Abstract Along with the development of Internet and technology users in Indonesia, one of the marketing approaches that can be use by company to approach customers is digital marketing, while social media and email marketing are digital marketing tools that the most suitable for Indonesia market nowadays. Beside of the easiness and robustness, social media and email
Ekonomi digital menjadi industri yang tumbuh sangat cepat di Indonesia. Mengutip data Binar Academy, diperkirakan pada 2025, ekonomi digital di Indonesia akan mencapai US$ 124 miliar, naik dari US$ 44 miliar pada 2020. Bahkan selama pandemi Covid-19, sektor digital negara ini diproyeksikan tumbuh 10%, naik dari US$ 40 miliar pada 2019. Saat ini, digital marketing menjadi bagian penting bagi perusahaan untuk meningkatkan kinerja bisnisnya, terlebih di masa pandemi dan disrupsi digital atau ada yang menyebut sebagai era bisnis baru. Fenomena tersebut terlihat dalam ajang Indonesia Digital Marketing Champions IDMC 2021. Untuk kedua kalinya, Business Digest lembaga riset Grup SWA dan Majalah SWA menggelar IDMC. Perhelatan ini merupakan ajang penilaian yang memeringkat perusahaan-perusahaan yang berhasil meningkatkan kinerja bisnis berkat pengelolaan dan pemanfaatan teknologi digital secara tepat, cerdas, dan efisien di bidang pemasaran dan penjualan digital marketing. Tujuan dari ajang ini adalah eksplorasi best practice penerapan digital marketing di perusahaan dan memberikan apresiasi bagi perusahaan yang sukses menerapkannya. Adapun kriteria penilaian dalam ajang ini adalah pertama, identifikasi masalah, yaitu menjelaskan kondisi permasalahan yang dihadapi perusahaan dan kebutuhan terhadap terobosan baru dengan nilai 15%. Kedua, konsep digital marketing, yaitu menjelaskan relevansi konsep digital marketing dengan permasalahan, keunikan solusi, dan penerapan di perusahaan 35%. Ketiga, hasil, dampak, dan sustainability, yaitu menjelaskan hasil/pencapaian, dampak bagi perusahaan, dan skema keberlangsungannya dalam jangka panjang 50%. Dalam ajang IDMC 2021 ini, pemenangnya dibagi menjadi juara lintas kategori juara umum dan juara per kategori ada 9 kategori. Masing-masing pemenang pada kategori tersebut, selain mendapatkan skor, juga disematkan predikat Excellent 81,10 - 84,13, Very Good 78,05 - 81,09, dan Prospective 75,00 - 78,04. Untuk pemenang lintas kategori juara umum jawara nomor satunya diraih Auto2000 PT Astra International Tbk dengan skor juara kedua Indihome PT Telkom Indonesia Tbk dengan skor 83,14, dan juara ketiga PT Prodia Widyahusada Tbk dengan skor Masing-masing pemenang ini memiliki strategi dan keunggulan dalam membesut pemasaran digitalnya.. Mari kita bedah satu per satu sebagai berikut Sementara untuk juara per kategori ada 9 kategori industri yang dinilai, yaitu Bank juara 1 Jenius PT Bank BTPN Tbk, juara 2 CIMB Niaga Syariah, juara 3 Bank DBS, BUMN Services PT Jasa Marga, PT Jasa Raharja, PT Asuransi Jasa Indonesia, Data & Entertainment Indihome PT Telkom Indonesia Tbk, Smartfren PT Smartfren Telecom Tbk. Kemudian kategori lainnya adalah Healthcare Products PT Dexa Medica, PT Herbalife Indonesia, Healthcare Services PT Prodia Widyahusada Tbk, PT Pertamina Bina Medika/Pertamedika, Insurance PT Mandiri AXA General Insurance, PT Generali Indonesia, dan Sales & Distribution Auto2000 PT Astra International Tbk, PT Datascrip. Masing-masing pemenang pada kategori tersebut, selain mendapatkan skor juga disematkan predikat excellent, very good, dan prospective. Untuk juri dalam ajang ini adalah Edhy Aruman Redaktur Senior Majalah MIX, Dosen PR FISIP UI dan LSPR, Elga Yulwandri CEO Ivosight, Istijanto Dosen Universitas Prasetiya Mulya, dan Dede Suryadi Redaktur Majalah SWA. Elga, Juri IDMC 2021 mengatakan sebagian peserta IDMC 2021 sudah mengimplementasi prinsip-prinsip terkini dari strategi digital marketing dan cukup komprehensif, baik dari sisi paid media, earn media, share media maupun owned media karena setiap bagian dari convergence media ini strateginya berbeda-beda. Strategi Digital Marketing Harus Agile Untuk menjawab tantangan dan persoalan ke depan, perusahaan dan strategi digital marketing-nya harus tetap agile mengikuti perubahan perilaku dari konsumen. Misalnya dari sisi format konten, shifting platform yang popular di audience digital menjadikan “bite size” video sebagai format yang paling dapat diterima mayoritas netizen. “Brand yang tadinya menyiapkan long format video harus segera menyesuaikan strategi konten digital mereka supaya dapat memanfaatkan wave baru ini dan pandemic ini juga merubah beberapa behavior,” ujar Elga. Sementara itu, Istijanto, juga Juri IDMC 2021 memandang secara keseluruhan ajang IDMC 2021 ini cukup bagus yang berati ada kemajuan dari waktu ke waktu maupun antar perusahaan dalam mengimplementasikan pemasaran digitalnya. Parameternya, pertama, semua peserta sadar aware atas pentingnya peran digital marketing. Jadi dari level paling dasar sudah terlewati. Artinya bukan pada tahap perlu atau tidak mengadopsi digitalisasi tetapi sudah memandang “digitalization is a must”. Untuk itu mereka sudah memiliki budget, memiliki tema yang telah terencana, dan juga struktur organisasi yang menangani khusus digital. Kedua, terkait dengan tahapan digitalisasi yang dilakukan memang ada variasi, yaitu dari yang paling dasar sampai paling tinggi. Paling dasar misalnya mendayagunakan sekadar sebagai kanal informasi online, yang menengah untuk database pelanggan, dan yang tertinggi untuk transaksi alias creating revenue dan community. Ketiga, ada variasi model yang mereka rujuk. “Ini mengidikasikan bahwa mereka mau jadi yang terbaik sehingga mencari model yang paling sesuai dan paling menjanjikan dari segi kinerja,” ungkap Istijanto. Rencananya, perhelatan Indonesia Digital Marketing Champions IDMC yang digelar Business Digest lembaga riset Grup SWA dan Majalah SWA ini akan dilakukan setiap tahunnya. Sedangkan bahasan lengkapnya dari hasil ajang ini telah dimuat di Majalah SWA Dede Suryadi
