Social Media Networking and Knowledge Sharing in Increasing Innovation and MSME’s Growth: Based on the Theory of Communication Visibility

Lyna Latifah(1*), Nurdian Susilowati(2), Muhammad Noor Ardiansah(3), Tusyanah Tusyanah(4), Muhammad Syukri Abdullah(5)
(*) Corresponding Author

DOI: 10.24269/ekuilibrium.v17i2.2022.pp122-138


Abstract


The purpose of this study is to examine the direct effect of social media networking, knowledge sharing, and innovation on MSME's growth. This study also examines the role of knowledge sharing and innovation in mediating the influence of social media networking on the MSME’s growth. This research is survey research. Respondents are MSMEs from young entrepreneurs assisted by universities. Respondents who participated in this study were 467 people, but only 421 could be used. Data analysis techniques in this study using PLS-SEM. The results show that social media networking, knowledge sharing, and innovation affect MSME's growth. Knowledge sharing and innovation play a part in mediating the influence of social media networking on MSME’s growth. This study examines the role of knowledge sharing and innovation in mediating social media networking on MSME’s growth.


Keywords


Social media networking; Knowledge sharing; Innovation; MSME growth

Full Text:

References


  1. Ahmad, S. Z. (2014). Small and medium enterprises’ internationalisation and business strategy: Some evidence from firms located in an emerging market. Journal of Asia Business Studies, 8(2), 168–186. https://doi.org/10.1108/JABS-03-2013-0012
  2. Ainin, S., Parveen, F., Moghavvemi, S., Jaafar, N. I., & Mohd Shuib, N. L. (2015). Factors influencing the use of social media by SMEs and its performance outcomes. Industrial Management & Data Systems, 115(3), 570–588. https://doi.org/10.1108/IMDS-07-2014-0205
  3. Ainin, S., Parveen, F., Moghavvemi, S., Jaafar, N. I., & Shuib, N. L. M. (2015). Factors influencing the use of social media by SMEs and its performance outcomes. Industrial Management and Data Systems, 115(3), 570–588. https://doi.org/10.1108/IMDS-07-2014-0205
  4. AlSharji, A., Ahmad, S. Z., & Abu Bakar, A. R. (2018). Understanding social media adoption in SMEs: Empirical evidence from the United Arab Emirates. Journal of Entrepreneurship in Emerging Economies, 10(2), 302–328. https://doi.org/10.1108/JEEE-08-2017-0058
  5. Campbell, D. A., Lambright, K. T., & Wells, C. J. (2014). Looking for friends, fans, and followers? Social media use in public and nonprofit human services. Public Administration Review, 74(5). https://doi.org/10.1111/puar.12261
  6. Carcary, M., Doherty, E., & Conway, G. (2016). A dynamic capability approach to digital transformation: a focus on key foundational themes. In the European Conference on Information Systems Management. Academic Conferences International Limited.
  7. Castaneda, D. I., & Cuellar, S. (2020). Knowledge sharing and innovation: A systematic review. Knowledge and Process Management, 27(3), 159–173. https://doi.org/10.1002/kpm.1637
  8. Cervellon, M. C., & Galipienzo, D. (2015). Facebook Pages Content, does it Really Matter? Consumers’ Responses to Luxury Hotel Posts with Emotional and Informational Content. Journal of Travel and Tourism Marketing, 32(4), 428–437. https://doi.org/10.1080/10548408.2014.904260
  9. Crammond, R., Omeihe, K. O., Murray, A., & Ledger, K. (2018). Managing knowledge through social media: Modelling an entrepreneurial approach for Scottish SMEs and beyond. Baltic Journal of Management, 13(3), 303–328. https://doi.org/10.1108/BJM-05-2017-0133
