Main Article Content
Abstract
The extensive use of social media has prompted research on factors influencing its adoption for marketing among SMEs in Bandung and its impact on business performance. Social media has become pervasive and significantly shapes marketing strategies in the digital era. This study investigates factors influencing social media adoption and its effect on business performance. Key variables include perceived usefulness, ease of use, compatibility, cost, social media for marketing, and business performance. Quantitative data selected from 100 SMEs in Bandung. Data were collected via a survey and analyzed using SEM-PLS constructed by 26 questionaire items. A theoretical model has been created by combining elements from TAM and UTAUT2, with certain adaptations, to examine how this impact relates to business performance. Findings reveal that perceived usefulness, ease of use, compatibility, and cost positively influence SMEs' adoption of social media for marketing activities. The study also demonstrates that using social media for marketing positively impacts business performance. Ultimately, promoting sincerity in raising awareness about the benefits of SMM to Indonesian SMEs can encourage its adoption for their overall advantage.
Keywords: Perceived Usefulness, Ease of Use, Compatibility, Social Media Marketing, Business Performance
Keywords
Perceived Usefulness
Ease of Use
Compatibility
Social Media Marketing
Business Performance
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
By exercising the Licensed Rights, You accept and agree to be bound by the terms and conditions of this Creative Commons Attribution-NonCommercial 4.0 International Public License.
How to Cite
Alika, S. F., & Teguh Widodo. (2023). Factors that Influence Social Media Marketing Activity and the Effect on Business Performance of The SMEs in Bandung. Kontigensi : Jurnal Ilmiah Manajemen, 11(2), 394-408. https://doi.org/10.56457/jimk.v11i2.357
References
- Abd Rahman, A., Singhry, H. B., Hanafiah, M. H., & Abdul, M. (2017). Influence of perceived benefits and traceability system on the readiness for Halal Assurance System implementation among food manufacturers. Food Control, 73, 1318–1326. https://doi.org/10.1016/j.foodcont.2016.10.058
- Abideen, L., Aslinda, N., Seman, A., & Rashid, U. K. (2022). The Relationship between Social media for marketing and SMEs Performance in Nigeria: A Systemic Literature Review. In Journal of Positive School Psychology (Vol. 2022, Issue 3). http://journalppw.com
- Aggelidis, V. P., & Chatzoglou, P. D. (2009). Using a modified technology acceptance model in hospitals. International Journal of Medical Informatics, 78(2), 115–126. https://doi.org/10.1016/j.ijmedinf.2008.06.006
- Alalwan, A. A., Rana, N. P., Dwivedi, Y. K., & Algharabat, R. (2017). Social media in marketing: A review and analysis of the existing literature. In Telematics and Informatics (Vol. 34, Issue 7, pp. 1177–1190). Elsevier Ltd. https://doi.org/10.1016/j.tele.2017.05.008
- Aziz, T., Haryadi, R. N., Riyanto, S., & Usman, H. M. (2023). The Effect of Marketing Mix and Brand Image towards Interest of Students at Riyadlul Jannah Islamic High School Jonggol. International Journal of Sharia Business Management, 2(2), 49-56. https://doi.org/10.51805/ijsbm.v2i2.157
- Bateman, J. A. (2021). What are digital media? Discourse, Context and Media, 41. https://doi.org/10.1016/j.dcm.2021.100502
- BİLGİN, Y. (2018). The Effect of Social media for marketing Activities on Brand Awareness, Brand Image, and Brand Loyalty. Business & Management Studies: An International Journal, 6(1). https://doi.org/10.15295/v6i1.229
- Borosso, C., Carrion, G., & Roldan, J. (2010). Applying maximum likelihood and PLS on different sample sizes: Studies on servqual model and employee behavior model. In V. Esposito, W. Chin, J. Henseler, & H. Wang (Eds.), Handbook of partial least squares: Concepts, methods and applications. (pp. 427–447). Springer. http://www.springer.com/series/7286
- Cahyono, B., Nurcholis, L., & Nugroho, M. (2022). Information Technology Implementation in SMEs: A Comparison of Indonesia and Malaysia. Jurnal Manajemen Teori Dan Terapan | Journal of Theory and Applied Management, 15(1), 25–37. https://doi.org/10.20473/jmtt.v15i1.30182
- Chatterjee, S., & Kumar Kar, A. (2020). Why do small and medium enterprises use social media for marketing and what is the impact: Empirical insights from India. International Journal of Information Management, 53, 102103. https://doi.org/10.1016/j.ijinfomgt.2020.102103
- Dahnil, M. I., Marzuki, K. M., Langgat, J., & Fabeil, N. F. (2014). Factors Influencing SMEs Adoption of Social media for marketing. Procedia - Social and Behavioral Sciences, 148, 119–126. https://doi.org/10.1016/j.sbspro.2014.07.025
- Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly: Management Information Systems, 13(3), 319–339. https://doi.org/10.2307/249008
- Deb, M., & Lomo-David, E. (2014). An empirical examination of customers’ adoption of m-banking in India. Marketing Intelligence and Planning, 32(4), 475–494. https://doi.org/10.1108/MIP-07-2013-0119
- Dinas Koperasi dan Usaha Kecil. (2021). Jumlah Usaha Mikro Kecil Menengah (UMKM) Berdasarkan Kabupaten/Kota di Jawa Barat.
