Influence of Social Media Marketing on Business Performance Among Clothing SMEs in Dar Es Salaam City, Tanzania

Abstract

This study investigated the effect of social media marketing on business performance among clothing SMEs in Dar es Salaam, Tanzania, as well as the mediating role of online social network relationships. A quantitative approach and an explanatory research design were employed. Using systematic sampling, 363 respondents were selected from a population of 3,952 clothing SMEs. Data were collected through structured questionnaires, and regression analyses were conducted on 357 valid observations. Three regression models were estimated: one assessing the total effect, one incorporating the mediator, and one examining the direct effect in the presence of the mediator. Social media marketing exhibited a positive association with business performance (B = 0.933, p < 0.001) and with online social network relationships (B = 0.847, p < 0.001). In the final model, both social media marketing (B = 0.710) and online social network relationships (B = 0.264) remained statistically significant predictors (both p < 0.001), jointly accounting for 89.1% of the variance in business performance. The reduction in the marketing coefficient indicated partial mediation, although formal confirmation would require testing the indirect effect. The study concludes that social media marketing and online social network relationships enhance the business performance of SMEs. It recommends that clothing SMEs intensify product promotion, customer communication, and relationship management via social media, while systematically monitoring enquiries, orders, and repeat purchases.