Social media adoption as a full mediator between entrepreneurial orientation and MSME performance
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Marisa Intan Prawesti(1*)
Department of Management, Faculty of Economics and Business, Universitas Negeri Surabaya
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Yessy Artanti(2)
Department of Management, Faculty of Economics and Business, Universitas Negeri Surabaya
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Sanaji Sanaji(3)
Department of Management, Faculty of Economics and Business, Universitas Negeri Surabaya
(*) Corresponding Author
Keywords:
Entrepreneurial Orientation, Social Media Adoption, MSME Performance, Dynamic Capability Theory, Diffusion of Innovation Theory
Abstract
This study aims to examine the effect of entrepreneurial orientation on MSME performance with social media adoption as a mediating variable. The research was conducted on MSMEs in the food, beverage, and fashion sectors located in seven sub-districts of Sidoarjo Regency, East Java, Indonesia. A quantitative approach was employed using a survey method with 130 respondents selected through purposive sampling. Data were analyzed using Structural Equation Modeling based on Partial Least Squares (PLS-SEM) with SmartPLS 3. The findings reveal that entrepreneurial orientation does not directly affect MSME performance but has a significant positive effect on social media adoption. Social media adoption, in turn, positively and significantly influences MSME performance. Furthermore, social media adoption fully mediates the relationship between entrepreneurial orientation and MSME performance. These results suggest that entrepreneurial orientation needs to be channeled through social media adoption to improve performance outcomes.
Keywords: Entrepreneurial Orientation; Social Media Adoption; MSME Performance; Dynamic Capability Theory; Diffusion of Innovation Theory
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References
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Arabeche, Z., Soudani, A., Brahmi, M., Aldieri, L., Vinci, C. P., & Abdelli, M. E. A. (2022). Entrepreneurial Orientation, Organizational Culture and Business Performance in SMEs: Evidence from Emerging Economy. Sustainability (Switzerland), 14(9). https://doi.org/10.3390/su14095160
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http://www.iier.org.au/iier16/mackenzie.html%0Ahttp://eprints.ncrm.ac.uk/2273/
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Hair. Jr., J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2017). Multivariate Data Analysis (MVDA). In Pharmaceutical Quality by Design: A Practical Approach. https://doi.org/10.1002/9781118895238.ch8
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https://doi.org/10.47172/2965-730X.SDGsReview.v4.n00.pe01729
Lumpkin, G. ., & Dess, G. G. (1996). Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance. The Academy of Management Review, 21(1), 135–172.
Maharjan, R., Danuwar, R. K., Kayestha, M., Dhakal, A., Baral, D. K., Rajopadhyaya, A., Koirala, A., & Timalsina, D. P. (2024). Measuring the Effects of Entrepreneurial Orientation on Social Media Adoption and SME’s Performance in Kathmandu Valley: Evidence from Structural Equation Modeling Using Smart PLS 4.0. Economic Journal of Development Issues, 37(1), 27–47. https://doi.org/10.3126/ejdi.v37i1.63914
Mazaheriasad, M., & Jamali, M. (2022). Examining the Impact of Entrepreneurial Culture on SME Performance: The Role of Marketing Capabilities and Social Media. Ankara Science University, Researcher, 2(1), 2717–9494.
https://www.researchgate.net/publication/383000765
Miller, D. (1983). The Correlates of Entrepreneurship in Three Types of Firms. Management Science, 29(7), 770–791. https://doi.org/10.1287/mnsc.29.7.770
Natasha, F., Christin, L., & Ferdinandus Winandy Soesilo. (2023). The Effect of Entrepreneurial Orientation on Social Media Adoption and Business Performance Moderated by Innovation Capability in Healthy Food SMEs in DKI Jakarta. Journal of Accounting and Finance Management, 4(1), 104–117. https://doi.org/10.38035/jafm.v4i1.197
Nguyen, P. V., Huynh, H. T. N., Lam, L. N. H., Le, T. B., & Nguyen, N. H. X. (2021). The impact of entrepreneurial leadership on SMEs’ performance: the mediating effects of organizational factors. Heliyon, 7(6), e07326.
https://doi.org/10.1016/j.heliyon.2021.e07326
Odoom, R., Anning, 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), 389–399.
Orisa, C., Suwit, S., & Potipiroon, W. (2020). The Resource-Based View, Dynamic Capabilities and SME Performance for SMEs to Become Smart Enterprises. ABAC ODI Journal Vision. Action. Outcome, 7(2), 129–146. http://www.assumptionjournal.au.edu/index.php/odijournal/index
Prawesti, M. I., & Artanti, Y. (2026). Integrating Entrepreneurial , Digital , and Marketing Capabilities in SMEs : A Systematic Literature Review from a Resource-Based View.
