Improving MSMEs Competitive Advantage and Performance by Adapting E-commerce and Social Media Marketing Based on Technological Frames of References
RA Nurlinda Eka Bertuah Ari Anggarani Winadi Prasetyoning Tyas

Faculty of Economics and Business, University of Esa Unggul

Abstract

Purposes: MSMEs face challenges in making optimal use of digital technologies such as e-commerce and social media marketing to improve their competitiveness and business performance. This research aims to develop and test a model that explains the relationship between Technological Frames of References (TFR), e-commerce adoption, social media marketing, competitive advantage and MSME performance.
Methods: A quantitative approach using survey methods was used to collect data from MSMEs in the JABODETABEK region that have adopted digital technology. Analysis was carried out using structural equation modelling (SEM) with Smart PLS to test the relationship between variables.
Results: The research results show that TFR have a significant influence on e-commerce adoption and social media marketing, while e-commerce adoption has a significant influence on competitive advantage and MSME performance. Competitive advantage is shown to significantly improve MSME performance. Social media marketing has a significant impact on competitive advantage, but not on MSME performance. TFR indirectly affect competitive advantage through e-commerce adoption and social media marketing. TFR have an indirect effect on MSME performance through e-commerce adoption but not through social media marketing.
Conclusion and suggestion: The implications of this research show the importance of technological literacy in promoting the adoption of e-commerce and social media marketing, and how the right digital strategy can help MSMEs build sustainable competitive advantage. This study also highlights the need for further research into the role of mediator or moderator variables that may influence the relationship between social media marketing and MSME performance.

Keywords: Competitive Advantage, E-commerce Adoption, MSME Performance, Social Media Marketing, Technological Frames of References

Topic: Marketing management