The Role of Government Policy on the Influence of Digital Marketing Through Social Media on the Performance of Micro, Small and Medium Enterprises (MSMEs) in Indonesia

Abstract

The research objective ware to examine the role of government policy on the influence of digital marketing through social media on MSMEs in Indonesia. This type of research is quantitative, with an explanatory approach. The research ware conducted on 500 MSME actors or owners in Indonesia who used digital marketing through social media channels (Instagram, Facebook and Twitter) as their marketing tools. Data collection through a questionnaire in the form of a google form which is distributed online. The questionnaire was processed and transformed into an interval scale using the Method of Successive (MSI), then analyzed using the SEM (Structural Equation Modeling) model through the AMOS software. The results showed that perceived ease of use had a positive effect on attitudes towards using social media. Perceived usefulness of using social media has a positive effect on attitudes towards using social media. The attitude of using social media has a positive effect on the use of social media. The use of social media has a positive effect on the performance of MSMEs. That is, the higher the use of social media, the higher the performance of MSMEs. Government policies have a positive effect on the performance of MSMEs. That is, the higher the government policy, the higher the performance of MSMEs. Government policies moderate the influence of social media use and MSME performance. That is, government policies strengthen the influence of social media use and the performance of MSMEs.