JEFMS Journal

ABSTRACT:

The research objective ware to examine the role of government policy on the influence of digital marketing through social media on MSMEs in Indonesia. This type of research is quantitative, with an explanatory approach. The research ware conducted on 500 MSME actors or owners in Indonesia who used digital marketing through social media channels (Instagram, Facebook and Twitter) as their marketing tools. Data collection through a questionnaire in the form of a google form which is distributed online. The questionnaire was processed and transformed into an interval scale using the Method of Successive (MSI), then analyzed using the SEM (Structural Equation Modeling) model through the AMOS software. The results showed that perceived ease of use had a positive effect on attitudes towards using social media. Perceived usefulness of using social media has a positive effect on attitudes towards using social media. The attitude of using social media has a positive effect on the use of social media. The use of social media has a positive effect on the performance of MSMEs. That is, the higher the use of social media, the higher the performance of MSMEs. Government policies have a positive effect on the performance of MSMEs. That is, the higher the government policy, the higher the performance of MSMEs. Government policies moderate the influence of social media use and MSME performance. That is, government policies strengthen the influence of social media use and the performance of MSMEs

KEYWORDS:

Government Policy, Digital Marketing, Social Media, MSMEs Performance

REFERENCES:

1) Abebe, M. (2014). Electronic commerce adoption, entrepreneurial orientation and small- and medium-sized enterprise (SME) performance. Journal of Small Business and Enterprise Development, 21(1), 100–116. https://doi.org/10.1108/JSBED-10-2013-0145

2) Adams, D. A., Nelson, R. R., & Todd, P. A. (1992). Perceived Usefulness, Ease of Use, and Usage of Information Technology: A Replication. MIS Quarterly, 16(2), 227. https://doi.org/10.2307/249577

3) Alford, P., & Page, S. J. (2015). Marketing technology for adoption by small businesses. The Service Industries Journal, 35(11–12), 655–669. https://doi.org/10.1080/02642069.2015.1062884

4) Ananda, AD, & Susilowati, D. (2017). Development of creative industry-based micro, small and medium enterprises (MSMEs) in Malang City. Journal of Economic Sciences, 5(5), 120–142.

5) Ashraf, AR, Thongpapanl, N. (Tech), & Auh, S. (2014). The Application of the Technology Acceptance Model under Different Cultural Contexts: The Case of Online Shopping Adoption. Journal of International Marketing, 22(3), 68–93. https://doi.org/10.1509/jim.14.0065

6) Beier, M., & Wagner, K. (2016). Social Media Adoption: Barriers to the Strategic Use of Social Media in SMEs. Conference: European Conference on Information Systems (ECIS), 1–18.

7) BPS. (2021). E-Commerce Statistics 2021. Indonesian Central Statistics Agency.

8) Bregashtian, B., & Herdinata, C. (2021). The Effect of Perceived Ease of Use, Usefulness and Risk on Intention to Use the Go-Food Application in Surabaya and Sidoarjo. KnE Social Sciences. https://doi.org/10.18502/kss.v5i5.8807

9) Buli, B. M. (2017). Entrepreneurial orientation, market orientation and performance of SMEs in the manufacturing industry. Management Research Review, 40(3), 292–309. https://doi.org/10.1108/MRR-07-2016-0173

10) Centobelli, P., Cerchione, R., Esposito, E., & Raffa, M. (2016). Digital Marketing in Small and Medium Enterprises: The Impact of Web-Based Technologies. Advanced Science Letters, 22(5), 1473–1476. https://doi.org/10.1166/asl.2016.6648

11) Chatterjee, S., & Kumar, K. A. (2020). Why do small and medium enterprises use social media 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

12) Chowdhury, I.R., Patro, S., Venugopal, P., & Israel, D. (2014). A study on consumer adoption of technology-facilitated services. Journal of Services Marketing, 28(6), 471–483. https://doi.org/10.1108/JSM-04-2013-0095

13) Cooper, D. ., & Schindler, P. . (2014). Business Research Methods. McGraw-Hill.

