Social Media mediated by Innovation Capability can improve the Marketing Performance of Processing SMEs
DOI:
https://doi.org/10.54956/eksyar.v11i2.666Keywords:
Innovation Capability, Marketing Performance, SMEs, Social MediaAbstract
This causal associative research aims to uncover how social media capabilities and Innovation can improve the marketing performance of processing SMEs on the island of Lombok, West Nusa Tenggara. This study uses a quantitative method by sending and documenting questionnaires to 182 processing SME respondents spread across 5 (five) cities on the island of Lombok, West Nusa Tenggara, namely West Lombok Regency, Central Lombok Regency, East Lombok Regency, North Lombok Regency and Mataram City. The results of this research revealed that social media affects the performance of SMEs, innovation capabilities affect the performance of SMEs and social media affects the performance of processing SMEs on the island of Lombok, West Nusa Tenggara, through the mediation of innovation capabilities.
References
H. B. Alexander, “4,19 Juta IKM Serap 65,52 Persen Tenaga Kerja Industri Nasional,” Kompas.com. Accessed: Jun. 01, 2024. [Online]. Available: https://lestari.kompas.com/read/2024/01/06/185735186/419-juta-ikm-serap-6552- persen-tenaga-kerja-industri-nasional?page=all#:~:text=4%2C19 Juta IKM Serap,Nasional Halaman all - Kompas.com
J. Amoah, E. Bruce, Z. Shurong, S. Bankuoru Egala, and K. Kwarteng, “Social media adoption in smes sustainability: evidence from an emerging economy,” Cogent Bus. Manag., vol. 10, no. 1, 2023, doi: 10.1080/23311975.2023.2183573.
M. Remlein, S. Chugaievska, G. Dehnel, and K. Romanchuk, “Challenges of the MSE sector in the digital economy in Poland and Ukraine: comparative and statistical analysis,” Cent. Eur. Manag. J., vol. 32, no. 1, pp. 134–151, 2024, doi: 10.1108/CEMJ- 12-2022-0247.
V. Wibowo, I. Gautama, E. A. Kuncoro, and A. Bandur, “Improving Sustainability in the Small-Medium Culinary Industry: Analyzing the Role of Open Innovation and Competitive Advantage,” J. Syst. Manag. Sci., vol. 14, no. 2, pp. 172–187, 2024, doi: 10.33168/JSMS.2024.0211.
A. Coad et al., “John Haltiwanger: recipient of the 2020 Global Award for Entrepreneurship Research,” Small Bus. Econ., vol. 58, no. 1, pp. 15–25, 2022, doi: 10.1007/s11187-021-00541-1.
H. E. Inegbedion, P. R. Thikan, J. O. David, J. O. Ajani, and F. O. Peter, “Small and medium enterprise (SME) competitiveness and employment creation: the mediating role of SME growth,” Humanit. Soc. Sci. Commun., vol. 11, no. 1, pp. 1–10, 2024, doi: 10.1057/s41599-023-02434-y.
V. Dhameria, I. Ghozali, A. Hidayat, and V. D. W. Aryanto, “Networking capability, entrepreneurial marketing, competitive advantage, and marketing performance,” Uncertain Supply Chain Manag., vol. 9, no. 4, pp. 941–948, 2021, doi: 10.5267/j.uscm.2021.7.007.
X. Wang, Z. Xu, Y. Qin, and M. Skare, “The role of digital technologies in firms’ performance: A panel data study on family firms and SMEs,” J. Compet., vol. 15, no. 2, pp. 151–166, 2023, doi: 10.7441/joc.2023.02.08.
A. Adam, W. R. W. Abdullah, E. N. S. Maruhun, I. S. K. Anwar, and A. S. A. P. Salin, “Determinants of business sustainability of women entrepreneurs,” Int. J. Manag. Sustain., vol. 13, no. 3, pp. 612–624, 2024, doi: 10.18488/11.v13i3.3837.
M. H. saad, G. Hagelaar, G. van der Velde, and S. W. F. Omta, “Conceptualization of SMEs’ business resilience: A systematic literature review,” Cogent Bus. Manag., vol. 8, no. 1, 2021, doi: 10.1080/23311975.2021.1938347.
