awareness and business performance
Brand awareness, as defined by Aaker (1996) and Keller (2008), is the ability of customers to recognize or recall a brand, which serves as a crucial factor in enhancing business performance Research by Huang and Sarigollu (2012) on 11 US brands demonstrates the positive correlation between brand awareness and business success This awareness not only aids customers in making informed decisions amidst numerous options but also helps smaller businesses compete against larger, more established brands (Macdonald & Sharp, 2000) For startups, fostering brand awareness is vital, as it builds customer trust, which is often lacking compared to well-known brands (Kim et al., 2002) Ultimately, brand awareness significantly influences a company's overall performance.
Information diffusion and business performance
Information diffusion plays a crucial role in influencing business performance, as it directly impacts customer choice based on demand and decision-making theories Effective dissemination of information about products and services increases brand awareness, allowing customers to evaluate the suitability and quality of offerings When customers are informed and perceive the product positively, they are more likely to trust the business and make a purchase Conversely, if customers are unaware of a company's products and services, all marketing efforts may be in vain Thus, enhancing information diffusion is essential for improving business outcomes.
Conceptual framework and hypotheses on the relationship between social media and
Utilizing social media can significantly enhance a company's business performance, particularly in expanding customer reach and boosting sales Our conceptual framework illustrates social media as the independent variable, directly influencing the dependent variable of business performance.
Figure 3: The proposed research model
Social media plays a crucial role in enhancing business performance by effectively communicating product messages and promotional campaigns It serves as a powerful channel for companies to announce new products and sales, providing essential information not only about the offerings but also about the company and its events Additionally, social media facilitates easy customer feedback, enabling businesses to make necessary adjustments and improvements to their products and services Furthermore, it allows customers to access pricing information effortlessly, thereby influencing their purchasing decisions.
Secondly, social media is an effective channel for public relations and customer service This is an easy way for companies to exchange, share, listen, consult, and serve customers at
Reaching out to more customers
Business Branding Call for purchases
Public relation and customer service
The rise of information technology has enabled businesses to increase sales at minimal or no cost, allowing them to reach a broader audience online without the need for expensive sales systems This shift facilitates effective public relations initiatives that can engage a wider range of potential customers.
Social media serves as a powerful platform for companies to enhance their brand image and connect with customers By leveraging broadband and unlimited connectivity, businesses can showcase their high-quality products, competitive pricing, and exceptional customer service A key strategy for building trust and credibility is through the sharing of positive customer reviews, which significantly boosts consumer confidence in the company's offerings.
By enhancing customer interaction and engagement, the company can effectively raise brand awareness, disseminate product information, and promote its business, ultimately leading to increased sales and the ability to reach a broader audience of potential customers.
H1 Social media messages will improve customer engagement
H1.1 Business branding message will increase customer engagement
H1.2 Call for purchase message will increase customer engagement
H1.3 Re-posts of customer reviews will increase customer engagement
H1.4 Public relations and customer service will increase customer engagement
H1.5 Product introduction will increase customer engagement
H2 Social media messages increase brand awareness
H2.1 Business branding message will improve brand awareness
H2.2 Call for purchase message will improve brand awareness
H2.3 Re-posts of customer reviews will improve brand awareness
H2.4 Public relations and customer service will improve brand awareness
H2.5 Product introduction will improve brand awareness
H3 Social media messages promote information diffusion
H3.1 Business branding message will promote information diffusion about the company and products
H3.2 Call for purchase message will diffuse information about the company and its products/services
H3.3 Re-posts of customer reviews will promote information diffusion about the company and products
H3.4 Public relations and customer service will improve the diffusion of information on the company and its products/services
H3.5 Product introduction will promote information diffusion about the company and products
H4 The format of social media message influence customer engagement
H5 The format of social media message influence brand awareness
H6 The format of social media message influence diffusion of information about the company and its products/services
H7 Customer engagement will improve sales
H8 Customer engagement will reach out to more customers
H9 Brand awareness will improve sales
H10 Brand awareness will reach out to more customers
H11 Information diffusion about the company and products will improve sales
H12 Information diffusion about the company and products will reach out to more customers
H13 Social communications will increase sales
H14 Social media will reach out to more customers
H15 Social media increase business performance
RESEARCH METHODOLOGY
Research design
The study employs descriptive and correlation research methods, with descriptive research proving essential for effectively gathering, classifying, analyzing, and accurately interpreting data, regardless of the use of statistical tools.