14) Dabholkar, P. A., & Bagozzi, R. P. (2002). An Attitudinal Model of Technology-Based Self-Service: Moderating Effects of Consumer Traits and Situational Factors. Journal of the Academy of Marketing Science, 30(3), 184–201. https://doi.org/10.1177/00970302030003001

15) Dadzie, Z., Agyapong, A., & Suglo, A. (2021). The role of internationalization in entrepreneurial orientation-performance link: empirical study of SMEs in a developing nation perspective. Review of International Business and Strategy, 31(2), 257–280. https://doi.org/10.1108/RIBS-09-2019-0126

16) Davis, F.D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, 13(3), 319. https://doi.org/10.2307/249008

17) Dishaw, M. ., & Strong, D. . (1999). Extending the Technology Acceptance Model with Task-technology Fit Constructs. Information & Management, 36(5), 61–79.

18) Dlodlo, N., & Dhurup, M. (2013). Drivers of E-Marketing Adoption among Small and Medium Enterprises (SMEs) and Variations with Age of Business Owners. Mediterranean Journal of Social Sciences. https://doi.org/10.5901/mjss.2013.v4n14p53

19) Dlodlo, N., & Mafini, C. (2014). The Relationship between Internet Marketing Paybacks and Firm Productivity: Perspectives from Zimbabwean SMEs. Mediterranean Journal of Social Sciences. https://doi.org/10.5901/mjss.2014.v5n8p21

20) El-Gohary, H. (2010). Expanding TAM and IDT to Understand the Adoption of E-Marketing by Small Business Enterprises. International Journal of Customer Relationship Marketing and Management, 1(3), 56–75. https://doi.org/10.4018/jcrmm.2010070105

21) Euler-Hermes-Group. (2019). Which countries are best for SMEs? https://www.allianz-trade.com/

22) Fan, M., Qalati, S.A., Khan, MAS, Shah, SMM, Ramzan, M., & Khan, R.S. (2021). Effects of entrepreneurial orientation on social media adoption and SME performance: The moderating role of innovation capabilities. PLOS ONE, 16(4), e0247320. https://doi.org/10.1371/journal.pone.0247320

23) Ferrell, O. ., & Hartline, M. D. (2005). Marketing Strategy. Thomas Corporation.

24) Fishbein, M., & Ajzen, I. (1975). Belief, Attitude, Intention, and Behavior: An Introduction to. Theory and Research. Addison-Wesley.

25) Fred, R.D. (2009). Strategic Management. Salemba Four.

26) Goodwin, N. C. (1987). Functionality and usability. Communications of the ACM, 30(3), 229–233. https://doi.org/10.1145/214748.214758

27) Gusni, G., Hurriyati, R., & Dirgantari, PD (2020). The Influence of Perceived Usefulness and Perceived Ease of Use on Attitude and Actual Usage of Go-Pay. JOURNAL OF MANAGEMENT AND ENTREPRENEURSHIP, 8(1). https://doi.org/10.26905/jmdk.v8i1.3892

28) Haeruman, H. (2000). Increasing the Competitiveness of MSMEs to Support the LED Program. Graha Sucofindo.

29) Hair, J. ., Black, W. ., Babin, B. ., & Anderson, R. . (2010). Multivariate Data Analysis. Pearson.

30) Hendrawan, A., Sucahyowati, H., Cahyandi, K., Indriyani, & Rayendra, A. (2019). The influence of digital marketing on the sales performance of Asti Gauri MSME products in Bantarsari District, Cilacap. Journal of Administration and Secretariat, 4(1), 50–61.

