The Effect of Interactivity, Cost Effectiveness, and Compatibility on the Use of Social Media and its Implications for Organizational Performance

Abstract

The purpose of this research is to examine the influence of interactivity, cost effectiveness, compatibility through social media usage and the implications toward organizational performance. Analytical technique used in testing the hypothesis is by Structural Equation Model (SEM) method. The respondent in this research were 220 manager, from 14 Hotels of Indonesian stated-owned enterpriseslocated in the islands of Bali, Java and Sumatra. The result showed that interactivity, cost effectiveness, and compatibility significantly influence social media usage, and the social media usage has a significant effect on organizational performance and entrepreneurial orientation. The result also showed that entrepreneurial orientation as mediating variable between social media usage and organizational performance.