  10. Desrtriyanto, P. A. E., Setiawan, F., Purwaningrum, T., Muhammadiyah Ponorogo, U., & Budi Utomo Nomor, J. (2022). The Role of Electronic Worth of Mouth in Mediating Tiktok Social Media Toward the Organizational Image Of Universitas Muhammadiyah Ponorogo. Jurnal Ilmiah Bidang Ilmu Ekonomi, 17(1), 14–22. http://journal.umpo.ac.id/index.php/ekuilibrium
  11. Dwi Amalia, A., & Citra Melati, F. (2021). Analysis of MSMEs Recovery using Digital Technology in the Covid-19 Pandemic Era. Jurnal Ilmiah Bidang Ilmu Ekonomi, 16(2), 117–128. http://journal.umpo.ac.id/index.php/ekuilibrium
  12. Ebrahimi, B. (2019). Efficiency measurement to identify the best efficient unit in the presence of dual-role factors. International Journal of Applied Decision Sciences, 13(1), 93–108. https://doi.org/10.1504/ijads.2020.10020424
  13. Ebrahimi, P., Ahmadi, M., Gholampour, A., & Alipour, H. (2019). CRM performance and development of media entrepreneurship in digital, social media and mobile commerce. International Journal of Emerging Markets, 16(1), 25–50. https://doi.org/10.1108/IJOEM-11-2018-0588
  14. Eidizadeh, R., Salehzadeh, R., & Chitsaz Esfahani, A. (2017). Analysing the role of business intelligence, knowledge sharing and organisational innovation on gaining competitive advantage. Journal of Workplace Learning, 29(4), 250–267. https://doi.org/10.1108/jwl-07-2016-0070
  15. Engelbrecht, A., Gerlach, J. P., Benlian, A., & Buxmann, P. (2019). How employees gain meta-knowledge using enterprise social networks: A validation and extension of communication visibility theory. Journal of Strategic Information Systems, 28(3), 292–309. https://doi.org/10.1016/j.jsis.2019.04.001
  16. Gronum, S., Verreynne, M. L., & Kastelle, T. (2012). The Role of Networks in Small and Medium-Sized Enterprise Innovation and Firm Performance. Journal of Small Business Management, 50(2), 257–282. https://doi.org/10.1111/j.1540-627X.2012.00353.x
  17. Gubbins, C., & Dooley, L. (2014). Exploring Social Network Dynamics Driving Knowledge Management for Innovation. Journal of Management Inquiry, 23(2), 162–185. https://doi.org/10.1177/1056492613499203
  18. Gupta, R., & Pandit, A. (2013). Innovation and growth of small and medium enterprises: Role of environmental dynamism and firm resources as moderating variables. International Journal of Entrepreneurship and Innovation Management, 17(4–6), 284–295. https://doi.org/10.1504/IJEIM.2013.059888
  19. Harms, R., Reschke, C. H., Kraus, S., & Fink, M. (2010a). Antecedents of innovation and growth: Analysing the impact of entrepreneurial orientation and goal-oriented management. International Journal of Technology Management, 52(1–2), 135–152. https://doi.org/10.1504/IJTM.2010.035859
  20. Harms, R., Reschke, C. H., Kraus, S., & Fink, M. (2010b). Antecedents of innovation and growth: Analysing the impact of entrepreneurial orientation and goal-oriented management. International Journal of Technology Management, 52(1–2), 135–152. https://doi.org/10.1504/IJTM.2010.035859
  21. Hartono, R., & Sheng, M. L. (2016). Technology Analysis & Strategic Management Knowledge sharing and firm performance: the role of social networking site and innovation capability. 7325(January). https://doi.org/10.1080/09537325.2015.1095289
  22. Hendriks, P. (1999). Why share knowledge? The influence of ICT on the motivation for knowledge sharing. Knowledge and Process Management, 6(2). https://doi.org/10.1002/(sici)1099-1441(199906)6:2<91:aid-kpm54>3.0.co;2-m
  23. Huang, L., Li, Y., Huang, X., & Zhou, L. (2021). How social distance affects the intention and behavior of collaborative consumption: A study based on online car-hailing service. Journal of Retailing and Consumer Services, 61. https://doi.org/10.1016/j.jretconser.2021.102534