Dalam periode enam tahun terakhir, dari tahun 2007–2012, jumlah gerai ritel modern di Indonesia mengalami pertumbuhan rata-rata 17,57% per tahun. Pada tahun 2007, jumlah usaha ritel di Indonesia masih sebanyak 10.365 gerai, kemudian pada tahun 2011 mencapai 18.152 gerai tersebar di hampir seluruh kota di Indonesia.1. IntroductionThe coronavirus disease Covid-19 pandemic has outspread throughout the world, and it has significantly impacted the economic sector Fendel et al., Citation2020; Rebucci et al., Citation2020. From a macroeconomic perspective, the Covid-19 has impacted a downtrend in economic growth, aggregate consumption, investment, and balance payments Fang et al., Citation2021. Meanwhile, from the microeconomic sides, the Covid-19 pandemic has diminished individuals’ consumption and purchasing power due to many people losing their income and jobs Dang & Nguyen, Citation2021. Additionally, the majority of people are careful in controlling their financial expenditure due to the vague during the pandemic Celik et al., Citation2020.In the Indonesian context, the Covid-19 pandemic has also hampered small and medium business scale SMEs performance in their production, market, and revenue Srikalimah et al., Citation2020. Despite the 1998 crisis, SMEs were more adaptable than large companies Juergensen et al., Citation2020, but the Covid-19 pandemic became a severe external shock and affected the supply and demand side, primarily during the implementation of health distancing policy Fitriasari, Citation2020. This condition highlights that the Covid-19 crisis will affect SMEs’ sustainability Juergensen et al., Citation2020. Therefore, business owners need to respond quickly and appropriately by changing their sales strategy Lorentz et al., Citation2016. To deal with this, SMEs can elaborate on the use of technology and empower social media Dwivedi et al., Citation2021.Several preliminary works have documented the importance of social media in improving SMEs’ sustainability Kang & Park, Citation2018; Taneja & Toombs, Citation2014. Social media is not only effective in helping SMEs’ business growth Dahnil et al., Citation2014, but also as a consumer media to easily access new products, services, and SMEs’ Dženopoljac et al., Citation2016. Social media is also a means for people to be engaged in online activities, market and even become an effective comparison in decision making Chatterjee & Kumar Kar, Citation2020. In addition, social media has become a kind of bridge between SMEs’ and the potential consumer community Abed et al., Citation2015. In short, Tripopsakul Citation2018 noted that effective use of social media can enhance productivity and business the technology transformation in the business confronts a new budget allocation for a business. Chatterjee and Kumar Kar Citation2020 revealed that a budget is required to involve marketing and understand how each platform works. As a consequence, the new model marketing and technology adoption requires an additional cost to be involved in their business. In the involvement of marketing technology using social media and the adoption of IEBT, it will refer to the technology acceptance model TAM Davis, Citation1989 and is robustly generated by perceived usefulness PEU and perceived ease of use PEOU. SMEs who have experienced the utility PEU, PEOU, social media marketing SMM and technology adoption IEBT will not feel high allocating costs for procurement and maintenance and have a positive impact on SMEs’ summarize, this study is purposed to examine the determinant dimension affecting the use of social media marketing. This investigation is essential to provide new insights regarding the adoption of information and communication technology ICT in Indonesia SMEs’ sustainability. We also holistically identified the factors that may impact SMEs’ sustainability and instruments that play a role in their development. We have admitted that several studies mentioning the level of e-commerce approval in developing nations are still inadequate Makiwa & Steyn, Citation2020. In Indonesia, these are affected by several critical factors, including erudite resources, awareness, information sources, and may the complexity of using e-commerce Rahayu & Day, Citation2017.This study provides three main contributions. First, it provides a contribution to the literature by highlighting what factors are affecting the technology adoption and SMM during the