On the other hand, an econometric method is valuable in determining the impacts of social media on business performance of SMEs in Vietnam
The researcher found these methods appropriate in the study The quantitative research was based on data collection through a questionnaire Data collected was processed by the software SPSS and Stata.
Time and place of study
The study assesses the impact of social media on business performance of SMEs in Vietnam The survey was conducted in Vietnam both online and offline during July and August
Population, sample size and sampling technique
Due to the significant number of SMEs in Vietnam, the researcher was unable to implement specific sampling techniques for size selection Consequently, a convenient sampling method was employed, resulting in the selection of 147 respondents for the study.
The respondents were managers of the company or at least the sales department.
Research instrument
The research was conducted with a questionnaire checklist, which included five parts:
• Part I is the profile of the respondents in terms of age, gender, marital status, educational attainment, work department, employment position and years of experience
Part II presents a comprehensive profile of the company, detailing its classification, workforce size, and core business activities Additionally, it highlights key financial indicators, including revenue, costs, profits, total assets, and total equity, offering a clear overview of the company's economic standing.
Part III outlines the company's engagement with social media, detailing the various platforms utilized, the objectives behind their social media strategy, and the methods employed for effective communication It also examines the financial investment in social media and highlights the potential benefits that can be derived from this digital presence.
Part IV explores the influence of social media on business performance by evaluating the company's social media activities It highlights how social media messages shape customer perceptions, impacting engagement, brand awareness, and information diffusion Furthermore, it examines the reciprocal relationship where customer perceptions subsequently affect overall business performance.
• Part V determines the impact of the social media message format on customer perceptions
The observed variables in the composition used various evaluation methods, including the Likert five-point scale, with choices ranging from 1 to 5 as follows (part IV and part V):
5 4.20 - 5.0 Strongly Agree/Excellent/Very Strong
3 3.00 - 3.19 Neither Agree or Disagree /Average/Medium
1 1.0 - 1.79 Strongly Disagree /Poor/Very Weak
Table 1: The Likert five-point scale (Likert, 1932)
Data gathering procedure
The research utilized a mix of questionnaires and interviews to gather data from participants, alongside information sourced from both published and unpublished local and international studies, as well as online resources.
The researcher developed a questionnaire that was reviewed by the adviser before being distributed to SMEs in Vietnam After collecting the responses, the results were systematically tallied, tabulated, and analyzed statistically Ultimately, the findings were interpreted, leading to drawn conclusions.
The data was input to statistical software (SPSS and Stata) for analysis and interpretation.
Methods of data analysis
The author employed three methods to analyse the data
Descriptive statistics, including mean, standard deviation, rank, percentage distribution, and frequency counts, were utilized to analyze the respondents' profiles, the company profiles, and overall evaluations of social media usage by the companies.
A qualitative approach was employed to evaluate the influence of social media on business performance, utilizing direct questions to capture respondents' perceptions regarding the effects of social media on customer views and overall business outcomes.
The study employed a quantitative approach to assess the influence of social media on business performance, utilizing the ordinary least squares (OLS) method for estimating parameters in a linear regression model This technique minimizes the sum of squared vertical distances between observed data and predicted responses, providing a straightforward estimator formula, particularly when a single predictor variable is involved.
The Ordinary Least Squares (OLS) estimator achieves consistency when the independent variables are exogenous and free from multicollinearity It is optimal among linear unbiased estimators when the error terms are homoscedastic and not serially correlated Under these ideal conditions, OLS delivers minimum-variance mean-unbiased estimates, provided the errors possess finite variances (Greene, 2002).
The multivariate regression equation is expressed as follows:
Q35No Number of social networking sites is used (Q.35)
Q36 Experience of using social networks (Q.36)
Q37 Frequenty of using social networks (Q.37)
Q38 Growth of frequency in using the social networking sites (Q.38)
Q42 Direct sale system integrated in social networks (Q.42)
Q44 Social media quality of the company (Q.44)
Network Facebook, Twitter, YouTube, Instagram, LinkedIn, What's App,
In addition, the author used T-test and ANOVA one-way to measure the potential variance of the respondents’ perceptions following the personal profile and company characteristics
The proposed research model incorporates multidimensional aspects, multivariate impacts, and structural influences, making structural equation modeling (SEM) the optimal method for comprehensively and accurately assessing the impact of social media on business performance (Hoyle, 1995; Bagozzi and Yi, 2011).
