The Impact of Social Commerce Restriction Legislation on the Growth of MSMEs in Indonesia

Cheng-Wen Lee and Ignatius Reyner Giovanni

Advances in Management and Applied Economics, 2024, vol. 14, issue 6, 15

Abstract: This study investigates the impact of recent Indonesian government legislation that restricts the use of social media for commercial purposes. Specifically, the study focuses on users of social commerce platforms such as TikTok. The research aims to provide a clear understanding of the opportunities and challenges businesses face while navigating social commerce amid regulatory changes. The study primarily focuses on user trust, attractiveness, satisfaction, behavior intention, and actual behavior to determine how social commerce restrictions affect TikTok. The sample population consisted of 385 valid respondents from Java Island and beyond Java Island, and the study model was analyzed using partial least squares analysis. The research presented in this paper offers valuable insights into how Indonesia is adapting to the digital age and implementing technology, particularly with regard to social media in the twenty-first century. Â

Keywords: Micro Social Medium Enterprises; Social Commerce; Customer Satisfaction; E-WOM; TikTok; Schwarz's inequality; Triangle inequality. (search for similar items in EconPapers)
Date: 2024
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