Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)


The Role of the Use of Social Media in Analyzing the Impact of Organizations Using the toe Framework On MSMEs in Indonesia

Author(s): Amalia Luthfya Pradifera, Sri Lestari Prasilowati and Slamet Ahmadi

This study investigates the factors influencing social media usage towards micro and small enterprise using the TOE Framework. The TOE Framework respectfully stands for technological context, organizational context, and environmental context. The samples used in this study includes micro and small enterprise owners in Indonesia that actively uses social media for their business marketing purposes. This study uses Partial-Least-Squares-Structural-Equation-Modeling (PLS-SEM) for the path analysis of 310 responses from SME’s owners, executives, and managers using purposive sampling method. The technological context is represented by relative advantage, compatibility, cost-effectiveness, structural assurance, and interactivity. The organizational context is represented by top management’s support and entrepreneurial orientation. The environmental context is represented by institutional pressure. This study hopes to help organizations understand the benefits of social media usage and provides a justification for investments in social media by organizations.

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