SEM is implemented as shown in the figure below and estimated using the maximum likelihood with missing values (MLMV)
Figure 4: Structural equation modelling for impacts of social media on business performance
FINDINGS AND DISCUSSIONS
Description of respondents
The age of the respondents is shown in the chart below:
Figure 5: The age of the respondents
The survey results indicate that a significant majority of respondents are young adults aged 26-33 (55.10%), followed by middle-aged individuals aged 34-41 (26.73%) In contrast, new graduates (ages 18-25) represent only 6.12%, while the elderly (ages 42-49) make up just 2.05% This demographic profile aligns with the typical characteristics of businesses that utilize social networks, highlighting a predominantly young and tech-savvy audience.
The gender of the respondents is shown in the chart below:
Figure 6: The gender of the respondents
The chart indicates that 65.31% of respondents identified as male, compared to 34.69% who identified as female, highlighting a predominance of male leadership in business operations, consistent with contemporary trends.
The marital status of the respondents is shown in the diagram below:
Figure 7: The marital status of the respondents
The survey indicates that a significant majority of respondents, 75.51%, are married, while a smaller portion, 24.49%, identifies as single This distribution of marital status among participants reflects the broader trends observed within small and medium-sized enterprises (SMEs) in Vietnam.
The educational attainment of the respondents is as follows:
Figure 8: The educational attainment of the respondents
The survey indicates that 67.35% of participants hold a university degree, while 22.45% possess a master’s degree, 2.04% have a PhD, and 4.08% graduated from vocational school or high school Overall, certified qualifications play a crucial role in human resource management, as degree qualifications are key indicators of competence and knowledge.
The work department of the respondents is shown in the graph below:
High School Vocational College Bachelor Master Doctor
Figure 9: The work department of the respondents
The survey revealed a diverse group of respondents holding key positions within their companies, including 18.36% as general managers, 26.53% in sales and marketing, 20.41% in executive and HRM roles, 18.37% in finance and accounting, and 16.33% in production This variety of experience and roles is crucial for ensuring accurate and objective research outcomes.
Statistics on employment positions of the respondents are shown in the following chart:
Figure 10: Employment positions of the respondents
Production Department Executive Department and HRM Sale and Marketing Department Finance and Accounting Department General Management
The survey results reveal a close alignment between the responses of managers and employees, with 53.06% of managers participating compared to 46.94% of employees This similarity suggests that the findings are objective and accurately reflect the workplace dynamics.
The years of working experience of the respondents are shown in the following chart:
Figure 11: The years of working experience of the respondents
The survey chart reveals a diverse range of participant experience, with the largest group consisting of new employees (1-3 years) at 26.53%, followed closely by long-serving staff (10 years and above) at 24.48% Additionally, employees with 3-5 years of experience represented 18.37%, those with 5-7 years accounted for 14.29%, and the 7-9 year group made up 16.33% This balanced distribution among experience levels enhances the comprehensiveness and accuracy of the assessment.
Information about the type of surveyed enterprise is shown in the below diagram:
1-3 years 3-5 years 5-7 years 7-9 years 10 years and above
Figure 12: The type of surveyed enterprise
The number of joint-stock enterprises accounted for the greatest percentage (39.78%), followed by private enterprises (30.61%), limited liability enterprises (20.41%) and 10.20% other
The business lines of the surveyed enterprises are shown in the table below:
Type of business activities Total Percentage
Table 2: The business lines of the surveyed enterprises
The survey indicates a significant presence of multidisciplinary businesses, highlighting a key development trend Notably, 51.02% of the surveyed enterprises are in the service sector, while 38.78% operate in manufacturing, and 30.61% are involved in trade This distribution reflects the ongoing shift in economic structures both globally and in Vietnam.