  24. Hung, S. W., Cheng, M. J., Hou, C. E., & Chen, N. R. (2021). Inclusion in global virtual teams: Exploring non-spatial proximity and knowledge sharing on innovation. Journal of Business Research, 128(November 2018), 599–610. https://doi.org/10.1016/j.jbusres.2020.11.022
  25. Hutchings, C. (2012). Commercial use of Facebook and Twitter - Risks and rewards. Computer Fraud and Security, 2012(6). https://doi.org/10.1016/S1361-3723(12)70065-9
  26. Ipe, M. (2003). Knowledge Sharing in Organizations: A Conceptual Framework. Human Resource Development Review, 2(4). https://doi.org/10.1177/1534484303257985
  27. Komppula, R., & Reijonen, H. (2006). Performance Determinants in Small and M i c r o Tourism BusinessKomppula, R., & Reijonen, H. (2006). Performance Determinants in Small and M i c r o Tourism Business. Tourism Review, 61(4), 13–20. Tourism Review, 61(4), 13–20.
  28. Kwahk, K., & Park, D. (2016). Computers in Human Behavior The effects of network sharing on knowledge-sharing activities and job performance in enterprise social media environments. Computers in Human Behavior, 55, 826–839. https://doi.org/10.1016/j.chb.2015.09.044
  29. Kwayu, S., Abubakre, M., & Lal, B. (2021a). The influence of informal social media practices on knowledge sharing and work processes within organizations. International Journal of Information Management, 58(December 2019), 102280. https://doi.org/10.1016/j.ijinfomgt.2020.102280
  30. Kwayu, S., Abubakre, M., & Lal, B. (2021b). The influence of informal social media practices on knowledge sharing and work processes within organizations. International Journal of Information Management, 58(December 2020), 102280. https://doi.org/10.1016/j.ijinfomgt.2020.102280
  31. Kwayu, S., Abubakre, M., & Lal, B. (2021c). The influence of informal social media practices on knowledge sharing and work processes within organizations. International Journal of Information Management, 58(December 2020), 102280. https://doi.org/10.1016/j.ijinfomgt.2020.102280
  32. Leonardi, P. M. (2014). Social media, knowledge sharing, and innovation: Toward a theory of communication visibility. Information Systems Research, 25(4), 796–816. https://doi.org/10.1287/isre.2014.0536
  33. Macpherson, A., & Holt, R. (2007). Knowledge, learning and small firm growth: A systematic review of the evidence. Research Policy, 36(2), 172–192. https://doi.org/10.1016/j.respol.2006.10.001
  34. Mirzaee, S., & Ghaffari, A. (2018). Investigating the impact of information systems on knowledge sharing. Journal of Knowledge Management, 22(3), 501–520. https://doi.org/10.1108/JKM-08-2017-0371
  35. Muntinga, D. G., Moorman, M., & Smit, E. G. (2011). Introducing COBRAs: Exploring motivations for Brand-Related social media use. International Journal of Advertising, 30(1). https://doi.org/10.2501/IJA-30-1-013-046
  36. Odoom, R., Anning-Dorson, T., & Acheampong, G. (2017). Antecedents of social media usage and performance benefits in small- and medium-sized enterprises (SMEs). Journal of Enterprise Information Management, 30(3), 383–399. https://doi.org/10.1108/JEIM-04-2016-0088
  37. OECD. (2019). Southeast Asia Going Digital: Connecting SMEs. Oecd, September, 1–158. https://www.oecd.org/going-digital/southeast-asia-connecting-SMEs.pdf
  38. Ongori, H., & Migiro, S. O. (2010). Information and communication technologies adoption in SMEs: literature review. Journal of Chinese Entrepreneurship, 2(1), 93–104. https://doi.org/10.1108/17561391011019041
  39. Oyewobi, L. O., Adedayo, O. F., Olorunyomi, S. O., & Jimoh, R. (2021a). Social media adoption and business performance: the mediating role of organizational learning capability (OLC). Journal of Facilities Management, 19(4), 413–436. https://doi.org/10.1108/JFM-12-2020-0099