- Dutta, G., Kumar, R., Sindhwani, R., & Singh, R. K. (2020). Digital transformation priorities of India’s discrete manufacturing SMEs – a conceptual study in perspective of Industry 4.0. Competitiveness Review, 289–314. https://doi.org/10.1108/CR-03-2019-0031
- Dwivedi, Y. K., Ismagilova, E., Rana, N. P., & Raman, R. (2021). Social Media Adoption, Usage And Impact In Business-To-Business (B2B) Context: A State-Of-The-Art Literature Review. Information Systems Frontiers. https://doi.org/10.1007/s10796-021-10106-y
- Dwivedi, Y. K., Rana, N. P., Jeyaraj, A., Clement, M., & Williams, M. D. (2019). Re-examining the Unified Theory of Acceptance and Use of Technology (UTAUT): Towards a Revised Theoretical Model. Information Systems Frontiers, 21(3), 719–734. https://doi.org/10.1007/s10796-017-9774-y
- Dwivedi, Y. K., & Williams, M. D. (2015). SMEs’ adoption of e-commerce. In Int. J. Business Information Systems (Vol. 19, Issue 2).
- Dženopoljac, V., Janoševic, S., & Bontis, N. (2016). Intellectual capital and financial performance in the Serbian ICT industry. Journal of Intellectual Capital, 17(2), 373–396. https://doi.org/10.1108/JIC-07-2015-0068
- Esmaeel, R. I., Zakuan, N., Jamal, N. M., & Taherdoost, H. (2018). Understanding of business performance from the perspective of manufacturing strategies: Fit manufacturing and overall equipment effectiveness. Procedia Manufacturing, 22, 998–1006. https://doi.org/10.1016/j.promfg.2018.03.142
- Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39–50.
- Gefen, D., & Straub, D. (2005). A Practical Guide To Factorial Validity Using PLS-Graph: Tutorial And Annotated Example. Communications of the Association for Information Systems, 16. https://doi.org/10.17705/1cais.01605
- Ghazanfar, A., Noor, R., Hongyan, W., Mohammad, I., & Benjamin, K. (2018). Determinants of SME’s Social media for marketing Adoption: Competitive Industry as a Moderator. Small Business Management, 12(1).
- Hafez, Md. (2022). Unpacking the influence of social media for marketing activities on brand equity in the banking sector in Bangladesh: A moderated mediation analysis of brand experience and perceived uniqueness. International Journal of Information Management Data Insights, 2(2), 100140. https://doi.org/10.1016/j.jjimei.2022.100140
- Hair, J., Black, W., & Babin, B. (2010). Multivariate Data Analysis. In Multivariate Data Analysis (7th ed., Vol. 7). Pearson Prentice Hall.
- Hosseini, S., Fallon, G., Weerakkody, V., & Sivarajah, U. (2019). Cloud computing utilization and mitigation of informational and marketing barriers of the SMEs from the emerging markets: Evidence from Iran and Turkey. International Journal of Information Management, 46, 54–69. https://doi.org/10.1016/j.ijinfomgt.2018.11.011
- Iman, H. (2021, July 24). Tidak semua UMKM di Bandung mampu Jualan Online. Bandung Bergerak.
