Abstract
In the globalization era, social media is widely used by small and medium enterprises (SMEs) to promote and market their products. However, there is still a limited objective of this study the effectiveness of social media in improving the business performance of SMEs. This study analyzes the effect of social media on knowledge creation, innovation, and performance in SMEs in Jabodetabek (Indonesia). This study combines online and offline methods to collect data from a sample of 384 SMEs. Data was analyzed SEM-PLS. The variables are social media, knowledge creation, innovation, and performance. The result is that social media does not havea direct impact on performance. However, social media has a significant influence on business performance, moderating knowledge creation, and innovation. Effectiveness of social media on improving business will the partner use for knowledge creation and innovation. Keywords: social media, knowledge creation, innovation, performance, SMEs
Highlights
The development of technology and communication has a role in increasing business; one of the benefits is the use of social media
Social media has a significant influence on business performance, moderating knowledge creation, and innovation
This study aims to participate in the preparation of the literature relating to the critical role of social media in small and medium enterprises (SMEs), and the specific objectives are as follows: 1) Analyze the level of social media used by SMEs in Jabodetabek in knowledge creation, innovation, and performance improvement for business; 2) Analyze the impact of social media on knowledge creation, innovation, and performance in SMEs in Jabodetabek
Summary
The development of technology and communication has a role in increasing business; one of the benefits is the use of social media. According to Alarcon et al (2015) states, social media contributes to the practice of marketing customer relationships and conducting business in digital form. Using social media supports business performer to create knowledge and innovations which increasing performance of SMEs. According to Lopez-Nicolas and Soto-Acosta (2010) technology of communication and information provides the orientation allows the knowledge creation process, to help sharing tacit knowledge among employees, translate tacit knowledge in the form of explicit and systematic in order to understand combine explicit knowledge to organize in knowledge system and provides facility of discussion and conversation space to form explicit knowledge into tacit knowledge
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