Browse > Article
http://dx.doi.org/10.13106/jafeb.2020.vol7.no12.283

The Shifting of Business Activities during the COVID-19 Pandemic: Does Social Media Marketing Matter?  

PATMA, Tundung Subali (Department of Business Administration, Politeknik Negeri Malang)
WARDANA, Ludi Wishnu (Department of Business and Management Education, Faculty of Economics, Universitas Negeri Malang)
WIBOWO, Agus (Department of Economic Education, Faculty of Economics, Universitas Negeri Jakarta)
NARMADITYA, Bagus Shandy (Department of Economic Education, Faculty of Economics, Universitas Negeri Malang)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.12, 2020 , pp. 283-292 More about this Journal
Abstract
The implementation of physical or social distancing during the Covid-19 pandemic has an implication on the shifting of conventional to online business activities. This study aims to explore how financial support, perceived benefits, external pressure determine social media marketing as well as understanding the role of internet and e-business technology (IEBT) that occurs in this relationship. This study adopted a quantitative study with Structural Equation Modeling (SEM)-based variance Partial Least Square (PLS), which aims to enhance understanding of the relationship between variables. The surveyed population of this study came from 123 small- and medium-sized enterprise (SME) owners in East Java of Indonesia, using an online survey and selected with the convenience random sampling method. The findings of this study indicated that the perceived benefits and external pressure have a positive effect on the adoption of IEBT. However, financial support failed in explaining SMEs' adoption of IEBT. This study confirmed that the adoption of IEBT has successfully mediated the influence of financial support, perceived benefits, and external pressure on social media marketing. Despite the samples solely collected from East Java, this study is the first step in research related to the social media marketing in SMEs in Indonesia.
Keywords
External Pressure; Financial Support; Internet and e-Business Technology; Perceived Benefits; Social Media Marketing;
Citations & Related Records
Times Cited By KSCI : 8  (Citation Analysis)
연도 인용수 순위
1 Müller, J. M., & Voigt, K. I. (2018). Sustainable Industrial Value Creation in SMEs: A Comparison between Industry 4.0 and Made in China 2025. International Journal of Precision Engineering and Manufacturing - Green Technology, 5(5), 659-670. https://doi.org/10.1007/s40684-018-0056-z   DOI
2 Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., Agha, M., & Agha, R. (2020). The socio-economic implications of the coronavirus pandemic (COVID-19): A review. International Journal of Surgery, 78(April), 185-193. https://doi.org/10.1016/j.ijsu.2020.04.018   DOI
3 Odoom, R., Anning-Dorson, T., & Acheampong, G. (2017). Antecedents of social media usage and performance benefits in small- and medium-sized enterprises (SMEs). Journal of Enterprise Information Management, 30(3), 383-399. https://doi.org/10.1108/JEIM-04-2016-0088   DOI
4 Poon, S., & Swatman, P. M. C. (1999). An exploratory study of small business Internet commerce issues. Information and Management, 35(1), 9-18. https://doi.org/10.1016/S0378-7206(98)00079-2   DOI
5 Rajh, E., Budak, J., Ateljevic, J., Davev, L., Jovanov, T., & Ognjenovic, K. (2017). Entrepreneurial intentions in selected South-East European countries. Glasnik Srpskog Geografskog Drustva, 592-610.
6 Ramadani, V., Dana, L. P., Gerguri-Rashiti, S., & Ratten, V. (2016). Entrepreneurship and management in an Islamic context. Entrepreneurship and Management in an Islamic Context, 1-248. https://doi.org/10.1007/978-3-319-39679-8   DOI
7 Ramakrishnan, P., Haron, H., & Goh, Y. N. (2015). Factors influencing green purchasing adoption for small and medium enterprises (smes) in malaysia. International Journal of Business and Society, 16(1), 39-56. https://doi.org/10.33736/ijbs.552.2015   DOI
8 Ramayah, T., Ling, N. S., Taghizadeh, S. K., & Rahman, S. A. (2016). Factors influencing SMEs website continuance intention in Malaysia. Telematics and Informatics, 33(1), 150-164. https://doi.org/10.1016/j.tele.2015.06.007   DOI
9 Rogers, E. M. (2010). Diffusion of innovations. In: Simon and Schuster, 24(3). https://doi.org/10.1007/s10460-007-9072-2   DOI
