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

Tundung Subali Patma · Ludi Wishnu Wardana · Agus Wibowo · Bagus Shandy Narmaditya

40 citations0/0 files storedJournal of Asian Finance Economics and Business

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SMEs Development and Digital Marketing Digital Marketing and Social Media Technology Adoption and User Behaviour

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.

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References

2014Partial least squares structural equation modeling (PLS-SEM)2020The socio-economic implications of the coronavirus pandemic (COVID-19): A review 2007IT Assets, Organizational Capabilities, and Firm Performance: How Resource Allocations and Organizational Differences Explain Performance Variation 2001A model of Internet adoption by SMEs 2018The Impact of Sustainability Practices on Corporate Financial Performance: Literature Trends and Future Research Potential 1999An exploratory study of small business Internet commerce issues 2020Why do small and medium enterprises use social media marketing and what is the impact: Empirical insights from India 2002The cartel of good intentions: The problem of bureaucracy in foreign aid

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