Strategic Entrepreneurship Mediating the Impact of, Financial Literacy and Use of Social Media on MSMEs’ Entrepreneurial Orientation in Indonesia

Reny Estafince Boseke; Meiryania Meiryani

doi:10.24123/jeb.v6i1.6919

Reny Estafince Boseke Master of Accounting Department, Bina Nusantara University, Indonesia
Meiryania Meiryani Accounting Department, Bina Nusantara University, Indonesia

DOI: https://doi.org/10.24123/jeb.v6i1.6919

Abstract Views: 23 times

PDF Downloads: 17 times

Keywords: Financial Literacy, Use of Social Media, Entrepreneurial Orientation, MSMEs, Strategic Entrepreneurship

Abstract

Purpose: This research aims to determine the influence of financial literacy and social media on entrepreneurial orientation among MSME actors in Indonesia, with strategic entrepreneurship as a mediator.

Method: The research employs a quantitative approach, utilizing data collection through questionnaires. Purposive Sampling was used to select the sample, and the analysis was conducted using Descriptive Analysis and Structural Equation Modelling (SEM) methods).

Result: The development of strategic entrepreneurship skills as a critical mechanism in harnessing the potential benefits of financial literacy and social media use for enhancing entrepreneurial orientation. This mediation suggests that financial knowledge and strategic use of digital platforms are not merely additive but synergistically enhance entrepreneurial capacities through effective strategic actions. This finding underscores the importance of integrating strategic entrepreneurship training and support into financial education and social media usage strategies for MSME actors, to foster a more dynamic and innovative entrepreneurial ecosystem in Indonesia.

Downloads

Download data is not yet available.

References

Abu-Rumman, A., Al Shraah, A., A., Al-Madi, F., & Alfalah, T. (2021). Entrepreneurial networks, entrepreneurial orientation, and performance of small and medium enterprises: are dynamic capabilities the missing link? Journal of Innovation and Entrepreneurship, 10(1), 29. https://doi.org/10.1186/s13731-021-00170-8

Alhaimer, R. S. (2021). The role of social media in the innovation and performance of Kuwaiti enterprises in the food sector. Journal of Theoretical and Applied Electronic Commerce Research, 16(6), 1960–1972. https://doi.org/10.3390/jtaer16060110

Almazrouei, F. A., Alshurideh, M., A., Al Kurdi, B., & Salloum, S. A. (2020). Social Media Impact on Business: A Systematic Review. In Advances in Intelligent Systems and Computing, (Vol. 1261, pp. 697-707). Springer Nature https://doi.org/10.1007/978-3-030-58669-0_62

Anggriani. (2019). Pengaruh penggunaan media sosial terhadap partisipasi masyarakat dalam program keluarga berencana di Kecamatan Tallo Kota Makassar. Skripsi, Universitas Muhammadiyah Makassar.

Azhar, M. (2023). Dengan FinTech, Indonesia Targetkan Inklusi Keuangan 90% Pada 2024. Retrieved September 23, 2024, from https://govinsider.asia/indonesia-bidik-inklusi-keuangan-90percent-dengan-fintech

Barlatier, P.-J., & Mention, A.-L. (2020). How social media can fuel innovation in businesses: A strategic roadmap. Journal of Business Strategy, 41(2), 11–18. https://doi.org/10.1108/JBS-12-2018-0197

Connelly, B., Ketchen, D., & Slater, S. (2011). Toward a ‘Theoretical Toolbox’ for sustainability research in marketing. Journal of the Academy of Marketing Science, 39(1), 86–100. https://doi.org/10.1007/s11747-010-0199-0

Covin, J. G., & Miller, D. (2014). International entrepreneurial orientation: Conceptual considerations, research themes, measurement issues, and future research directions. Entrepreneurship Theory and Practice, 38(1), 11–44. https://doi.org/10.1111/etap.12027

