The Effect of Social Media Marketing on MSMEs’ Business Performance During the COVID-19 Pandemic

Ellyawati, Jeanne and Kusumatriawan, Ardhiel Junico Adi (2023) The Effect of Social Media Marketing on MSMEs’ Business Performance During the COVID-19 Pandemic. Review of Integrative Business and Economics Research, 13 (2). pp. 38-54. ISSN 2304-1013

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Abstract

Currently, the use of social media marketing (SMM) to promote the company's product is necessary. The purpose of this study is to examine the effect of SMM on the business performance of Micro, Small, and Medium Enterprises (MSMEs) during the Covid-19 pandemic. By integrating the theory of TAM, UTAUT, and Diffusion of Innovation, this study tries to verify the hypothesis. The research setting is in the batik village in Surakarta, Indonesia. Batik sellers, owners, and managers who use SMM in their marketing activities were recruited as respondents. Data was collected using surveys through structured questionnaires. The purposive sampling method was employed to collect data. A total of 251 data were processed further using SmartPLS. The study shows that SMM has significantly impacted MSMEs performance in terms of increasing sales and market share, customer relations, and productivity during the Covid-19 pandemic. This is supported by the use of an application that is easy to operate. This study proves that SMM can demonstrate its benefits; it is easy to use; and is compatible with conventional marketing systems carried out by MSMEs. However, MSMEs and local governments must work together to support conditions that facilitate and cope with cost constraints.

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