THE EFFECT OF ENTREPRENEURIAL ORIENTATION ON SOCIAL MEDIA MARKETING ADOPTION AND MSME PERFORMANCE: THE MODERATING ROLE OF INNOVATION ABILITY
Main Article Content
Muhammad Al Hafis
Naufal Bachri
Mohd. Heikal
Ikramuddin
Adnan
Heriyana
This study aims to examine the influence of entrepreneurial orientation on the adoption of social media marketing and the performance of MSMEs: the moderating role of innovation capability. This study was conducted on 120 MSMEs in North Aceh Regency, and data collection was carried out through questionnaires distributed through Google Forms. The data analysis tool used Structural Equation Modeling (SEM) operated with Amos. The results of the study found that entrepreneurial orientation significantly influenced the adoption of social media marketing and the performance of MSMEs. The adoption of social media marketing and innovation capability also significantly improved the performance of MSMEs. And in testing the mediation effect of social media marketing adoption significantly mediated the influence of customer value on customer loyalty. Furthermore, in testing the moderation effect, innovation capability significantly moderated the influence of social media marketing adoption on MSME performance. The results of this study are expected to provide important contributions for stakeholders in formulating MSME business marketing policies and strategies in the future
Al-Momani, L., Haddad, S., Sharabati, A. A. A., and Abu Hashesh, M. (2023). The moderation role of entrepreneurial orientation on the influence of innovation on pharmaceutical SMEs’ performance. Journal of Open Innovation: Technology, Market, and Complexity, 9(2). https://doi.org/10.1016/j.joitmc.2023.100074
Ali, G. A., Hilman, H., and Gorondutse, A. H. (2020). Effect of entrepreneurial orientation, market orientation and total quality management on performance: Evidence from Saudi SMEs. Benchmarking An International Journal, 27(4), 1503–1531. https://doi.org/10.1108/BIJ-08-2019-0391
Arshad, M. Z., Arshad, D., Lamsali, H., Ibrahim Alshuaibi, A. S., Ibrahim Alshuaibi, M. S., Albashar, G., … Chuah, L. F. (2023). Strategic resources alignment for sustainability: The impact of innovation capability and intellectual capital on SME’s performance. Moderating role of external environment. Journal of Cleaner Production, 417, 137884. https://doi.org/https://doi.org/10.1016/j.jclepro.2023.137884
Aryani, D. R., and Tuti, M. (2023). Entrepreneurial Orientation Studies on Food And Beverage MSMEs To Examine The Effects of Social Media Marketing and Digital Content Marketing Activity on Business Performance. Indonesian Journal of Business and Entrepreneurship, 9(3), 513–523. https://doi.org/10.17358/ijbe.9.3.513
Astuti, W. T., Sudiro, A., and Hadiwidjojo, D. (2021). The Role of Innovation in Mediating the Effects of Market Orientation and Entrepreneurial Orientation on Business Performance in The Context of SMES. PalArch’s Journal of Archaeology of Egypt/Egyptology, 18(08), 1337–1352.
Atikur RAHAMAN, M., Fatema LUNA, K., Mite, S., Islam, M., and Atif WAFIK, H. M. (2021). The Effect of Entrepreneurial Orientation, Market Orientation and Gender on Business Performance: An Empirical Study of SMEs in Bangladesh. Journal of Asian Finance, 8(6), 741–0746. https://doi.org/10.13106/jafeb.2021.vol8.no6.0741
Brooks, S., Sahaym, A., Datta, A., and Srivastava, S. (2023). Risky combination: the role of managerial perceptions of social media use and entrepreneurial orientation on SME innovation. Management Decision, 61(1), 33–56. https://doi.org/10.1108/MD-03-2021-0385
Danny, F. G., and Utama, L. (2020). Pengaruh Orientasi Kewirausahaan dan Kapasitas Inovasi terhadap Kesuksesan Proyek pada Bidang Fashion. Jurnal Manajerial Dan Kewirausahaan, 2(3), 690. https://doi.org/10.24912/jmk.v2i3.9581
Dayan, M., Ng, P. Y., Husain, Z., and Zacca, R. (2023). Journal article Effects of constructive politics and market turbulence on entrepreneurial orientation – performance relationship : A moderated mediation model. European Management Journal, 41(3), 385–394. https://doi.org/https://doi.org/10.1016/j.emj.2022.03.001
