The Use of Social Media Platforms for Competitive Information and Knowledge Sharing and Its Effect on SMEs’ Profitability and Growth through Innovation

Abstract

Traditionally, corporations obtain competitive information via marketing reports, trade journals, newspapers, and competitors’ websites. That information was secondary and limited. With the widespread usage of Web 2.0 technologies, social media platforms (SMPs) are used by micro, small, and medium-sized enterprises (SMEs) to search for information about their customers, competitors, and markets. SMEs are the engine of economic growth and effective solution to poverty and unemployment. There is also a growing use of SMPs to facilitate knowledge sharing, which leads to developing new ideas and sharing new knowledge, boosting creativity and efficiency, and assisting in achieving goals. This study aims to examine the effect of those uses of SMPs on Saudi SMEs’ performance growth and profitability through innovation. To evaluate 220 valid online questionnaire responses, we used SmartPLS 4 through a PLS-based structural equation model. The results show the positive direct effect of using SMPs for customer information and knowledge sharing on SME innovation in emerging economies and the indirect effect of those uses on SME performance growth and profitability. As a result, Saudi SME decision makers are advised to improve their effectiveness in using SMPs to acquire customer information and use it for knowledge sharing because those uses will positively influence innovation and increase SME growth and profitability.

1. Introduction

Small and medium-sized enterprises (SMEs) are important to the economic growth of any country because they are an essential part of businesses and play a key role in most international economies of external information due to their adaptability and ability to create revenue [1]. As a result, their survival and development have been the primary concerns [2]. They are essential in expanding the manufacturing base, aiding large-scale manufacturing enterprises, and creating regional and national job opportunities [3]. In Saudi Arabia, SMEs account for 99.5% of all enterprises in the Kingdom, with the majority being micro-sized enterprises that continue to grow in number, size, and scope, demonstrating the Saudi people’s innovative and enterprising spirit [4]. However, empirical studies conducted globally indicate that 60% of SMEs face the risk of running out of cash, and 50% have temporarily ceased operations due to shutdowns [5,6]. Nonetheless, the COVID-19 pandemic caused a great deal of change in how businesses operate and think. SMEs must use technology to improve their performance to address this challenge and survive in this environment [7]. Technology has a direct and indirect impact on business performance. New technologies change the risks at an enterprise’s strategic levels [8].

In recent decades, enterprises’ use of cyberspace and web technology has become widespread [9]. The Internet enables companies to communicate with customers anytime and anywhere [10]. One of those web technologies is social media. Social media is viewed as a tool for facilitating communication mechanisms and drawing individuals together through sharing content [11]. Social media has become popular among SMEs, partly explained by its lower prices, minimal technical requirements [12], and beneficial and far-reaching effects [13,14]. However, social media has both internal and external uses within the enterprise. External usage is more concerned with customer and business partner interactions. One way is communicating with customers on social media platforms such as Facebook, X (Formerly Twitter), and YouTube [15]. On the other hand, internal usage is associated with internal corporate procedures, communication, and knowledge sharing. Internal social media networks include Yammer, IBM Connections, and Skype Business [15].

In emerging economies, social media platforms (e.g., Instagram, WhatsApp, Facebook, and X (Formerly Twitter)) are widely used efficiently across enterprises [16]. Social media has drastically gained in popularity in recent years, resulting in significant changes at various levels, including the individual and organizational levels. The popularity of certain platforms varies across regions, age groups, and overtime. The study by [17] offers an in-depth assessment of social media use and its effects on enterprises. Enterprises use social media for various reasons, including searching for information about their customers, competitors, and markets. They mostly use it to determine the most recent market trends, their target market, and the demands and desires of their customers. They also look for information on social media and the industry regarding their rivals’ maneuvers, strategies, marketing ploys, and other activities. In addition to previous uses of social media in enterprises, there is a growing use of social media to facilitate knowledge sharing and ensure its widespread dissemination among individuals, communities, and societies that use social media tools to generate a virtual space that fosters knowledge-sharing activities [18].

On the other hand, many research findings [19,20,21,22] suggest that social media use has a contentious impact on innovation and organizational performance. One potential consequence of social media usage is the potential for heightened levels of innovation. It is crucial to recognize that this phenomenon might also be associated with a decline in corporate performance as a whole [23]. Likewise, corporations’ prudent utilization of social media platforms might potentially lead to enhanced performance outcomes, even without implementing innovative methods [24]. Moreover, previous research [20,25,26,27,28] has indicated that using social media platforms can foster innovation and enhance organizational performance among companies. Despite the rising relevance of social media to enterprise success, there remain gaps in research on how social media influences company innovation and performance [29].

In the context of the Saudi economy, SMEs, which are the sample of this study, contribute to economic development, job creation, innovation, and the diversification of the economy into non-oil sectors. One of the primary objectives of Saudi Vision 2030, published in April 2016, is to boost the contribution of SMEs to the national GDP. The objective refers explicitly to increasing the contribution of SMEs to GDP from 20% to 35% by 2030 [30]. To achieve this, researchers recommended that SMEs be more inventive to address their challenges of increasing competition, develop new goods and services, identify and meet consumer expectations, and improve their performance [31]. Because customer demands are continually changing, and competitive market changes have prompted the replacement of previous goods, services, and business models with new systems and methods. Businesses that are averse to change have seen their performance decline [32].

From this view, SMEs should prioritize innovation to gain a competitive edge in the market. SMEs must work hard and pay attention to the value of innovation in all enterprises’ processes and operations. Social media platforms may be a tool to enable innovation and improve Saudi SMEs’ performance; the study by [33] confirmed that internal use of social media positively impacted Saudi SMEs’ performance (profitability and business growth) and marketing innovation. Furthermore, it was discovered that marketing innovation positively influenced the performance of Saudi SMEs. However, there is a lack of research on the other uses of social media platforms, like using it to acquire external competitive information about customers, competitors, or even the market, as well as using social media for knowledge sharing and studying the effect of those uses on Saudi SMEs’ innovation and performance. In this regard, this study aims to answer the question: What is the effect of using social media platforms for customers’ and competitors’ information and knowledge sharing by SMEs in Saudi Arabia on SMEs’ performance (growth and profitability) through innovation? The objectives of the research are summarized as follows:

• Exploring the extent to which SMEs use SMPs to capture information on their customers’ opinions about their products, their competitors’ products, and changes in their customers’ product needs, as well as use social media to gather information about their competitors and evaluate if that information helps them improve their innovations by assessing the increase in improved products, goods or services, processes, organizational practices, or marketing methods;
• Understanding the extent to which SMEs can use SMPs for knowledge sharing will help them perform better in innovation by evaluating the increase in improved products, goods or services, processes, organizational practices, or marketing methods;
• Determining the effects of using SMPs to capture customer information, competitors’ information, and knowledge sharing on SMEs’ performance (growth and profitability) through innovation.

