Factors Affecting Social Commerce Adoption and Innovation Performance Among MSMEs in Saudi Arabia: The Moderating Role of Organizational

Abstract

This study examines the factors influencing social commerce (SC) adoption and its impact on innovation performance among Micro, Small, and Medium Enterprises (MSMEs) in Saudi Arabia, with organizational agility as a moderating variable. Drawing on the Technology-Organization-Environment (TOE) framework and dynamic capability theory, the study identifies technological factors, organizational factors, and environmental factors as key drivers of SC adoption. Data were collected from 226 MSMEs using a structured online questionnaire and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that all three factor categories significantly influence SC adoption, which, in turn, positively impacts innovation performance. Organizational agility strengthens this relationship, highlighting its critical role in maximizing the benefits of SC adoption. The study contributes to the literature by extending theoretical frameworks to the context of MSMEs in emerging economies and offers practical insights for policymakers and business leaders aiming to enhance digital transformation and innovation.