BUSINESS DEVELOPMENT AND OPTIMIZATION OF SMES' GROWTH THROUGH DIGITAL MARKETING

Abstract

This study analyzes the impact of various exogenous and dependent factors on SMEs' adoption of social media marketing methods to boost their sustainable business development and growth. Small and Medium-Sized Enterprises (SMEs) are the backbone of a country's economic development. Using a quantitative research approach and a random sampling procedure, data were collected from entrepreneurs of small and medium-sized enterprises (SMEs) in the Indonesian region of South Kalimantan. Using SmartPLS v. 4 software and structural equation modeling, data were examined. Incorporating the Unified Theory of Acceptance and Use of Technology (UTAUT2) and the Technology Acceptance Model (TAM), the results demonstrated the influence of perceived ease of use and perceived utility on the adoption of social media marketing by SMEs. This social media marketing usage promotes SME businesses' sustainable growth and development. While favorable conditions and lower costs interact with exogenous variables, the impact of their interaction on social media marketing adoption is increased, resulting in business growth. The current study theoretically contributes to the existing body of knowledge and provides practitioners, marketers, and policymakers with significant insight.