Fan, M., Qalati, S. A., Khan, M. A. S., Shah, S. M. M., Ramzan, M., and Khan, R. S. (2021). Effects of entrepreneurial orientation on social media adoption and SME performance: The moderating role of innovation capabilities. PLOS ONE, 16(4), e0247320. https://doi.org/10.1371/journal.pone.0247320
Fang, G. G., Qalati, S. A., Ostic, D., Shah, S. M. M., and Mirani, M. A. (2022). Effects of entrepreneurial orientation, social media, and innovation capabilities on SME performance in emerging countries: a mediated–moderated model. Technology Analysis & Strategic Management, 34(11), 1326–1338. https://doi.org/10.1080/09537325.2021.1957816
Farizd, M., Sabila, R., Martapura, I. R., and Wulansari, A. (2024). Analisis Pengaruh Adopsi Media Sosial Bagi Kinerja UMKM Kota Surabaya. Jurnal Jurnal Sains Dan Teknologi (JSIT), 3(2), 245–252. Retrieved from http://jurnal.minartis.com/index.php/jsit
Fatima, T., and Bilal, A. R. (2020). Achieving SME performance through individual entrepreneurial orientation: An active social networking perspective. Journal of Entrepreneurship in Emerging Economies, 12(3), 399–411. https://doi.org/10.1108/JEEE-03-2019-0037
Huang, S., Huang, Q., and Soetanto, D. (2023). Entrepreneurial orientation dimensions and the performance of high-tech and low-tech firms : A configurational approach. European Management Journal, 41(3), 375–384. https://doi.org/10.1016/j.emj.2022.03.002
Joseph F. Hair, J., Black, W. C., Babin, B. J., and Anderson, R. E. (2018). Multivariate Data Analysis. In Annabel Ainscow (Eighth Edi, pp. 95–120). United Kingdom: Cengage Learning, EMEA Cheriton House, North Way Andover, Hampshire, SP10 5BE United Kingdom Cengage. https://doi.org/10.1002/9781119409137.ch4
Kanaan-Jebna, A., Baharudi, A. S., and Alabdullah, T. T. Y. (2022). Entrepreneurial Orientation, Market Orientation, Managerial Accounting and Manufacturing SMEs Satisfaction. Journal of Accounting Science, 6(1), 1–14. https://doi.org/10.21070/jas.v6i1.1590
Kesumahati, E., and Lim, D. (2023). Study of MSMEs Performance: Factors Affecting MSMEs Performance through Marketing Adoption with Social Media. Jurnal Administrasi Dan Manajemen, 13(1), 29–44.
Kikawa, C. R., Kiconco, C., Agaba, M., Ntirampeba, D., Ssematimba, A., and Kalema, B. M. (2022). Social Media Marketing for Small and Medium Enterprise Performance in Uganda : A Structural Equation Model. Sustainability, 14(14391), 1–20. https://doi.org/https://doi.org/10.3390/ su142114391
Larios-francia, R. P., and Ferasso, M. (2023). The relationship between innovation and performance in MSMEs: The case of the wearing apparel sector in emerging countries Rosa. Journal of Open Innovation: Technology, Market, and Complexity, 9(1), 100018. https://doi.org/10.1016/j.joitmc.2023.100018
Leonelli, S., Masciarelli, F., and Fontana, F. (2022). The impact of personality traits and abilities on entrepreneurial orientation in SMEs. Journal of Small Business and Entrepreneurship, 34(3), 269–294. https://doi.org/10.1080/08276331.2019.1666339
Mahliza, F. (2021). The influence of e-commerce adoption using social media towards business performance of micro enterprises. International Journal of Business, Economics and Law, 18(5), 290–299.
Manali, V., Adzimatinur, F., and Rahimi, F. (2022). The Impact of Entrepreneurial Orientation on SMEs Performance in West Java Province: Market Orientation as Mediating Variable. Proceedings of the 2nd Universitas Kuningan International Conference on System, Engineering, and Technology, UNISET 2021, 2 December 2021, Kuningan, West Java, Indonesia. EAI. https://doi.org/10.4108/eai.2-12-2021.2320216
Morgan, T., and Anokhin, S. A. (2020). The joint impact of entrepreneurial orientation and market orientation in new product development: Studying firm and environmental contingencies. Journal of Business Research, 113(November 2017), 129–138. https://doi.org/10.1016/j.jbusres.2019.06.019
Mudjahidin, M., Aristio, A. P., Balbeid, N. H., and Junaedi, L. (2024). The Influence of Social Media Sales Intensity and Competency on The Influence of Social Media Sales Intensity and Competency on the Improvement of Business Performance Satisfaction in MSMEs. Procedia Computer Science, 234, 869–875. https://doi.org/10.1016/j.procs.2024.03.074
