TikTok as a Digital Literacy Pathway for SMEs in Emerging Markets: Evidence from Ghana

Abstract

TikTok is one of the world's fastest-growing social media applications, and it has moved beyond entertainment into a marketing and branding channel for small and medium enterprises (SMEs), especially in emerging markets where digital literacy is often low. Its role in building literacy remains unclear, so this study examines how entrepreneurs and their SMEs use TikTok to develop digital skills, drawing on Rogers' Diffusion of Innovations (DOI) theory. We conducted a multiple-case study of eight SMEs in Ghana and interviewed nine owners and managers. We analyzed the interviews with Braun and Clarke's reflexive thematic analysis, and six connected themes describe how TikTok use supports digital literacy: electronic word-of-mouth (e-WOM) as an adoption catalyst, learning through observation, demand-driven engagement, creative content development, user satisfaction, and business growth. These themes map onto DOI's attributes of relative advantage, compatibility, complexity, trialability, and observability, thereby extending the theory to social media skill development. The findings are exploratory, since they come from a small purposive sample, and they show how informal TikTok use can open a pathway to platform-specific skills and broader digital literacy in resource-limited SMEs. The study offers insights for policymakers, digital skills educators, and platform designers working on SME digital transformation in developing economies.