Purwanti, I., Lailyningsih, D. R. N., & Suyanto, U. Y. (2022). Digital Marketing Capability and MSMEs Performance: Understanding the Moderating Role of Environmental Dynamism. Jurnal Manajemen Teori Dan Terapan | Journal of Theory and Applied Management, 15(3), 433–448. https://doi.org/10.20473/jmtt.v15i3.39238
Qalati, S. A., Li, W., Ahmed, N., Mirani, M. A., & Khan, A. (2021). Examining the factors affecting sme performance: the mediating role of social media adoption. Sustainability (Switzerland), 13(1), 1–24. https://doi.org/10.3390/su13010075
Ramdansyah, A. D., & Ganika, G. (2024). Pengaruh Digitalisasi terhadap Kinerja UMKM (Studi pada KUKM di Provinsi Banten). Jurnal Riset Bisnis Dan Manajemen Tirtayasa, 8(2), 115. https://doi.org/10.35448/jrbmt.v8i2.28797
Rogers, E. M. (2003). Diffusion of Innovation.
Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach. Wiley & Sons.
Solomon, O. H., Allen, T., & Wangombe, W. (2024). Analysing the factors that influence social media adoption among SMEs in developing countries. Journal of International Entrepreneurship, 22(2), 248–267.
https://doi.org/10.1007/s10843-023-00330-9
Sopah, F., Kusumawati, W., & Wahyudii, K. E. (2020). Implementasi Kebijakan Pengentasan Kemiskinan Melalui Pemberdayaan UMKM Di Kabupaten Sidoarjo. Syntax Idea, 2(6), 26–40.
Susanto, P., Hoque, M. E., Shah, N. U., Candra, A. H., Hashim, N. M. H. N., & Abdullah, N. L. (2023). Entrepreneurial orientation and performance of SMEs: the roles of marketing capabilities and social media usage. Journal of Entrepreneurship in Emerging Economies, 15(2), 379–403. https://doi.org/10.1108/JEEE-03-2021-0090
Tajudeen, F. P., Jaafar, N. I., & Ainin, S. (2018). Understanding the impact of social media usage among organizations. Information and Management, 55(3), 308–321. https://doi.org/10.1016/j.im.2017.08.004
Teece, D. J. (2007). Expliciting Dynamic Capabilities: The Nature And Microfoundations of (Sustainable) Entreprise Performance. BusinessStrategic Management Journal, 28(October), 1319–1350. https://doi.org/10.1002/smj
Vaikunthavasan, S. (2025). Digital Marketing Capability and Performance: Moderated Mediation Approach. Sri Lanka Journal of Marketing, 11(1), 72–104. https://doi.org/10.4038/sljmuok.v11i1.208
Yacob, S., Sulistiyo, U., Marzal, J., Siregar, A. P., & Mukminin, A. (2023). An Investigation of Entrepreneurial Orientation, Social Media Adoption and E-commerce on MSME Business Performance: An Empirical Study in Indonesia. Revista Galega de Economia, 32(3). https://doi.org/10.15304/rge.32.3.9001
Zhao, Z., Hönigsberg, S., & Mandviwalla, M. (2025). Digital driven success: the digitalization effect on SME performance. Information Technology for Development, February, 1–27. https://doi.org/10.1080/02681102.2025.2453213
Anim, P. A., Arthur, E., & Amoako, G. K. (2023). Entrepreneurial orientation, social media and SME performance: an emerging economy perspective. Asia-Pacific Journal of Business Administration, 16(5), 1037–1066. https://doi.org/10.1108/APJBA-12-2022-0514
Arabeche, Z., Soudani, A., Brahmi, M., Aldieri, L., Vinci, C. P., & Abdelli, M. E. A. (2022). Entrepreneurial Orientation, Organizational Culture and Business Performance in SMEs: Evidence from Emerging Economy. Sustainability (Switzerland), 14(9). https://doi.org/10.3390/su14095160
Borahima, B., Noermijati, N., Hadiwidjojo, D., & Rofiq, A. (2021). Innovation Orientation, Marketing Capability, Dynamic Capability, and Performance. In W. A. Barnett & B. S. Sergi (Eds.), Environmental, Social, and Governance Perspectives on Economic Development in Asia (Vol. 29B, pp. 93–104). Emerald Publishing Limited. https://doi.org/10.1108/S1571-03862021000029B028
Chrismardani, Y., Iriani, S. S., & Artanty, Y. (2024). Developing Sustainable Competitive Advantage Through Extended RBV Perspective On Batik SMEs. Bengkulu Internasional Conference on Economics, Management, Business, and Accounting (BICEMBA), 2, 1317–1330.