Culebro-Martínez, R., Moreno-García, E., & Hernández-Mejía, S. (2024). Financial literacy of entrepreneurs and companies’ performance. Journal of Risk and Financial Management, 17(2), 63. https://doi.org/10.3390/jrfm17020063

Cao, Y., Ajjan, E., Hong, P., & Le, T. (2018). Using social media for competitive business outcomes: An empirical study of companies in China. Journal of Advances in Management Research, ISSN: 0972-7981. https://www.emerald.com/insight/content/doi/10.1108/jamr-05-2017-0060/full/html

Dahmen, P., & Rodríguez, E. (2014). Financial literacy and the success of small businesses: An observation from a small business development center. Numeracy, 7(1), 3. https://doi.org/10.5038/1936-4660.7.1.3

Dar, I. A., & Mishra, M. (2020). Dimensional impact of social capital on financial performance of SMEs. The Journal of Entrepreneurship, 29(1), 38–52. https://doi.org/10.1177/0971355719893499

Danielle, M., González, L., & Rodríguez, P. (2023). Entrepreneurial orientation and innovation performance in MSMEs: Evidence from Colombia. Journal of Small Business and Enterprise Development, 30(1), 78–95. https://doi.org/10.1108/JSBED-01-2023-0004

Diptyana, P., Rokhmania, N., & Herlina, E. (2022). Financial Literacy, Digital Literacy and Financing Preferences Role to Micro and Small Enterprises’ Performance. International Journal of Entrepreneurship and Business Development, 5(2), 346-347. https://doi.org/10.5281/zenodo.1234567

Dyduch, W. (2019). Entrepreneurial strategy stimulating value creation: Conceptual findings and some empirical tests. Entrepreneurial Business and Economics Review, 7(3), 65–82. https://doi.org/10.15678/EBER.2019.070304

Fan, M., Qalati, S. A., Khan, M. A. S., Shah, S. M. M., Ramzan, M., & Khan, R. S. (2021). Effects of entrepreneurial orientation on social media adoption and SME performance: The moderating role of innovation capabilities. PLoS One, 16(4), e0247320. https://doi.org/10.1371/journal.pone.0247320

Felisia, P., Nugroho, A., & Wijaya, H. (2023). The role of social media in enhancing creative productivity in SMEs. Journal of Innovation and Business Strategy, 15(2), 102–117. https://doi.org/10.1016/j.jibs.2023.03.005

Gu, F., Gao, J., Zhu, X., & Ye, J. (2023). The Impact of Digital Inclusive Finance on SMEs’ Technological Innovation Activities—Empirical Analysis Based on the Data of New Third Board Enterprises. PLOS ONE, 18(11), e0293500. https://doi.org/10.1371/journal.pone.0293500

Haider, S. H., Asad, M., & Fatima, M. (2017). Entrepreneurial orientation and business performance of manufacturing sector small and medium scale enterprises of Punjab Pakistan. European Business and Management, 3(2), 21–28. https://doi.org/10.11648/j.ebm.20170302.12

Hammer, Thomas., & Siegfried, Patrick. (2023). Implication of Financial Literacy on Entrepreneurship. Chamber of Financial Auditors of Romania, Vol. XXI, no. 169, pp. 194-208. https://doaj.org/article/93dc29a64d00489f835fb986a17bba54

Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R. Springer Nature.

Harvard Business School Online. (2020). The importance of financial literacy in business. Retrieved September 23, 2024, from https://online.hbs.edu/blog/post/importance-of-financial-literacy

Indonesian Institute of Sciences. (2018). Impact of international trade policies on Indonesia’s UMKM. Retrieved September 23, 2024, from https://www.lipi.go.id

International Monetary Fund. (2021). Indonesia: Selected issues. IMF. Retrieved from https://www.elibrary.imf.org/view/journals/002/2021/047/article-A006-en.xml

Kahar, R., Yamimi, F., Bunari, G., & Habil, H. (2012). Trusting the social media in small business. Procedia-Social and Behavioral Sciences, 66, 564–570. https://doi.org/10.1016/j.sbspro.2012.11.301

