The Influence of Social Media on Sales Performance

Abstract

Purpose – The purpose of this paper is to investigate the factors that influence  small and medium enterprises(SMEs). In addition,it examines thei mpact of social media on firm sales performance of the SMEs.

Design/methodology/approach – This study examined the influence of social media, social network, marketing linking capability and its subsequent impact on sales performance. Statistical analyses were based on the data collected, through survey questionnaire from 367 SMEs in Indonesian. Structural Equation Model (SEM) method was used to test the hypotheses.

Findings –the results show that social media positively affect social network, social network and marketing linking capability positively affect sales performance in the context of small and mediumsized enterprises.  In addition, the results of this study also show that social network mediates the relationship between  social media and sales performance. This study is limited in selection of samples.The sample only covered one community of SME in Indonesian which limits generalizability of the findings.

Managerial implications are provided regarding the potential power social media, social network and marketing linking capability has on sales performance.

Key word: Social media, social network, marketing linking capability, sales performance, SMEs