Overall, the characteristics of the surveyed respondents and enterprises are quite consistent with the status of SMEs in Vietnam
Private company Limited liability company Joint-stock company Other types
Current status of social media use of SMEs in Vietnam
The advertising channels and social media that enterprises use are described in the following table:
Types of advertising and media Total Percentage
E-commerce website of third parties 30 20.41%
Table 3: Types of advertising and media
The data indicates that online social networking sites rank among the top advertising channels, alongside traditional methods Notably, 24.49% of surveyed companies lack a business website yet actively promote and connect with customers via social media Additionally, forums serve as a significant advertising platform, utilized by 46.94% of the firms surveyed Other advertising avenues include television commercials and sales through third-party e-commerce websites.
Enterprises recognize the value of social networking sites in the interview process, citing their low cost and extensive reach as key benefits These platforms facilitate effective two-way interaction with customers, making them an attractive option for companies looking to enhance their online presence.
The survey also shows that 100% of enterprises use one to five social networking sites The details are as follows:
Social networking sites Total Percentage
A recent survey reveals that Facebook dominates the business social media landscape, with an impressive 95.92% of firms utilizing the platform Following Facebook, YouTube is used by 51.02% of businesses, while Twitter and Instagram have participation rates of 38.78% and 24.49%, respectively In Vietnam, local social network Zalo also shows significant engagement at 20.41% In contrast, other platforms like LinkedIn (8.16%), WhatsApp (4.08%), and Pinterest (2.04%) see minimal usage among businesses.
* Experiences in using social networking sites
The number of years that companies using social networks is shown below:
Figure 13: Experiences in using social networking sites
The chart indicates that a significant majority of companies have engaged with social media for several years, with 40.82% utilizing social networking for 1-3 years, 26.53% for 3-5 years, and 16.33% for 5-7 years Notably, only 8.16% of companies began using social networks in 2018.
* Frequency of using social media
The frequency of using social networks is shown in the following diagram:
Years of using social networking sites
Less than 1 year 1-3 years 3-5 years 5-7 years 7-10 years More than 10 years
Figure 14: Frequency of using social media
The diagram illustrates that social networking usage among SMEs in Vietnam is significant, with 48.98% of businesses being "always online," 18.37% engaging with social media hourly, and 20.41% daily This highlights the crucial role that social media plays in the business landscape.
* The growth of frequency in using social media
Figure 15: The growth of frequency in using social media
Not only is the frequency of using social media already high, but the growth rate of social media usage is also significant, with 20.41% rating growth as “very high”, 36.73% as
Frequency of using social media
Always online Hourly Daily Three-days Weekly Quarterly
Growth of frequency in using social media
Very high High Average Low Very low
Follows, friends or contacts are extremely important in social media, because these interactions determine how many people messages can reach
Figure 16: Numbers of followers on the social networking sites
A recent survey reveals that 46.94% of companies boast follower counts between 1,000 and 10,000, while 20.41% have fewer than 1,000 followers, and 18.37% range from 10,000 to 50,000 Notably, only 6.12% of businesses exceed one million followers on their social marketing pages This indicates that, despite the focus on social communication, many companies are not fully leveraging the potential of this advertising channel.
Information posted on the social networking sites Total Percentage
An in-depth review of the product 42 28.57%
Other interesting things for public relation 36 24.49%
Table 5: Information posted on the social networking sites
Number of followers on the social networking sites
A recent analysis of social networking sites reveals that 77.55% of companies share information about their organization and events, while 67.35% focus on product introductions Additionally, 57.14% provide recruitment updates, and 44.90% promote trade campaigns Consulting and customer care information is offered by 30.61% of companies Other content includes in-depth product analyses (28.57%), public relations updates (24.49%), and gaming contests (14.29%).
* Purposes in using social networking sites:
Purposes in using social networking sites Total Percentage
Public Relation and customer service 105 71.43%
Table 6: Purposes in using social networking sites
The primary objective of utilizing social networking sites is to enhance public relations and customer service, with 71.43% of companies prioritizing this function Additionally, 67.35% focus on business branding, while 63.27% aim to introduce new products Furthermore, 61.22% of businesses leverage these platforms to encourage purchases, and 20.41% utilize social networking sites to share customer reviews, along with other purposes accounting for 32.65%.
