The effect of social media usage and innovation on makeup artist business performance by mediating competitive advantage

Abstract

The creative economy industry has created millions of jobs in Indonesia. One of the creative economy fields in Indonesia is makeup artist. But the makeup artist field also has many challenges in the increasingly fierce business competition. This research aims to investigate the influence of social media usage, innovation and competitive advantage on makeup artist business performance by considering the role competitive advantage as mediators. This research was conducted in Malang Raya with a focus on the makeup artist services business. The research method used was a survey with a questionnaire as a data collection instrument. The research sample consisted of 112 respondents who were owners of makeup artist business in Indonesia. The quantitative approach is used to describe, strengthen, and explain the hypotheses proposed in the study of observed phenomena. The statistical method used for data processing is Partial Least Squares Structural Equation Modeling (PLS-SEM). This study demonstrates a significant and positive correlation between social media usage, innovation and competitive advantage on the makeup artist business performance. The results of the mediation analysis also show that competitive advantage mediate the relationship between social media usage and innovation on makeup artist business performance. Therefore, makeup artists should optimize the use of social media to improve their business performance goals. This includes the use of the latest wardrobe, makeup trend, photo and video taking techniques, keep up to date with viral makeup content. The better the use of social media, the better the innovation, and the ability to maintain a competitive advantage by fulfills client expectations will make clients buy and recommend makeup services so as to improve the performance of makeup artists both financially and nonfinancially.