F. Nikmah, Sudarmiatin, C. Wardoyo, A. Hermawan, and B. E. Soetjipto, “The role of SMEs’ market orientation in developing countries: A general investigation in four countries,” Innov. Mark., vol. 16, no. 4, pp. 1–12, 2020, doi: 10.21511/im.16(4).2020.01.
S. Fatonah and A. T. Haryanto, “Exploring market orientation, product innovation and competitive advantage to enhance the performance of smes under uncertain events,” Uncertain Supply Chain Manag., vol. 10, no. 1, pp. 161–168, 2022, doi: 10.5267/j.uscm.2021.9.011.
Sulasih, W. Novandari, and A. Suroso, “Integration Uses and Gratifications Theory and Entrepreneurship Theory To Boost The MSMEs Marketing Performance Using Social Media,” Qual. - Access to Success, vol. 24, no. 194, pp. 60–68, 2023, doi: 10.47750/QAS/24.194.07.
M. Y. Siregar, A. N. Lubis, Y. Absah, and P. Gultom, “Increasing the competitive advantage and the performance of SMEs using entrepreneurial marketing architectural innovation capability in North Sumatera, Indonesia,” 2024. doi: 10.5267/j.uscm.2023.12.011.
I. P. G. Sukaatmadja, N. N. K. Yasa, H. Rahyuda, M. Setini, and I. B. A. Dharmanegara, “Competitive advantage to enhance internationalization and marketing performance woodcraft industry: A perspective of resource-based view theory,” J. Proj. Manag., vol. 6, no. 1, pp. 45–56, 2021, doi: 10.5267/j.jpm.2020.9.002.
H. D. Yahaya and G. Nadarajah, “Determining key factors influencing SMEs’ performance: A systematic literature review and experts’ verification,” Cogent Bus. Manag., vol. 10, no. 3, 2023, doi: 10.1080/23311975.2023.2251195.
M. Royo-Vela, J. C. Amezquita Salazar, and F. Puig Blanco, “Market orientation in service clusters and its effect on the marketing performance of SMEs,” Eur. J. Manag. Bus. Econ., vol. 31, no. 1, pp. 1–21, 2022, doi: 10.1108/EJMBE-12-2019-0216.
Nurliza and S. Oktoriana, “Perceived benefits of social media networks’ impact on the competitive behavior of indonesian smes in food and beverage sector,” Econ. Sociol., vol. 14, no. 3, pp. 146–162, 2021, doi: 10.14254/2071-789X.2021/14-3/8.
A. Borah, S. Banerjee, Y. T. Lin, A. Jain, and A. B. Eisingerich, “Improvised Marketing Interventions in Social Media,” J. Mark., vol. 84, no. 2, pp. 69–91, 2020, doi: 10.1177/0022242919899383.
P. Singh, B. K. Sharma, L. Arora, and V. Bhatt, “Measuring social media impact on Impulse Buying Behavior,” Cogent Bus. Manag., vol. 10, no. 3, 2023, doi: 10.1080/23311975.2023.2262371.
N. N. K. Yasa, I. G. A. Ketut Giantari, M. Setini, and P. L. D. Rahmayanti, “The role of competitive advantage in mediating the effect of promotional strategy on marketing performance,” Manag. Sci. Lett., vol. 10, no. 12, pp. 2845–2848, 2020, doi: 10.5267/j.msl.2020.4.024.
M. S. Islam et al., “COVID-19-Related infodemic and its impact on public health: A global social media analysis,” Am. J. Trop. Med. Hyg., vol. 103, no. 4, pp. 1621–1629, 2020, doi: 10.4269/ajtmh.20-0812.
S. R. Sahoo, “An empirical investigation of social media as a marketing tool in micro, small and medium enterprises in India,” Int. J. Manag. &Social …, 2014, [Online]. Available: https://www.indianjournals.com/ijor.aspx?target=ijor:ijmss&volume=2&issue=12&ar ticle=021
W. Zhang, P. K. Chintagunta, and M. U. Kalwani, “Social Media, Influencers, and Adoption of an Eco-Friendly Product: Field Experiment Evidence from Rural China,” J. Mark., vol. 85, no. 3, pp. 10–27, 2021, doi: 10.1177/0022242920985784.