  40. Oyewobi, L. O., Adedayo, O. F., Olorunyomi, S. O., & Jimoh, R. (2021b). Social media adoption and business performance: the mediating role of organizational learning capability (OLC). Journal of Facilities Management, 19(4), 413–436. https://doi.org/10.1108/JFM-12-2020-0099
  41. Oyewobi, L. O., Olorunyomi, O. S., Jimoh, R. A., & Rotimi, J. O. B. (2020a). Impact of social media usage on performance of construction businesses (CBs) in Abuja, Nigeria. Journal of Financial Management of Property and Construction, 26(2), 257–278. https://doi.org/10.1108/JFMPC-05-2020-0042
  42. Oyewobi, L. O., Olorunyomi, O. S., Jimoh, R. A., & Rotimi, J. O. B. (2020b). Impact of social media usage on performance of construction businesses (CBs) in Abuja, Nigeria. Journal of Financial Management of Property and Construction, 26(2), 257–278. https://doi.org/10.1108/JFMPC-05-2020-0042
  43. Palacios-Marqués, D., Merigó, J. M., & Soto-Acosta, P. (2015). Online social networks as an enabler of innovation in organizations. Management Decision, 53(9), 1906–1920. https://doi.org/10.1108/MD-06-2014-0406
  44. Palacios-Marqués, D., Popa, S., & Pilar Alguacil Mari, M. (2016a). The effect of online social networks and competency-based management on innovation capability. Journal of Knowledge Management, 20(3), 499–511. https://doi.org/10.1108/JKM-05-2015-0175
  45. Palacios-Marqués, D., Popa, S., & Pilar Alguacil Mari, M. (2016b). The effect of online social networks and competency-based management on innovation capability. Journal of Knowledge Management, 20(3), 499–511. https://doi.org/10.1108/JKM-05-2015-0175
  46. Palacios-Marqués, D., Soto-Acosta, P., & Merigó, J. M. (2015). Analyzing the effects of technological, organizational and competition factors on Web knowledge exchange in SMEs. Telematics and Informatics, 32(1), 23–32. https://doi.org/10.1016/j.tele.2014.08.003
  47. Papa, A., Santoro, G., Tirabeni, L., & Monge, F. (2018). Social media as tool for facilitating knowledge creation and innovation in small and medium enterprises. Baltic Journal of Management, 13(3), 329–344. https://doi.org/10.1108/BJM-04-2017-0125
  48. Parveen, F., Jaafar, N. I., & Ainin, S. (2015). Social media usage and organizational performance: Reflections of Malaysian social media managers. Telematics and Informatics, 32(1), 67–78. https://doi.org/10.1016/j.tele.2014.03.001
  49. Perry-Smith, J. E., & Niversity, E. U. (2017). From Creativity to Innovation: The Social Network Drivers of The Four Phases of The Idea Journey. Academy of Management Review, 42(1), 53–79. http://dx.doi.org/!0.5465/amr.2014.0462
  50. Pratono, A. H. (2018a). From social network to firm performance: The mediating effect of trust, selling capability and pricing capability. Management Research Review, 41(6), 680–700. https://doi.org/10.1108/MRR-03-2017-0080
  51. Pratono, A. H. (2018b). From social network to firm performance: The mediating effect of trust, selling capability and pricing capability. Management Research Review, 41(6), 680–700. https://doi.org/10.1108/MRR-03-2017-0080
  52. Quinton, S., & Wilson, D. (2016). Tensions and ties in social media networks: Towards a model of understanding business relationship development and business performance enhancement through the use of LinkedIn. Industrial Marketing Management, 54. https://doi.org/10.1016/j.indmarman.2015.12.001
  53. Rafi, N., Ahmed, A., Shafique, I., & Kalyar, M. N. (2021). Knowledge management capabilities and organizational agility as liaisons of business performance. South Asian Journal of Business Studies. https://doi.org/10.1108/SAJBS-05-2020-0145
  54. Rahimnia, F., & Hassanzadeh, J. F. (2013). The impact of website content dimension and e-trust on e-marketing effectiveness: The case of Iranian commercial saffron corporations. Information and Management, 50(5), 240–247. https://doi.org/10.1016/j.im.2013.04.003
