Factors Affecting the Use of Social-Media TikTok to Improve SME Performance

Abstract

The current growth of internet use has consequently contributed to the growth of Social-Media. A Social-Media platform that is trending in Indonesia at the moment is the TikTok. Many SMEs, especially young entrepreneurs, use the TikTok platform to improve their business performance in order to achieve organizational goals related to profitability, sales growth and market share. Therefore, this study aims to determine the effect of Interactivity, Cost Effectiveness, and Compatibility on the performance of SMEs with the use of TikTok Social-Media as a mediating variable. The sample of this study was 100 SME in Jakarta that use TikTok. The sampling technique in this study was purposive sampling based on certain criteria in order to provide the appropriate information needed by the researcher. The results showed that Interactivity, Cost Effectiveness, and Compatibility have a positive and significant effect on the use of TikTok. The use of TikTok has a positive and significant effect on business performance. The results of the study also stated that TikTok successfully served as a mediating variable.