- James, G., Witten, D., Hastie, T., & Tibshirani, R. (2021). An Introduction to Statistical Learning with Applications in R Second Edition. In An Introduction to Statistical Learning with Applications in R (2nd ed., Vol. 2). Springer Science Publication.
- Kar, A. K. (2021). What Affects Usage Satisfaction in Mobile Payments? Modelling User Generated Content to Develop the “Digital Service Usage Satisfaction Model.” Information Systems Frontiers, 23(5), 1341–1361. https://doi.org/10.1007/s10796-020-10045-0
- Kar, A. K., Ilavarasan, V., Gupta, M. P., Janssen, M., & Kothari, R. (2019). Moving beyond Smart Cities: Digital Nations for Social Innovation & Sustainability. In Information Systems Frontiers (Vol. 21, Issue 3, pp. 495–501). Springer New York LLC. https://doi.org/10.1007/s10796-019-09930-0
- Keni, K. (2020). How Perceived Usefulness and Perceived Ease of Use Affecting Intent to Repurchase? Jurnal Manajemen, 24(3), 481. https://doi.org/10.24912/jm.v24i3.680
- Kim, K. J., & Shin, D. H. (2015). An acceptance model for smart watches: Implications for the adoption of future wearable technology. Internet Research, 25(4), 527–541. https://doi.org/10.1108/IntR-05-2014-0126
- Kim, T., & Chiu, W. (2019). Consumer acceptance of sports wearable technology: the role of technology readiness.
- International Journal of Sports Marketing and Sponsorship, 20(1), 109–126. https://doi.org/10.1108/IJSMS-06-2017-0050
- Kock, N., & Lynn, G. S. (2012). Lateral collinearity and misleading results in variance-based SEM: An illustration
- and recommendations. Journal of the Association for Information Systems, 13(7), 546–580. https://doi.org/10.17705/1jais.00302
- Marhantara, Y. G., & Widodo, T. (2022). The Influence of Twitter Social media for marketing in Efforts to Increase Loyalty Using Customer Streaming Vidio.com (Study on Bandung City).
- Müller, J. M., Pommeranz, B., Weisser, J., & Voigt, K. I. (2018). Digital, Social Media, and Mobile Marketing in industrial buying: Still in need of customer segmentation? Empirical evidence from Poland and Germany. Industrial Marketing Management, 73, 70–83. https://doi.org/10.1016/j.indmarman.2018.01.033
- Ni, W., & Sun, H. (2019). The effect of sustainable supply chain management on business performance: Implications for integrating the entire supply chain in the Chinese manufacturing sector. Journal of Cleaner Production, 232, 1176–1186. https://doi.org/10.1016/j.jclepro.2019.05.384.
- Nurochani, N., Jusuf, E., & Juju, U. (2023). The Influence of E-Banking Service Quality, Marketing Communication and Corporate Image on Customer Satisfaction and Its Impact on Customer Loyalty. Jurnal Manajemen Industri dan Logistik, 7(1).
- Olajide, S. E., Lizam, M., & Olajide, E. B. (2016). Understanding The Conceptual Definitions of Cost, Price, Worth and Value. IOSR Journal of Humanities and Social Science, 21(09), 53–57. https://doi.org/10.9790/0837- 2109015357
- Panjaitan, J. M. P., Timur, R. P., & Sumiyana, S. (2021). How does the Government of Indonesia empower SMEs? An analysis of the social cognition found in newspapers. Journal of Entrepreneurship in Emerging Economies, 13(5), 765–790. https://doi.org/10.1108/JEEE-04-2020-0087
- Patma, T. S., Wardana, L. W., Wibowo, A., Narmaditya, B. S., & Akbarina, F. (2021). The impact of social media for marketing for Indonesian SMEs sustainability: Lesson from Covid-19 pandemic. Cogent Business and Management, 8(1). https://doi.org/10.1080/23311975.2021.1953679
- Permana, S. (2017). Strategy of Enhancement on the Small and Medium-Sized Enterprises (SMES) in Indonesia. Pusat Penelitian Badan Keahlian DPR RI. http://news.detik.com/
- Prasanna, R. P. I. R., Jayasundara, J. M. S. B., Gamage, S. K. N., Ekanayake, E. M. S., Rajapakshe, P. S. K., & Abeyrathne, G. A. K. N. J. (2019). Sustainability of SMEs in the competition: A systemic review on technological challenges and SME performance. In Journal of Open Innovation: Technology, Market, and Complexity (Vol. 5, Issue 4). MDPI Multidisciplinary Digital Publishing Institute. https://doi.org/10.3390/joitmc5040100.
