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CUSTOMER ENGAGEMENT AS A MECHANISM LINKING SOCIAL MEDIA USE TO MSME PERFORMANCE Putu Suweca Nata Udayana; Dewa Ayu Giovany Angga Indrya; Luh Kadek Budi Martini; I Gusti Ayu Ngurah Pradnyadevi Utami
Journal of Management and Innovation Entrepreneurship (JMIE) Vol. 4 No. 1 (2026): October
Publisher : Yayasan Nuraini Ibrahim Mandiri

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70248/jmie.v4i1.4676

Abstract

This research investigates the mediating role of customer engagement in the relationship between social media use and MSME performance in Denpasar. An explanatory quantitative design was adopted, involving 390 MSME owners or managers who actively use social media for business-related activities. Data were collected through a structured questionnaire and analysed using Structural Equation Modelling–Partial Least Squares (SEM-PLS) with SmartPLS 3.2.9. The findings indicate that social media use significantly influences customer engagement (β = 0.624; p < 0.001) and MSME performance (β = 0.390; p < 0.001 , while customer engagement also has a significant positive effect on MSME performance (β = 0.473; p < 0.001). Customer engagement significantly mediates the relationship between social media use and MSME performance (β = 0.296; p < 0.001). The model explains 39.0% of the variance in customer engagement (R² = 0.390) and 60.7% of the variance in MSME performance (R² = 0.607). Theoretically, these findings enrich digital marketing literature by demonstrating that customer engagement functions as an important mechanism through which social media use contributes to MSME performance, extending the understanding of social media beyond its promotional role. Practically, the findings suggest that MSMEs should develop social media strategies that foster two-way interaction, customer feedback, reviews, and recommendations to strengthen engagement and improve business performance.
Co-Authors A. A. Dwi Widyani Adnyani, Ida Ayu Widi Anak Agung Ngurah Oka Suryadinatha Gorda Ari Astana, I Made Bura, Yustinus Victor Rianus Dewa Ayu Giovany Angga Indrya Dewi , Luh Komang Candra Dian Tariningsih Dian Tariningsih Dwiyanti Rahmaputri Eri Pranata Fahaeni, Mutria Farhaeni, Mutria Fitri Nur Mahmudah Frandy Paulus Hendra Hadi Kesuma I Dewa Nyoman Raka I Gede Putu Kawiana I Gede Yogi Pramadita I Gusti Ayu Manuati Dewi I Gusti Ayu Ngurah Pradnyadevi Utami I Ketut Arnawa I MADE SUKERTA I Made Suryana I Nengah Dasi Astawa I Nengah Suardhika I Nyoman Dama I Nyoman Mustika I Putu Arya Artha Negara i Wayan Astawa I Wayan Runa I Wayan Sonder I Wayan Wesna Astara Ida Bagus Raka Suardana Indrya, Dewa Ayu Giovany Angga Kadek Ayu Surya Dewi Komang Sri Wahyuni Prabawathi Lestari, Putu Astri Luh Komang Candra Luh Komang Candra Dewi Lusia Vreyda Adveni Mutria Farhaeni Ni Kadek Windi Randiani Ni Km. Lolita Sri Widiarni Ni Komang Prasiani Ni Komang Prasiani Ni Komang Prasiani Ni Luh Gede Pratiwi Anjeni Ni Wayan Arni Sardi Ni Wayan Sumariadhi Nurfihan Nurul Hakiki Nuryani, Ni Nyoman Juli Prami, Anak Agung Istri Ngurah Dyah Prastyandhari, I Gusti Ayu Ika Monika Putu Ade Wijana Putu Sri Astuti, Putu Sri Putu Suweca Nata Udayana Satrawan, Dewa Putu Rida Sembiring, M.Si, Dr. Ejasa Sembiring, Rinawati Suarjana, Wayan Sudiadnyani, Ida Ayu Manuaba Surya Nugraha Suwignyo Widagdo Syahribulan UDAYANA, PUTU SUWECA NATA warmana, oka Wiarawan, I Ketut Yongki Widiarni, Ni Km. Lolita Sri Widiastuti, Ni Putu Wijana, Putu Ade Wijayasa, I Wayan Yenny Verawati Zulkifli Zulkifli