We present a conceptual research methodology and empirically test it with Saudi SMEs to achieve these goals. In general, this study makes more than one contribution. First, the research contributes to the literature by investigating the direct effect of the use of social media platforms for customer and competitor information and knowledge sharing on SMEs’ innovation in emerging economies, as well as the indirect effect of those uses on SMEs’ performance growth and profitability. Second, this research has contributed to the literature by testing the mediation role of innovation. As a result, the study has provided academics with empirical evidence on the role of innovation as a mediator and predictor of SME performance, growth and profitability.

The following section is the literature review, which will first introduce the overview of social media platforms and SMEs, then the use of social media platforms for competitive information, its use for knowledge sharing, and the last section of the literature review will discuss its effect on SMEs’ innovation and performance. The following section presents the conceptual framework and research hypotheses. The subsequent three sections present the materials and methods, results, and discussion to illustrate the validation of the conceptual research model and provide the outcomes of this study. The last section discusses the study’s conclusion, as well as limitations and suggestions for future research.

2. Literature Review

2.1. SMEs and SMPs

There is no uniform definition of SMEs, as nations and industries define them differently based on the number of employees, turnover rates, and ownership structure [34]. In Saudi Arabia, Monsha’at (the Small and Medium Enterprises General Authority) has defined SMEs based on the volume of their yearly income and the number of workers: a micro enterprise has one to five full-time workers and an annual income of SAR 0–3 million, a small enterprise has six to 49 full-time workers and an annual income of SAR 3–40 million. Simultaneously, a medium-sized enterprise has 50 to 249 full-time workers and yearly revenues of SAR 40–200 million [35]. Monsha’at releases the SME monitor report, which details the development of the SME sector. By the end of the first quarter of 2023, Saudi Arabia had around 1.2 million businesses: 1.02 million micro-sized companies, 155,323 small-sized companies, and 17,929 medium-sized companies [4].

On the other hand, social media definitions also have conflicting definitions and overlapping perspectives in the literature. Social media is generally defined as a “set of Internet-based apps that build on the ideological and technological basis of Web 2.0 and make possible the creation and exchange of user-generated content” [36]. From the perspective of work enterprises, social media has become an important information channel as a tool for seeking and locating available information, which evolves through collaboration between workplace employees [37]. To explain how enterprises can use SMPs, Kietzmann et al. (2011) [38] listed seven functional building blocks of social media activities: identity, conversations, sharing, presence, reputation, relationships, and groups, on which firms will focus on all of them or some of them. The most common social media tools businesses can use to manage their relationships with all stakeholders are blogs, social networking sites, collaborative projects, content communities, virtual social worlds, and virtual game worlds [36].

Table 1. Top Ten Social Media Platforms.

	SM Platform	MAU *	Revenue	Launched	Headquarters
1	Facebook	3 billion	Not specified	2004	Menlo Park, CA
2	YouTube	2.5 billion	$29.24 billion	2005	San Bruno, CA
3	Instagram	2 billion	Not specified	2010	Menlo Park, CA
4	TikTok	1.2 billion	Unknown	2016	Culver City, CA
5	Snapchat	750 million	$4.6 billion	2011	Los Angeles, CA
6	X (Twitter)	541 million	$4.4 billion	2003	Mountain View, CA
7	Pinterest	465 million	$2.8 billion	2005	San Francisco, CA
8	Reddit	430 million	$400 million	2010	San Francisco, CA
9	LinkedIn	<350 million	$12.4 billion	2006	San Francisco, CA
10	Threads	100 million	Unknown	2023	Menlo Park, CA

* Number of monthly active users worldwide, adopted from https://www.searchenginejournal.com/social-media/social-media-platforms/ (accessed on 15 November 2023).

lists the top 10 social media platforms in October 2023 [39].

More precisely, using SMP enhances interactions, allows collaboration between business partners and customers, and generates new business models and ways to deliver value [40]. In contrast, there are also some disadvantages to using this technology. For example, (1) a company’s reputation and market share can be easily lost when negative information about it spreads on the platform or through imposter accounts, (2) businesses may lose control over the distribution of content on their pages, and (3) there may be issues with information quality because statements posted on social media platforms are generally concise and the language used may be incomprehensible [41,42]. Moreover, SMEs need to do more than fully develop the social media platform to harness the potential of social media technology; they also need to have a plan for how they will use it and a clear understanding of their motivations. The ability to use technology and the necessary resources to achieve their business objectives is even more crucial [42].

Despite the previously mentioned disadvantages of using social media, there are still significant benefits for SMEs. As evidence of this, the study by [43] performed a systematic literature review by examining the results of 24 studies that looked at the effects of using social media in SMEs in different countries. That research shows that using social media by SMEs can improve interactions with customers, expand marketing at a low cost, make information more accessible by obtaining feedback and ideas from stakeholders, and improve the company’s overall performance. That means its effect is indirect on business performance. According to a study by [44], using social media for customer relationship management (CRM) has no direct impact on business performance. However, that study suggests that social media does provide SMEs with the potential to engage in relational social commerce, which allows them to distinguish themselves from their competitors and enhance their overall business performance.

2.2. The Use of SMPs for Competitive Information

To gain a competitive edge, enterprises must continually acquire and evaluate information about their rivals’ products, services, and plans [45,46]. Traditionally, companies gathered information on competitors primarily via marketing reports, trade journals, newspaper stories, and competitors’ websites. However, most of the material is secondary information with uncertain impartiality, and the volume of such information is often restricted [46]. Because many businesses utilize social media to communicate with customers, firms must monitor their competitors’ social media sites. As competition between big brands in the market heats up, businesses need to know about important events or moves made by their competitors early on so they can take counter-marketing steps [47].

On the other hand, the widespread usage of Web 2.0 for company-market engagement makes social media a valuable tool for gathering customer information [48]. In this vein, employing social media to obtain outside knowledge from consumers may result in a better understanding of their needs and preferences, improving a company’s capacity to adapt to a changing marketplace. Consequently, this information may assist firms in adapting their products to changing market demands and, as a result, increase their market success. Social media usage allows firms to gain new knowledge from their consumers, which helps them improve quality and develop new goods and services [49]. Furthermore, previous research suggests that SMEs have an advantage over large firms because they are more likely to benefit from outside knowledge acquired through social media technologies because they are less bureaucratic, more responsive to market demands, and more flexible than huge organizations [48].