Z. Camoiras-Rodríguez and C. Varela-Neira, “Social Media Managers’ Performance: The Impact of the Work Environment,” J. Theor. Appl. Electron. Commer. Res., vol. 19, no. 1, pp. 671–691, 2024, doi: 10.3390/jtaer19010036.
R. Gashi and H. G. Ahmeti, “Impact of social media on the development of new products, marketing and customer relationship management in Kosovo,” Emerg. Sci. J., vol. 5, no. 2, pp. 125–138, 2021, doi: 10.28991/esj-2021-01263.
J. Wanyoike and P. P. Kithae, “Social Media Networks And SME Performance In The International Arena: A Case Of SMEs Operating In Kamukunji Area of Nairobi County, Kenya,” Eur. J. Bus. Manag. Res., vol. 4, no. 5, Oct. 2019, doi: 10.24018/ejbmr.2019.4.5.122.
R. Eid, Z. Abdelmoety, and G. Agag, “Antecedents and consequences of social media marketing use: an empirical study of the UK exporting B2B SMEs,” … Bus. &Industrial Mark., 2020, doi: 10.1108/JBIM-04-2018-0121.
B. M. Wibawa, I. Baihaqi, N. Nareswari, R. R. Mardhotillah, and F. Pramesti, “UTILIZATION OF SOCIAL MEDIA AND ITS IMPACT ON MARKETING PERFORMANCE: A CASE STUDY OF SMEs IN INDONESIA,” Int. J. Bus. Soc., vol. 23, no. 1, pp. 19–34, Mar. 2022, doi: 10.33736/ijbs.4596.2022.
A. Sudjatmoko, M. Ichsan, M. Astriani, Mariani, and A. Clairine, “The Impact of COVID- 19 Pandemic on the Performance of Indonesian MSME with Innovation as Mediation,” Cogent Bus. Manag., vol. 10, no. 1, 2023, doi: 10.1080/23311975.2023.2179962.
V. Kristinae, I. M. Wardana, I. G. A. K. Giantari, and A. G. Rahyuda, “The role of powerful business strategy on value innovation capabilities to improve marketing performance during the covid-19 pandemic,” Uncertain Supply Chain Manag., vol. 8, no. 4, pp. 675–684, 2020, doi: 10.5267/j.uscm.2020.8.005.
I. N. Nurfarida, Sudarmiatin, A. Hermawan, and N. Restuningdiah, “Social customer relationship management and business performance: Evidence from small and medium enterprises,” Qual. - Access to Success, vol. 24, no. 197, pp. 141–147, 2023, doi: 10.47750/QAS/24.197.16.
R. Tajvidi and A. Karami, “The effect of social media on firm performance,” Comput. Human Behav., vol. 115, pp. 1–10, 2021, doi: 10.1016/j.chb.2017.09.026.
S. Malesev and M. Cherry, “Digital and social media marketing-growing market share for construction smes,” Constr. Econ. Build., vol. 21, no. 1, pp. 65–82, 2021, doi: 10.5130/AJCEB.v21i1.7521.
O. A. Babatunde, “Adaptive Capability, Social Media Agility, Ambidextrous Marketing Capability, and Business Survival: A Mediation Analysis,” Mark. Brand. Res., vol. 8, no. December 2019, pp. 31–47, 2021, doi: 10.33844/mbr.2021.60328.
S. Testa, S. Massa, A. Martini, and F. P. Appio, “Social media-based innovation: A review of trends and a research agenda,” Inf. Manag., vol. 57, no. 3, p. 103196, 2020, doi: 10.1016/j.im.2019.103196.
J. Ahn, A. Shamim, and J. Park, “Impacts of cruise industry corporate social responsibility reputation on customers’ loyalty: Mediating role of trust and identification,” Int. J. Hosp. Manag., vol. 92, Jan. 2021, doi: 10.1016/j.ijhm.2020.102706.
