Utilization of Social Commerce and Social Proof Marketing on Business Performance of Micro, Small and Medium Enterprises
DOI:
https://doi.org/10.31933/dijemss.v4i2.1585Keywords:
Social Commerce, Social Proof MarketingAbstract
The shift in consumer consumptive patterns has experienced a shift from shopping at conventional stores to online vendors or stores, this is in line with the current development of e-commerce. Social media provides enormous benefit opportunities for MSMEs in improving business performance. The integration of social media, social networking sites and e-commerce if viewed from the substantial growth caused by social e-commerce. In the process of selecting alternative products to consumers, especially Jambi Batik products, the dominant consideration is social proof. The objectives of this study are (1) to examine the effect of social commerce on the business performance of MSMEs; (2) To examine the effect of social commerce on social proof marketing; (3) Assessing the effect of social proof marketing on MSME business performance; (4) Assessing the role of social proof marketing in mediating the influence of social commerce on MSME business performance. The data analysis method used is Structural Equation Modeling (SEM) measurements using SmartPLS software. The results of the study show that (1) Social commerce shows a significant positive effect on business performance, it is proven that the higher the social commerce in a business, the business performance will increase; (2) Social commerce shows a significant positive effect on social proof, it is proven that the higher the social commerce in a business, the better the social proof; (3) Social proof shows a significant positive effect on business performance, it is proven that the better social proof in a business, the business performance will increase; (4) Social proof as a mediation of the influence of social commerce has a significant positive effect on business performance, where social proof is considered a variable that strengthens social commerce in improving business performance.
References
APJII. (2020). Hasil Survei Penetrasi dan Perilaku Pengguna Internet Indonesia 2019-2020.
Akdon, Riduwan. (2007). Rumusdan Data dalam Aplikasi Statistika. Bandung: Alfabeta
Amir A. Rad, Morad B., 2011, “A Model for Understanding Social Commerce”, Journal of Information Systems Applied Research (JISAR).
Ashari, B. H. (2017). Pengaruh Karakteristik Social Commerce Terhadap Kepercayaan, Niat Beli dan Niat Word-Of-Mouth Pada Online Shopping di Instagram. Institut Teknologi Sepuluh Nopember.
Camarero, C., & San José, R. (2011). Social and attitudinal determinants of viral marketing dynamics. Computers in Human Behavior, 27(6), 2292–2300. doi:10.1016/j.chb. 2011.07.008
Gatautis, R., & Medziausiene, A. (2014). Factors Affecting Social commerce Acceptance in Lithuania. Procedia - Social and Behavioral Sciences, 110(2013), 1235–1242. doi:10.1016/j.sbspro.2013.12.970
H. Rao, H.R. Greve and G.F. Davis, Fool’s gold: Social proof in the initiation and abandonment of coverage by Wall Street analysts. Administrative Science Quarterly, 46, 3 (2001), 502–526 (2001)
Hair, Joseph F. Jr. et al. 2010, Multivariate Data Analysis 7th Edition. Pearson Education Limited. Harlow. England
Hajli, M. N. (2014). The role of social support on relationship quality and social commerce. Technological Forecasting and Social Change, 87,17–27. doi:10.1016/j.techfore. 2014.05.012
Huang, Qian, Robert M. Davison, and Hefu Liu. 2014. “An Exploratory Study of Buyers’ Participation Intentions in Reputation Systems: The Relationship quality Perspective.” Information & Management 51(8): 952–63.
I. Assiouras, O. Ozgen & G. Skourtis, The impact of corporate social responsibility in food industry in product-harm crises. British Food Journal, 115(1, SI), 108–123 (2013)
Kim, S., & Park, H. 2013. Effects of Various Characteristics of Social Commerce (S-Commerce) on Consumers’ Trust and Trust Performance. International Journal Of Information Management, 33(2): 318–332. https://doi.org/10.1016/j.ijinfomgt.2012.11.006.
Koperasi dan UMKM, K. 2015. Rencana Strategis Kementrian Koperasi dan UMKM Republik Indonesia 2015-2019. Retrieved from www.depkop.go.id.
Kumar, A., Bezawada, R., Rishika, R., Janakiraman, R., & Kannan, P. K. 2016. From Social to Sale: The Effects of Firm-Generated Content in Social Media on Customer Behavior. Journal of Marketing, 80(1): 7–25. https://doi.org/10.1509/jm.14.0249.
Liang dan Turban, 2011, “Introduction to the Special Issue Social Commerce: A Research Framework for Social Commerce”, International Journal of Electronic Commerce / Winter 2011–12, Vol. 16, No. 2, pp. 5–13.
LIang, Ho, LI, and Turban, 2011, “What Drives Social Commerce: The Role of Social Support and Relationship Quality”,
Linda, Sau-ling, 2010, “Social Commerce – E-Commerce in Social Media Context”, World Academy of Science, Engineering and Technology, Vol 12.