Covid-19 pandemic. Second, this study also attempts to link between technology adoption in SMEs, social media marketing, and SMEs sustainability in Indonesia that are absent in the preliminary studies. Some of the preliminary studies, for instance, Chatterjee and Kumar Kar Citation2020, A. Q. H. Chung et al. Citation2017, and Elbanna et al. Citation2019, have not discussed the relationship between SMEs’ sustainability and PEU, PEOU, and Cost. This research provides a deeper understanding of SMEs’ development and the importance of adopting internet/e-business technologies IEBT and SMM. Third, this study in Indonesia and the Covid-19 pandemic is unique due to the massive transformation from conventional to technology adoption and social media marketing as an effort to sustain their paper is presented as follows Section 1 concerns the background of the study and followed the relevant literature in Section 2. Next, we provide the study design, data collection, and measurement development in Section 3. Then, the findings and discussion of the study are presented in Section 4 and Section 5, respectively. Finally, section 6 informs the conclusion, managerial implication, and study’s Theoretical review and Perceived of usefulness PEUThe perceived usefulness PEU occurs in the Technology Acceptance Model TAM, which is promoted by Davis Citation1989 and Davis et al. Citation1989 as the theoretical framework to envisage user acceptance of technology. PEU can be realized when SMEs believe that the involvement of a quality management system will help them promote achievement Davis, Citation1989; Davis et al., Citation1989. Furthermore, when SMEs look at the benefit of using Social Media Marketing SMM to lead to better productivity, there is no doubt that they will adopt this method in their business Kraus, Gast, Schleich, Jones, Ritter et al., Citation2019. Previous studies by Chatterjee and Kumar Kar Citation2020; Qalati et al. Citation2021 found that utilizing SMM will promote the SMEs’ performance. Several preliminary works have also highlighted the significant association of PEU with users’ intentions to engage in new technologies Akinwale & Kyari, Citation2020. Recent studies confirmed that the use of social media through the PEU smartphone device has linear connectivity with the adoption of mobile phone technology Chatterjee & Kumar Kar, Citation2020; Kim & Chiu, Citation2019. Thus, the hypotheses are presented as follows H1 PEU has a positive impact on adoption of IEBT H2 PEU has a positive impact on social media Perceived ease of use PEOUThe perceived ease of use PEOU framework developed by Davis Citation1989 and Davis et al. Citation1989 that has been widely used to understand the adoption of new technology in business and other relevant areas. Some literature believes that perceived ease to use has been linked with the adoption of the internet/e-business technology Taherdoost, Citation2018; Tripopsakul, Citation2018. The underlying rationale is that the anxiety in using new technology drives new uses to avoid, while the friendly use of new technology will provide many advantages for the users Momani & Jamous, Citation2017. In the business context, entrepreneurs are more likely to adopt new technology when essential for enterprise development and easily implemented Ojo et al., Citation2019. The effective use of technology in terms of social media can perform a better accomplishment and revenue. This makes SMEs involve and attempt social media to run the business Sunday & Vera, Citation2018. With this condition, innovation is more accessible for users to implement, which results in users being motivated to adopt the technology Bankole & Bankole, Citation2017. We believe that PEOU positively drives with the exert of new technology. This belief is supported by previous studies by Chatterjee and Kumar Kar Citation2020 and Kraus et al. Citation2019, who documented this relationship. Therefore, the hypotheses are provided as follows H3 PEOU has a positive impact on Adoption of IEBT H4 PEOU has a positive impact on Social Media Cost COSIn economics, the value of the sacrifice that has been made by an economic actor is well-known as a cost. Therefore, all costs associated with a production process should be considered and described in planning the selling price of a product Teece, Citation2019. Trade-offs between advantages and opportunities are determined to assess costs Sculpher et al., Citation2017. Costs are required to utilize technology by SMEs for their growth Chittenden & Ambler, Citation2015. The nexus between cost and technology adoption is often perceived as being value-relevant Alam & Noor, Citation2009. Furthermore, insufficient participation constraints, affordable costs, and inadequate levels of IT skills requirements motivate SMEs to adopt quality management systems. In particular, SMEs in Indonesia will not involve SMM when the initial costs are expensive Derham et al., Citation2016. This needs to provide space for SMEs to connect with their buyers in such circumstances at an affordable cost Zhang et al., Citation2019. A preliminary work by Cassetta et al. Citation2020 mentioned that engaged adoption of e-business information