2.3. The Use of SMPs for Knowledge Sharing

Ma and Chan described knowledge sharing as “the conveyance of knowledge from a source in such a way that it is learned and implemented by the recipient” [50]. Similarly, Wang and Noe defined knowledge sharing as “the giving of task information and know-how to assist others and work with others to solve problems, generate new ideas, or implement policies and procedures.” [51]. According to [52], knowledge may be explicit or tacit knowledge. Explicit knowledge can be viewed as facts, policies, or rules that can be written and transmitted without requiring a discussion, while tacit knowledge underlies personal skills and needs contact to be shared. This study will specifically concentrate on the sharing of explicit knowledge.

The study by [53] indicates that using social media platforms could significantly boost knowledge sharing, but only if employees are incentivized to share knowledge with their colleagues, as well as to be computer-aware and use social media platforms. The growing use of social media to facilitate information sharing and ensure its broad dissemination among individuals, communities, and societies that use social media technologies generates a virtual space that encourages knowledge-sharing activities [18]. However, enterprises must be careful about which information they share because their rivals could exploit such communication channels by using Open Source Intelligence (OSINT) to collect information about them and monitor their activities [54,55].

According to prior studies, many companies encourage staff to share their knowledge through social media tools since it enables adequate information flow inside and across teams [56]. However, digital interactive technologies used in social media for knowledge sharing would allow users to exchange information and create or shape content [57]. Moreover, Sayyadi [58] found that developing new ideas and sharing new knowledge boost creativity and efficiency, assisting in achieving goals. They promote organizational innovation and motivate employees to overcome many challenges, resulting in improved performance in SMEs [59,60].

2.4. SMPs’ Effect on SMEs’ Innovation and Performance

Social media platforms generate a significant amount of value for SMEs. Based on a study by [61], organizations can gain several advantages when using social media tools correctly. These advantages include increasing customer interaction, reaching out to new customer segments, sparking ideas for product innovation, and gaining knowledge about consumer trends and behaviors. According to the authors of research, social media has the following qualities that might encourage value cocreation in corporate innovation: (i) participation in encouraging dialogue between customers and employees; (ii) openness in providing a forum for users to express their opinions on various issues within the organization freely; (iii) conversation in involving customers in the design of products or services that allow the organization to obtain better ideas; and (iv) connectedness in assisting the organization through connectivity by using links to other sites, resources, and other organizations; and (v) community by enabling the development of multiple communities for successful teamwork, fostering innovative teamwork, and allowing consumer ideas, comments, and suggestions on how the company may provide new and improved value [61]. In this sense, research by [48], after reviewing 111 articles about social media and innovation, suggests that social media is regarded as an enabler and driver of innovation.

Many studies confirmed the relationship between using SMPs and its positive effect on innovation. According to the study by [62], using SMPs positively impacts SMEs’ innovation. In the same vein, the research by [63] provided empirical evidence of the positive effects of social media use on SME innovation performance by examining the impact of using social media technologies to obtain external competitive information, independently gather information from rivals and customers and share internal information and knowledge in 371 SMEs in the industrial sector Iraq. That research also suggests that the link between the use of social media and innovation is strengthened when informational trust is high as opposed to low.

Scuotto et al. [64] analyzed an international sample of SMEs to examine the impact of social networking site use on businesses’ innovation performance. The study’s findings provide empirical evidence that the utilization of social networking sites has a beneficial effect on the innovation performance of these organizations. Gaglio et al. [65] examined SMEs. They observed that the use of digital tools, including social media platforms, had a favorable impact on the innovative capabilities of these firms. Moreover, the literature on social media and innovation typically refers not just to product innovation but also to process innovation, service innovation, organizational innovation, marketing innovation, technical innovation, and open innovation [48]. However, our study evaluated SME innovation in a number of new or significantly enhanced goods or services, processes, organizational practices, or marketing strategies.

On the other hand, social media platforms can affect SME performance through innovation; according to [66], social media can provide opportunities for SMEs to obtain new knowledge and innovations, ultimately improving performance. Business innovation could be the eminence that significantly impacts a company’s performance. In this sense, [67] wrote that innovation enables businesses to offer unique items that differentiate them from competitors, improving their financial performance. As a result, social media is a platform or new location for engaging in innovation that adjusts to era development.

Furthermore, research by [68] examines the effect of the use of social media in improving the performance of 384 small and medium-sized enterprises (SMEs) in Jabodetabe (Indonesia). That study found that social media has no direct effect on the performance of Jabodetabek’s SMEs. Similarly, Ahmad et al. [25] discovered in the UAE that using social media did not affect the business performance of SMEs. In contrast, Alhamami et al. [33] found that social media internal utilization positively impacted Saudi SMEs’ performance, profitability, business growth, and marketing innovation. Summary of the important and relevant literature is shown in

Table 2. Summary of important papers in the literature review.

