The Influence of TOE Factor and Entrepreneurial Orientation on Social Media-related Performance: The Mediating Role of Innovation Capability and CRM Capability, and the Role of Moderation of Social Media Adoption
DOI:
https://doi.org/10.35877/454RI.qems4150Keywords:
CRM capability, entrepreneurial orientation, innovation capability, MSMEs, TOE factorAbstract
This study aims to analyze the influence of TOE Factor and Entrepreneurial Orientation on the Social Media-relayed Performance of multi-industry MSMEs in the Greater Jakarta area, considering the mediating role of Innovation Capability, and CRM Capability, as well as the role of Social Media Adoption moderation. MSMEs were chosen because of their significant role in the national economy, but still face challenges in optimizing digital technology, especially social media. This study uses a quantitative approach with the Partial Least Squares Structural Equation Modeling (PLS-SEM) method, and involves 243 respondents from multi-industry MSME actors in the Greater Jakarta area to answer surveys distributed online and offline. The results showed that Innovation Capability significantly mediated the relationship between TOE Factor and Social Media-related Performance, and CRM Capability significantly mediated the relationship between Entrepreneurial Orientation and Social Media-related Performance. In contrast, Social Media Adoption does not play a significant role as a moderator in strengthening relationships between variables. These findings make a theoretical contribution to the development of the Dynamic Capability Theory and TOE framework by emphasizing the importance of organizational readiness and strategic orientation in building customer-based digital capabilities. Practically, these results emphasize that the digitalization of MSMEs is not enough just with social media adoption, but requires structural readiness, entrepreneurial leadership, and a consistent customer management system. This research also provides relevant managerial implications for MSME owners, policymakers, and business training and mentoring providers.
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Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49.
Tornatzky, L. G., & Fleischer, M. (1990). Processes of Technological Innovation. Lexington Books.
Van der Stede, W. A. (2014). A manipulationist view of causality in cross-sectional survey research. Accounting, Organizations and Society, 39(7), 567–574.
Wales, W. J. (2016). Entrepreneurial orientation: A review and synthesis of promising research directions. International Small Business Journal: Researching Entrepreneurship, 34(1), 3–15.
Alhawamdeh, H., Al-Afeef, M. A. M., Alkhawaldeh, B. Y., Nawasra, M., Al_Rawashdeh, H. A. A., Zraqat, O., Hussien, L. F., & Al-Eitan, G. N. (2024). The relationship between marketing capabilities and financial performance: the moderating role of customer relationship management in Jordanian SMES. Cogent Business and Management, 11(1).
Alshourah, S., & Jodeh, I. (2021). Social Customer Relationship Management Capabilities and Performance Moderating Social Media Usage among SMEs Jordanian.
Amoah, J., Bruce, E., Shurong, Z., Bankuoru Egala, S., & Kwarteng, K. (2023). Social media adoption in smes sustainability: evidence from an emerging economy. Cogent Business and Management, 10(1).
Bernando, F. O., & Ray, E. L. (2025). Social Media Adoption, Halal Orientation, and Government Policy: Impacts on Business Performance of Food and Beverage SMEs in Indonesia. Society, 13(1), 504–519.
BPS. (2024). Jumlah Perusahaan Industri Skala Mikro dan Kecil Menurut Provinsi (Unit), 2023.
BPS Jabar. (2024). Ekonomi Jawa Barat Triwulan III-2024 Tumbuh 4,91 Persen (Y-on-Y). Badan Pusat Statistik Provinsi Jawa Barat.
BPS Provinsi Banten. (2024). Banyaknya Usaha/Perusahaan Industri Mikro dan Kecil Menurut Kabupaten/Kota dan Kelompok Pekerja di Provinsi Banten, 2021-2022.
Calantone, R. J., Tamer Cavusgil, S., & Zhao, Y. (2002). Learning orientation, firm innovation capability, and firm performance. Industrial Marketing Management, (Vol. 31, Nomor 6).
Covin, J. G., & Slevin, D. P. (1989). Strategic Management of Small Firms in Hostile and Benign Environments. Management Journal, 10, 75–87.
Covin, J. G., & Wales, W. J. (2012). The Measurement of Entrepreneurial Orientation. Entrepreneurship: Theory and Practice, 36(4), 677–702.
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)., 16(4 april 2021).
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.
Fauzan, M. (2025). Jumlah UMKM Indonesia Capai 66 Juta pada 2023. GoodStats.
Foltean, F. S., Trif, S. M., & Tuleu, D. L. (2019). Customer relationship management capabilities and social media technology use: Consequences on firm performance. Journal of Business Research, 104, 563–575.
