Predicting the use of social media business models: The mediating role of organizational e-readiness

Abstract

Social media is remarkably growing and shaping not only the lives of individuals but also the business domain by creating new paradigms of business. This study examines the interplay among some selected predicting organizational variables and the use of what are called Social Media Business Models (SMBMs). Furthermore, the study investigates the mediating role of e-readiness on the relationships among these organizational factors and the use of SMBMs. The study is a quantitative, descriptive and analytical study. Using a self-administered survey, primary data were collected from 150 employees from the Jordanian SMEs. Smart PLS 3 software was employed to validate the proposed study model using a Structural Equation Modelling (SEM). The findings confirmed that compatibility, innovativeness, cultural and management support, and e-readiness have a statistically significant direct impact on the use of SMBMs. Finally, the study confirms that e-readiness mediates the relationship between compatibility and innovativeness as predicting variables and the use of SMBMs.