Department of Business Administration

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    Firm Capabilities, Social Media Marketing, and Performance of Small and Medium Enterprises (SMEs)
    (Makerere University Business School, 2023) Iradukunda, Becky
    The purpose of this study was to establish the relationship between firm capabilities, social media marketing and performance of SMEs in Kampala. This study was based on these objectives: to examine the relationship between firm capabilities and the performance of SMEs in Kampala, to examine the relationship between social media marketing and the performance of SMEs in Kampala and to examine the mutual relationship between firm capabilities, social media marketing, and performance of SMEs in Kampala. The research specifically used a cross-sectional design, to gather quantitative data. The study involved surveying 205 small and medium-sized enterprises (SMEs) in Makindye division, with a high response rate of 98% (200 out of 205 respondents). The collected data underwent reliability testing and analysis using SPSS v23, and the results were then presented in accordance with the study objectives. The analysis revealed a significant and positive correlation between Firm Capabilities and Firm Performance, as supported by a correlation value of r=.847 (p<.01). This suggested that enhancing Firm Capabilities, such as development and operations capability, as well as management and transaction capability, is associated with an improvement in Firm Performance. Consequently, the study suggested that businesses, particularly small and medium enterprises (SMEs), should take into account social media marketing tools and firm capability strategies to enhance their companies‟ performance. Additionally, future research should be conducted to examine other factors that may predict SME performance in Kampala.