Analysis Of Ponorogo Msme Sustainability Through Social Media Adoption Reveals The Role Of Organizational Factors (Employee Competence And Leadership Support)

Annisa Istikhomariah; Hadi Sumarsono; Dwi Warni Wahyuningsih

doi:10.63922/ijebir.v5i05.4852

Annisa Istikhomariah Management Study Program, Muhammadiyah University of Ponorogo
Hadi Sumarsono Management Study Program, Muhammadiyah University of Ponorogo
Dwi Warni Wahyuningsih Management Study Program, Muhammadiyah University of Ponorogo

DOI: https://doi.org/10.63922/ijebir.v5i05.4852

Keywords: Social Media Adoption, Leadership Support, MSME Sustainability, Employee Competence, Technology-Organization-Environment

Abstract

Digital transformation encourages micro, small, and medium enterprises (MSMEs) to utilize social media to improve business sustainability, but the adoption rate in Ponorogo Regency is still relatively low due to limited organizational factors. This study aims to analyze the influence of employee competence and leadership support on MSME sustainability through social media adoption as a mediating variable. The study used a quantitative approach with an explanatory design. The study population was MSMEs in Ponorogo Regency, with a sample of 139 respondents selected using simple random sampling. Data were collected through a five-point Likert scale questionnaire and analyzed using Structural Equation Modeling Partial Least Squares (SEM-PLS). The results showed that employee competence, leadership support, and social media adoption had a positive and significant effect on MSME sustainability. Leadership support also had a significant effect on social media adoption, while employee competence had no significant effect. In addition, social media adoption mediated the influence of leadership support on MSME sustainability, but did not mediate the influence of employee competence. This study concluded that the success of MSME digital transformation is more determined by leadership commitment in encouraging the use of social media than employee competence.

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