Published: 2025-07-09
The Impact of Social Media Usage on MSME Performance: The Role of Innovation Capability as a Moderating Factor
DOI: 10.35870/ijmsit.v5i2.4555
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Abstract
The study seeks to investigate the impact of social media use on Micro, Small and Medium Enterprise (MSME) performance, and the moderating effect of innovation capability on the link. Amid the digital technology boom, MSMEs leverage TikTok, Instagram, Facebook among others to widen market reach, brand presence and talk to their audience directly. The opportunity and threat of social media but but can be a double edged sword in terms of the mSME’s level of capability to innovate in relation to marketing strategy. Innovation capability (product development, technology use, market responsiveness) as a moderator has proved to have the most mediating processes between social media and MSMEs performance. This research is quantitative by distributing a questionnaire of 300 MSME respondents that using social media. The findings indicate that the utilisation of social media has a significant effect on the performance of MSMEs, which is also moderated by innovativeness. Its effect on perfornlance is however not the same For all SNSs. This finding indicates that innovative-related MSMEs have potential to utilize social media to improve business performance and growth better.
Keywords
Social media ; MSMEs ; Innovation capability ; Performance ; Digital marketing
Article Information
This article has been peer-reviewed and published in the International Journal of Management Science and Information Technology. The content is available under the terms of the Creative Commons Attribution 4.0 International License.
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Issue: Vol. 5 No. 2 (2025)
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Section: Articles
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Published: %750 %e, %2025
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License: CC BY 4.0
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Copyright: © 2025 Authors
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DOI: 10.35870/ijmsit.v5i2.4555
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Willyan Sahetapy
Development Economics Study Program, Sekolah Tinggi Ilmu Ekonomi Bukit Zaitun, Sorong City, West Papua Province, Indonesia.
Agustinus Biay
Development Economics Study Program, Sekolah Tinggi Ilmu Ekonomi Bukit Zaitun, Sorong City, West Papua Province, Indonesia.
Rusdi
Faculty of Social and Political Sciences, State Administration Study Program, Universitas Muhammadiyah Sorong, Sorong City, West Papua Province, Indonesia.
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