The Role of Social Media Adoption and Its Impact on the Business Performance of Craftsmen in Tulung Agung

Abstract

This study employs a quantitative survey-based method to explore the adoption of social media by woodcraft businesses in Tulung Agung. With a population of 125 business owners, a sample of 100 respondents were selected using purposive sampling techniques. The survey was conducted through an online questionnaire, and data were analyzed using descriptive statistics and Structural Equation Modeling-Partial Least Squares (SEM-PLS) through the smart PLS 3 application. The results indicate that relative benefits and cost-effectiveness do not significantly impact social media adoption. However, compatibility has proven to have a positive and significant influence. Furthermore, social media adoption significantly and positively affects the performance of woodcraft business owners. In conclusion, compatibility plays a crucial role in social media adoption, which, in turn, positively impacts the business performance of woodcraft entrepreneurs. Implementing marketing strategies and interactions through social media can be an effective step to enhance competitiveness and success for micro and small businesses in this sector.