Why Is Social Commerce so Special for SMEs?

Mahameru Rosy Rochmatullah (), Agung Nur Probohudono and Rahmawati Rahmawati
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Mahameru Rosy Rochmatullah: Universitas Muhammadiyah Surakarta
Agung Nur Probohudono: Universitas Sebelas Maret
Rahmawati Rahmawati: Universitas Sebelas Maret

A chapter in Proceedings of the International Colloquium on Business and Economics (ICBE 2022), 2022, pp 195-207 from Springer

Abstract: Abstract This paper examines several factors that stimulate the implementation of social commerce (SC) in Indonesian small and medium enterprises (SMEs). We empirically analyzed the effect of SC implementation on cognitive ability, customer loyalty, information quality, completeness of feature, and fraud incidence. In the analysis process, we utilize a multiple linear regression model with a sample of 413 SMEs separated into two test models. The entire sample was tested with Model 1 and the Model 2 test was divided into three years of observation (2019–2021). In testing the two models, the cognitive capacities of SMEs and customer loyalty consistently have a significant influence on the adoption of SC. In the meantime, feature completeness and low fraud risk have a significant influence on the adoption of SC in 2021. This result is corroborated by our observations, which indicate that the development of online purchasing and selling features on social media platforms has stimulated the growth of SMEs utilizing SC. Academically, this study could assist university officials with new E-Commerce course development projects. Practically, the findings of this study can motivate the government to reduce unemployment by encouraging unemployed individuals to become entrepreneurs using SC. More detailed explanation in the discussion section.

Keywords: Social commerce; Small and medium enterprises; Cognitive; Customers; Fraud (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-066-4_17

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DOI: 10.2991/978-94-6463-066-4_17

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