Covin, J. G., & Miller, D. (2014). International Entrepreneurial Orientation: Conceptual Considerations, Research Themes, Measurement Issues, and Future Research Directions. Entrepreneurship: Theory and Practice, 38(1), 11–44. https://doi.org/10.1111/etap.12027
Creswell, J. W. (2013). Qualitative Inquiry and Research Design: Choosing Among Five Approaches. In Issues In Educational Research.
http://www.iier.org.au/iier16/mackenzie.html%0Ahttp://eprints.ncrm.ac.uk/2273/
Fan, M., Qalati, S. A., Khan, M. A. S., Shah, S. M. M., Ramzan, M., & Khan, R. S. (2021). Effects of entrepreneurial orientation on social media adoption and SME performance: The moderating role of innovation capabilities. PLoS ONE, 16(4 April 2021), 1–24. https://doi.org/10.1371/journal.pone.0247320
Fang, G. G., Qalati, S. A., Ostic, D., Shah, S. M. M., & Mirani, M. A. (2022). Effects of entrepreneurial orientation, social media, and innovation capabilities on SME performance in emerging countries: a mediated–moderated model. Technology Analysis and Strategic Management, 34(11), 1326–1338. https://doi.org/10.1080/09537325.2021.1957816
Florentino, F., & Tjakrawala, K. (2021). Pengaruh Socmed Usage, Cultural Intelligence Terhadap Kinerja Umkm Dengan Mediator Entrepreneurial Orientation. Jurnal Paradigma Akuntansi, 3(4), 1766. https://doi.org/10.24912/jpa.v3i4.15287
Hair. Jr., J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2017). Multivariate Data Analysis (MVDA). In Pharmaceutical Quality by Design: A Practical Approach. https://doi.org/10.1002/9781118895238.ch8
Halim, E., Darmawan, P., Sudiana, S., Lisanti, Y., Sugandi, L., & Poba-Nzaou, P. (2024). Exploring the Impact of Social Media Adoption to Small Medium Enterprises (SMEs) Performance. Proceedings - 2024 2nd International Conference on Technology Innovation and Its Applications, ICTIIA 2024, 1–6. https://doi.org/10.1109/ICTIIA61827.2024.10761226
Hidayat, M. S., Sudarmiatin, Mukhlis, I., & Hermawan, A. (2024). The Influence of Entrepreneurial Orientation, Market Orientation, Learning Orientation on Marketing Performance Mediated By Sme Marketing Capabilities To Support the Achievement of the Sustainable Develoipment Goals. Journal of Lifestyle and SDG’S Review, 4(1), 1–22.
https://doi.org/10.47172/2965-730X.SDGsReview.v4.n00.pe01729
Lumpkin, G. ., & Dess, G. G. (1996). Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance. The Academy of Management Review, 21(1), 135–172.
Maharjan, R., Danuwar, R. K., Kayestha, M., Dhakal, A., Baral, D. K., Rajopadhyaya, A., Koirala, A., & Timalsina, D. P. (2024). Measuring the Effects of Entrepreneurial Orientation on Social Media Adoption and SME’s Performance in Kathmandu Valley: Evidence from Structural Equation Modeling Using Smart PLS 4.0. Economic Journal of Development Issues, 37(1), 27–47. https://doi.org/10.3126/ejdi.v37i1.63914
Mazaheriasad, M., & Jamali, M. (2022). Examining the Impact of Entrepreneurial Culture on SME Performance: The Role of Marketing Capabilities and Social Media. Ankara Science University, Researcher, 2(1), 2717–9494.
https://www.researchgate.net/publication/383000765
Miller, D. (1983). The Correlates of Entrepreneurship in Three Types of Firms. Management Science, 29(7), 770–791. https://doi.org/10.1287/mnsc.29.7.770
Natasha, F., Christin, L., & Ferdinandus Winandy Soesilo. (2023). The Effect of Entrepreneurial Orientation on Social Media Adoption and Business Performance Moderated by Innovation Capability in Healthy Food SMEs in DKI Jakarta. Journal of Accounting and Finance Management, 4(1), 104–117. https://doi.org/10.38035/jafm.v4i1.197
Nguyen, P. V., Huynh, H. T. N., Lam, L. N. H., Le, T. B., & Nguyen, N. H. X. (2021). The impact of entrepreneurial leadership on SMEs’ performance: the mediating effects of organizational factors. Heliyon, 7(6), e07326.
https://doi.org/10.1016/j.heliyon.2021.e07326
Odoom, R., Anning, 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), 389–399.