* Integration of direct sale system
Figure 17: Integration of direct sale system
The advancement of technology has led to the integration of direct selling systems within online social networking sites, simplifying the purchasing process for customers Despite this potential, a survey revealed that only 38.78% of enterprises have adopted such systems Face-to-face interviews highlighted several barriers to integration, including high costs, difficulties in selling certain products on social platforms, and the complexity of existing payment systems.
* Revenue from direct sales systems of online social networking sites
Figure 18: Revenue from direct sales systems of online social networking sites
Integration of direct sale system
Revenue generated from direct sales systems on social networking sites
Less than 20% of total sale 20-40% of total sale
In Vietnam, only 21.05% of companies utilizing a direct selling system achieve 20-40% of their total sales through social networking sites, while 78.95% report basic sales constituting less than 20% of total sales This level of engagement is significantly lower compared to developed countries, where many SMEs successfully rely on direct sales via online social platforms.
Overall, the use of social media by SMEs in Vietnam is evolving but has not yet reached its full potential
4.2.2 An assessment of using social media by SMEs in Vietnam
• The use of social media
To establish the quality of social media, 11 questions (from Q44 to Q54) were used, as follows:
Q44: How is social media of your company?
Q45: How is business branding of your company?
Q46: How is call for purchases of your company?
Q47: How is the reports of customer reviews?
Q48: How is public relation and customer service of your company?
Q49: How is product introduction of your company?
Q50: How is customer engagement of your company?
Q51: How is brand awareness of your company?
Q52: How is information diffusion about company and products?
Q53: How is your company’s growth of sale?
Q54: How is your company’s growth of customer?
The respondents provided answers using five levels: Excellent (5), Good (4), Average
The result was averaged and evaluated on the Likert scale as follows: Excellent (4.2 – 5.0), Good (3.4 – 4.2), Average (2.6 – 3.4), Poor (1.8 – 2.6) and Weak (1.0 – 1.8)
Specific results are shown in the table below:
Table 7: The use of social media
The table above shows that, except for brand awareness (Q51) (which is evaluated
Many enterprises are neglecting the quality of their social media efforts, with most criteria rated as "average" and only one deemed "good." This oversight is concerning, especially as social media continues to grow in significance Social networking sites serve as vital platforms for product promotion, public relations, marketing, and customer care.
The assessment results vary among different enterprises and employees based on factors such as age, gender, marital status, and education level Utilizing ANOVA one-way and Independent Sample T-Test, we discovered that while most respondents share similar assessments and perceptions, notable differences emerge regarding certain aspects of social media, influenced by the type of company they work for and their personal characteristics Further details will be discussed in the following section.
• Differences between respondent’s perception by type of company
Interpretation Average Good Average Average Average Limited
Interpretation Poor Average Average Average Average Joint- stock
Interpretation Good Good Good Good Good
Interpretation Average Average Average Average Average
Interpretation Average Average Average Average Average
For reporting customer reviews, joint-stock companies perform very well, while limited liability companies do quite poorly Other types of business perform at an “average” level
For public relations and customer care activities, private businesses and joint-stock companies perform better than other businesses
Joint-stock companies excel in disseminating information about their products and services, leading to superior customer growth compared to other business structures.
• Differences between respondent’s perception by age
Intepretation Average Average Average Average Average Average
Intepretation Good Good Good Good Good Good
Intepretation Average Average Average Average Average Average
Intepretation Average Average Average Good Average Average
Survey results indicate that individuals aged 26-33 value the quality of social communication activities more than other age groups, particularly in areas such as public relations, customer service, product introductions, customer engagement, brand awareness, sales, and customer growth.
• Differences between respondent’s perception by gender
The survey shows that female respondents tend to evaluate the quality of social media activities, especially product introduction and customer growth, higher than male respondents
• Differences between respondent’s perception by educational attainment
Intepretation Good Average Good Poor Poor Good Vocational
Intepretation Poor Poor Weak Average Weak Average
Intepretation Good Average Average Good Good Good
Intepretation Average Average Average Average Average Average
Intepretation Average Average Average Average Average Average
Intepretation Poor Poor Poor Vocational
The survey shows that the company’s business branding is well appreciated by respondents with a high school education and bachelor’s degrees, while employees with vocational college degree give a “poor” rating
Respondents with a vocational college degree rate the call for purchases as "poor" and the re-posting of customer reviews as "weak." In contrast, those with only a high school education assess the quality of these activities as "good."