Freixanet, J., Braojos, J., Rialp-Criado, A., & Rialp-Criado, J. (2021). Does international entrepreneurial orientation foster innovation performance? The mediating role of social media and open innovation. International Journal of Entrepreneurship and Innovation, 22(1), 33–44.
Fu, C. J., Silalahi, A. D. K., Yang, L. W., & Eunike, I. J. (2024). Advancing SME performance: a novel application of the technological-organizational-environment framework in social media marketing adoption.
Hair, J., & Alamer, A. (2022). Partial Least Squares Structural Equation Modeling (PLS-SEM) in second language and education research: Guidelines using an applied example. Research Methods in Applied Linguistics, 1(3).
INDEF. (2024). PERAN PLATFORM DIGITAL TERHADAP PENGEMBANGAN UMKM DI INDONESIA.
Irawan, A. J. (2024). International Journal of Current Science Research and Review Understanding Factors That Affect Social Media Advertisement Adoption for Small Medium Enterprises in Indonesia the Case of Facebook Advertisement. International Journal of Current Science Research and Review, 7(2).
Jalil, M. F., Ali, A., & Kamarulzaman, R. (2022). Does innovation capability improve SME performance in Malaysia? The mediating effect of technology adoption. International Journal of Entrepreneurship and Innovation, 23(4), 253–267.
Kemenkop UKM. (2022). Program Adaptasi dan Transformasi Ekonomi Nasional (PATEN) Edisi Ketiga.
Komdigi. (2025). Nezar Patria: UMKM Go Digital Tingkatkan Omzet dan Ekspor ke Pasar Global. Siaran Pers Komdigi.
Kompasiana. (2023). Tantangan UMKM di Era Digital. (Nomor October 29).
Limanseto, H. (2025). Pemerintah Dorong UMKM Naik Kelas, Tingkatkan Kontribusi terhadap Ekspor Indonesia. Kementerian Koordinator Bidang Perekonomian Republik Indonesia. January 30.
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying The Entrepreneurial Orientation Construct and Linking it to Performance. Academy of Management Review, (Vol. 21, Nomor 1).
Mongkol, K. (2022). The Impact of Dynamic Capabilities on the Performance of Thai Small and Medium Enterprises. International. Journal of Asian Business and Information Management, 13(1).
Otache, I., & Usang, O. U. E. (2022). Innovation capability and SME performance in times of economic crisis: does government support moderate? African Journal of Economic and Management Studies, 13(1), 76–88.
Parveen, F., Jaafar, N. I., & Ainin, S. (2016). Social media’s impact on organizational performance and entrepreneurial orientation in organizations. Management Decision, 54(9), 2208–2234.
Qalati, S. A., Ostic, D., Shuibin, G., & Mingyue, F. (2022). A mediated–moderated model for social media adoption and small and medium-sized enterprise performance in emerging countries. Managerial and Decision Economics, 43(3), 846–861.
Salimon, M. G., Bamgbade, J. A., Nathaniel, A. O., & Adekunle, T. A. (2017). Integrating technology acceptance model and organizational innovativeness in the adoption of mobile commerce. Management Science Letters, 7(10), 497–512.
Septiani, L. (2024). 56% UMKM Jualan Lewat Instagram, Facebook, TikTok.
Setiawan, H., & Putri, M. A. (2023). Pengaruh Perputaran Kas, Perputaran Piutang Dan Perputaran Persediaan Terhadap Profitabilitas. Jurnal Ilmiah Akuntansi Kesatuan, 11(1).
Simanjuntak, M. H., & Wijaya, A. (2023). BI: Jumlah merchant QRIS capai 29,6 juta. ANTARA., November 2024.
Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49.
Tornatzky, L. G., & Fleischer, M. (1990). Processes of Technological Innovation. Lexington Books.
Van der Stede, W. A. (2014). A manipulationist view of causality in cross-sectional survey research. Accounting, Organizations and Society, 39(7), 567–574.
Wales, W. J. (2016). Entrepreneurial orientation: A review and synthesis of promising research directions. International Small Business Journal: Researching Entrepreneurship, 34(1), 3–15.
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Published
2025-10-31
How to Cite
Ningrum, N. P., & Pusparini, E. S. . (2025). The Influence of TOE Factor and Entrepreneurial Orientation on Social Media-related Performance: The Mediating Role of Innovation Capability and CRM Capability, and the Role of Moderation of Social Media Adoption. Quantitative Economics and Management Studies, 6(5), 768–781. https://doi.org/10.35877/454RI.qems4150
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