Institutional isomorphism and social media adoption – a study within the microenterprise context

Until now, very little empirical research has focused on social media adoption behavior within relatively small firms, and fewer still on adoption drivers within the specific context of microentrepreneurs, including that of micro-retailers. The purpose of this manuscript is to contribute to the study on social media adoption at the firm level by focusing on the specific role of institutional pressures, as captured by coercive, mimetic and normative pressures, in the initial adoption of social media in the context of micro-retailers.

This study, based on self-administered questionnaires, collected data from more than 200 micro-retailers in an emerging market and utilized the partial least squares modeling approach.

Findings reveal that normative and mimetic (not coercive) pressures are critical to initial adoption. Additional analysis, though not directly the center of attention in the study, indicates that both coercive and normative pressures are critical to continued adoption, especially for retailers who currently use social media to promote their businesses.

This study represents one of the few attempts to extend the institutional theory to study social media adoption behavior in the firm. In addition, it is the first in the literature to extend the theory to social media adoption within the context of microenterprises, primarily micro-retailers, who form the significant majority in the world.