Impacts of social media on business performance of SMEs in Vietnam
As discussed in the literature review and methodology, the impact of social media on business performance can be modelled as follows:
Reaching out to more customers
Business Branding Call for purchases
Re-posts of buyers' reviews
Public relation and customer service
The primary objective of leveraging social media is to effectively communicate a message, which can vary in content and significance based on the specific context and business strategy Generally, these messages fall into five key categories: business branding, purchase calls, customer review reporting, public relations and customer service, and product introductions.
Effective messaging plays a crucial role in enhancing customer engagement, increasing brand awareness, and disseminating information about a company’s products or services These communications significantly shape customers' perceptions and influence their purchasing decisions, potentially converting them into new customers, as outlined in decision theory.
In order to assess the impact of social media on business performance, as described in the research methodology, two methods were used:
(i) Direct questioning and hypothesis testing
(ii) Quantitative methods, namely multi-variable regression and SEM
4.3.1 Quality analysis of the impact of social media on business performance
4.3.1.1 Social media and customer engagement
To assess the impact of social media on customer engagement, we conducted a direct inquiry based on the following five questions:
Q69: Business branding message will increase customer engagement?
Q70: Call for purchase message will increase customer engagement?
Q71: Re-posts of customer reviews will increase customer engagement?
Q72: Public relation and customer service will increase customer engagement?
Q73: Product introduction will increase customer engagement?
The respondents provided answers using five levels: Strongly disagree (1), disagree (2), neither agree nor disagree (3), agree (4) and strongly agree (5)
Afterwards, the results were averaged and evaluated on the Likert scale as follows: Strongly agree (4.2 – 5.0), agree (3.4 – 4.2), neither agree nor disagree (2.6 – 3.4), disagree (1.8 – 2.6) and strongly disagree (1.0 – 1.8)
Specific results are shown in the table below:
Table 8: Social media and customer engagement
The study confirmed that all H1 hypotheses were accepted, indicating that social media activities such as business branding, purchase calls, customer review reposts, public relations, customer service, and product introductions significantly enhance customer engagement.
The perceptions of respondents regarding social media and customer engagement can vary based on factors such as the type of enterprise they work in, as well as their age, gender, marital status, and education level Utilizing ANOVA one-way and Independent Sample T-Test analyses, our findings indicate that while most evaluations and perceptions among respondents are consistent, notable differences exist in how they perceive the relationship between social media and customer engagement Further details will be provided in the following section.
• Differences between respondent’s evaluation if they work in different types of company
Interpretation Agree Agree Strongly Agree
Limited liability companies find the effect of purchase calls on customer engagement to be unclear Furthermore, private companies believe that the introduction of new products significantly impacts customer engagement more than other company types.
• Differences between respondent’s evaluation by age
Intepretation Agree NAND Agree Agree Agree
Intepretation Agree Agree Agree Agree Agree
Intepretation Agree Agree Agree Agree Agree
Respondents aged 18-25 highlighted the significance of business branding, customer reviews, and product introductions in enhancing customer engagement In contrast, those aged 26-33 expressed uncertainty regarding the impact of purchase prompts on customer engagement.
• Differences between respondent’s evaluation by gender
Intepretation Agree Strongly Agree Agree
The findings indicate that there is little disparity in the evaluations of men and women; however, female employees believe that public relations and customer service play a more significant role in customer engagement compared to their male counterparts.
• Differences between respondent’s evaluation by educational attainment
Intepretation NAND Agree Strongly Agree Vocational
Intepretation Agree Strongly Agree Agree
High school-educated respondents emphasize that product introduction significantly enhances customer engagement, while employees with master's degrees highlight the critical importance of public relations and customer service in fostering this engagement.
• Differences between respondent’s evaluation by working department
Executive Dept and HRM Mean 4.10 4.10 4.30
Intepretation Agree Agree Strongly Agree
Finance and Acounting Dept Mean 3.89 3.89 4.11
Sales and marketing respondents find the effect of business branding on customer engagement to be ambiguous, a sentiment echoed by production department employees regarding the influence of branding, customer reviews, and public relations on engagement In contrast, executive and HRM staff view public relations and customer service as crucial elements in boosting customer engagement.
