Nurliza

University of Tanjungpura,

Pontianak, Indonesia

E-mail: 

Nurliza.spmm@gmail.com

nurliza@faperta.untan.ac.id

ORCID 0000-0002-8819-1264

Perceived benefits of social media networks impact on competitive behavior of Indonesia SMEs: Food and beverage sector

Shenny Oktoriana

University of Tanjungpura,

Pontianak, Indonesia

E-mail: 

Shenny.oktoriana@faperta.untan.ac.id 

ORCID 0000-0002-7732-2652

Abstract. The way innovation increases SME survival performance in dynamic competitive environments remains ambiguous. The purpose of this research is to identify the perceived benefits of social media networks’ impact on the competitive behavior of SMEs. It linked TOE model and CRM framework of 188 Indonesian SMEs of food and beverage sector in 2019 using SEM in two phases. The first phase was to identify the characteristics of SMEs, perceived benefits of social media, and the competitive behavior. The second phase was a quantitative analysis using SEM for the proposed framework. It is confirmed that the competitive behavior of SMEs has positive relationships with SME characteristics, market interaction media, and media to improve consumer responses, as well as digital marketing strategy and effectiveness simultaneously. The variability of the competitive behavior is mostly provided by product reviews and answers, followed by responses to rejection, unique visitors, and audience size. Meanwhile, SME characteristics, market interaction media, media to improve consumer responses, and digital marketing strategy and effectiveness have the most direct effect on the responses to rejection respectively. The implications are aligning the capabilities with the orientation of building relationships with consumers, the quality assurance strategy, enhancing customer value in the process, and merchandising strategies.

Received: February, 2021

1st Revision: June, 2021

Accepted: September, 2021

DOI: 10.14254/2071-789X.2021/14-3/8

JEL Classification: L25, M15, M31, P31

Keywords: ompetitive behavior, digital marketing strategy, market interaction media, media to improve consumer responses, perceived benefit, social media, SME characteristics