31) Homburg, C., Wieseke, J., & Kuehnl, C. (2010). Social influence on salespeople's adoption of sales technology: a multilevel analysis. Journal of the Academy of Marketing Science, 38(2), 159–168. https://doi.org/10.1007/s11747-009-0157-x

32) Ibarra-Cisneros, M.-A., Demuner-Flores, M. del R., & Hernández-Perlines, F. (2021). Strategic orientations, firm performance and the moderating effect of absorptive capacity. Journal of Strategy and Management, 14(4), 582–611. https://doi.org/10.1108/JSMA-05-2020-0121

33) Itani, O.S., Agnihotri, R., & Dingus, R. (2017). Social media use in B2b sales and its impact on competitive intelligence collection and adaptive selling: Examining the role of learning orientation as an enabler. Industrial Marketing Management, 66, 64–79. https://doi.org/10.1016/j.indmarman.2017.06.012

34) Jelinek, R., Ahearne, M., Mathieu, J., & Schillewaert, N. (2006). A Longitudinal Examination of Individual, Organizational, and Contextual Factors on Sales Technology Adoption and Job Performance. Journal of Marketing Theory and Practice, 14(1), 7–23. https://doi.org/10.2753/MTP1069-6679140101

35) Kalu, A., Nto, CPO, & Nwadighoha, E. (2017). Environmental Forces as Catalysts in Electronic-Marketing, the 21st Century Trends in Nigeria. Singaporean Journal of Business Economics and Management Studies, 5(8), 46–56. https://doi.org/10.12816/0037549

36) Kanchanatanee, K., Suwanno, N., & Jarernvongrayab, A. (2014). Effects of Attitude toward Using, Perceived Usefulness, Perceived Ease of Use and Perceived Compatibility on Intention to Use E-Marketing. Journal of Management Research, 6(3), 1. https://doi.org/10.5296/jmr.v6i3.5573

37) Ministry of Cooperatives and SMEs. (2022). KUMKM One Data Dashboard. https://satudata.kemenkopukm.go.id/kumkm_dashboard/

38) Kim, J., & Forsythe, S. (2008). Adoption of Virtual Try-on technology for online apparel shopping. Journal of Interactive Marketing, 22(2), 45–59. https://doi.org/10.1002/dir.20113

39) Klein, L. R. (2003). Creating virtual product experiences: The role of telepresence. Journal of Interactive Marketing, 17(1), 41–55. https://doi.org/10.1002/dir.10046

40) Krueger, N. (1993). The Impact of Prior Entrepreneurial Exposure on Perceptions of New Venture Feasibility and Desirability. Entrepreneurship Theory and Practice, 18(1), 5–21. https://doi.org/10.1177/104225879301800101

41) Kulviwat, S., C. Bruner II, G., & P. Neelankavil, J. (2014). Self-efficacy as an antecedent of cognition and affect in technology acceptance. Journal of Consumer Marketing, 31(3), 190–199. https://doi.org/10.1108/JCM-10-2013-0727

42) Lacka, E., & Chong, A. (2016). Usability perspective on social media sites' adoption in the B2B context. Industrial Marketing Management, 54, 80–91. https://doi.org/10.1016/j.indmarman.2016.01.001

43) Lovelock, & Wirtz. (2011). Services Marketing-People, Technology, and Strategy. Pearson Prentice Hall.

44) Mamun, A. Al. (2018). Diffusion of innovation among Malaysian manufacturing SMEs. European Journal of Innovation Management, 21(1), 113–141. https://doi.org/10.1108/EJIM-02-2017-0017

45) Mantok, S., Sekhon, H., Sahi, G. K., & Jones, P. (2019). Entrepreneurial orientation and the mediating role of organizational learning among Indian S-SMEs. Journal of Small Business and Enterprise Development, 26(5), 641–660. https://doi.org/10.1108/JSBED-07-2018-0215

46) Marbun, DSN, & Simanjuntak, M. (2021). The Influence of Digital Marketing on Increasing the Marketing Performance of Tourism MSMEs in Toba Regency, Indonesia. Proceedings of the National Seminar on Economics and Business, 1, 130–142. https://doi.org/10.33479/sneb.v1i.125

47) Masa'deh, R., Al-Henzab, J., Tarhini, A., & Obeidat, BY (2018). The associations among market orientation, technology orientation, entrepreneurial orientation and organizational performance. Benchmarking: An International Journal, 25(8), 3117–3142. https://doi.org/10.1108/BIJ-02-2017-0024

48) Mohan, V., & Ali, S. (2019). Challenges Faced by Indian MSMEs in Adoption of Internet Marketing and E-Commerce. Academy of Marketing Studies Journal, 23(1), 1–10.