No.	Title	Research Approach	Findings	Year
1	Social media technologies’ use for competitive information and knowledge sharing and its effects on industrial SME innovation [49]	Data was collected in two stages. First, pilot research—five SMEs, after reviewing it, minor questionnaire revisions were made for the next data-gathering phase. A total of 111 valid surveys were collected. Spain/Industrial sector Confirmatory factor analysis Structural Equation Modeling Used EQS 6.1 software package	This study presents empirical evidence of the positive effects of SMT utilization in obtaining external information and enhancing the sharing of knowledge and innovation performance.	2017
2	Social Media Technologies’ Use for Competitive Information and Informational Trust and their Effects on Innovation in Industrial SMES [63].	A questionnaire A total of 371 valid surveys were collected. Iraq/Industrial sector The Structural Equation Model (SEM) the Partial Least Squares (PLS) approach Used Smart-PLS 3.3.3 software	It gives empirical evidence that the beneficial benefits of social media use have a significant effect on the performance of SMEs in terms of innovation and that this relationship becomes stronger when informational trust is high rather than low.	2021
3	Social media and innovation: A systematic literature review and future research directions [48].	A systematic review The descriptive analysis of 111 peer-reviewed journal articles located in the EBSCO Host® and Scopus® databases	Social media is viewed as a facilitator and driver of innovation, with behavioral and resource-based perspectives being the most prevalent theoretical lenses researchers use.	2019
4	Social media usage and innovation performance: the case of fashion SMEs in Jordan [62]	A survey A total of 217 valid surveys were collected from fashion SMEs in Jordan	This study demonstrates that using SMPs substantially positively affects innovation performance.	2022
5	The effect of social media on firm performance [69]	A questionnaire First, a pilot study was conducted with 15 SMEs; after refining it, questionnaires were sent via post, resulting in 384 responses. UK/hotel industry Structural Equation Modeling Confirmatory factor analysis	Utilization of social media has a positive effect on firm performance. Therefore, hotels that utilize social media increase their growth and profitability. However, the result indicates that both offline and online networks positively affect firm performance. The impact of online social media on business performance is more significant than offline methods. It also found that marketing capabilities, specifically branding and innovation, positively and substantially moderate the association between social media use and firm performance.	2021
6	The Mediating Role of Marketing Innovation Between Internal Social Media Utilization and Business Performance of SMEs In Saudi Arabia [33].	A questionnaire A pilot study was conducted to verify measurements. This study collects data from 451 SMEs using online and offline methods. Al-Riyadh city in Saudi Arabia/All sector Structural Equation Modeling Used Smart PLS version 4	It found that SM internal utilization positively impacted SME performance profitability, business growth, and marketing innovation. Also, it found that marketing innovation positively influenced SME performance profitability and business growth and partially mediated the effect of SM internal utilization on SME performance profitability and business growth.	2023
7	The Impact of Social Media on Knowledge Creation, Innovation, and Performance in Small and Medium Enterprises [68]	A questionnaire This study collects data from 384 SMEs using online and offline methods. Indonesia/SMEs in crafts, clothing, shoes, food and beverage. Descriptive analysis: Ms. Excel and SPSS 20. Structural Equation Modeling (SEM) using the PLS program.	The findings indicate no direct correlation between social media usage and performance outcomes. Nevertheless, this study acknowledges that social media exerts a substantial impact on the performance of businesses, as it plays a moderating role in knowledge generation and innovation processes.	2020
8	Social media adoption and its impact on firm performance: the case of the UAE [25]	A Survey 144 responses were analyzed. United Arab Emirates (UAE)/SMEs in business services, professional services, construction and contracting, and ICT sectors. Using partial least squares and structural equation modeling techniques	The adoption of social media did not affect the performance of SMEs.	2019

below:

3. Conceptual Framework and Research Hypotheses

3.1. Effect of Using SMPs to Acquire Customer Information on SMEs’ Innovation

The primary objective of consumer involvement through social media is to expand the range of customer information sources and include their creativity in developing new products or services in real time [70]. The advancement of social media technology increases the significance of external information resources [71]. The provided information is crucial in developing new products or services. This approach aims to provide innovative solutions that effectively address customers’ needs [72]. Consequently, the utilization of social media by SMEs to engage customers and gather customer intelligence, which is then integrated with internal expertise during the development of new products or services, is expected to enhance their access to diverse and creative sources of information [73]. According to [74], this will advance innovation afterward. Therefore, the following hypothesis emerges:

H1: 

Using SMPs for customer information acquisition has a positive effect on SME innovation in Saudi Arabia.

3.2. Effect of Using SMPs to Acquire Competitors’ Information on SMEs’ Innovation

Social media provide organizations with extensive access to valuable information on customers and rivals. Organizations can comprehend and interpret consumer preferences, requirements, requests, and sources of dissatisfaction [75]. Social media facilitates acquiring more information about an organization’s competitors, including their actions, strategies, and brand perceptions. This information aids in improving goods and services, ultimately leading to a more significant influence on organizational performance [76]. Moreover, implementing and using social media may significantly impact the promotion of organizational innovativeness [77]. Drawing upon the aforementioned points, we suggest the following hypothesis:

H2: 

Using SMPs for competitor information acquisition has a positive effect on SME innovation in Saudi Arabia.

3.3. Effect of Using SMPs to Share Knowledge on SMEs’ Innovation

Social media facilitates connectivity and openness, allowing firms to cultivate relationships and collaborations with various stakeholders. This enhances firms’ access to market information and fosters creativity, thereby expediting the organizational processes of generating and developing new product ideas [78]. The literature extensively discusses social media as valuable instruments that facilitate the development of dynamic capabilities to effectively perceive, capture, and adapt knowledge throughout the innovation process. By leveraging these capabilities, organizations can attain a competitive advantage in highly dynamic and evolving environments [22,79].

The study conducted by [80] examined a sample of Australian start-ups. It provided empirical evidence supporting a positive association between social media usage and innovation. The researchers described how these firms effectively utilized social media platforms to access and leverage valuable information, knowledge, learning opportunities, and additional resources, thereby augmenting their capacity for innovation. Hence, the following hypothesis is suggested:

H3: 

Using SMPs for knowledge sharing has a positive effect on SME innovation in Saudi Arabia.

3.4. Innovation and SMEs’ Performance

In developed countries, the use of social media plays a role in the economy’s growth, directly impacting SMEs [68]. According to [81], the sales potential of social media in the United States is substantial. Also, according to a study by [82], social media use is widespread in France and generates added value for small and medium-sized enterprises. It depends on SMEs’ capacity to develop knowledge, consumer loyalty, and a strategy to enhance business performance. Although other factors affect business performance, it is well acknowledged that the component of innovation holds considerable significance [32]. The competitive landscape is significantly influenced by innovation. The intensification of competition among firms globally has led to a substantial rise in the prominence of innovation and invention within corporate strategy. Moreover, a considerable body of literature exists on the correlation between innovation and performance, as evidenced by studies conducted by [83,84,85,86].

Performance may be categorized into two distinct types: financial performance and strategic performance. The representation of many performance types may be achieved by incorporating competitive elements, also known as performance dimensions. These dimensions encompass profitability, growth, market value, customer satisfaction, environmental performance, and social performance [87]. Tidd [88] classifies measurements to establish the correlation between innovativeness and business performance into two categories. The initial category pertains to accounting and the evaluation of financial performance. These metrics encompass profitability, return on investment, and share price. The second category pertains to market performance, containing market share and growth [88]. According to a study by [89], the ability to innovate in both product and process aspects of business positively impacted the performance of Canadian SMEs in terms of growth and productivity. Consequently, the following hypotheses are proposed:

H4: 

SME innovation has a positive effect on the growth of SME performance in Saudi Arabia.

H5: 

SME innovation has a positive effect on the profitability of SME performance in Saudi Arabia.

