This study investigates the impact of social media utilization on innovation opportunities, mediated by customer orientation, in Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, focusing on information technology-based sectors in Banten, DKI Jakarta, and West Java. Using a purposive sampling technique and Partial Least Squares Structural Equation Modeling (PLS-SEM) for parameter estimation, the study finds that effective social media usage positively influences both innovation opportunities and customer orientation, which in turn impacts innovation opportunity. Moreover, customer orientation mediates the relationship between social media utilization and innovation opportunity. Data from 228 MSMEs confirm the validity and reliability of the tested variables. The study underscores that technology-based MSMEs should prioritize social media to enhance innovation and gather real-time customer data for market insights. With strong customer orientation and effective social media capabilities, MSMEs can convert information into valuable insights for high-value-added product and service development, bolstering competitiveness. While highlighting managerial implications, the study acknowledges limitations in regional scope and variables, recommending further research to explore the impact of social media capabilities on Innovation.
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