49) Munizu, M. (2010). The Influence of External and Internal Factors on the Performance of Micro and Small Enterprises (UMK) in South Sulawesi. Journal of Management and Entrepreneurship, 12(1), 33–41. http://puslit2.petra.ac.id/ejournal/index.php/man/article/view/17987

50) Musabayana, G. T., Mutambara, E., & Ngwenya, T. (2022). An empirical assessment of how the government policies influence the performance of the SMEs in Zimbabwe. Journal of Innovation and Entrepreneurship, 11(1), 40. https://doi.org/10.1186/s13731-021-00192-2

51) Nguyen, T., & Wongsurawat, W. (2012). The impact of government policies on the development of small- and medium-sized enterprises: the case of Vietnam. J. for International Business and Entrepreneurship Development, 6(2), 188. https://doi.org/10.1504/JIBED.2012.048567

52) Oentario, Y., Harianto, A., & Irawati, J. (2017). The Influence of Usefulness, Ease of Use, Risk on Intention to Buy Online Patisserie through Social Media Based Consumer Attitude in Surabaya. Journal of Marketing Management, 11(1). https://doi.org/10.9744/pemarketan.11.1.26-31

53) Oly Ndubisi, N., & Agarwal, J. (2014). Quality performance of SMEs in a developing economy: direct and indirect effects of service innovation and entrepreneurial orientation. Journal of Business & Industrial Marketing, 29(6), 454–468. https://doi.org/10.1108/JBIM-07-2013-0146

54) Parveen, F., Jaafar, N.I., & Ainin, S. (2016). Social media's impact on organizational performance and entrepreneurial orientation in organizations. Management Decision, 54(9), 2208–2234. https://doi.org/10.1108/MD-08-2015-0336

55) Pentina, I., Koh, A.C., & Le, T.T. (2012). Adoption of social networks marketing by SMEs: exploring the role of social influences and experience in technology acceptance. International Journal of Internet Marketing and Advertising, 7(1), 65. https://doi.org/10.1504/IJIMA.2012.044959

56) Pramestiningrum, DR, & Iramani. (2020). The Influence of Financial Literacy, Financial Capital, and Government Policy on SME Performance in East Java. Journal of Business and Banking, 9(2), 279–296.

57) Prasanna, R., Jayasundara, J., Naradda Gamage, S.K., Ekanayake, E., Rajapakshe, P., & Abeyrathne, G. (2019). Sustainability of SMEs in the Competition: A Systemic Review on Technological Challenges and SME Performance. Journal of Open Innovation: Technology, Markets, and Complexity, 5(4), 100. https://doi.org/10.3390/joitmc5040100

58) Purwaningsih, R., & Kusuma Damar, P. (2015). Analysis of factors that influence the performance of small and medium enterprises (SMEs) using the structural equation modeling method (case study of SMEs based on the creative industry of Semarang City). Proceedings of SNST Faculty of Engineering, Wahid Hasyim University Semarang, 6(1), 7–12.