  55. Ratasuk, A., & Charoensukmongkol, P. (2020). Does cultural intelligence promote cross-cultural teams’ knowledge sharing and innovation in the restaurant business? Asia-Pacific Journal of Business Administration, 12(2), 183–203. https://doi.org/10.1108/APJBA-05-2019-0109
  56. Ritala, P., Olander, H., Michailova, S., & Husted, K. (2015). Knowledge sharing, knowledge leaking and relative innovation performance: An empirical study. Technovation, 35, 22–31. https://doi.org/10.1016/j.technovation.2014.07.011
  57. Roberts, D. L., Piller, F. T., & Lüttgens, D. (2016). Mapping the Impact of Social Media for Innovation: The Role of Social Media in Explaining Innovation Performance in the PDMA Comparative Performance Assessment Study. Journal of Product Innovation Management, 33, 117–135. https://doi.org/10.1111/jpim.12341
  58. Salojärvi, S., Furu, P., & Sveiby, K. E. (2005). Knowledge management and growth in Finnish SMEs. Journal of Knowledge Management, 9(2), 103–122. https://doi.org/10.1108/13673270510590254
  59. Scuotto, V., del Giudice, M., & Carayannis, E. G. (2017a). The effect of social networking sites and absorptive capacity on SMES’ innovation performance. Journal of Technology Transfer, 42(2), 409–424. https://doi.org/10.1007/s10961-016-9517-0
  60. Scuotto, V., del Giudice, M., & Carayannis, E. G. (2017b). The effect of social networking sites and absorptive capacity on SMES’ innovation performance. Journal of Technology Transfer, 42(2), 409–424. https://doi.org/10.1007/s10961-016-9517-0
  61. Soto-Acosta, P., Popa, S., & Palacios-Marqués, D. (2016). E-business, organizational innovation and firm performance in manufacturing SMEs: an empirical study in Spain. Technological and Economic Development of Economy, 22(6), 885–904. https://doi.org/10.3846/20294913.2015.1074126
  62. Staw, B. M. (1991). Dressing Up Like an Organization: When Psychological Theories Can Explain Organizational Action. Journal of Management, 17(4). https://doi.org/10.1177/014920639101700412
  63. Tajvidi, R., & Karami, A. (2021a). The effect of social media on firm performance. Computers in Human Behavior, 115, 105174. https://doi.org/10.1016/j.chb.2017.09.026
  64. Tajvidi, R., & Karami, A. (2021b). The effect of social media on firm performance. Computers in Human Behavior, 115, 105174. https://doi.org/10.1016/j.chb.2017.09.026
  65. Tiwasing, P. (2021). Social media business networks and SME performance: A rural–urban comparative analysis. Growth and Change, 52(3), 1892–1913. https://doi.org/10.1111/grow.12501
  66. van den Hooff, B., & Ridder, J. A. (2004). Knowledge sharing in context: The influence of organizational commitment, communication climate and CMC use on knowledge sharing. Journal of Knowledge Management, 8(6). https://doi.org/10.1108/13673270410567675
  67. Wang, Z., & Wang, N. (2012a). Knowledge sharing, innovation and firm performance. Expert Systems with Applications, 39(10), 8899–8908. https://doi.org/10.1016/j.eswa.2012.02.017
  68. Wang, Z., & Wang, N. (2012b). Knowledge sharing, innovation and firm performance. Expert Systems with Applications, 39(10), 8899–8908. https://doi.org/10.1016/j.eswa.2012.02.017
  69. Yang, X., Ye, H. (Jonathan), & Wang, X. (2021). Social media use and work efficiency: Insights from the theory of communication visibility. Information and Management, 58(4). https://doi.org/10.1016/j.im.2021.103462
  70. Zhang, X., Gao, Y., Yan, X., de Pablos, P. O., Sun, Y., & Cao, X. (2015). From e-learning to social-learning: Mapping development of studies on social media-supported knowledge management. Computers in Human Behavior, 51, 803–811. https://doi.org/10.1016/j.chb.2014.11.084

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.