Staying competitive in the era of digital technology: The importance of using social media

Abstract

Using social media via electronic devices and Internet connection has become a part of life in the current day. This is altering how individuals look for information to satisfy their requirements. These modifications affect marketing activities and styles. The marketing strategy becomes simpler, and product options adjust to client wants. Social media platforms provide network connectivity that allows organizations and consumers to participate in marketing and sales activities in online communities. Using social media leads to broad social bonds and builds an environment that can influence consumer engagement. Through social media networks, online stores increase product sales and have an impact on improving small and medium enterprises (SMEs) performance. However, some studies found that social media did not cause customers to return to shop at the same online store. Therefore, this study proposes using social media mediated by the value of social commerce services. We tested this research on 215 SMEs in Indonesia who conduct online promotions and sales using social media. The goal is to analyse the benefits of using social media and the intention to buy back at the same online store to improve the performance of SMEs. Statistical analysis is based on data collected through survey questionnaires using the partial least square (PLS) method to test hypotheses.