Social Media Technology and Entrepreneurial Management Efficiency of Family Owned Businesses in Kenya

Abstract

Social media technology is widely adopted and is now extensively applied in regular tasks of different establishments, including start-up businesses, small and medium enterprises, and large multinational organizations. Despite its high level of diffusion and acceptance of social media technology as averred by the Diffusion of innovations theory and the Technology Acceptance Theory, and in spite of the demand by customers and employees, the SMT has only been adopted for marketing, advertisement and public relations functions in order to penetrate the consumer market, but there is no or minimal focus on how social medial technology can be utilised in efficiently executing management functions of business enterprises. The study’s objective was to understand the effect of social media technology on entrepreneurial management efficiency of family owned business in Kenya. The researcher employed descriptive survey study design and the data analysed via descriptive statistics through the help of Statistical Package for Social Sciences. The descriptive statistics found a cumulative mean score 4.376 and variability of 0.6174 for the adoption of social media technology in management and cumulative mean of 4.31 and variability of 0.4965 for the entrepreneurship management efficiency. This shows that SMT had effect on management efficiency. Further, regression analysis found R value of 0.559 tested at 95% confidence level, which point to a moderate positive connection between adoption of social media technology and entrepreneurship management efficiency among the family owned businesses. The R-Squared value of 0.313 was found, to mean that adoption of social media technology causes 31.3% change in entrepreneurship management efficiency among the family owned businesses. Based on the finding, the study strongly recommends that family owned businesses to adopt the use social media technology in executing management functions in order to ensure management efficiency.