International Journal of Economics Development Research (IJEDR)
Vol. 5 No. 3 (2024): International Journal of Economics Development Research (IJEDR)

Driving MSMEs' Performance: The Impact of Social Media Adoption, Innovation Capability, and Government Support

Yordan Hermawan Apidana (Universitas Putra Bangsa)
Anton Prasetyo (Universitas Putra Bangsa)
Kholifah Kholifah (Universitas Putra Bangsa)
Dian Rusvinasari (Universitas Putra Bangsa)



Article Info

Publish Date
31 Aug 2024

Abstract

The purpose of this study is to investigates how social media adoption, innovation capability, and government support influence the business performance of micro, small, and medium enterprises (MSMEs) in Indonesia. Data were collected from 469 Indonesian MSME owners or managers via an online questionnaire and analyzed using structural equation models with the Partial Least Squares method. The results indicate that social media adoption positively impacts innovation capability and business performance. Additionally, innovation capability positively affects business performance and mediates the relationship between social media adoption and business performance. Moreover, government support acts as a moderator in the relationship between innovation capability and business performance. These findings provide practical insights for MSME owners or managers seeking to enhance their social media strategies and leverage innovation and government support to improve competitiveness in the digital market. The research also guides governments in formulating policies to boost MSMEs' business performance.

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Journal Info

Abbrev

ijedr

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

IJEDR focuses on economics, innovation, and investment. Dedicated to enhancing economics development a country, regional and the world in general. IJEDR invites papers on Economics field (Economic growth, Monetary and fiscal policy effect, Innovation practices, Innovation impact, Corporate finance, ...