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This paper explains the importance of understanding the practice of social media in small and medium enterprises (SMEs) in the context of performance enhancement. Data was collected through surveys and in-depth interviews on 220 manufacturing SMEs in the former Surakarta Residency, Central Java Province, Indonesia. Samples are manufacturing SMEs that produce clothing and batik sarongs, furniture and rattan crafts, metal/copper crafts, food and cake industries, leather shoes and bags industries, guitars makers, and herbal medicine industries. Descriptive analysis and qualitative content analysis are used to explain the use of social media by SMEs. The findings indicate that social media are utilised by SMEs to support their business objectives and activities, and have a positive impact on improving company performance both financially and non-financially, although the level of understanding of the benefits of social media use by SMEs is still low.
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