• Differences between respondent’s evaluation by working experience
The findings indicate that interviewees, regardless of their years of experience, exhibit similar evaluations and perceptions Nevertheless, participants with 5-7 years of work experience perceive the influence of purchase call messages on customer engagement as unclear.
4.3.1.2 Social media and brand awareness
To evaluate the influence of social media on brand awareness, we conducted a direct inquiry based on the following five questions:
Q74: Business branding message will improve brand awareness?
Q75: Call for purchase message will improve brand awareness?
Q76 Re-posts of customer reviews will improve brand awareness?
Q77: Public relation and customer service will improve brand awareness?
Q78: Product introduction will improve brand awareness?
The respondents provided an assessment using five levels: Strongly disagree (1), disagree (2), neither agree nor disagree (3), agree (4) and strongly agree (5)
Afterwards, the result was averaged and interpreted on the Likert scale as follows: Strongly agree (4.2 – 5.0), agree (3.4 – 4.2), neither agree nor disagree (2.6 – 3.4), disagree (1.8 – 2.6) and strongly disagree (1.0 – 1.8)
Detail results are shown in the table below:
Table 9: Social media and brand awareness
The study confirmed that all H2 hypotheses were accepted, indicating that social media activities—such as business branding, purchase calls, customer review re-posts, public relations/customer service, and product introductions—significantly enhance brand awareness.
Respondents' perceptions may vary based on their business environments and personal characteristics, including age, gender, marital status, and education level Utilizing ANOVA one-way and Independent Sample T-Test analyses, the study reveals that while most respondents share similar assessments, notable differences exist in their evaluations regarding the relationship between social media and brand awareness The following section will provide a detailed explanation of these differences.
• Differences between respondent’s evaluation if they work in different type of company:
The results show that private firms assess the role of product introduction in raising brand awareness as more important than do other firms
• Differences between respondent’s evaluation by age
Intepretation Agree Agree Agree Agree
Intepretation Agree Agree Agree Agree
Intepretation Agree Agree Agree Agree
Young respondents aged 18-25 believe that business branding, customer reviews, public relations, and product introductions play a significantly more crucial role in enhancing brand awareness compared to other age groups.
• Differences between respondent’s evaluation by educational attainment
In terms of education levels, the respondents with a high school education assume that the value of product-related activities is greater than do other groups in promoting brand awareness
• Differences between respondent’s evaluation by working department
Intepretation NAND NAND Agree Agree Executive Dept and HRM
Intepretation NAND Agree Agree Agree Finance and Acounting Dept
Intepretation Agree Agree Agree Agree
Intepretation Agree Agree Agree Agree
The production department respondents perceive the influence of business branding and customer review reports on brand awareness as unclear.
However, employees from the executive department and HRM reaffirm the very important role of reports of customer reviews, public relations and product introduction activities in improving brand awareness
Business branding significantly influences brand awareness, with finance and accounting staff viewing this impact as highly positive In contrast, employees from production and sales and marketing departments perceive the relationship as ambiguous.
• Differences between respondent’s evaluation by working experience
In terms of experience, the respondents with working experience of 5-7 years do not confirm the impact of call for purchases on brand awareness
4.3.1.3 Social media and information diffusion
To assess the impact of social media on information diffusion, we conducted a direct inquiry based on the following five questions:
Q79: Business branding message will promote information diffusion about the company and products?
Q80: Call for purchase message will diffuse information of the company and its products/services?
Q81: Re-posts of customer reviews will promote information diffusion about the company and products?
Q82: Public relation and customer service will improve the diffusion of information of the company and its products/services?
Q83: Product introduction will promote information diffusion about the company and products?
The respondents’ evaluation was based on five levels: Strongly disagree (1), disagree
(2), neither agree nor disagree (3), agree (4) and strongly agree (5)
Afterwards, the result was averaged and described based on the Likert scale as follows: Strongly agree (4.2 – 5.0), agree (3.4 – 4.2), neither agree nor disagree (2.6 – 3.4), disagree (1.8 – 2.6) and strongly disagree (1.0 – 1.8)
Detail results are described in the table below:
Table 10: Social media and information diffusion