Technological, Organizational, and Environmental Factors and Their Effect on SMEs Performance via Social Media
DOI:
https://doi.org/10.35719/fenomena.v23i2.602Keywords:
Technological, Organizational, and Environmental, Social Media, Performance, SMEs, Sosial Media, Kinerja, UKMAbstract
Globalization and digitalization have intensified competition, presenting challenges and opportunities for SMEs. While social media (SM) offers significant benefits for enhancing performance, empirical evidence on its mediating role between organizational drivers and outcomes remains limited. Furthermore, research applying the Technological-Organizational-Environmental (TOE) framework in this context is relatively novel. This study examines the effect of TOE factors on SME performance through social media. Using a quantitative approach, data were collected via questionnaires from 384 SMEs in Indonesia and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that technological, organizational, and environmental factors significantly influence social media adoption and SME performance, with technology having the most substantial effect. Social media use also mediates the relationship between TOE and performance. All constructs demonstrated high reliability and validity. The study concludes that improving technological infrastructure, organizational readiness, and environmental awareness—coupled with strategic social media use—can substantially enhance SME performance. These findings provide valuable insights for SMEs and policymakers aiming to leverage digital tools for business growth.
Globalisasi dan digitalisasi telah memperketat persaingan, menciptakan tantangan dan peluang bagi Usaha Kecil dan Menengah (UKM). Meskipun media sosial (SM) menawarkan banyak keuntungan untuk meningkatkan kinerja, bukti empiris mengenai perannya sebagai mediator antara kerangka Technological-Organizational-Environmental (TOE) dan kinerja UKM masih terbatas. Penelitian ini bertujuan untuk menganalisis pengaruh langsung dan tidak langsung faktor TOE terhadap kinerja UKM melalui penggunaan media sosial. Dengan pendekatan kuantitatif, data dikumpulkan melalui kuesioner dari 384 UKM di Indonesia. Data dianalisis menggunakan Partial Least Squares Structural Equation Modeling (PLS-SEM). Hasil penelitian menunjukkan bahwa faktor teknologi, organisasi, dan lingkungan berpengaruh signifikan terhadap adopsi media sosial dan kinerja UKM, dengan teknologi memiliki pengaruh terkuat. Penggunaan media sosial tidak hanya langsung meningkatkan kinerja tetapi juga secara signifikan memediasi hubungan antara faktor TOE dan kinerja. Disimpulkan bahwa peningkatan infrastruktur teknologi, kesiapan organisasi, kesadaran lingkungan, yang terintegrasi dengan strategi media sosial yang konsisten, sangat penting untuk kinerja UKM yang unggul di era digital.
Downloads
References
Abdurrahman, A., Gustomo, A., & Prasetio, E. A. (2024). Impact of dynamic capabilities on digital transformation and innovation to improve banking performance: A TOE framework study. Journal of Open Innovation: Technology, Market, and Complexity, 10(1), 100215. https://doi.org/10.1016/j.joitmc.2024.100215
Ahmad, S. Z., Abu Bakar, A. R., & Ahmad, N. (2019). Social media adoption and its impact on firm performance: the case of the UAE. International Journal of Entrepreneurial Behaviour and Research, 25(1), 84–111. https://doi.org/10.1108/IJEBR-08-2017-0299
Ainin, S., Parveen, F., Moghavvemi, S., Jaafar, N. I., & Shuib, N. L. M. (2015). Factors influencing the use of social media by SMEs and its performance outcomes. Industrial Management and Data Systems, 115(3), 570–588. https://doi.org/10.1108/IMDS-07-2014-0205
Ali Qalati, S., Li, W., Ahmed, N., Ali Mirani, M., & Khan, A. (2020). Examining the Factors Affecting SME Performance: The Mediating Role of Social Media Adoption. Sustainability, 13(1), 75. https://doi.org/10.3390/su13010075
Asmawati, A., Ahmad, I., Suwarni, E., Alita, D., & Hasrina, C. D. (2024). Online Marketing Readiness of MSMEs in Indonesia: A Perspective of Technology Organizational Environmental Framework. Journal of Economics, Business, and Accountancy Ventura, 27(1). https://doi.org/10.14414/jebav.v27i1.3399
Ausat, A. M. A., & Peirisal, T. (2021). Determinants of E-commerce Adoption on Business Performance: A Study of MSMEs in Malang City, Indonesia. Jurnal Optimasi Sistem Industri, 20(2), 104–114. https://doi.org/10.25077/josi.v20.n2.p104-114.2021
Basit, A., Javed, A., Ejaz, S., Nasir, A., Ridwan, A.-R., & Ahmed, S. (2024). Social media usage and sustainable performance in manufacturing supply chains: exploring dynamic capabilities. Discover Sustainability, 5(1), 294. https://doi.org/10.1007/s43621-024-00348-6
Bawono, H. T., Winarno, W., & Karyono, K. (2022). Effect Of Technology, Organization, And External Environment On Business Performance Mediated By The Adoption Of Technology 4.0 In SMEs. Manajerial, 9(02), 228. https://doi.org/10.30587/jurnalmanajerial.v9i02.3854
Beier, M., & Wagner, K. (2016). Social media adoption: Barriers to the strategic use of social media in SMEs. 24th European Conference on Information Systems, ECIS 2016.