and communication technology ICT in a business company showed that companies investing in various platforms of ICT have a greater placement towards e-business, while the company cites handicaps in linked with cost and delivery acquaintance with lower e-business involvement. Additionally, Orouji and Kafashan Citation2017 remarked that companies with many advantages over time report, including providing affordable costs and reaching new customers, tend to have higher e-business operations. H5 Cost has a positive influence toward the adoption of IEBT H6 Cost a positive influence toward the The adoption of internet/e-business technologies IEBTThe adoption of innovation by SMEs is associated with various factors, especially organization, environment, and technology Ifinedo, Citation2011. The technology–organization–environment TOE blend concept is an incorporative program that combines technological dimensions, conditional organizational elements, and macro-environmental factors Dwivedi et al., Citation2020; Chiambaretto et al., Citation2020. SMEs recognize that innovation takes an important role and increases the advantages of current practices and systems. Consequently, it is forecasted that the engagement of Internet technology and e-business will promote a greater performance Ifinedo, Citation2011. Indirect and direct benefits from implementing IEBT can be seen in maximizing existing resources, which can impact profits. Several preliminary studies by Abd Rahman et al. Citation2017 and Müller and Voigt Citation2018 have demonstrated that comparable benefit is a robust predictor of IEBT and associated technology in SMEs. In particular, SMEs’ acceptance of IEBT is seen from an alteration viewpoint. H7 Adoption of IEBT positively influences on SMM H8 Adoption of IEBT positively influences on SMEs’ Social media marketing SMM and SMEs’ sustainabilitySocial presence theory is described as the extent of the importance of other people in interactions and the resultant of interpersonal association Ahmad et al., Citation2018. SMM can be regarded as a new section and business practice engaged with promotion stuff, services, and ideas through the latest social media Dwivedi et al., Citation2020. Marketing activities undergoing online platforms enable the production of information and connections between members Yadav & Rahman, Citation2017 and the use of smartphone and web-based technology to establish synergistic media in which customers and group members share, co-create, discuss, and modify is known as content Dewnarain et al., Citation2019. The exploitation of customers generated content has enabled businesses to more accurately predict the future buying behavior of their customers A. J. Kim & Ko, Citation2012, increased the popularity of brand posts Kervin et al., Citation2012, attracted new customers Chow & Shi, Citation2015, establish awareness, enhance sales and promote loyalty Castronovo & Huang, Citation2012.In total, 90% of businesses worldwide is categorized as SMEs and have been reported responsible for approximately 70% of global pollution Singh & Thakar, Citation2018. However, the literature on sustainable development and corporate innovation concerns primarily on a sizeable scale, such as multinational ventures, while the sustainability diversion endeavored by SMEs is inadequately recognized and documented Li et al., Citation2020. Large companies are considered to have an adequate endowment for green motivation, while small- and medium-sized businessess are more likely to face financial issues, human and resource management to support sustainability. A preliminary study by Barbosa et al. Citation2020 mentioned that small business is confronted to conceptual understanding and equipment to assess and organize environmental results, assuming that sustainability calculates additional can be provided as a facet that helps in serving, saving, and maintaining three main accepted elements, such as the environment, community, and the economy Garbie, Citation2014. Sustainability enables organizations or companies to gain a competitive advantage in their business Luthra et al., Citation2015. Additionally, Raut et al. Citation2019 pointed out that the application of sustainable operations management SOM positively influences companies’ business performance and minimizes side effects on the community and the environment. Gotschol et al. Citation2014 added that the internal activities in companies have a robust correlation with economic, environmental, social performance, and advantages for the organization in the long term. Companies should contemplate the green issue as an effort in reaching a competitive advantage and enhancing market share today in which highly erudite buyers tend to choose eco-friendly stuff Deif, Citation2011. Social sustainability activities allow companies to reach a better social reputation Marshall et al., Citation2015. For this reason, it can be concluded that sustainability is crucial for organizational activities, which is promoted through the SOM approach Shibin et al., Citation2018. H9 Social media marketing has a positive impact on SMEs’ sustainability3. Research designWe adopted a quantitative approach with