Digital transformation in youth owned MSMEs: A mixed method exploration on the impact of contemporary social commerce on sustainable performance

Abstract

This study explores the adoption of contemporary social commerce (s-commerce) among Gen-Z-owned Micro, Small, and Medium Enterprises (MSMEs) in Nigeria, focusing on factors influencing adoption and its impact on performance. It addresses gaps in existing research by integrating the Technology-Organization-Environment (TOE) framework with Dynamic Capabilities Theory (DCT), examining the role of emerging technologies like AI and social media analytics. An exploratory sequential mixed-method design is employed, integrating qualitative and quantitative approaches. In the first phase, focus group discussions explore the ‘why’ and ‘how’ aspects of the research questions. In the second phase, a quantitative approach tests the proposed hypothetical model using structural equation modeling. The findings reveal that AI integration, innovation culture, and entrepreneurial orientation significantly influence the adoption of s-commerce among Gen-Z-owned MSMEs. However, customer social media proneness, social media analytics integration, and government support show insignificant effects. The adoption of s-commerce positively impacts MSME performance, leading to improved sales, customer engagement, and business growth. This research extends the TOE framework by incorporating previously unexplored factors and integrates DCT to provide a nuanced understanding of s-commerce adoption, offering new insights into the Sub-Saharan African context.