This study examines the influence of social media marketing (SMM) on the business performance of small and medium fashion enterprises (SMFEs) in Tanzania, with social media strategic capabilities (SMSCs) as a moderating variable in this relationship. The study is grounded in the Uses and Gratification Theory (UGT) and Resource-Based View (RBV). The study used a cross-sectional survey design, collecting data from 397 SMFEs through structured questionnaires. Data were analysed using descriptive statistics and structural equation modelling (SEM). The findings revealed a significant positive relationship between SMM and the business performance of SMFEs in Tanzania. Furthermore, the findings show that SMSCs positively and significantly moderate this relationship. These findings suggest that SMFEs leveraging SMM together with SMSCs can enhance their business performance. The study aids business owner-managers or managers comprehend the significance of SMM and SMSCs on business performance. Additionally, the study significantly impacts policymakers, particularly in SMFEs, by facilitating the formulation of targeted policies and regulations that promote business growth and sustainability through social media usage. However, its focus on Tanzanian SMFEs limits generalisability, and the reliance on subjective measures and cross-sectional data suggests future research should incorporate objective metrics and longitudinal designs.
Kishimbo et al. (Tue,) studied this question.