Digital media impact on smes performance in the UAE

Sep 10, 2018


Published in: Academy of Entrepreneurship Journal

Publisher: Allied

/ Mohammed Nuseir

The rapid growth of internet usage has promoted the usage of Digital Media (DM) in various fields of life including industries and business on the globe. The extending introduction of DM into the business by big corporates has set examples for the SMEs as well to get the benefit of this innovation. At the same time, escalating customary practice of DM in business, marketing and globalization demands that various aspects of this technology be evaluated and through a systematized study finding shreds of evidence of benefits, disadvantages, elaborations and suggestions to cope with probable deficient areas so that SMEs could gain and harvest the real fruit of DM. This review paper highlights the above-mentioned areas of Digital Media utilization in enhancing and facilitation of business, particularly, Small and Medium-sized enterprises (SMEs). The discussion and awareness could intensify performance of SMEs, possibly by boosting business, extending market base, better customer satisfaction and after-sales-service under United Arab Emirates (UAE) scenario. Highly relevant articles have been reviewed and integrated to strengthen the knowledge base and increasing awareness of the practitioners and end users, the SMEs. Published and online material on the subject has been referred to elaborate major aspects of the subject. The study revealed the innovative characteristics of digital media for SMEs, especially in the Middle East and UAE have been described, pointing out a positive link between DM and business performance. It has been identified that the SMEs can reach customers throughout the globe without consideration of time and geographical zones. The digital communication, marketing, live chatting and online payments through digital media are highly easy, convenient, time and cost saving and sustainable. The study has offered SMEs with innovative scenarios, a better perspective of their business and market environments. The study conclusions provide important insights that could guide UAE SMEs in their understanding of Digital innovation and its benefits in emerging markets affecting business performance. The findings also point out a few disadvantages like increased competitions and open options for customers to purchase from any other SMEs based on price and quality comparisons by visiting various websites. To remain in the competition, sometimes prices must be reduced which may affect profit margins consequently. Therefore, SMEs may devise managing strategies to address possible losses. However, the study is limited to SMEs operating in the Middle East and UAE markets. Future research and investigations will be required that could look the subject in other countries, regions and the globe. Individual case and quantitative studies can also be undertaken in which selected SMMEs of different sectors may participate. Coping strategies to manage disadvantages and deficiencies of DM can also be devised through appropriate studies. © 2018 Allied Academies.

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