partial least squares structural equation modeling PLS-SEM to increase understanding of how support for perceived usefulness PEU, perceived ease of use PEOU, and cost COS for SMEs’ Sustainability, and investigating the mediating role of the involvement of IEBT and Social Media Marketing SMM see Figure 1.The impact of social media marketing for Indonesian SMEs sustainability Lesson from Covid-19 pandemicPublished online22 July 2021Figure 1. The research frameworkFigure 1. The research Participants and data collectionThe respondents were identified who owned small business scale SMEs in Malang, East Java of Indonesia. We proposed 130 questionnaires employing the Google forms platform, which are provided to respondents via WhatsApp and Telegram. We noted that seven questionnaires returned were invalid due to the invalid data provided. This research was conducted from July to September 2020. The participants in this study were asked for their anonymity to ensure ethical issues. The details of respondents are informed in .The impact of social media marketing for Indonesian SMEs sustainability Lesson from Covid-19 pandemicPublished online22 July 2021Table 1. The characteristics of respondents Appendix Table A1 provides information about the respondents involved in this study. In general, the majority of respondents operates in micro-scale businesses, while a small percentage performs in medium-scale businesses with various working experiences. From the table, it can be seen that the educational background of respondents was graduates from senior high school with a percentage of 50%. Most of the participants were running the restaurant business and the average income was under 100 million IDR per Instrument development and data analysisWe adopted a survey method to attain an understanding of the existing phenomenon of SMEs in Indonesia in using social media marketing and SMEs’ sustainability. The instruments used in this study were adapted from previous studies and literature reviews see Table A1. The questionnaires were translated from English to Bahasa Indonesia with slight modification to adjust with the Indonesian context. First, perceived usefulness PEU was measured by five items from Chung et al. Citation2020 and Elbanna et al. Citation2019, while for perceived ease of use PEOU, it was adopted by Ware Citation2018 and Rana et al. Citation2019. To estimate cost COS, this study formulated five items from S. Chung et al. Citation2020 and Zhang et al. Citation2019 and the adoption of internet business technology IEBT was adapted by Chong and Pervan Citation2007 and Ifinedo Citation2011. Additionally, to measure social media marketing SMM, we elaborated three indicators from Shareef et al. Citation2018; Citation2019. Lastly, SMEs’ sustainability SS used five items from Elbanna et al. Citation2019; Chatterjee and Kumar Kar Citation2020. The questions asked participants to rate how strongly they agreed with each statement from 1 strongly disagree and 5 strongly agree. The data analysis approach in this work operated partial least squares structural equation modeling PLS-SEM with Smart PLS version Results and The outer model evaluationThe initial phase in determining the outer model of partial least square PLS aims to confirm that the instruments used are reliable. The criteria to determine the model achieve reliability when composite reliability CR and Cronbach’s Alpha are higher than Hair et al., Citation2014. This study found that the CR value of each construct ranges from to meaning that to achieve reliability see . Additionally, the indicator to perform the convergent validity is accomplished when the average variance extracted AVE is greater than Hair et al., Citation2014. From the calculation that has been provided in , several indicators, including PEU3, PEOU1, PEOU2, COS3, and IEBT4 need to be omitted, considering the item loading is smaller than After the expulsion, all items were above and the AVE value for each construct ranged from to > implicating to achieve the convergent impact of social media marketing for Indonesian SMEs sustainability Lesson from Covid-19 pandemicPublished online22 July 2021Table 2. Calculation of Outer Model In addition to convergent validity evaluation, this study also conducted the discriminant validity using cross-loading factors. informs that the value of cross-loading for all variables PEU, PEOU, IEBT, SMM, and SS is higher than showing that the variables to meet the discriminant validity impact of social media marketing for Indonesian SMEs sustainability Lesson from Covid-19 pandemicPublished online22 July 2021Table 3. Discriminant Validity Collinearity testThe collinearity test is intended to know the existing collinearity among variables studied, which is proxied through Variance Inflation Factor VIF. The criteria to consider accomplish the collinearity test when the VIF value is less than Hair et al., Citation2013. From the preliminary evaluation, all variables involved have the VIF coefficient score ranging from to However, one hypothesis was rejected, considering the t-value is see Figure 2.The impact of social media marketing for Indonesian SMEs sustainability Lesson from Covid-19 