3.5. Mediating Role of SMEs’ Innovation

The objective of assessing business performance within the SME sector is to enhance business growth, explore internal and external business opportunities, and enhance the competencies of all business stakeholders [90]. From the perspective of delivering value to customers, the process of crystallizing business performance is directed towards methods to effectively communicate the values associated with the firm’s competitive edge [91]. Business growth is a fundamental indicator of success and sustainability in SMEs. It encompasses various aspects, such as increased revenue, market expansion, enhanced competitiveness, and improved overall performance [92]. This growth is critical for SMEs as it enables them to seize opportunities, withstand market turbulence, and create a stronger position in their respective industries [93].

Research has shown that the use of social media for obtaining customer information, competitor insights, and knowledge sharing plays a pivotal role in fostering SMEs’ business growth [94]. The innovation that underlies these digital practices acts as a mediating factor, connecting the utilization of social media resources to the actual enhancement of business performance. It allows SMEs to adapt quickly to changing market conditions, tailor their strategies based on insights gained, and ultimately drive their growth in a dynamic business environment [36]. Therefore, the following three hypotheses are proposed:

H6: 

Innovation mediates the positive effect of using social media platforms for customer information and the growth of SME performance in Saudi Arabia.

H7: 

Innovation mediates the positive effect of using social media platforms for competitors’ information and the growth of SME performance in Saudi Arabia.

H8: 

Innovation mediates the positive effect of using social media platforms for knowledge sharing and the growth of SME performance in Saudi Arabia.

Furthermore, research indicates that SMEs that harness social media for customer information can tailor their marketing strategies, drive sales growth, expand their customer base, and directly contribute to enhanced profitability [95]. Additionally, the effective use of social media for gathering competitor information allows SMEs to adapt quickly to market dynamics, make informed strategic decisions, and gain a competitive advantage, further bolstering their financial performance [36]. Furthermore, social media platforms facilitate knowledge sharing, fostering innovation and operational efficiencies that lead to cost savings and increased profitability for SMEs [96]. Therefore, the following three hypotheses are proposed:

H9: 

Innovation mediates the positive effect of using social media platforms for customer information and the profitability of SME performance in Saudi Arabia.

H10: 

Innovation mediates the positive effect of using social media platforms for competitors’ information and the profitability of SME performance in Saudi Arabia.

H11: 

Innovation mediates the positive effect of using social media platforms for knowledge sharing and the profitability of SME performance in Saudi Arabia.

Figure 1 below shows the conceptual model:

4. Materials and Methods

This study employed a quantitative strategy by utilizing the survey research method. It is an empirical study using a survey questionnaire as a quantitative data-gathering approach. We chose this strategy because of its adaptability and usefulness for collecting vast data. As a result, because the participants spoke Arabic, questions needed to be translated into Arabic. Therefore, the questionnaire was translated into Arabic and reviewed by two trusted faculty members from King Saud University to ensure constructive cohesion. A Likert-type scale assessed the information with the following categories: strongly agree, agree, neutral, disagree, and strongly disagree. Additionally, the collected data will be analyzed using SmartPLS 4, a technique chosen based on similar research conducted in the same area.

4.1. Instrument Development

In this study, to measure the effect of the use of social media platforms for competitive information and knowledge sharing on SME innovation and performance and prove or disapprove of the previous hypotheses, the research variables were operationalized as multi-item constructs and adapted from two studies. Measurement items for the use of SMPs for competitive information, knowledge sharing, and innovation were adopted from [49], and the items for SME performance (growth and profitability) were taken from [69]. These two studies’ scale items to measure the variables were operationalized based on their research from previous trustworthy studies. The questionnaire of this study contains two sections. The first section consists of questions regarding respondents and SME profiles. The second section consists of 19 questions measuring six constructs of the model under study.

4.2. Sampling and Data Collection Method

The sample of this study was randomly selected from SMEs in Saudi Arabia, particularly those with active social media accounts (e.g., Facebook, X (Twitter), LinkedIn, WhatsApp, and Instagram). This study’s primary respondents were those with positions in SMEs: the owner, senior management, middle management, or other employees. The respondent’s responses were collected on 19 September 2023, until 15 October 2023. In total, 254 responses from Saudi enterprises were received (n = 254). Thirty-four responses were excluded because they regarded larger enterprises (employees exceeded 250, and its revenue was more than 200 M), which means there were 220 valid responses from SMEs. The percentage of male respondents was 70.5% and 29.5% were female. The highest percentage of 34.1% of responses was from the 31–40 age group, the second-highest percentage was 32.3% from the 21–30 age group, 17.7% from 41 to 50, years and 15.9% were above 50 age. A total 35.5% of respondents were SME owners, and the highest percentage, 39.5%, was from a small enterprise with 6–49 employees. Furthermore, 41 respondents from the wholesale and retail trade sector, with 18.6%, were the highest percentage compared with other sectors. X (Twitter), WhatsApp, and Instagram had the highest percentage of common Social media Platforms used by Saudi SMEs.

Table 3. Descriptive Statistics.

Respondents and SME Profiles		Frequency	Percent
Gender	Male	155	70.5%
	Female	65	29.5%
Age	21–30	71	32.3%
	31–40	75	34.1%
	41–50	39	17.7%
	Above 50	35	15.9%
Education	Secondary or lower	16	7.3%
	Diploma	22	10.0%
	Bachelor degree	124	56.4%
	Postgraduate Degree	58	26.4%
Position of Respondents	Owner	78	35.5%
	Senior management (CEO, General Manager, Department Head)	58	26.4%
	Middle management (Operations Supervisor, Team Leader)	60	27.3%
	Other	24	10.9%
Firm Size	1–5 employees (Micro Enterprise)	63	28.6%
	6–49 employees (Small Enterprise)	87	39.5%
	50–249 employees (Medium Enterprise)	70	31.8%
Number of operating years	Less than 1 year	17	7.7%
	1–3 years	57	25.9%
	4 to 6 years	43	19.5%
	More than 6 years	103	46.8%
SMEs Sectors	Accommodation and food service activities	16	7.3%
	Administrative and support service activities	22	10.0%
	Agriculture, forestry, and fishing	3	1.4%
	Arts, entertainment, and recreation	13	5.9%
	Construction	12	5.5%
	Education	11	5.0%
	Electricity, gas, steam, and air conditioning supply	1	0.5%
	Financial and insurance activities	16	7.3%
	Human health and social work activities	12	5.5%
	Information and communication	18	8.2%
	Manufacturing	13	5.9%
	Professional, scientific, and technical activities	20	9.1%
	Real estate activities	19	8.6%
	Transportation and storage	3	1.4%
	Wholesale and retail trade; repair of motor vehicles and motorcycles	41	18.6%
Social Media Platforms Used by SMEs *	YouTube	68	30.91%
	TikTok	69	31.36%
	WhatsApp	143	65.00%
	Telegram	34	15.45%
	Facebook	63	28.64%
	X (Twitter)	150	68.18%
	Instagram	122	55.45%
	LinkedIn	93	42.27%
	Snapchat	87	39.55%
	Other	6	2.73%

* Dichotomy group tabulated at value 1.

below shows the demographic data of the sample of this study.

