The Influence of Digital Literacy and Social Media Utilization on the Marketing Performance of E-Commerce-Based MSMEs in Indonesia

Dewi Ayu Lestari; Rachmat  Setyawan; Gunawan  Wibisono; Muhammad Zainal Abidin

doi:10.51903/gq47ng96

Authors

Dewi Ayu Lestari Universitas Nusa Cendana Kupang, Indonesia
Rachmat Setyawan Universitas Sains dan Teknologi Komputer, Semarang, Indonesia
Gunawan Wibisono Universitas Sains dan Teknologi Komputer, Semarang, Indonesia
Muhammad Zainal Abidin Universitas Nusa Cendana Kupang, Indonesia

DOI:

https://doi.org/10.51903/gq47ng96

Keywords:

MSMEs, Digital Literacy, Social Media, Marketing Performance, E-Commerce

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are a major contributor to Indonesia's economy, but they still struggle to adapt to the digital and social media environments. The thrust of this research stems from the observation that, despite e-commerce being a clear-cut, wide-open opportunity for MSME activity, the general level of digital literacy and social media optimization among MSMEs is quite low. This study aims to examine how digital literacy and social media use influence marketing performance among e–commerce–based MSMEs in Indonesia. A mixed-method explanatory sequential approach was used in the study, which involved a quantitative survey of 150 MSMEs and in-depth interviews with 15 MSME owners. Quantitative data were analyzed using multiple linear regression, and qualitative data were examined through thematic analysis. This data indicates that digital literacy (β = 0.312; p < 0.05) and social media use (β = 0.428; p < 0.05) have significant effects on marketing performance, with an R² value of 0.56. Social media is the dominant factor in expanding market reach, while digital literacy improves MSMEs' capacity to manage technology-based marketing. The main contribution of the study is the joint analysis of digital literacy and social media, which have mostly been studied separately in prior research. The findings showed that digital literacy should be seen as the foundation, while social media is the primary tool for marketing. In practice, the research offers recommendations for MSMEs, policymakers, and business facilitators on designing integrated training programs that combine digital skills with online promotion strategies.

References

Ainul Hayya Maulana, V., & Wijaya, I. (2025). Analisis Pengggunaan Literasi Digital Berbasis Media Pembelajaran Informatika Di Smk Askhabul Kahfi Semarang. Jurnal Teknologi Informasi Dan Komunikasi, 16(1), 55–61. https://doi.org/10.51903/tr3xcp82

Anatan, L., & Nur. (2023). Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in Indonesia. Economies, 11(6), 156. https://doi.org/10.3390/economies11060156

APJII Indonesia. (2024). Internet Indonesia: Survei Penetrasi Internet Indonesia. Asosiasi Penyelenggara Jasa Internet Indonesia. https://survei.apjii.or.id/survei/register/33?type=free

Arkha, S., Nugroho, A., & Wibowo, A. (2025). Evaluating Digital Transformation within Integration Limitations using Desk-Based Analytical Case Study. Journal of Technology Informatics and Engineering, 4(2), 289–299. https://doi.org/10.51903/jtie.v4i2.365

Bartoloni, S., & Ancillai, C. (2024). Twenty Years of SOCIAL media Marketing: A Systematic Review, Integrative Framework, and Future Research Agenda. International Journal of Management Reviews, 26(3), 435–457. https://doi.org/10.1111/ijmr.12360

Campagna, J. M., & Bhada, S. V. (2024). Strategic Adoption of Digital Innovations Leading to Digital Transformation: A Literature Review and Discussion. Systems, 12(4), 118. https://doi.org/10.3390/systems12040118

Cao, G., & Weerawardena, J. (2023). Strategic Use of Social Media in Marketing and Financial Performance : the B2B SME Context. Industrial Marketing Management, 111, 41–54. https://doi.org/10.1016/j.indmarman.2023.03.007

Dwivedi, Y. K., Ismagilova, E., Hughes, D. L., Carlson, J., Filieri, R., Jacobson, J., Jain, V., Karjaluoto, H., Kefi, H., Krishen, A. S., Kumar, V., Rahman, M. M., Raman, R., Rauschnabel, P. A., Rowley, J., Salo, J., Tran, G. A., & Wang, Y. (2021). Setting the Future of Digital and Social Media Marketing Research: Perspectives and Research Propositions. International Journal of Information Management, 59, 102168. https://doi.org/10.1016/j.ijinfomgt.2020.102168

Herzallah et al. (2025). Journal of Open Innovation : Technology , Market , and Complexity Social Commerce Attributes, Customer Engagement and Repurchase Intention in Social Commerce Platforms : A Stimulus – Organism – Response Approach. Journal of Open Innovation: Technology, Market, and Complexity, 11(4), 100635. https://doi.org/10.1016/j.joitmc.2025.100635

Imansyah, F., Sujana, I., & Pragestu, S. (2024). Implementasi E-Commerce Sebagai Media Penjualan Online Pada Kelompok Mentari. Jurnal Teknologi Informasi dan Komunikasi, 15(2), 328–338. https://doi.org/10.51903/jtikp.v15i2.884