pandemicPublished online22 July 2021Table 4. The Hypotheses Testing The impact of social media marketing for Indonesian SMEs sustainability Lesson from Covid-19 pandemicPublished online22 July 2021Figure 2. The structural equation modelling calculationFigure 2. The structural equation modelling Model fitR-square R2 model shows the accuracy of the model prediction Hair et al., Citation2020. R2 values that fall at or higher than are determined as substantial, and are categorized as moderate and weak, respectively Hair et al., Citation2014. The calculation indicates that PEU, PEOU, and COST account for of the IEBT variant, with moderate predictability. Meanwhile, PEU, PEOU, COST, and IEBT explained of the SMM variants with a moderate level of predictability. Likewise, PEU, PEOU, COST, IEBT, and SMM explained of the SMM variants with a moderate level of predictability. Furthermore, the f2 was conducted to understand whether exogenous constructs have a substantive influence on endogenous constructs. Referring to Hair et al. Citation2014, f2 values and respectively, represent the small, medium, and large effects of exogenous constructs on endogenous constructs. Specifically, the size effects of PEU, PEOU, and COST on IEBT had a large effect f2 value was Furthermore, the effect sizes of PEU, PEOU, COST, and IEBT on SMM had a large effect f2 value was Lastly, the size of the IEBT and SMM on SS was categorized as moderate f2 value DiscussionsThe finding of this current work answered nine hypotheses. In the beginning, the study confirmed the connectivity between PEU and the adoption of IEBT with the p-value of Accordingly, PEU also has an impact on SMM with the p-value of This result may be performed by the fact that the majority of SMEs are familiar with how to engage social media for business, and it has been considered a valuable tool for marketing purposes. Additionally, social media increases business productivity, helps with better query management, and promotes customer satisfaction. The results of the study reinforce the findings of prior works by S. Chung et al. Citation2020; Elbanna et al. Citation2019; Chatterjee and Kumar Kar Citation2020. In terms of the adoption of IEBT, SMEs have employed internet-based e-commerce or e-payment for their transactions. SMEs have also assimilated interned-based for their critical operations and business activities in SMEs requiring a high IEBT. The results of the study confirm the preliminary studies by Chong and Pervan Citation2007 and Ifinedo Citation2011, who remarked that SMM helped in terms of promotions and product services from SMEs. Several competitors have used social media for marketing, it has imperative to actively use social media. Employing SMM techniques is great for SMEs’ businesses Shareef et al., Citation2018, Citation2019.With respect to the first and second hypotheses, we found that PEOU robustly impacts the adoption of IEBT and SMM with a p-value of and t-value of respectively. The fundamental rationale is that SMM offers a preface and menu to be used. SMEs are also effortless to recognize new customers undergoing social media because it has already been used for their daily activities. The findings explained that social media provides information needed about customers, and it is unchallenging to advertise goods and services on social media platforms. The findings of the survey support the preliminary works by Ware Citation2018, Rana et al. Citation2019, and Chatterjee and Kumar Kar Citation2020. The fifth hypothesis mentioned that there is positive connectivity between costs on the adoption of IEBT. The data estimation indicated that the p-value was implicating that the cost has a significant effect on the adoption of IEBT. The results of this study are logical due to the fact that SMEs consider that the cost of handling customer inquiries has been reduced by using SMM. The cost of identifying new customers has been reduced through the use of quality management services. Customer awareness and training costs have been reduced with the use of quality management services. The overall cost of advertising and promotion has diminished undergoing quality management services. Likewise, the cost of SMEs for handling customer inquiries has been reduced by using quality management services. The findings of the study confirm the findings made by S. Chung et al. Citation2020, Zhang et al. Citation2019, and Chatterjee and Kumar Kar Citation2020.The surprise finding showed that costs failed to affect the SMM. The difference in our findings needs to be provided in this study context. Due to the increasing technology, SMM does not require high costs due to internet data packages from several cellular operators, which are also easier than competitive. Almost all SMEs involved in this study already use Android or iOS-based phones to already have a social media application on their smartphones. WhatsApp, Facebook, Instagram, and Telegram are getting familiar with their use. Some of the SMEs have a website, and the use of email facilities is not optimal. In this digital age, business competition is very high, making business people have to follow the development of marketing media, which is currently