59) Rahimi, B., Nadri, H., Lotfnezhad Afshar, H., & Timpka, T. (2018). A Systematic Review of the Technology Acceptance Model in Health Informatics. Applied Clinical Informatics, 09(03), 604–634. https://doi.org/10.1055/s-0038-1668091

60) Rahman, N.A., Yaacob, Z., & Radzi, R.M. (2016). An Overview of Technological Innovation on SME Survival: A Conceptual Paper. Procedia - Social and Behavioral Sciences, 224, 508–515. https://doi.org/10.1016/j.sbspro.2016.05.427

61) Reken, F., Modding, B., & Dewi, R. (2020). The Influence of Digital Marketing on Increasing Sales Volume at Ciputra Tallasa Jo Makassar. Governance, 7(2), 142–153. https://doi.org/10.52103/tatakelola.v7i2.144

62) Reynolds, N., & Ruiz de Maya, S. (2013). The impact of complexity and perceived difficulty on consumer revisit intentions. Journal of Marketing Management, 29(5–6), 625–645. https://doi.org/10.1080/0267257X.2013.774290

63) Ritz, W., Wolf, M., & McQuitty, S. (2019). Digital marketing adoption and success for small businesses. Journal of Research in Interactive Marketing, 13(2), 179–203. https://doi.org/10.1108/JRIM-04-2018-0062

64) Rodriguez, M., & Trainor, K. (2016). A conceptual model of the drivers and outcomes of mobile CRM application adoption. Journal of Research in Interactive Marketing, 10(1), 67–84. https://doi.org/10.1108/JRIM-12-2014-0075

65) Saleh, MY, & Said, M. (2019). Marketing Concepts and Strategies. Legitimate Media.

66) Shaltoni, A.M., West, D., Alnawas, I., & Shatnawi, T. (2018). Electronic marketing orientation in the Small and Medium-sized Enterprises context. European Business Review, 30(3), 272–284. https://doi.org/10.1108/EBR-02-2017-0034

67) Sidharta, I., & Sidh, R. (2014). Measurement of perceived usefulness and perceived convenience on attitudes and their impact on the reuse of online shopping in e-commerce. Journal of Computech & Business, 8(2), 92–100. https://doi.org/http://dx.doi.org/10.55281/jcb.v8i2.118

68) Skinner, Q. (1985). The Return of Grand Theory in the Human Sciences. Cambridge University Press.

69) Sugiyono. (2017). Quantitative, qualitative and R&D research methods. Alphabet.

70) Suriyanti, LH, & Binangkit, ID (2019). The Role of Government Policy in Moderating the Influence of Business Strategy on Business Performance (Case Study of MSMEs in the Food and Beverage Sector in Pekanbaru City). Accounting & Economics, 9(1), 119–128.

71) Thompson, R.L., Higgins, C.A., & Howell, J.M. (1991). Personal Computing: Toward a Conceptual Model of Utilization. MIS Quarterly, 15(1), 125. https://doi.org/10.2307/249443

72) Troise, C., Dana, L. P., Tani, M., & Lee, KY (2022). Social media and entrepreneurship: exploring the impact of social media use of start-ups on their entrepreneurial orientation and opportunities. Journal of Small Business and Enterprise Development, 29(1), 47–73. https://doi.org/10.1108/JSBED-01-2021-0041

73) Veldeman, C., Van Praet, E., & Mechant, P. (2017). Social Media Adoption in Business-to-Business: IT and Industrial Companies Compared. International Journal of Business Communication, 54(3), 283–305. https://doi.org/10.1177/2329488415572785

74) Venkatesh, Morris, Davis, & Davis. (2003). User Acceptance of Information Technology: Toward a Unified View. MIS Quarterly, 27(3), 425. https://doi.org/10.2307/30036540

75) Wang, F. (2020). Digital marketing capabilities in international firms: a relational perspective. International Marketing Review, 37(3), 559–577. https://doi.org/10.1108/IMR-04-2018-0128

76) Wang, & Wong. (2004). Entrepreneurial interests of university students in Singapore. Technovation, 24(2), 163–172. https://doi.org/10.1016/S0166-4972(02)00016-0

77) World Bank. (2020). Small and Medium Enterprises (SMEs) Finance. https://www.worldbank.org/en/topic/smefinance