Borah, P. S., Iqbal, S., & Akhtar, S. (2022). Linking social media usage and SME’s sustainable performance: The role of digital leadership and innovation capabilities. Technology in Society, 68, 101900. https://doi.org/10.1016/j.techsoc.2022.101900
Evi, T., & Rachbini, W. (2022). Partial Least Squares (Teori Dan Praktek). Tahta Media Group.
Eze, S. C., Chinedu-Eze, V. C. A., & Awa, H. O. (2021). Key Success Factors (KSFs) Underlying the Adoption of Social Media Marketing Technology. SAGE Open, 11(2). https://doi.org/10.1177/21582440211006695
Fu, C.-J., Silalahi, A. D. K., Yang, L.-W., & Eunike, I. J. (2024). Advancing SME performance: a novel application of the technological-organizational-environment framework in social media marketing adoption. Cogent Business & Management, 11(1). https://doi.org/10.1080/23311975.2024.2360509
Gazal, K., Montague, I., Poudel, R., & Wiedenbeck, J. (2016). Forest products industry in a digital age: Factors affecting social media adoption. Forest Products Journal, 66(5–6), 343–353. https://doi.org/10.13073/FPJ-D-15-00007
Ghozali, I. (2016). Aplikasi Analisis Multivariete Dengan Program IBM SPSS 23 (8th ed.). Badan Penerbit Universitas Diponegoro.
Ghozali, I. (2018). Aplikasi Analisis Multivariate Dengan Program IBM SPSS 25. Badan Penerbit Universitas Diponegoro.
Held, P., Heubeck, T., & Meckl, R. (2025). Boosting SMEs’ digital transformation: the role of dynamic capabilities in cultivating digital leadership and digital culture. Review of Managerial Science. https://doi.org/10.1007/s11846-025-00919-5
Hosmer, D., Lemeshow, S., & Sturdivant, R. (2013). Applied Logistic Regression. Wiley.
Hudson, M., Smart, A., & Bourne, M. (2001). Theory and Practice in SME Performance Measurement Systems", International Journal of Operations & Production Management. In International Journal of Operations & Production Management (Vol. 21, Issue 8).
KADIN INDONESIA. (2024). UMKM Indonesia.
Khalifan, S., Ghanem, R., Aziati, N., & Hamid, A. (2021). Factors Influencing the SME Performance in The United Arab Emirates. Proceedings of the Second Asia Pacific International Conference on Industrial Engineering and Operations Management, 4307–4315.
Leso, B. H., Cortimiglia, M. N., & Ghezzi, A. (2023). The contribution of organizational culture, structure, and leadership factors in the digital transformation of SMEs: a mixed-methods approach. Cognition, Technology & Work, 25(1), 151–179. https://doi.org/10.1007/s10111-022-00714-2
LONG TUAN KECHIK, T. S. M., LUQMAN, A., CHAI LI, C., & LEMAN, F. (2023). The Impact of Social Media Adoption on SMEs’ Performance: A TOE Framework Content Analysis. International Journal of Economics and Management, 17(2), 165–179. https://doi.org/10.47836/ijeam.17.2.02
Lukitaningsih, A., Fadhilah, M., & Kusumawardhani, R. (2024). Drivers of Social Media Marketing Adoption and Performance Impacts on Indonesian SMEs: An Integrated TAM, RDT, and TOE Framework. Journal of Ecohumanism, 3(8). https://doi.org/10.62754/joe.v3i8.4963
Margaret McCann Alexis Barlow. (2015). Use and measurement of social media for SMEs. Journal of Small Business and Enterprise Development, 22(2).