N. N. K. Yasa et al., “Service strategy based on Tri Kaya Parisudha, social media promotion, business values and business performance,” Manag. Sci. Lett., vol. 10, no. 13, pp. 2961–2972, 2020, doi: 10.5267/j.msl.2020.5.029.
J. Abbas et al., “The effects of corporate social responsibility practices and environmental factors through a moderating role of social media marketing on sustainable performance of …,” Sustainability, 2019, [Online]. Available: https://www.mdpi.com/484054
M. O. Opresnik, “Effective Social Media Marketing Planning–How to Develop a Digital Marketing Plan,” Soc. Comput. Soc. Media. User Exp. …, 2018, doi: 10.1007/978-3- 319-91521-0_24.
S. M. C. Loureiro, E. Friedmann, M. Breazeale, and I. Middendorf, “How can brands encourage consumers to donate data to a data-driven social partnership? An examination of hedonic vs. functional categories,” J. Bus. Res., vol. 164, Sep. 2023, doi: 10.1016/j.jbusres.2023.113958.
G. Maldonado-Guzmán, J. A. Garza-Reyes, S. Y. Pinzón-Castro, and V. Kumar, “Innovation capabilities and performance: are they truly linked in SMEs?,” Int. J. Innov. Sci., vol. 11, no. 1, pp. 48–62, 2019, doi: 10.1108/IJIS-12-2017-0139.
H. Aksoy, “How do innovation culture, marketing innovation and product innovation affect the market performance of small and medium-sized enterprises (SMEs)?,” Technol. Soc., vol. 51, pp. 133–141, Nov. 2017, doi: 10.1016/j.techsoc.2017.08.005.
Sunyoto, H. Pratikto, Sudarmiatin, and Sopiah, “Innovation ability in mediates on the relationship of entrepreneurship orientation, organizational culture and knowledge management on MSME performance,” Int. J. Appl. Econ. Financ. Account., vol. 16, no. 2, pp. 355–366, 2023, doi: 10.33094/ijaefa.v16i2.1001.
J. M. Alfarajat, “Strategic agility and supply chain agility: Potential antecedents of SMEs performance,” Uncertain Supply Chain Manag., vol. 11, no. 3, pp. 875–884, 2023, doi: 10.5267/j.uscm.2023.5.011.
N. S. Wijaya and P. L. D. Rahmayanti, “The role of innovation capability in mediation of COVID-19 risk perception and entrepreneurship orientation to business performance,” Uncertain Supply Chain Manag., vol. 11, no. 1, pp. 227–236, 2023, doi: 10.5267/j.uscm.2022.10.004.
B. D. Nurhayati, T. Kusmantini, and T. Wahyuningsih, “Antecedents and Implications of Innovation Capability: Empirical Study of Bakpia Msmes in Yogyakarta,” J. Indones. Econ. Bus., vol. 36, no. 2, pp. 179–203, 2021, doi: 10.22146/jieb.v36i2.1399.
B. R. Olaleye, J. N. Lekunze, and T. J. Sekhampu, “Examining structural relationships between innovation capability, knowledge sharing, environmental turbulence, and organisational sustainability,” Cogent Bus. Manag., vol. 11, no. 1, p., 2024, doi: 10.1080/23311975.2024.2393738.
J. J. Jussila, “Does Strategic and Innovative Fit Indicate Smart Social Media use in a Company ? Heli Aramo-Immonen Olli Rouvari Pasi L . Porkka,” no. June, pp. 1973– 1983, 2016.
Y. Dirgiatmo, Z. Abdullah, and R. H. R. Mohd Ali, “The role of entrepreneurial orientation in intervening the relationship between social media usage and performance enhancement of exporter SMEs in Indonesia,” Int. J. Trade Glob. Mark., vol. 12, no. 2, pp. 97–129, 2019, doi: 10.1504/IJTGM.2019.100332.
Yordan Hermawan Apidana and Dian Rusvinasari, “Social Media Usage On MSMEs’ Performance: The Moderating Role Of Innovation Capability,” J. Manaj., vol. 28, no. 1, pp. 175–199, 2024, doi: 10.24912/jm.v28i1.1805.
