Factors Influencing the Usage of Instagram for Business and its Effect on Financial Performance and Non-Financial Performance

Abstract

The objective of this article is to study the factors which affect the Small and Medium Enterprises (SMEs) instagram use for business and its subsequent impact on financial and non-financial performance. The primary purpose of this study is to examine the effect of competency, cost-effectiveness, innovative behavior, and interactivity on instagram use for business, and consequences on firms' performance. Statistical analysis was performed on the data acquired through a survey questionnaire from 352 Malaysian SME employees. The findings revealed that competency, cost-effectiveness, innovative behavior, and interactivity have a positive influence on instagram use for business. The results also indicated that instagram use for business has a strong positive effect on the financial performance and non-financial performance of SMEs. All the hypotheses were accepted and tested by a partial least square (PLS) approach.