Matarazzo, M., Penco, L., Profumo, G., & Quaglia, R. (2021). Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective. Journal of Business Research, 123(February 2020), 642–656. https://doi.org/10.1016/j.jbusres.2020.10.033
Mataruka, L. T., & Muzurura, J. (2023). The adoption of social media tools for enhancing small and medium enterprises’ performance: A synthesis of innovation of diffusion and technology-organisation-environment frameworks. https://doi.org/10.32388/XEBM0E.2
Mishrif, A., & Khan, A. (2023). Technology adoption as survival strategy for small and medium enterprises during COVID-19. Journal of Innovation and Entrepreneurship, 12(1), 53. https://doi.org/10.1186/s13731-023-00317-9
Nisar, S., & Shafiq, M. (2019). Framework for efficient utilisation of social media in Pakistan’s healthcare sector. Technology in Society, 56, 31–43. https://doi.org/10.1016/j.techsoc.2018.09.003
Palladan, A. A., AbdulKadir, K., Ahmed, I. S., & Abubakar, Y. (2023). Effects of social media adoption on SME performance: the moderating role of business strategy. International Journal of Technoentrepreneurship, 4(4), 297–320. https://doi.org/10.1504/IJTE.2023.134931
Pingali, S. R., Singha, S., Arunachalam, S., & Pedada, K. (2023). Digital readiness of small and medium enterprises in emerging markets: The construct, propositions, measurement, and implications. Journal of Business Research, 164, 113973. https://doi.org/10.1016/j.jbusres.2023.113973
QALATI, S. A., LI, W., VELA, E. G., BUX, A., BARBOSA, B., & HERZALLAH, A. M. (2020). Effects of Technological, Organizational, and Environmental Factors on Social Media Adoption. Journal of Asian Finance, Economics and Business, 7(10), 989–998. https://doi.org/10.13106/jafeb.2020.vol7.no10.989
Qalati, S. A., Ostic, D., Sulaiman, M. A. B. A., Gopang, A. A., & Khan, A. (2022a). Social Media and SMEs’ Performance in Developing Countries: Effects of Technological-Organizational-Environmental Factors on the Adoption of Social Media. SAGE Open, 12(2). https://doi.org/10.1177/21582440221094594
Qalati, S. A., Yuan, L. W., Khan, M. A. S., & Anwar, F. (2021). A mediated model on the adoption of social media and SMEs’ performance in developing countries. Technology in Society, 64(December 2020), 101513. https://doi.org/10.1016/j.techsoc.2020.101513
Raharjo, K., Afrianty, T. W., & Prakasa, Y. (2024). Digital literacy and business transformation: social-cognitive learning perspectives in small business enterprises. Cogent Business & Management, 11(1). https://doi.org/10.1080/23311975.2024.2376282
Sagala, G. H., & Őri, D. (2024). Toward SMEs digital transformation success: a systematic literature review. Information Systems and E-Business Management, 22(4), 667–719. https://doi.org/10.1007/s10257-024-00682-2
Singh, B., Srivastava, S., Chaudhuri, R., Chatterjee, S., & Vrontis, D. (2024). Assessing the entrepreneurial business performance from a dynamic capability and TOE framework: moderating role of crowdfunding support. Journal of Small Business and Enterprise Development. https://doi.org/10.1108/JSBED-10-2023-0462
Sugiyono. (2017). Metode Kuantitatif, Kualitatif, dan R&D. CV Alfabeta.
Sugiyono. (2018). Metode Kuantitatif, Kualitatif, dan R&D. CV Alfabeta.
Syurie Ariandani Hamurwati. (2024). Perkembangan UMKM di Indonesia.
Tajudeen, F. P., Jaafar, N. I., & Ainin, S. (2018). Understanding the impact of social media usage among organizations. Information and Management, 55(3), 308–321. https://doi.org/10.1016/j.im.2017.08.004
Tambunan, T. . (2019). UMKM Di Indonesia. Ghalia Indonesia.
Tiwasing, P. (2021). Social media business networks and SME performance: A rural–urban comparative analysis. Growth and Change, 52(3), 1892–1913. https://doi.org/10.1111/grow.12501
Wang, S., & Zhang, H. (2025). Enhancing SMEs sustainable innovation and performance through digital transformation: Insights from strategic technology, organizational dynamics, and environmental adaptation. Socio-Economic Planning Sciences, 98, 102124. https://doi.org/10.1016/j.seps.2024.102124
Wang, W. Y. C., Pauleen, D. J., & Zhang, T. (2016). How social media applications affect B2B communication and improve business performance in SMEs. Industrial Marketing Management, 54, 4–14. https://doi.org/10.1016/j.indmarman.2015.12.004
World Economic Forum. (2014). The Global Information Technology Report 2014 (B. B. Osorio, S. Dutta, & B. Lanvin (eds.)).
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Yuliani, Yopi Yudha Utama
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
