The Role of Social Media Adoption as Mediating Variable between Environment Context and SME Performance

Zaitul, Zailtul (2021) The Role of Social Media Adoption as Mediating Variable between Environment Context and SME Performance. The Role of Social Media Adoption as Mediating Variable between Environment Context and SME Performance.

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Abstract

Keywords: Environmental Factors, Social Media Adoption, Business Performance. Abstract: Acceptance of social media in small and medium businesses has been largely achieved through previous studies. However, previous literature paid less attention to Indonesia’s small-medium enterprise (SME). This study aims to explore the role of social media adoption as a mediator between environmental factors and the economic performance of SMEs. To understand the relationship of these variables, researchers use Technology-organization-environment (TOE). SEM-PLS is used to analyse the primary data. The results show that environmental factors have a positive correlation with the adoption of social media. Futhermore, the environmental factor is also associated with business performance. however, social media adoption does not play the role of mediator between the environmental factor and business performance of SME. Theoretical and practical implication are discussed in this article.

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