4.3. Data Analysis Procedure

In this study, we used SmartPls 4 to assess the measurements and the structural model. Also, we utilized the Partial-Least Square-Structural Equation Modeling (PLS-SEM) approach to study and evaluate the created model and confirm the relationships between constructs. PLS-SEM was selected in this study because it is a good fit for a small sample of around 200 responses. We present the details of our analysis in the tables below. The study by Anderson and Gerbing [97] presents a two-step method applied in this investigation: the initial step is for studying and evaluating the suggested model’s dependability and validity, and the second step is to examine the model by testing hypotheses with PLS-SEM.

5. Results

5.1. Measurement Model: Reliability and Validity

The PLS algorithm was applied in SmartPls 4 by selecting Cronbach’s Alpha and composite reliability to test for reliability. This allowed us to assess the validity and reliability of the six constructs. According to [98], variables with an outer loading of more than 0.5 are deemed acceptable, whereas values greater than 0.7 are deemed highly satisfactory. The reliability data in

Table 4. Construct Reliability and Validity.

	Cronbach’s Alpha	Composite Reliability (rho_a)	Composite Reliability (rho_c)	Average Variance Extracted (AVE)
SMEs-PG	0.863	0.866	0.865	0.681
SMEs-PP	0.923	0.924	0.923	0.801
SMEs-INNOV	0.901	0.903	0.902	0.698
USMP-CUI	0.899	0.900	0.899	0.749
USMP-COI	0.847	0.857	0.846	0.648
USMP-KS	0.828	0.833	0.831	0.621

show that the measurement model has high reliability because both composite and Cronbach’s alpha are above 0.7. Furthermore, the convergent validity of the scales is proved by the average variance extracted (AVE) values, which are greater than 0.5.

In social science research, internal consistency reliability is measured using Cronbach’s alpha [99]. It guarantees providing a PLS-SEM measurement that is conservative. Previous studies have suggested using composite reliability as a replacement [98,100]. Table 4 indicates that all six reflective latent variables have good levels of internal consistency reliability, with values greater than 0.6.

5.2. Discriminant Validity (Fornell-Lacker’s Criterion)

Fornell and Larcker [101] used discriminant validity analysis, where the square root of AVE in each latent variable may be used to establish discriminant validity if its value is greater than other correlation values between the latent variables. To achieve this, a table is made in which the square of the root of AVE is manually computed and written in bold on the table’s diagonal. The correlations among the latent variables are duplicated from the default report’s “Latent Variable Correlation” section.

Table 5. Discriminant Validity.

	SMEs-INNOV	SMEs-PG	SMEs-PP	USMP-CUI	USMP-COI	USMP-KS
SMEs-INNOV	0.835
SMEs-PG	0.636	0.825
SMEs-PP	0.656	0.858	0.895
USMP-CUI	0.566	0.369	0.409	0.865
USMP-COI	0.558	0.404	0.455	0.704	0.805
USMP-KS	0.656	0.499	0.515	0.491	0.562	0.788

displays the discriminant validity values, which are higher than the other correlation values. We infer from the data that Cronbach’s alpha and composite reliability are greater than 0.7, indicating that the measurement model is reliable. It demonstrates the constructs’ reliability and validity.

The discriminant validity analysis aims to determine whether the constructed variable’s indicator is valid. This is accomplished mainly by evaluating the Heterotrait–Monotrait Ratio of Correlation (HTMT); if the result is less than 0.90, the variable has acceptable discriminant validity [98]. Discriminant validity lists for each constructed variable are displayed in

Table 6. Discriminant Validity (List).

	Heterotrait–Monotrait Ratio (HTMT)
SMEs-PG <-> SMEs-INNOV	0.639
SMEs-PP <-> SMEs-INNOV	0.656
SMEs-PP <-> SMEs-PG	0.858
USMP-CUI <-> SMEs-INNOV	0.568
USMP-CUI <-> SMEs-PG	0.370
USMP-CUI <-> SMEs-PP	0.409
USMP-COI <-> SMEs-INNOV	0.557
USMP-COI <-> SMEs-PG	0.404
USMP-COI <-> SMEs-PP	0.456
USMP-COI <-> USMP-CUI	0.709
USMP-KS <-> SMEs-INNOV	0.659
USMP-KS <-> SMEs-PG	0.500
USMP-KS <-> SMEs-PP	0.518
USMP-KS <-> USMP-CUI	0.493
USMP-KS <-> USMP-COI	0.561

.

5.3. Coefficient of Determination (R2)

To evaluate the constructed model’s prediction power, SmartPls 4 is used to calculate the coefficient of determination. Values of R2 (0.25, 0.50, and 0.75) are regarded as weak, moderate, and substantial, respectively [102]. The R2 for the dependent variables is calculated in this study. As shown in

Table 7. R-square.

	R-Square	R-Square Adjusted
SMEs-INNOV	0.514	0.508
SMEs-PG	0.405	0.402
SMEs-PP	0.431	0.428

51% of SMEs-INNOV is explained by USMP-CUI, USMP-COI and USMP-KS. R2 squared indicated that 40% of SMEs-PG and 43% of SMEs-PP can be explained by the SMEs-INNOV variable. The R-squared adjusted values for the latent constructs SMEs-INNOV, SMEs-PG, and SMEs-PP indicate the model’s capacity to explain the variance in these constructs, which is fundamental to assessing model fit. Higher R-squared adjusted values typically denote a better fit, implying a more significant proportion of explained variance in the endogenous constructs by exogenous variables. These results signify that the model effectively captures and elucidates the relationships between the exogenous and endogenous variables. This underscores the model’s goodness of fit in explaining the research constructs, contributing to its overall robustness in representing these relationships [102].

5.4. Assessment of the Structural Model

To summarize, the results confirm and support the following hypotheses: USMP -CUI → SMEs-INNOV (H1), USMP-KS → SMEs-INNOV (H3), SMEs-INNOV → SMEs-PG (H4), SMEs-INNOV → SMEs-PP (H5), USMP -CUI → SMEs-INNOV → SMEs-PG (H6), USMP-KS → SMEs-INNOV → SMEs-PG (H8), USMP-CUI → SMEs-INNOV → SMEs-PP (H9), and USMP-KS → SMEs-INNOV → SMEs-PP (H11). However, the USMP-COI → SMEs-INNOV (H2), USMP-COI → SMEs-INNOV → SMEs-PG (H7), and USMP-COI → SMEs-INNOV → SMEs-PP (H10) are not supported.