a trend. At the same time, their competitors use social media for marketing, so they have to be very active as well. The involvement of social media marketing techniques is appropriate for SMEs’ businesses that are perceived to have lower costs than conventional marketing. The results of this research decline the prior works of S. Chung et al. Citation2020, Zhang et al. Citation2019, and Chatterjee and Kumar Kar Citation2020. It is important for SMEs to take benefit of the existence of social media to improve the sales performance of their products. By utilizing social media, barriers to distance, space, and time, as well as prices of goods can be eliminated. In addition, SMEs no longer need a large space to display their products. Distance is also not an obstacle to sending goods because there are many courier services companies at affordable prices and quickly reach consumers Ahmad et al., Citation2018; Jacobson et al., Citation2020; Odoom et al., Citation2017.In addition, the study confirmed the influence of the IEBT adoption on SMM with the p-value of and t-value of Indeed, this research also showed the positive effect of the Adoption of IEBT on SMEs’ sustainability. The SMEs involved in this research have a condition that the adoption of IEBT has a robust effect on Social Media Marketing. The fundamental reason is that the IEBT has been adopted appropriately by SMEs in their marketing, payment, and business transactions. The number of operations and business activities in their company that require IEBT is high. This finding supports some preliminary studies by Chong and Pervan Citation2007; Ifinedo Citation2011. Currently, with this SMM, SMEs began to promote their goods and services through social media, which they felt was helpful for getting more profit in their last finding indicated the influence of SMM on SMEs’ sustainability. A possible explanation for these results may be the SMEs’ performance has increased after using social media platforms. The daily sales turnover is also above average compared to other SMEs whose marketing is not using social media platforms. The customers who have used social media platforms are more easily connected in conveying marketing information, and orders can be made with a personal message. The efficiency of identifying customer needs has been improved by using quality management services. Employees’ creativity has been improved through the use of SMM because they have to update their status in marketing their products. This finding supports the findings by Elbanna et al. Citation2019; Chatterjee and Kumar Kar Citation2020.5. ConclusionThis study highlights how perceived usefulness, perceived ease of use, and cost drive internet/e-business adoption, social media marketing, and SMEs’ sustainability. This study indicates that the adoption of new business technology and social media marketing can be explained by perceived usefulness and ease to use of users, while cost variable has an impact on technological adoption, but it does not link with social media marketing. The paper also confirms a robust correlation between the internet/e-business adoption, social media marketing, and SMEs’ sustainability in Indonesia. The research has both practical and academic implications. First, this research provides valuable input for SMEs in both developing and developed countries to further increase their knowledge and skills in terms of digital-based marketing. Second, it highlights the importance of social media marketing in responding to world-changing. Therefore, the collaboration between universities and SMEs through a community services scheme to provide workshops and to mentor SMEs is suggested to maximize social media for marketing. The government needs to provide easy access for capital to SMEs. Third, it needs to provide a digital marketplace for the information and promotion of SMEs. Lastly, the Department of Industry and Trade can serve with practical activities primarily on marketing to have a greater market using social media marketing. This study suggests that the marketing model be changed from conventional to social media-based marketing. Also, training for SMEs for adopting social media marketing is essential to boost their sales. The government can take a role in providing this training and present the infrastructure that supports social media-based marketing models. When these two strategies are implemented, this can be used not only during the Covid-19 pandemic but for global competition. The main limitation is that the geographical setting solely involved SMEs in East Java of Indonesia and involved 123 participants. For this reason, future scholars can elaborate on the small business scale in entire Indonesia to obtain more comprehensive characteristics and factors supporting sustainability. This research can be an initial study for scholars linked with SMEs’ sustainability, primarily in the Indonesian context.
