The role of social media in small and medium - sized restaurant businesses : A case study from Östersund, Sweden

Abstract: Background: Social media has revolutionized the restaurant industry, and it plays a significant role by changing and offering new ways to engage with restaurant customers and build stronger customer relationships, market their products and services, and acquire new customers, manage restaurant reputation, enhance brand awareness, and stay competitive in an increasingly digital world. Even though some restaurants recognize and utilize the potential of social media to deliver the above benefits, still there are some restaurants that have outdated social media accounts or completely inactive in social media. Therefore, this would be an interesting case study area that needs to explore what kind of role played by social media on SMRBs by representing both sectors (SMAs and SMINs) and how they survive in the market competition while experience the challenges of being active or inactive in social media. Purpose: The purpose of this study aims at understanding the current social media role of SMRBs by investigating restaurant owners’ attitude towards using social media, how these restaurants utilize social media, how social media influences their restaurant business performance, discover the unique challenges face by SMAs and SMINs.  Method: This study adopts qualitative research method with multiple case study approach. Togather data, semi-structured interviews with open-ended questions were conducted with seven small and medium-sized restaurants owners in Östersund, Sweden. Conclusions: The conclusions revealed that SMRBs are aware of the potential in using social media, but they are still not fully using its possibilities and opportunities due to the challenges they face. Additionally, it has been noticed that social media has played a recognizable role for SMAs to survive in the competitive market. But considering SMINs which mostly rely on traditional WOM and their reputation, social media does not have any influence on achieving their business accomplishments or play any role for them to survive in the competitive market. By Applying RBV theory SMRBs can reach the competitive advantage and long-term success using VRIN resources.