An Investigation of Entrepreneurial Orientation, Social Media Adoption and E-commerce on MSME Business Performance: An Empirical Study in Indonesia

Abstract

The COVID-19 pandemic has significantly impacted the health, economy, and social sectors, and micro, small, and medium-sized enterprises (MSMEs) worldwide, including in Indonesia. This paper examines the use of social media and e-commerce with an entrepreneurial orientation to enhance the business performance of MSMEs. The study should serve as a model for improving the quality of micro, small, and medium-sized enterprises in the Jambi Province, in Indonesia. The research employs quantitative and qualitative approaches. The latter method employs in-depth interviews, focus group discussions (FGDs), and observation, whereas the former uses the partial least squares method (PLS). The findings and discussions conclude that social media adoption positively affected the performance and entrepreneurial orientation of MSMEs during the said period. Similarly, e-commerce positively affected the performance and entrepreneurial orientation of MSMEs. Entrepreneurialism and social media adoption had a significant impact on the performance of MSMEs, and due to its entrepreneurial orientation, e-commerce influenced the performance of MSMEs.

The Role of Financial Literacy and Entrepreneurial Orientation on MSME Sustainability: The Mediating Effect of E-Commerce

“…On the other hand, the use of e-commerce has become an effective tool in expanding markets, improving operational efficiency, and creating new opportunities for MSMEs [19]. High entrepreneurial orientation can improve the sustainability of MSMEs [20].…”