Social Media Technology Adoption for Improving MSMEs Performance in Bandung: a Technology-Organization-Environment (TOE) Framework

The use of the internet in business activities is a common thing to do in business world. Likewise, with MSMEs, many of them have already used the internet in their business activities. City and Regency of Bandung are the two regions that experience the best MSMEs growth in West Java. This is because these two regions are included in the position of three regions with the largest number of MSMEs in West Java. In addition, the two regions consistently won the achievement as five regions in West Java with the best financial performance measured by the ratio of cost to income. This study is expected to provide several implications related to social media technology adoption with determinant factors of TOE (technology, organization, environment) to improve the business performance of MSMEs. Researchers used quantitative research methods namely causal, with SEM (Structural Equation Model) analysis techniques by SMART PLS 2.0 software. The sampling technique chosen is accidental with a total of 400 respondents. Finding from this research which technology, organization, and environment are the factors that encourage MSMEs in adopting social media, then will impact the performance of MSMEs which include customer services, sales, marketing, and internal operations.