Indonesian Journal of Business and Entrepreneurship (IJBE)
Vol. 9 No. 3 (2023): IJBE, Vol. 9 No. 3, September 2023

Factors Affecting Financial and Non-Financial Performance of MSMEs Through The Use of Social Media

Priliadita Hidayanti (Bogor School of Business)
Megawati Simanjuntak (Department of Family and Consumer Science, Faculty of Human Ecology, IPB University)
Nur Hasanah (School of Business, IPB University)



Article Info

Publish Date
14 Sep 2023

Abstract

The use of social media for MSMEs is needed so that MSMEs can compete and survive, especially during a pandemic. The purpose of this study was to analyze the influence of trust factors, cost-effectiveness, compatibility, and top management support on the financial and non-financial performance of South Tangerang MSMEs. Data was collected through an online questionnaire using Google Docs. Research variables were measured using a Likert scale. Data processed using descriptive analysis and top two boxes and bottom two boxes. The data that has been processed then analyzed using the Structural Equation Model (SEM). The results of the study found that there were 2 variables that influenced financial and non-financial performance. The compatibility variable has a positive and significant effect on the financial and non-financial performance of MSMEs. Social media can adapt to the needs and business practices of MSMEs which have proven to be a consideration for small business actors in their use. The top management support variable has a positive and significant effect on the non-financial performance of MSMEs. The existence of support from top management for the use of social media in MSMEs affects non-financial performance such as helping relationships with customers and supporting service activities. Based on the test, it found empirical evidence of the effect of compatibility on the financial and non-financial performance of MSMEs and the effect of top management support on the non-financial performance of MSMEs. Keywords: COVID-19, financial performance, MSMEs, non-financial performance, social media

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Journal Info

Abbrev

ijbe

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Indonesian Journal of Business and Entrepreneurship (IJBE) publishes information of empirical research and reviews in business and entrepreneurship. IJBE is published by School of Business, Bogor Agricultural University (SB-IPB) associated with Indonesian Alliance of Magister Management Program ...