- Redjeki, F., & Affandi, A. (2021). Utilization of digital marketing for MSME players as value creation for customers during the COVID-19 pandemic. International Journal of Science and Society, 3(1), 40-55.
- Sari, D. P., & Widodo, T. (2022). The Effect of Social media for marketing on Consumer Purchase Intentions Mediated by Customer Trust: The Case for Scarlett Whitening Skincare Products.
- Stocchi, L., Michaelidou, N., & Micevski, M. (2019). Drivers and outcomes of branded mobile app usage intention. Journal of Product and Brand Management, 28(1), 28–49. https://doi.org/10.1108/JPBM-02-2017-1436
- Tripopsakul, S. (2018). Social media adoption as a business platform: An integrated tam-toe framework. Polish Journal of Management Studies, 18(2), 350–362. https://doi.org/10.17512/pjms.2018.18.2.28
- Tyas, E. D. (2017). Pengaruh Perceived Usefulness, Perceived Ease of Use, Perceived Enjoyment, dan Actual Usage Terhadap Penerimaan Teknologi Informasi: Studi Empiris Pada Karyawan Bagian Akuntansi dan Keuangan Baitul Maal Wa TamwilWilayah Daerah Istimewa Yogyakarta dan Sekitarnya. Reviu Akuntansi Dan Bisnis Indonesia, 1, 25–35.
- Urbach, N., & Ahlemann, F. (2010). Structural Equation Modeling in Information Systems Research Using Partial Least Squares. Journal of Information Technology Theory and Application, 11(2), 5–40.
- Walsh, M. F., & Lipinski, J. (2009). The role of the marketing function in small and medium sized enterprises. Journal of Small Business and Enterprise Development, 16(4), 569–585. https://doi.org/10.1108/14626000911000929
- Wicaksono, T., Nugroho, A. D., Lakner, Z., Dunay, A., & Illés, C. B. (2021). Word of mouth, digital media, and open innovation at the agricultural smes. Journal of Open Innovation: Technology, Market, and Complexity, 7(1). https://doi.org/10.3390/joitmc7010091
- Widodo, T., & Bagus Prasetyo, F. (2022). The Effect of Social media for marketing towards Purchase decision mediated by Brand Awareness, and Willingness to Buy, and moderated by Income Level, and Educational Level. Asia Pacific International Conference on Industrial Engineering and Operations Management.
- Widodo, T., & Krisma Maylina, N. L. P. (2022). The mediating role of perceived value and social media word-of- mouth in the relationship between perceived quality and purchase intention. Jurnal Manajemen Dan Pemasaran Jasa, 15(1), 49–68. https://doi.org/10.25105/jmpj.v15i1.9468
- Widodo, T., & Solehudin, Z. (2021). Pengaruh Social media for marketing Activities Terhadap Customer Response Melalui Mediasa Brand Equity Pada E-Wallet.
- Wielki, J. (2020). Analysis of the role of digital influencers and their impact on the functioning of the contemporary on-line promotional system and its sustainable development. Sustainability (Switzerland), 12(17). https://doi.org/10.3390/su12177138
- Yoon, S. Bin, & Cho, E. (2016). Convergence adoption model (CAM) in the context of a smart car service. Computers in Human Behavior, 60, 500–507. https://doi.org/10.1016/j.chb.2016.02.082
- Yuanfang, Q., Jun Hu, & Mu Zhang. (2015). Role of Social Media in Online Travel Information Search. Advance in Applied Sociology, 5.
- Zaki, B., & Arrizky, A. (2019). THE INFLUENCE OF PERCEIVED USEFULNESS, EASE OF USE, TRUST, AND RISK TOWARDS GOJEK ACTUAL USAGE WITH BEHAVIORAL INTENTION TO USE AS INTERVENING VARIABEL. International Undergraduate Program in Accounting. http://www.feb.ub.ac.id