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Rustantra Fumicko, Head Of Digital Marketing at Indonesian conglomerate Sampoerna, talks about three major trends driving digital marketing strategies as the competition hots up during this ecommerce inflection point. April 17, 2023 Reading Time 5 mins Topics Marketers around the world huddle together in the recession storm. Still, there are economies that are raging forward nudged by the accelerated digitisation brought on by the pandemic. With over 191 million social media users in Indonesia last year, it’s no big surprise that the country’s digital ecosystem is witnessing steady growth from $41 billion in 2019 to$77 billion in 2022. The value is expected to further increase to $130 billion by 2025, driven by ecommerce. The numbers represent a huge potential waiting to be tapped. For instance, Social Bread, a digital marketing marketplace, was launched to help the sea of social media users in the country fulfil their entrepreneurial efforts and level the playing field. The platform is building a differentiated live shopping experience to increase merchants’ sales that is pegged to grow by at least ten times by the end of the year. In the APAC region, the Indonesian retail sector is one of the most promising markets, and businesses are looking to re-evaluate their brand strategy and tech stack to boost the country’s digital ecosystem. We spoke to Rustantra Fumicko, Head Of Digital Marketing at Sampoerna, about the three significant trends driving the digital landscape while catering to the dynamic consumer demands. Audio-based Content Audio content has been on a constant upward trajectory. “Consumers want more audio-based content, and we need to be ready to provide it to them,” agrees Fumicko. Far from radio and podcasts, the future of digital audio advertising belongs to companies that allow businesses to create and publish audio content on their platforms. For instance, an Indonesian audio content startup NOICE launched a creation platform enabling creators to publish audio content directly. Fucmicko also highlights that utilising content optimisation tools for paid media works best. But how does one measure the success of the ad spend? Success metrics “Look for operational/channel metric and business metric to deliver more effectiveness and efficiency aligned with each campaign objective. Also, marketers need to experiment with new ideas to gain valuable learning for future campaign deployment,” says Fucmicko. Marketers can create the right audience profiling, and build a premise segmentation that can be activated through relevant campaigns via intelligent omnichannel strategies. “Digital ad planning and buying will move to more contextual buying. While it is important to develop first party data strategies, each marketer needs to understand their business and consumer, and get a clearer picture of what kind of data they need to capture, and be able to scale,” he adds. Seamless omnichannel services As ecommerce and fintech are gaining more transactions in the country, online transactions across various channels will also increase. Here, a powerful marketing strategy for omnichannel experience becomes crucial. Businesses must also be more effective and efficient while deploying their marketing and advertising campaigns using relevant martech and ad tech tools. Brands that are able to deliver scalable yet targeted communication will come out on the top. “It’s important to build the right portfolio, route to market and optimise your omnichannel marketing strategy while addressing multi-dimensional dynamics and challenges,” says Fumicko. Blibli, an ecommerce platform, recently announced that it would double down on its B2B segment with a more robust omnichannel strategy. Onwards and upwards According to a pwc report, Indonesia’s GDP could increase by $ billion between 2021 and 2025, provided technology such as cloud computing is implemented. Even the government’s active support for the country’s digital infrastructures has created new ways for digital trends. At the 2022 G20 Summit in Indonesia, President Joko Widodo stated that he wants to focus on the digital transformation of the economy through investments in technology such as cloud computing and 5G. To help the government get the digital wagon rolling and achieve its target of digitising 30 million MSMEs by 2024, Grab Indonesia recently inked a partnership with PT SRC Indonesia Sembilan SRCIS. Through this strategic partnership, SRC retail stores can offer third-party delivery services to consumers through the AYO SRC application and expand their delivery coverage using GrabExpress services. McKinsey rightly states, “Businesses in Indonesia need to focus on three primary issues—the scale of the impact of the specific trend, its technical maturity, and the organisational fit of the technology.” Topics About the Author Chandni is an Assistant Editor with a keen interest in customer-obsessed ideas. A journalist by profession and a writer at heart, she is committed to martech and CX content that resonates with readers across More Thisresearch involves the department of marketing and public relations of a large public university in Indonesia which involve actively in managing institutional digital marketing media. Data analysis using Creswell's analysis model, carried out inductively and interpreted with sentences that are logical and easily understood. sFcPue.digital marketing indonesia 2019
