Digital pathways to innovation: assessing social commerce’s impact on product development and business growth

Abstract

Over the past two decades, social commerce had become an essential dimension of digital transformation, enabling small, medium, and micro enterprises (SMMEs) to engage customers and pursue new forms of innovation and growth. Despite its growing importance, there was limited empirical evidence on how digital adoption translated into measurable organisational outcomes, particularly in developing economies. This study examined how the adoption of social commerce influenced product innovation and business growth among South African SMMEs. Based on the Unified Theory of Acceptance and Use of Technology (UTAUT2), Resourced- Based View (RBV) and Consumer Innovation Theory, a quantitative research design was employed. We collected data through an online survey of SMMEs operating for more than 3.5 years and analysed it using Structural Equation Modelling (SEM). The results showed that while social commerce adoption strongly influenced product innovation, it was the innovation that ultimately drove business growth. The direct link between social commerce and business growth was not statistically significant, suggesting that social commerce adoption on its own did not translate into higher income unless it was used to develop new products or services. These findings highlighted innovation as the practical route through which social commerce could improve firm outcomes and to help small enterprises to grow. They also offered direction for entrepreneurs and policymakers working to build more competitive and sustainable SMMEs in South Africa.