Journal of Applied Business, Taxation and Economics Reseach
Vol. 5 No. 5 (2026)

The Role of Digital Literacy and Social Media in the Effectiveness of MSME Digital Marketing through Consumer Trust

Surahman Herman (University of Muhammadiyah Palopo)
Muhammad Aqsa (University of Muhammadiyah Palopo)
Junaidi Junaidi (University of Muhammadiyah Palopo)



Article Info

Publish Date
10 Jun 2026

Abstract

This study aims to analyze the role of digital literacy and the use of social media on the effectiveness of MSME digital marketing in Palopo City with consumer trust as a mediating variable. The research method uses a quantitative approach with explanatory research. Data was obtained through questionnaires distributed online and offline to 500 respondents who were active consumers of social media who had interacted or purchased MSME products. Data analysis was carried out using the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique using SmartPLS software. The results of the study show that digital literacy has a significant positive effect on both the effectiveness of digital marketing and consumer trust. The use of social media has a significant effect on consumer trust, but it does not directly affect the effectiveness of digital marketing. Consumer trust has been proven to have a positive influence on the effectiveness of digital marketing and significantly mediates the relationship between digital literacy and social media use and the effectiveness of digital marketing. Thus, this research model emphasizes that digital literacy is the dominant factor that strengthens the effectiveness of MSME digital marketing, while social media plays a role mainly through the formation of consumer trust. The practical implications of this study are the importance of increasing the digital literacy capacity of MSME actors as well as social media management strategies that focus on transparency and credibility, so as to strengthen consumer trust and increase the competitiveness of MSMEs in the digital era.

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Journal Info

Abbrev

jabter

Publisher

Subject

Economics, Econometrics & Finance

Description

This journal aims to take part in the advancement of knowledge in economics and business by publishing high quality research on contemporary trends in economics and business in emerging markets or countries. As the journal main horizon is to embrace contemporary trends in applied business, taxation, ...