<![CDATA[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.]]>
Copyrights © 2026