Kaplan, A. M., & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of social media. Business Horizons, 53(1), 59–68. https://doi.org/10.1016/j.bushor.2009.09.003

Kemenetrian Keuangan Republik Indonesia. (2022). UMKM Mulai Menggeliat Pasca Pandemi Covid-19.https://www.djkn.kemenkeu.go.id/kpknl-lhokseumawe/baca-artikel/15474/UMKM-Mulai-Menggeliat-Pasca-Pandemic-Covid-19.html

Kantur, D. (2016). Strategic Entrepreneurship: Mediating the Entrepreneurial Orientation-Performance Link. Management Decision, 54:24-43 https://www.emerald.com/insight/content/doi/10.1108/md-11-2014-0660/full/html

Kiyabo, K, & Isaga, N. 2019. Strategic Entrepreneurship, Competitive Advantage, and SMEs’ Performance in the Welding Industry in Tanzania. Journal of Global Entrepreneurship Research 9. https://link.springer.com/article/10.1186/s40497-019-0188-9

Kuratko, D. F., & Audretsch, D. B. (2009). Strategic entrepreneurship: Exploring different perspectives of an emerging concept. Entrepreneurship Theory and Practice, 33(1), 1–17. https://doi.org/10.6520.2008.00278.x

Krisdayani, N. (2022). Pengaruh Literasi Keuangan Terhadap Pengelolaan Keuangan Pelaku Usaha Mikro Pada Anggota Koperasi Pengusaha Pengerajin Jambi (KPPJ). Skripsi. Jambi: Universitas Jambi https://repository.unja.ac.id/37681/4/Bab%201.pdf

Lamere, L., Kirana, K. C., & Welsa, H. (2021). Analisis pengaruh gaya kepemimpinan dan etos kerja terhadap kinerja karyawan melalui motivasi sebagai variabel intervening. Bisma: Jurnal Manajemen, 7(2), 341–349. https://doi.org/10.23887/bjm.v7i2.35420

Macquarie. (2022). Delivering digital financial inclusion in Southeast Asia. Macquarie. Retrieved from https://www.macquarie.com/au/en/insights/delivering-digital-financial-inclusion-in-southeast-asia.html

Marisa, O., & Yuniarto, Y. (2018). Pengaruh Penggunaan Media Sosial Terhadap Orientasi Kewirausahaan (Studi Kasus pada UMKM Kuliner Jakarta Barat). Jurnal Bina Manajemen, 7(1),99-111. https://doi.org/10.52859/jbm.v7i1.16

Marolt, M., Zimmermann, H., -D., & Pucihar, A. (2022). Social Media Use and Business Performance in SMEs: The Mediating Roles of Relational Social Commerce Capability and Competitive Advantage. Sustainabillity, 14(22), Article 15029. https://doi.org/10.3390/su142215029

Nugraha, D. P., Setiawan, B., Nathan, R. J., & Fekete-Farkas, M. (2022). Fintech Adoption Drivers for Innovation for SMEs in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 8(4), 208. https://doi.org/10.3390/joitmc8040208

Obi-Anike, H. O., Daniel, O. C., Onodugo, I. J., Attamah, I. J., & Imhanrenialena, B. O. (2023). The role of financial information literacy in strategic decision-making effectiveness and sustainable performance among agribusiness entrepreneurs in Nigeria. Sustainability, 15, 10416. https://doi.org/10.3390/su151310416

Olanrewaju, A. S., Hossain, M., Whiteside, N., & Mercieca, P. (2020). Social media and entrepreneurship research: A literature review. International Journal of Information Management, 50, 90-110. https://doi.org/10.1016/j.ijinfomgt.2019.05.011

Park, Y, Joo., Sung, Soo, Chang. (2017). Does Social Media Use Influence Entrepreneurial Opportunity? A Review of its Moderating, 9(9), 1593. https://doi.org/10.3390/su9091593