Mamonov, S., & Benbunan-Fich, R. (2017). Exploring factors affecting social e-commerce service adoption: The case of Facebook Gifts. International Journal of Information Management, 37(6), 590–600. https://doi.org/10.1016/j.ijinfomgt.2017.05.005
Mangkunegara. 2005. Evaluasi Kinerja. Bandung : Refika Aditama Nielsen. (2014). E-commerce: evolution or revolution in the fast-moving consumer goods world? Retrieved from http://ir.nielsen.com/files/doc_financials/Nielsen-Global-E-commerce-Report-August-2014.pdf.
Mishra and Suar. 2010. Does Corporate Social Responsibility Influence Firm Performance of Indian Companies? Journal Of Business Ethics, 95: 571-601
Nurfitriani dan Rumyeni. 2016. Pengaruh social media marketing melalui official account line Alfamart terhadap minat beli. [e-journal]. Tersedia di: <https://jom.unri.ac.id/index.php/JOMFSIP/article/view/11305>
Odoom, R., Anning-Dorson, T., & Acheampong, G. 2017. Antecedents of Social Media Usage and Performance Benefits In Small- And Medium-Sized Enterprises (SMEs). Journal of Enterprise Information Management, 30(3): 383–399. https://doi.org/10.1108/JEIM-04-2016-0088.
Pérez-gonzález, D., Trigueros-preciado, S., & Popa, S. 2017. Social Media Technologies. Use for the Competitive Information and Knowledge Sharing, and Its Effects on Industrial SMEs. Innovation Social Media Technologies Use for the Competitive Information and Knowledge. Information Systems Management, 34(3): 291–301. https://doi.org/10.1080/10580530.2017.1330007
Priambada, S. 2015. Manfaat Penggunaan Media Sosial Pada Usaha Kecil Menegah (UMKM), Seminar Nasional Sistem Informasi Indonesia (November): 41–46.
Prieto and Revilla. 2006. Learning Capability and business performance : A non-financial and financial performance, The Learning Organization, 13 (2):166-185
Renata Gonçalves C., Ping Zhang, 2011, “Social Commerce: Looking Back and Forward”, ASIST, New Orleans, LA, USA.
Scuotto, V., Del Giudice, M., & Carayannis, E. G. 2017. The Effect of Social Networking Sites and Absorptive Capacity on SMES’ Innovation Performance. Journal of Technology Transfer, 42(2): 409–424. https://doi.org/10.1007/s10961-016-9517-0
Singgih. 2014. Pengaruh strategi promosi melalui social media terhadap keputusan pembelian garskin yang dimediasi word of mouth marketing (studi pada konsumen produk garskin merek sayhello di kota yogyakarta). [e-journal]. Tersedia di: < http://eprints.uny.ac.id/16797/>Zhao H., , Morad B., 2013, “From e-commerce to social commerce: A close look at design features”, Electronic Commerce Research and Applications 12, p 246–259.
Sensuse, D.I, Pratama, A.A. dan Satria deki. 2017. Investigating faktors of Purchase intention based on Social commerce, trust and follower in social media , [e-journal]. Tersedia di: <https://ieeexplore.ieee.org/document/8267963/>
Shahnaz, N.B.F dan Wahyono. 2016. Faktor yang mempengaruhi minat beli konsumen di toko online. [e-journal]. Tersedia di: <https://journal.unnes.ac.id/sju/index.php/maj/article/view/5571>
Tsitsi, et. al., “The Adoption of Social Media Marketing in South African Banks”, European Business Review, Vol. 25:4 (2013), hal. 366.
Widhaningrum, B. 2017. Analisis asosiatif daya Tarik online shop di Instagram terhadap keputusan pembelian. [E-Journal]. Tersedia di: <https://journal.stpsahid.ac.id/index.php/jstp/issue/download/jstp23/jstp23
Yang, W. 2016. Applying Content Validity Coefficient and Homogeneity Reliability Coefficient to Investigate the Experiental Marketing Scale for Leisure Farms, [e-journal]. Tersedia di: <https://www.scribd.com/document/327883897/8-Wan-Chi-Yang>
Zamrudi, Z., Suyadi, I., dan Abdillah. Y. 2016. The effect of Social commerce construct and brand image on consumer trust and Purchase intention. [e-journal]. Tersedia di: <http://ejournalfia.ub.ac.id/index.php/profit/article/view/553.>
Zhang, H., Lu, Y., Gupta, S., & Zhao, L. (2014). What motivates customers to participate in social commerce? The impact of technological environments and virtual customer experiences. Information & Management. doi:10.1016/j.im.2014.07.005
Downloads
Published
How to Cite
Issue
Section
License
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Dinasti International Journal of Education Management and Social Science (DIJEMSS) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Dinasti International Journal of Education Management and Social Science (DIJEMSS).