The role of social media usage in enhancing Indonesian SMEs performance mediated by entrepreneurial orientation

The rapid development of digital technology nowadays opens opportunities for SMEs to empower their limited resources, especially their owners or managers, through digital oriented entrepreneurship. However, lack of creativity and innovation, lack of ability to see business opportunities, and lack of...

Full description

Saved in:
Bibliographic Details
Main Author: Yong, Dirgiatmo Sukadi
Format: Thesis
Language:eng
eng
eng
Published: 2021
Subjects:
Online Access:https://etd.uum.edu.my/9353/1/s95742_01.pdf
https://etd.uum.edu.my/9353/2/s95742_02.pdf
https://etd.uum.edu.my/9353/3/Permission%20to%20deposit_0001.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-uum-etd.9353
record_format uketd_dc
spelling my-uum-etd.93532022-05-16T01:54:41Z The role of social media usage in enhancing Indonesian SMEs performance mediated by entrepreneurial orientation 2021 Yong, Dirgiatmo Sukadi Abdullah, Zarifah Raja Mohd Ali, Raja Haslinda Tunku Puteri Intan Safinaz School of Accountancy (TISSA) College of Business HB615-715 Entrepreneurship. Risk and uncertainty. Property HF5001-6182 Business T Technology (General) The rapid development of digital technology nowadays opens opportunities for SMEs to empower their limited resources, especially their owners or managers, through digital oriented entrepreneurship. However, lack of creativity and innovation, lack of ability to see business opportunities, and lack of courage in taking risks are common problems faced by SMEs in developing countries. This study aims to investigate whether entrepreneurial orientation provides a mediating effect on the relationship between social media usage and financial and non-financial performance improvement of manufacturing SMEs in Indonesia. Entrepreneurial orientation (EO) refers to entrepreneurial characteristics possessed by SME top management (owner or managers), namely Innovativeness, Risk-taking, and Proactiveness. Whereas social media is related to its use in marketing programs, customer relations, and information accessibility. Innovation Diffusion Theory and Resourcebased View Theory are the underpinning theories of this study. A quantitative approach was used in 220 of 836 SMEs located in the former Surakarta Residency, Central Java Province, Indonesia. The samples surveyed were SMEs that run businesses in batik clothing material and production; wood, rattan, copper, leather and guitar crafts; dried food, and herbal medicine industry. Data were collected using a questionnaire survey and direct interviews with the SMEs' top management to support the quantitative results. Data analysis was performed using Partial Least Square - Structural Equation Modeling (PLS-SEM). The findings showed that Innovativeness, Risk-taking, and Pro-activeness have a mediating effect that varies from the level of full, partial mediation to no mediating effect at all on the relationship between social media usage and SMEs performance both financial and non-financial. It indicates that social media usage can be a stimulus, trigger, and motivator to "awaken" the entrepreneurial characteristics of SME's top management in managing their business. The findings are expected to provide a positive contribution both theoretical and methodological, and more practical for top management of manufacturing SMEs in Indonesia. 2021 Thesis https://etd.uum.edu.my/9353/ https://etd.uum.edu.my/9353/1/s95742_01.pdf text eng 2022-10-12 staffonly https://etd.uum.edu.my/9353/2/s95742_02.pdf text eng 2022-10-12 staffonly https://etd.uum.edu.my/9353/3/Permission%20to%20deposit_0001.pdf text eng staffonly other doctoral Universiti Utara Malaysia
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
eng
advisor Abdullah, Zarifah
Raja Mohd Ali, Raja Haslinda
topic HB615-715 Entrepreneurship
Risk and uncertainty
Property
HF5001-6182 Business
T Technology (General)
spellingShingle HB615-715 Entrepreneurship
Risk and uncertainty
Property
HF5001-6182 Business
T Technology (General)
Yong, Dirgiatmo Sukadi
The role of social media usage in enhancing Indonesian SMEs performance mediated by entrepreneurial orientation
description The rapid development of digital technology nowadays opens opportunities for SMEs to empower their limited resources, especially their owners or managers, through digital oriented entrepreneurship. However, lack of creativity and innovation, lack of ability to see business opportunities, and lack of courage in taking risks are common problems faced by SMEs in developing countries. This study aims to investigate whether entrepreneurial orientation provides a mediating effect on the relationship between social media usage and financial and non-financial performance improvement of manufacturing SMEs in Indonesia. Entrepreneurial orientation (EO) refers to entrepreneurial characteristics possessed by SME top management (owner or managers), namely Innovativeness, Risk-taking, and Proactiveness. Whereas social media is related to its use in marketing programs, customer relations, and information accessibility. Innovation Diffusion Theory and Resourcebased View Theory are the underpinning theories of this study. A quantitative approach was used in 220 of 836 SMEs located in the former Surakarta Residency, Central Java Province, Indonesia. The samples surveyed were SMEs that run businesses in batik clothing material and production; wood, rattan, copper, leather and guitar crafts; dried food, and herbal medicine industry. Data were collected using a questionnaire survey and direct interviews with the SMEs' top management to support the quantitative results. Data analysis was performed using Partial Least Square - Structural Equation Modeling (PLS-SEM). The findings showed that Innovativeness, Risk-taking, and Pro-activeness have a mediating effect that varies from the level of full, partial mediation to no mediating effect at all on the relationship between social media usage and SMEs performance both financial and non-financial. It indicates that social media usage can be a stimulus, trigger, and motivator to "awaken" the entrepreneurial characteristics of SME's top management in managing their business. The findings are expected to provide a positive contribution both theoretical and methodological, and more practical for top management of manufacturing SMEs in Indonesia.
format Thesis
qualification_name other
qualification_level Doctorate
author Yong, Dirgiatmo Sukadi
author_facet Yong, Dirgiatmo Sukadi
author_sort Yong, Dirgiatmo Sukadi
title The role of social media usage in enhancing Indonesian SMEs performance mediated by entrepreneurial orientation
title_short The role of social media usage in enhancing Indonesian SMEs performance mediated by entrepreneurial orientation
title_full The role of social media usage in enhancing Indonesian SMEs performance mediated by entrepreneurial orientation
title_fullStr The role of social media usage in enhancing Indonesian SMEs performance mediated by entrepreneurial orientation
title_full_unstemmed The role of social media usage in enhancing Indonesian SMEs performance mediated by entrepreneurial orientation
title_sort role of social media usage in enhancing indonesian smes performance mediated by entrepreneurial orientation
granting_institution Universiti Utara Malaysia
granting_department Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate 2021
url https://etd.uum.edu.my/9353/1/s95742_01.pdf
https://etd.uum.edu.my/9353/2/s95742_02.pdf
https://etd.uum.edu.my/9353/3/Permission%20to%20deposit_0001.pdf
_version_ 1747828579723378688