10 Sadowski, B. M., Maitland, C., & Van Dongen, J. (2002). Strategic use of the internet by small- and medium-sized companies: An exploratory study. Information Economics and Policy, 14(1), 75-93. https://doi.org/10.1016/S0167-6245(01)00054-3   DOI
11 Sumiati, S. (2020). Improving Small Business Performance: The Role of Entrepreneurial Intensity and Innovation. Journal of Asian Finance, Economics and Business, 7(10), 211-218. https://doi.org/10.13106/jafeb.2020.vol7.n10.211   DOI
12 Testa, F., Nucci, B., Iraldo, F., Appolloni, A., & Daddi, T. (2017). Removing obstacles to the implementation of LCA among SMEs: A collective strategy for exploiting recycled wool. Journal of Cleaner Production, 156, 923-931. https://doi.org/10.1016/j.jclepro.2017.04.101   DOI
13 Walker, J. H., Saffu, K., & Mazurek, M. (2016). An Empirical Study of Factors Influencing E-Commerce Adoption/Non-Adoption in Slovakian SMEs. Journal of Internet Commerce, 15(3), 189-213. https://doi.org/10.1080/15332861.2016.1191049   DOI
14 Weisberg, J., Te'eni, D., & Arman, L. (2011). Past purchase and intention to purchase in e‐commerce. Internet Research., 21(1), 82-96. https://doi.org/10.1108/10662241111104893   DOI
15 Alshehhi, A., Nobanee, H., & Khare, N. (2018). The impact of sustainability practices on corporate financial performance: Literature trends and future research potential. Sustainability, 10(2). https://doi.org/10.3390/su10020494   DOI
16 Yoshino, N., Taghizadeh-Hesary, F., Charoensivakorn, P., & Niraula, B. (2016). Small and Medium-Sized Enterprise (SME) Credit Risk Analysis Using Bank Lending Data: An Analysis of Thai SMEs. Journal of Comparative Asian Development, 15(3), 383-406. https://doi.org/10.1080/15339114.2016.1233821   DOI
17 Abd Rahman, A., Singhry, H. B., Hanafiah, M. H., & Abdul, M. (2017). Influence of perceived benefits and traceability system on the readiness for Halal Assurance System implementation among food manufacturers. Food Control, 73, 1318-1326. https://doi.org/10.1016/j.foodcont.2016.10.058   DOI
18 Ahmad, S. Z., Ahmad, N., & Abu Bakar, A. R. (2018). Reflections of entrepreneurs of small and medium-sized enterprises concerning the adoption of social media and its impact on performance outcomes: Evidence from the UAE. Telematics and Informatics, 35(1), 6-17. https://doi.org/10.1016/j.tele.2017.09.006   DOI
19 Almahamid, S., & Awsi, O. (2015). Perceived organizational ERP benefits for SMEs: Middle eastern perspective. Interdisciplinary Journal of Information, Knowledge, and Management, 10(January 2015), 145-172. https://doi.org/10.28945/2301   DOI
20 Alnaser, A. S., Habes, M., Alghizzawi, M., & Ali, S. (2020). The Relation among Marketing ads, via Digital Media and mitigate (COVID-19) pandemic in Jordan The Relationship between Social Media and Academic Performance: Facebook Perspective View project Healthcare challenges during COVID-19 pandemic View project. Dspace.Urbe.University, July. https://www.researchgate.net/publication/342866347
21 Ann, G. E., Zailani, S., & Wahid, N. A. (2006). A study on the impact of environmental management system (EMS) certification towards firms' performance in Malaysia. Management of Environmental Quality: An International Journal, 17(1), 73-93. https://doi.org/10.1108/14777830610639459   DOI
22 Aral, S., & Weill, P. (2007). IT assets, organizational capabilities, and firm performance: How resource allocations and organizational differences explain performance variation. Organization Science, 18(5), 763-780. https://doi.org/10.1287/orsc.1070.0306   DOI
23 Bailey, A. (2019). Social Media: The Good, the Bad, and the Ugly. Plastic Surgical Nursing : Official Journal of the American Society of Plastic and Reconstructive Surgical Nurses, 39(3), 66. https://doi.org/10.1097/PSN.0000000000000271   DOI
24 Baresel-Bofinger, A., Ketikidis, P. H., Koh, S. C. L., & Cullen, J. (2006). Implementation of Green Supply Chain Management in South-East Europe - A Literature Review. Wiley Online Library, 1-11. https://seerc.org/refbase/files/bareselbofinger/2006/314_Baresel-Bofinger_etal2006.pdf
25 Bayramov, V., Hasanov, R., Aghayarli, L., Kadyrov, Z., Aghahasanli, I., & Isayev, S. (2019). A Comparative Study on Development of Small and Medium Enterprises (SMEs) in Azerbaijan. SSRN Electronic Journal, 99412. https://doi.org/10.2139/ssrn.3485576   DOI
26 Cestyakara, A. (2013). Social Media Adoption Model for Smart Entrepreneur. International Conference on ICT for Smart Society, 1-7.