Orisa, C., Suwit, S., & Potipiroon, W. (2020). The Resource-Based View, Dynamic Capabilities and SME Performance for SMEs to Become Smart Enterprises. ABAC ODI Journal Vision. Action. Outcome, 7(2), 129–146. http://www.assumptionjournal.au.edu/index.php/odijournal/index
Prawesti, M. I., & Artanti, Y. (2026). Integrating Entrepreneurial , Digital , and Marketing Capabilities in SMEs : A Systematic Literature Review from a Resource-Based View.
Purwanti, I., Lailyningsih, D. R. N., & Suyanto, U. Y. (2022). Digital Marketing Capability and MSMEs Performance: Understanding the Moderating Role of Environmental Dynamism. Jurnal Manajemen Teori Dan Terapan | Journal of Theory and Applied Management, 15(3), 433–448. https://doi.org/10.20473/jmtt.v15i3.39238
Qalati, S. A., Li, W., Ahmed, N., Mirani, M. A., & Khan, A. (2021). Examining the factors affecting sme performance: the mediating role of social media adoption. Sustainability (Switzerland), 13(1), 1–24. https://doi.org/10.3390/su13010075
Ramdansyah, A. D., & Ganika, G. (2024). Pengaruh Digitalisasi terhadap Kinerja UMKM (Studi pada KUKM di Provinsi Banten). Jurnal Riset Bisnis Dan Manajemen Tirtayasa, 8(2), 115. https://doi.org/10.35448/jrbmt.v8i2.28797
Rogers, E. M. (2003). Diffusion of Innovation.
Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach. Wiley & Sons.
Solomon, O. H., Allen, T., & Wangombe, W. (2024). Analysing the factors that influence social media adoption among SMEs in developing countries. Journal of International Entrepreneurship, 22(2), 248–267.
https://doi.org/10.1007/s10843-023-00330-9
Sopah, F., Kusumawati, W., & Wahyudii, K. E. (2020). Implementasi Kebijakan Pengentasan Kemiskinan Melalui Pemberdayaan UMKM Di Kabupaten Sidoarjo. Syntax Idea, 2(6), 26–40.
Susanto, P., Hoque, M. E., Shah, N. U., Candra, A. H., Hashim, N. M. H. N., & Abdullah, N. L. (2023). Entrepreneurial orientation and performance of SMEs: the roles of marketing capabilities and social media usage. Journal of Entrepreneurship in Emerging Economies, 15(2), 379–403. https://doi.org/10.1108/JEEE-03-2021-0090
Tajudeen, F. P., Jaafar, N. I., & Ainin, S. (2018). Understanding the impact of social media usage among organizations. Information and Management, 55(3), 308–321. https://doi.org/10.1016/j.im.2017.08.004
Teece, D. J. (2007). Expliciting Dynamic Capabilities: The Nature And Microfoundations of (Sustainable) Entreprise Performance. BusinessStrategic Management Journal, 28(October), 1319–1350. https://doi.org/10.1002/smj
Vaikunthavasan, S. (2025). Digital Marketing Capability and Performance: Moderated Mediation Approach. Sri Lanka Journal of Marketing, 11(1), 72–104. https://doi.org/10.4038/sljmuok.v11i1.208
Yacob, S., Sulistiyo, U., Marzal, J., Siregar, A. P., & Mukminin, A. (2023). An Investigation of Entrepreneurial Orientation, Social Media Adoption and E-commerce on MSME Business Performance: An Empirical Study in Indonesia. Revista Galega de Economia, 32(3). https://doi.org/10.15304/rge.32.3.9001
Zhao, Z., Hönigsberg, S., & Mandviwalla, M. (2025). Digital driven success: the digitalization effect on SME performance. Information Technology for Development, February, 1–27. https://doi.org/10.1080/02681102.2025.2453213
Published
2026-07-09
How to Cite
Prawesti, M., Artanti, Y., & Sanaji, S. (2026). Social media adoption as a full mediator between entrepreneurial orientation and MSME performance. Journal of Management : Small and Medium Enterprises (SMEs), 19(2), 1125-1136. https://doi.org/10.35508/jom.v19i2.28580
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Articles
