Integration Uses and Gratifications Theory and Entrepreneurship Theory To Boost The MSMEs Marketing Performance Using Social Media

Abstract

This article analyzes how social media use improves MSMEs' marketing performance by integrating uses and gratification theory and entrepreneurship theory. Data collection used questionnaires amounted to 97 micro-scale MSMEs in Banyumas, Indonesia. Hypothesis testing used the Partial Least Square (PLS) method with the Variance Accounted For (VAF) approach. The test results showed that using social media by integrating uses and gratification theory and entrepreneurship theory to improve the marketing performance of MSMEs in Banyumas had a significant positive effect. Using social media for marketing activities, establishing relationships with customers, and accessing information can improve marketing performance if MSMEs have an entrepreneurship spirit or orientation. Innovation, risk-taking, proactive, and competitive aggressiveness can interpret that the theory of entrepreneurship further optimizes the idea of uses and gratification to improve the marketing performance of MSMEs. The originality of this research empirically is limited model development by integrating theory in existing constructs and using VAF methods to know the mediation variable's role. The research object was infrequent studies in developing countries on a micro-business scale related to social media use and its impact on marketing performance, primarily implemented in MSMEs in Banyumas Indonesia Regency.