27 Childers, C. C., Lemon, L. L., & Hoy, M. G. (2019). #Sponsored #Ad: Agency Perspective on Influencer Marketing Campaigns. Journal of Current Issues and Research in Advertising, 40(3), 258-274. https://doi.org/10.1080/10641734.2018.1521113   DOI
28 Chatterjee, S., & Kar, A. (2020). Why do small and medium enterprises use social media marketing and what is the impact: Empirical insights from India. International Journal of Information Management, 53(December 2019), 102103. https://doi.org/10.1016/j.ijinfomgt.2020.102103   DOI
29 Chege, S. M., & Wang, D. (2020). Information technology innovation and its impact on job creation by SMEs in developing countries: an analysis of the literature review. Technology Analysis & Strategic Management, 32(3), 256-271.   DOI
30 Chelliah, T. D., Chelliah, M. K., & Jaganathan, M. (2017). Adoption of corporate social responsibility: Empirical evidence from Malaysian SMEs. Jurnal Komunikasi: Malaysian Journal of Communication, 33(4), 174-189. https://doi.org/10.17576/JKMJC-2017-3304-11   DOI
31 Chittenden, F., & Ambler, T. (2015). A question of perspective: Impact Assessment and the perceived costs and benefits of new regulations for SMEs. Environment and Planning C: Government and Policy, 33(1), 9-24. https://doi.org/10.1068/c12211b   DOI
32 Chong, S., & Pervan, G. (2007). Factors influencing the extent of deployment of electronic commerce for small-and medium-sized enterprises. Journal of Electronic Commerce in Organizations, 5(1), 1-29. https://doi.org/10.4018/jeco.2007010101   DOI
33 Chang, M. K., & Cheung, W. (2001). Determinants of the intention to use Internet/WWW at work: A confirmatory study. Information and Management, 39(1), 1-14. https://doi.org/10.1016/S0378-7206(01)00075-1   DOI
34 Mayasari, I. K. (2019). "DEAR SIS" A Case Study on Trust Cultivation on Indonesian Facebook Online Craft Stores. Journal Communication Spectrum, 9(2), 79-94.
35 Cordes, J. J. (2017). Using cost-benefit analysis and social return on investment to evaluate the impact of social enterprise: Promises, implementation, and limitations. Evaluation and Program Planning, 64, 98-104.   DOI
36 Dekker, R., Engbersen, G., Klaver, J., & Vonk, H. (2018). Smart Refugees: How Syrian Asylum Migrants Use Social Media Information in Migration Decision-Making. Social Media and Society, 4(1). https://doi.org/10.1177/2056305118764439   DOI
37 Easterly, W. (2002). The cartel of good intentions: The problem of bureaucracy in foreign aid. The Journal of Policy Reform, 5(4), 223-250. https://doi.org/10.1080/1384128032000096823   DOI
38 Nguyen, X. T., & Luu, Q. K. (2020). Factors Affecting Adoption of Industry 4.0 by Small-and Medium-Sized Enterprises: A Case in Ho Chi Minh City, Vietnam. Journal of Asian Finance, Economics and Business, 7(6), 255-264. https://doi.org/10.13106/jafeb.2020.vol7.no6.255   DOI
39 Hair, S. M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM) An emerging tool in business research. European Business Review. https://doi.org/10.1108/EBR-10-2013-0128   DOI
40 Hart, P. J., & Saunders, C. S. (1997). Emerging electronic partnerships: Antecedents and dimensions of EDI use from the supplier's perspective. Journal of Management Information Systems, 14(4), 87-111. https://doi.org/10.1080/07421222.1998.11518187   DOI
41 Hirsch, B., Nitzl, C., & Schoen, M. (2018). Interorganizational trust and agency costs in credit relationships between savings banks and SMEs. Journal of Banking and Finance, 97(March 2020), 37-50. https://doi.org/10.1016/j.jbankfin.2018.09.017   DOI
42 Kumar, D., Samalia, H. V., & Verma, P. (2017). Factors Influencing Cloud Computing Adoption by Small and Medium-Sized Enterprises (SMEs) In India. Pacific Asia Journal of the Association for Information Systems, 9(3), 25-48. https://doi.org/10.17705/1pais.09302   DOI
43 Ifinedo, P. (2011). Internete‐business technologies acceptance in Canada's SMEs. Internet Research, 21(3), 255-281.   DOI
44 Iqbal, M., Sucherly, S., Azis, Y., & Kaltum, U. (2020). Innovation and Business Strategy at State-Owned Enterprises: Evidence from Indonesia. In: 4th International Conference on Management, Economics and Business (ICMEB 2019), 4, 155-159.
45 Kula, V., & Tatoglu, E. (2003). An exploratory study of Internet adoption by SMEs in an emerging market economy. European Business Review, 15(5), 324-333. https://doi.org/10.1108/09555340310493045   DOI
46 Lee, J. W., Becker, K., & Potluri, R. M. (2016). Antecedents of Corporate Adoption of Social Media and the Role of the Technology Acceptance Model in the Path. Journal of Asian Finance, Economics and Business, 3(2), 67-76. https://doi.org/10.13106/jafeb.2016.vol3.no2.67.   DOI
47 Mehrtens, J., Cragg, P. B., & Mills, A. M. (2001). A model of Internetadoption by SMEs. Information and Management, 39(3), 165-176. https://doi.org/10.1016/S0378-7206(01)00086-6   DOI
48 Moreira, S. (2018). Firm Dynamics, Persistent Effects of Entry Conditions, and Business Cycles. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3037178   DOI
49 Auwal, M. A., Mohamed, Z., Nasir Shamsudin, M., Sharifuddin, J., & Ali, F. (2020). External pressure influence onentrepreneurship performance of SMEs: a case study of Malaysian herbal industry. Journal of Small Business and Entrepreneurship, 32(2), 149-171. https://doi.org/10.1080/08276331.2018.1509504   DOI