Entrepreneurial orientation and performance of SMEs: the roles of marketing capabilities and social media usage

Abstract

Purpose Small and medium-sized enterprises (SMEs) are an important contributor to emerging countries’ economic growth. However, SMEs have been struggling to sustain their performance in a highly competitive environment. Thus, this study aims to re-examine the effect of SMEs’ entrepreneurial orientation (EO) on firms’ performance during the COVID-19. This study has also studied the moderating role of social media usage and the mediating role of marketing capabilities and social media usage. Design/methodology/approach This study used a structured questionnaire for data collection, where the unit of analysis was the manager or owner of SMEs. The data were analyzed using partial least square-structural equation modeling. Findings The findings show that an EO has a significant and positive effect on an SME’s performance, but the outcomes are conditional on the role of social media and marketing capabilities. The empirical results reveal that marketing capabilities significantly mediate the relationship between EO and SME performance. In addition, social media usage moderates the relationship between EO and SME performance and it also partially mediates the EO-performance nexus of SMEs. Finally, this study discovers that the EO-Performance nexus of SMEs is serially mediated by social media usage and marketing capabilities. Research limitations/implications This study has important implications for SMEs that are seeking to gain a competitive advantage. For example, an SME should deploy market activities through social media channels. In situations such as a pandemic and uncertainty, this could be the most effective tool. Originality/value This study builds a theory-based mediation-moderation model to explain the link between EO and SME performance. In explaining mediation-moderation effects, the current study provides insight into EO-performance relationships. Moreover, the current model facilitates exploring whether serial mediation passes through social media usage and market capabilities. Therefore, with new findings, the study extends the literature on serial mediation in the EO-performance of SMEs. Additionally, this study extends the literature on the moderating role of social media on SMEs in Indonesia, which has not been investigated. Besides, the current study adds new insight into the EO-performance of SME in COVID-19 condition.

Understanding Revisit Intention During Covid-19: A Protection Motivation Theory Perspective

“…Drawing PMT to predict tourism behaviour, our findings bring new insight into the role of perceived risk literature in travel behaviour and intention to visit, especially during the COVID pandemic (Bhati et al, 2021;Huynh, 2020;Rather, 2021). In addition, our study expands the perceived risk research that was previously used more to predict consumer buying behaviour (Ahmed et al, 2019;Parayitam et al, 2020;Susanto et al, 2021).…”

“…For example, (Zhang et al, 2019) identified that the perceived risk could have a unique effect on the destination image and the decision to visit. Moreover, previous studies also have provided an empirical basis that proves the role of perceived risk as an antecedent of consumer behaviour and a moderating role in the relationship between image and buying behaviour (Ahmed et al, 2019;Parayitam et al, 2020;Susanto et al, 2021). (Parayitam et al, 2020) also proved that perceived risk moderates the effect of perceived quality and perceived value on consumer buying behaviour in India.…”

“…In a different context, (Ahmed, 2019) uses expectation confirmation theory (ECT) to explain a person's intention to use an application by placing perceived risk as a moderator. Using the background of electronic money (e-money), (Susanto et al, 2021) found that perceived risk negatively moderated the relationship between the behaviour intentions of e-money users. In short, tourists' travel decisions generally have awareness about the destination location, so their perceived risk has a vital role in influencing their decisions.…”

Pengaruh Social Media Marketing Activities pada Produk Enterprise Resource Planning System

“…Pemasaran digital juga menjadi pusat perhatian dalam dunia pemasaran dan menciptakan hubungan yang lebih berat antara brand dan konsumen (Koay et al, 2020). Seiring dengan pertumbuhan media sosial brand memanfaatkan peluang pemasaran ini karena lebih hemat dan lebih mudah untuk menjangkau pasar lebih luas (Susanto et al, 2021). Untuk dapat mengelola hubungan dengan pelanggannya perusahaan menggunakan berbagai platform social media seperti Facebook, LinkedIn, Twitter, Instagram dan Pinterest untuk mempromosikan produk dan layanan perusahaan (Akar & Topçu, 2011;Ibrahim et al, 2020).…”

“…Effect of social media marketing on Instagram towards purchase intention: Evidence from Indonesia's ready-to-drink tea industry. International Journal ofData and Network Science, 4(2),[91][92][93][94][95][96][97][98][99][100][101][102][103][104]…”