Natasha, F., Christin, L., and Ferdinandus Winandy Soesilo. (2023). The Effect of Entrepreneurial Orientation on Social Media Adoption and Business Performance Moderated by Innovation Capability in Healthy Food SMEs in DKI Jakarta. Journal of Accounting and Finance Management, 4(1), 104–117. https://doi.org/10.38035/jafm.v4i1.197
Nurul Islami, N., Wahyuni, S., and Tiara, T. (2020). The Effect of Digital Marketing on Organizational Performance Through Intellectual Capital and Perceived Quality in Micro, Small and Medium Enterprises. Jurnal Organisasi Dan Manajemen, 16(1), 60–72. https://doi.org/10.33830/jom.v16i1.718.2020
Otalora-beltrán, J., Otalora-beltrán, J., and García-tamayo, D. (2023). ScienceDirect ScienceDirect Factors that impact the innovation capability in MSMEs : case of Factors that impact the innovation capability in MSMEs : case of Colombia ’ s Atlántico Atlántico Department. Procedia Computer Science, 224(2021), 490–494. https://doi.org/10.1016/j.procs.2023.09.070
Pozzo, D. N., Roa, I. G., Beleño, C. A. G., Orfale, H. J., Gomez, A. J. R., and Guerrero, V. C. (2023). ScienceDirect The impact of entrepreneurial orientation on innovation performance : A study on micro , small and medium-sized enterprises ( MSMEs ) in the Colombian Caribbean. Procedia Computer Science, 224, 502–506. https://doi.org/10.1016/j.procs.2023.09.072
Prasetya, A. G. A. (2024). Analisis Pengaruh Kemampuan Berinovasi, Keterlibatan Pelanggan, dan Adopsi Media Sosial terhadap Kinerja Inovasi UMKM. Jurnal Ilmu Manajemen, Ekonomi Dan Kewirausahan, 2(2), 211–226. https://doi.org/https://doi.org/10.58192/wawasan.v2i2.2055
Qalati, S. A., Li, W., Ahmed, N., Mirani, M. A., and Khan, A. (2021). Examining the factors affecting sme performance: the mediating role of social media adoption. Sustainability (Switzerland), 13(1), 1–24. https://doi.org/10.3390/su13010075
Qalati, S. A., Yuan, L. W., Khan, M. A. S., and Anwar, F. (2021). A mediated model on the adoption of social media and SMEs’ performance in developing countries. Technology in Society, 64, 101513. https://doi.org/https://doi.org/10.1016/j.techsoc.2020.101513
Salehe, M. A., Sesabo, J. K., Isaga, N., and Mkuna, E. (2024). Sustainable Technology and Entrepreneurship Individual entrepreneurial orientation and firm performance : The mediating role of sustainable entrepreneurship practices. Sustainable Technology and Entrepreneurship, 3(3), 100079. https://doi.org/10.1016/j.stae.2024.100079
Souisa, W. (2018). The Effects of Entrepreneurial Orientation And Market Orientation On Business Performance. Journal of Entrepreneurship Education, 21(4), 2651.
Susanto, P., Hoque, M. E., Shah, N. U., Candra, A. H., Hashim, N. M. H. N., and Abdullah, N. L. (2023). Entrepreneurial orientation and performance of SMEs: the roles of marketing capabilities and social media usage. Journal of Entrepreneurship in Emerging Economies, 15(2), 379–403. https://doi.org/10.1108/JEEE-03-2021-0090
Taleb, T. S. T., Hashim, N., and Zakaria, N. (2023). Mediating e ff ect of innovation capability between entrepreneurial resources and micro business performance. The Bottom Line, 36(1), 77–100. https://doi.org/10.1108/BL-07-2022-0112
Wijaya, L. D., and Simamora, V. (2022). Pengaruh Kapabilitas Teknologi Informasi Dan Kapabilitas Inovasi Terhadap Strategi Dan Dampaknya Terhadap Keunggulan Bersaing Umkm Kuliner. Jurnal Ilmiah Akuntansi Dan Bisnis, 7(1), 51–65. https://doi.org/10.38043/jiab.v7i1.3474
Wongsansukcharoen, J., and Thaweepaiboonwong, J. (2023). Effect of innovations in human resource practices, innovation capabilities, and competitive advantage on small and medium enterprises’ performance in Thailand. European Research on Management and Business Economics, 29(1), 100210. https://doi.org/10.1016/j.iedeen.2022.100210
Yacob, S., Sulistiyo, U., Marzal, J., Siregar, A. P., and Mukminin, A. (2023). An Investigation of Entrepreneurial Orientation, Social Media Adoption and E-commerce on MSME Business Performance: An Empirical Study in Indonesia. Revista Galega de Economia, 32(3). https://doi.org/10.15304/rge.32.3.9001
Zhang, M., Fan, B., Zhang, N., Wang, W., and Fan, W. (2021). Mining product innovation ideas from online reviews. Information Processing and Management, 58(1), 102389. https://doi.org/10.1016/j.ipm.2020.102389


























