An Empirical Analysis of the Impact of Big Data Analytics and Innovation on SME Performance in the UAE: The Mediating Role of Social Media Adoption
List of Authors
Abbod Naseb Al-Tamimi, Leila Himeur
Keyword
Big Data Analytics, Innovation, SMEs, Social Media Adoption, Business Performance
Abstract
In the United Arab Emirates (UAE), small and medium enterprises (SMEs)form a key pillar of the economy, contributing substantially to Gross Domestic Product (GDP) growth, job creation, and innovation. As the UAE advances towards its vision of becoming a digital economy hub, SMEs are under mounting pressure to adopt digital technologies to enhance performance outcomes. Social media platforms, when combined with big data analytics (BDA), offer SMEs the ability to engage customers, enhance innovation, and improve performance. However, empirical evidence on how technological factors, particularly BDA, impact on social media and innovation within UAE context has not been extensively studied. This present study explores the technological determinants of online social networks within UAE SMEs, with an emphasis on the enabling role of BDA in fostering innovation and business performance. Guided by Technology-Organization-Environment (TOE)model, data were collected via a structured questionnaire from 408 SMEs across trade, manufacturing, and service sectors. A stratified sampling technique ensured sectoral representation, and the research adopted a cross-sectional design. The data analysis was conducted using SPSS 24 for descriptive statistics, while Partial Least Square Structural Equation Modelling (PLS-SEM) was employed to evaluate both the measurement and structural models. The results indicate that innovation (β=0.525, p <0.001) and big data analytics (β=0.186, p <0.001) significantly strengthen the technological context of SMEs, which in turn enhances social media adoption (β=0.589, p <0.001). However, the technological context was not found to have a statistically direct effects on outcomes, stressing the mediating function of social media integration. These findings provide insights into how BDA and innovation indirect improve SME performance, offering guidance for policymakers and practitioners on accelerating digital transformation in the UAE.