Table 8. Summary of structural model path coefficients.

Hypotheses	Path	Original Sample (O)	Sample Mean (M)	Standard Deviation (STDEV)	T Statistics (|O/STDEV|)	p Values	Level of Significant	Results
Direct Effects
H1	USMP-CUI → SMEs-INNOV	0.253	0.254	0.088	2.890	0.004	***	Supported
H2	USMP-COI → SMEs-INNOV	0.119	0.124	0.098	1.215	0.224	N.S.	Not Supported
H3	USMP-KS → SMEs-INNOV	0.464	0.461	0.090	5.131	0.000	***	Supported
H4	SMEs-INNOV → SMEs-PG	0.636	0.636	0.065	9.769	0.000	***	Supported
H5	SMEs-INNOV → SMEs-PP	0.656	0.657	0.054	12.099	0.000	***	Supported
Mediator Effects
H6	USMP-CUI → SMEs-INNOV → SMEs-PG	0.161	0.161	0.058	2.793	0.005	***	Supported
H7	USMP-COI → SMEs-INNOV → SMEs-PG	0.076	0.079	0.063	1.199	0.231	N.S.	Not Supported
H8	USMP-KS → SMEs-INNOV → SMEs-PG	0.295	0.294	0.070	4.251	0.000	***	Supported
H9	USMP-CUI → SMEs-INNOV → SMEs-PP	0.166	0.167	0.060	2.761	0.006	***	Supported
H10	USMP-COI → SMEs-INNOV → SMEs-PP	0.078	0.081	0.065	1.206	0.228	N.S.	Not Supported
H11	USMP-KS → SMEs-INNOV → SMEs-PP	0.305	0.303	0.067	4.558	0.000	***	Supported

Note: *** p < 0.01; N.S. = Not Significant.

shows the summary of the structural model path coefficients.

Evaluating the structural model’s fit yields promising results, affirming the alignment with our pursuit of the best possible fit. The Standardized Root Mean Square Residual (SRMR) stands at 0.087, which falls just below the widely accepted threshold of 0.09 [103], indicating a robust fit between the model and the observed data. The Normed Fit Index (NFI), registering at 0.845, indicates the model’s fit. This metric, ranging from 0 to 1, evaluates the fit of the structural model, with values closer to 1 signifying a better fit. In our model, the NFI value of 0.845 indicates that the model effectively captures the relationships among variables, approaching a solid level of fit [104].

Table 9. Model fit.

The Criteria	The Result
SRMR	0.087
d_ULS	1.432
d_G	0.494
Chi-square	506.828
NFI	0.845

demonstrates the study’s adequate goodness of fit.

According to [105], the value of f² (which indicates the size of the effect) is a small effect up to 0.02, a medium effect up to 0.15, and a large effect above 0.35. As shown in

Table 10. f-square.

	f-Square
SMEs-INNOV → SMEs-PG	0.680
SMEs-INNOV → SMEs-PP	0.756
USMP-CUI → SMEs-INNOV	0.065
USMP-COI → SMEs-INNOV	0.013
USMP-KS → SMEs-INNOV	0.296

the f² values of SMEs-INNOV are 0.680 and 0.756, which show a large effect size. The f² values of 0.065 (USMP-CUI) and 0.013 (USMP-COI) show a small effect size. The f² value of 0.296 (USMP-KS) shows a medium effect size. Moreover, as shown in

Table 11. Q-square.

	Q² Predict
SMEs-INNOV	0.406
SMEs-PG	0.194
SMEs-PP	0.237

, Q² of SMEs-INNOV = 0.406 shows a strong predictive relevance, Q² of SMEs-PG = 0.194, and Q² of SMEs-PP = 0.237 show moderate predictive relevance as per [105]. The results of the F² and Q² are shown in Table 10 and Table 11 below:

6. Discussion

The analysis and test of the hypotheses show evidence that using social media platforms for external information from the customer and knowledge sharing has a positive effect on SMEs’ innovation, which will lead to improving SME performance in terms of growth and profitability. That means the mediating role of SMEs’ innovation between using social media platforms for external customer information or knowledge sharing and SMEs’ performance (growth and profitability). This study also found that using social media platforms for external information from competitors does not affect SMEs’ innovation.

The results of this study show a positive effect of using social media platforms for customer information on SMEs’ innovation (USMP-CUI → SMEs-INNOV: β = 0.253; p = 0.004); therefore, H1 is confirmed. The research by [49] confirmed that the usage of social media technologies to obtain consumer information is related to the outcomes of innovations in SMEs; according to [106], that study indicates a positive correlation between online social networks and innovative capacity. That study also sustains that social media is more than a promotion channel; Social media allows firms to engage with millions of customers, better understand their brand and goods, and identify favorable and unfavorable feedback.

Nevertheless, using social media platforms for competitors’ information, the results show no influence of using social media platforms for competitors’ information on SMEs’ innovation (USMP-COI → SMEs-INNOV: β = 0.119; p = 0.224); thus, H2 is not supported. This is the opposite of the results of different studies [49,64,107] that found that social media technologies are suitable instruments for obtaining competitor information and having good competitor information is one of the primary factors influencing the extent of innovation in SMEs [108,109].

The proposed relationship in H3 is confirmed and supported, which is the effect of using social media platforms for knowledge sharing on SMEs’ innovation. The study found a positive relationship between them (USMP-KS → SMEs-INNOV: β = 0.464; p = 0.000). This is consistent with the findings of [49,62,110].

The relationship proposed in H4 and H5 are supported, that is, SME innovation effects on the growth of SME performance (SMEs-INNOV → SMEs-PG: β = 0.636; p = 0.000), and the SME innovation effect on SME profitability performance (SMEs-INNOV → SMEs-PP: β = 0.656; p = 0.000), are supported and confirmed. These two results are also confirmed by [68,69]. According to [111], innovation can result in expanded market opportunities, enhanced operational effectiveness, heightened productivity growth, and augmented income levels.