Ip, C. Y. (2024). Effect of Digital Literacy on Social Entrepreneurial Intentions and Nascent Behaviours Among Students and Practitioners in Mass Communication. Humanities and Social Sciences Communications, 11(1), 1–10. https://doi.org/10.1057/s41599-023-02587-w

Jung, S. U., & Shegai, V. (2023). The Impact of Digital Marketing Innovation on Firm Performance: Mediation by Marketing Capability and Moderation by Firm Size. Sustainability, 15(7), 5711. https://doi.org/10.3390/su15075711

Justin Paul et al. (2023). Digital Entrepreneurship Research: A Systematic Review. Journal of Business Research, 156, 113507. https://doi.org/10.1016/j.jbusres.2022.113507

Kindström, D., Carlborg, P., & Nord, T. (2024). Challenges for Growing SMEs: A Managerial Perspective. Journal of Small Business Management, 62(2), 700–723. https://doi.org/10.1080/00472778.2022.2082456

Liang, Z., Du, J., & Hua, Y. (2025). The Impact of Digital Marketing Capability on Firm Performance: Empirical Evidence From Chinese Listed Manufacturing Firms. Journal of Theoretical and Applied Electronic Commerce Research, 20(3), 236. https://doi.org/10.3390/jtaer20030236

Nadia Zahoor et al. (2023). The Micro-Foundations of Digitally Transforming SMEs: How Digital Literacy and Technology Interact with Managerial Attributes. Journal of Business Research, 159, 113755. https://doi.org/10.1016/j.jbusres.2023.113755

Parra-Sánchez, D. T., & Talero-Sarmiento, L. H. (2024). Digital Transformation in Small and Medium Enterprises: A Scientometric Analysis. Digital Transformation and Society, 3(3), 257–276. https://doi.org/10.1108/DTS-06-2023-0048

Pellegrino, A., & Abe, M. (2023). Leveraging Social Media for SMEs: Findings From a Bibliometric Review. Sustainability, 15(8), 7007. https://doi.org/10.3390/su15087007

Raharjo, K., Afrianty, T. W., & Prakasa, Y. (2024). Digital Literacy and Business Transformation: Social-Cognitive Learning Perspectives in Small Business Enterprises. Cogent Business and Management, 11(1), 2376282. https://doi.org/10.1080/23311975.2024.2376282

Rahman, S., Fadrul, Suyono, Setyawan, O., Junaedi, A. T., & Renaldo, N. (2025). Digital Competitive Advantages of MSMEs and the Antecedents Factor (Digital Creativity and Digital Culture). Journal of Open Innovation: Technology, Market, and Complexity, 11(3), 100585. https://doi.org/10.1016/j.joitmc.2025.100585

Saffira Annisa Bening et al. (2023). E-Commerce Technologies Adoption Strategy Selection in Indonesian SMEs using the Decision-Makers, Technological, Organizational and Environmental (DTOE) Framework. Sustainability, 15(12), 9361. https://doi.org/10.3390/su15129361

Siswanto, E., & Aqdam, A. A. (2024). The Impact of E-Commerce and Accounting Information Systems on Entrepreneurial Decision-Making in MSMEs: A Quantitative Study in the Digital Era. Journal of Management and Informatics, 3(1), 37–52. https://doi.org/10.51903/jmi.v3i1.42

Sofiane Laradi et al. (2024). Leveraging Capabilities of Social Media Marketing for Business Success. Computers in Human Behavior Reports, 16, 100524. https://doi.org/10.1016/j.chbr.2024.100524

Trisnawati, N. L. D. E., & Dewi, L. P. (2024). Analisis Perkembangan Kinerja Keuangan UMKM Dilihat dari Optimalisasi Pengelolaan Bantuan Dana Desa dan Literasi Keuangan Pelaku UMKM (Studi Kasus UMKM di Desa Kubutambahan). Kompak: Jurnal Ilmiah Komputerisasi Akuntansi, 17(2), 41–48. https://doi.org/10.51903/kompak.v17i2.2062

Viktorija Kulikovskaja et al. (2023). Driving Marketing Outcomes through Social Media-Based Customer Engagement. Journal of Retailing and Consumer Services, 74, 103445. https://doi.org/10.1016/j.jretconser.2023.103445

We Are Social. (2024). Digital 2024: Indonesia Overview Report. https://wearesocial.com/id/blog/2024/01/digital‑2024

Wardana, L. W., Ahmad, Z. A., Indrawati, A., Maula, F. I., Fatihin, M. K., Rahma, A., Nafisa, A. F., Putri, A. A., & Narmaditya, B. S. (2023). Do Digital Literacy and Business Sustainability Matter for Creative Economy? The Role of Entrepreneurial Attitude. Heliyon, 9(1), e12763. https://doi.org/10.1016/j.heliyon.2022.e12763

Affandi, Y., Ridhwan, M. M., Trinugroho, I., & Hermawan, D. (2024). Digital Adoption, Business Performance, and Financial Literacy in Ultra Micro, Micro, and Small Enterprises in Indonesia. Research in International Business and Finance, 70, 102376. https://doi.org/10.1016/j.ribaf.2024.102376