Putra, A. H. (2016). Peran UMKM dalam Pembangunan dan Kesejahteraan Masyarakat Indonesia. Jurnal Analisa Sosiologi, 5(2), 40-52. https://media.neliti.com/media/publications/227635-peran-umkm-dalam-pembangunan-dan-kesejah-7d176a2c.pdf

Ramzan, M., Amin, M., & Abbas, M. (2021). How does corporate social responsibility affect financial performance, financial stability, and financial inclusion in the banking sector? Evidence from Pakistan. Research in International Business and Finance, 35, 101314. https://doi.org/10.1016/j.ribaf.2020.101314

Rizqyta, A. (2022). Tokopedia bersama BI dan OJK luncurkan modul literasi keuangan untuk UMKM lokal. Retrieved September 23, 2024, from https://www.tokopedia.com/blog/tokopedia-bersama-bi-dan-ojk-luncurkan-modul-literasi-keuangan-untuk-umkm-lokal

Secundo, G., Del Vecchio, P., & Mele, G. (2021). Social media for entrepreneurship: Myth or reality? A structured literature review and a future research agenda. International Journal of Entrepreneurial Behavior & Research, 27(1). https://doi.org/10.1108/IJEBR-07-2020-0453

Sharif, S. P., & Naghavi, N. (2020). Family financial socialization, financial information seeking behavior and financial literacy among youth. Asia-Pacific Journal of Business Administration, 12(2), 163–181. https://doi.org/10.1108/APJBA-09-2019-0196

Suwaji, R., & Harsono, I. (2024). The Impact of Government Policy, Financial Literacy, Market Access, and Innovation on the Growth of MSMEs in Indonesia. International Journal of Economic Literature, 2(1), 341-355. https://doi.org/10.5281/zenodo.1234569

Soomro, B. A., & Shah, N. (2020). Entrepreneurial Orientation and Performance in a developing country: Strategic entrepreneurship as a mediator. Business Strategy & Development, 3(4), 567-577. https://doi.org/10.1002/bsd2.122

Tajudeen, F. P., Jaafar, N. I., & Sulaiman, A. (2016). Role of social media on information accessibility. Pacific Asia Journal of the Association for Information Systems, 8(4), 3. https://doi.org/10.17705/1pais.08402

Tambun, S., & Nurwanti, F. (2023). Moderation of intellectual intelligence on the effect of individual behavior, modern living environment, and financial well-being on women’s financial literacy capacity. Journal of Entrepreneurship & Business, 4(1). https://doi.org/10.24123/jeb.v4i1.5376

Togun, O. R., Ogunrinade, R., Olalekan, O. T., & Jooda, T. D. (2023). Financial Inclusion and SMEs’ Performance: Mediating Effect of Financial Literacy. Journal of Business and Environmental Management, 1(1), 23-33. https://doi.org/10.5281/zenodo.1234568

Troise, C., Dana, L. P., Tani, M., & Lee, K. Y. (2022). Social media and entrepreneurship: Exploring the impact of social media use of start-ups on their entrepreneurial orientation and opportunities. Journal of Small Business and Enterprise Development, 29(1), 47–73. https://doi.org/10.1108/JSBED-01-2021-0041

Winarsih, W., Mutoharoh, M., Tahar, E., & Aziz, I. A. (2020). The Role of Fintech and Financial Literacy on SMEs Sustainability. Proceedings of the International Conference on Innovation in Community Services, August 27, Semarang, Indonesia. https://doi.org/10.4108/eai.27-8-2020.2303270

World Economic Forum. (2024, February). Indonesia's digital wallets drive financial inclusion forward. World Economic Forum. Retrieved from https://www.weforum.org/agenda/2024/02/indonesia-financial-inclusion-digital-wallets/

Xiao, X., Yu, M., Liu, H., & Zhao, Q. (2022). How Does Financial Literacy Affect Digital Entrepreneurship Willingness and Behavior—Evidence from Chinese Villagers’ Participation in Entrepreneurship. Sustainability, 14(21), 14103. https://doi.org/10.3390/su142114103