H6 was supported and confirmed by the findings regarding the mediating role of innovation’s positive effect between using social media platforms for customer information and the growth of SMEs’ performance (USMP-CUI → SMEs-INNOV → SMEs-PG: β = 0.161; p = 0.005), as reported by [68,69]. However, with regard to innovation’s mediating role, the results show no positive effect of using social media platforms for competitors’ information and the growth of SMEs’ performance in Saudi Arabia through innovation; the results show (USMP-COI → SMEs-INNOV → SMEs-PG: β = 0.076; p = 0.231). Therefore, H7 is not supported. This conflicts with the results by Alalawneh et al. [62], which confirmed that using SMPs positively impacts SMEs’ innovation. Also, this result conflicts with the study of Varis and Littunen [112], which confirmed the utilization of readily available information sources is linked to the launch of new products and market innovations, as that study also suggests that implementing new products, processes, and market innovations is positively correlated with the growth of enterprises.

In addition, the proposed relationship in H8 is confirmed and supported, which is the effect of using social media platforms for knowledge sharing and the growth of SMEs’ performance through innovation (USMP-KS → SMEs-INNOV → SMEs-PG: β = 0.295; p = 0.000). This result is consistent with previous research. The utilization of social media by organizations improves knowledge sharing and collaboration [113]. Social media is an efficient instrument for knowledge management and sharing within an organization, as well as for enhancing performance [114].

On the other hand, the results show the positive influence regarding the mediating role of innovation between using social media platforms for customer information and the profitability of SMEs’ performance, H9 (USMP-CUI → SMEs-INNOV → SMEs-PP: β = 0.166; p = 0.006). Therefore, H9 is confirmed. This matches the findings of a previous study that confirmed this [68,69]. However, with regard to innovation’s mediating role, the results show no positive effect of using social media platforms for competitors’ information and the profitability of SMEs’ performance through innovation; the results show (USMP-COI → SMEs-INNOV → SMEs-PP: β = 0.078; p = 0.228). Therefore, H10 is not supported. The results of previous studies such as [62,68,69,115,116] are not in line with this result.

Finally, the proposed relationship in H11 is confirmed, which is that the use of social media platforms for knowledge sharing affects the profitability of SMEs’ performance through innovation (USMP-KS → SMEs-INNOV → SMEs-PP: β = 0.305; p = 0.000). Corral de Zubielqui et al. [27] stated that social media can facilitate and improve communication among organizational members, speed up the process of obtaining data and knowledge, and increase employee collaboration, all of which contribute to creating more original and creative ideas. According to [117], knowledge becomes a vital resource in enterprises as it can increase performance by improving awareness of resources and triggering innovation. The study of [33] confirmed that social media internal utilization positively impacted SMEs’ performance profitability through marketing innovation.

The outcome indicates that the use of social media platforms for acquiring customer and competitors’ information, along with its use for knowledge sharing, predict SME innovation by 51%, which in turn predicts that SMEs’ performance will grow by 40% and profitability will grow by 43%; see (Table 7 and Figure 2).

7. Conclusions

Social media platforms have become popular among SMEs, which is partly explained by their lower prices, minimal technical requirements, and beneficial and far-reaching effects. This research paper focuses on studying the effect of using social media platforms’ customers’ and competitors’ information and knowledge sharing by SMEs in Saudi Arabia on SMEs’ performance (growth and profitability) through innovation. The constructed model was developed by using constructs from the previous literature. The study collected the necessary data for this research using a quantitative approach. Furthermore, the SmartPLS 4 was used to evaluate the data collected and the PLS-SEM technique was used to evaluate hypotheses. Therefore, it concludes that using social media platforms for external information from the customer and knowledge sharing has a positive effect on SMEs’ innovation, which will lead to improving SME performance in terms of growth and profitability. That means there is a mediating role of SMEs’ innovation between using social media platforms for external customer information or knowledge sharing and the SMEs’ performance (growth and profitability). Moreover, this study also found that using social media platforms for external information from competitors does not affect SMEs’ innovation nor SME performance through innovation. The outcome indicates that the use of social media platforms for acquiring customer and competitors’ information, along with its use for knowledge sharing, can predict SME innovation by 51%, which in turn predicts SME performance growth by 40% and SME performance profitability by 43%.

The research contributes to the literature by investigating the direct effect of the use of social media platforms for customer and competitor information and knowledge sharing on SMEs’ innovation in emerging economies, as well as the indirect effect of those uses on SMEs’ performance growth and profitability. This research has contributed to the literature by testing the mediation role of innovation. As a result, the study has provided academics with empirical evidence on the role of innovation as a mediator and predictor of SME performance growth and profitability. Moreover, to the authors’ knowledge, this is the first paper that examines the effect of the customer and competitor information and knowledge sharing of social media platforms on SME performance growth and profitability through innovation in Saudi Arabia. The study found that using social media platforms for customer information and knowledge sharing had a positive effect on the performance growth and profitability of Saudi SMEs through innovation, while using social media platforms for competitors’ information does not have a significant effect on them.

This study has significant implications for Saudi decision makers. According to the findings of this study, using social media platforms for customer information and knowledge sharing leads to innovation in Saudi Arabia through improved products, goods or services, processes, organizational practices, or marketing methods. That, in turn, leads to improvements in SMEs’ growth and profitability performance. As a result, Saudi SME decision makers are advised to improve their effectiveness in terms of using social media platforms as a tool to acquire customer information, such as their opinions about the product and services and their needs, as well as using it as a tool for knowledge sharing. Those uses not only have a good influence on innovation but will lead to a positive effect on SMEs’ growth and profitability.

Limitations and Future Work

The study has some limitations. The first is that it is limited to SMEs in Saudi Arabia. Thus, the result of this study cannot be generalized to large-scale organizations due to the differences in organization, structure, funds, and regulations between SMEs and large-scale companies. Second, the study is also limited to the direct effect of the use of social media platforms for customer and competitor information and knowledge sharing on SME innovation and the indirect effect of those uses on SME performance growth and profitability. That means this study did not include the direct effect of those uses on SME performance growth and profitability. As a result, future research could duplicate this study in other nations, such as the Gulf Cooperation Council or other regional or emerging economies like Malaysia and Indonesia. For future work, other uses of social media platforms, whether internal or external, could be added to the constructed model and study the direct effect of those uses on SMEs’ performance. In addition, future researchers are suggested to investigate the impact of these variables on large-scale companies. Moreover, the sample of this study included the owner, senior management, middle management, or even other employees. It would be interesting to compare respondents’ responses by position group. For future studies also, we recommended examining only the owners or senior managers because they are only able to evaluate in charge of the performance of SMEs. For future work, it would also be interesting to compare the variations of respondents’ responses by their position group in the enterprises. Furthermore, all sectors’ SMEs were considered in the study; for future research, it is recommended to identify and focus on a single industry, such as the retail, manufacturing, or construction sectors.