INFLUENCE OF SOCIAL MEDIA AND INNOVATION SPIRIT OF ENTREPRENEURS ON AGRITOURISM BUSINESS IN INDONESIA

Abstract

In the 21st century, businesses utilize social media (SM) more frequently as a tool. This may be because social media platforms allow firms to improve their competitive position in unique and exciting ways. Consequently, the primary purpose of this study is to investigate the effect of social media marketing capabilities on the performance of Indonesian agritourism businesses. In addition, the study explored the moderating influence of entrepreneurs’ innovative capabilities in agritourism businesses. To ensure the validity of the sample, respondents were questioned whether they did business using SM channels or utilized SM marketing tools at the time of data collection. Only companies who indicated they conducted business via SM were taken into account. For data gathering, 450 entrepreneurs were chosen as a representative sample. A self-administered survey questionnaire was utilized to collect the data. The response rate was 51.11 percent, with 233 out of 450 questionnaires returned and appropriate for analysis. PLS software was used to analyze data. Before testing hypotheses, the outer model was examined to determine the reliability and validity of the data, and then SEM was employed to investigate the hypothesized correlations between the variables. SM marketing has shown to be an effective strategy for businesses wanting to boost their competitiveness. The results are consistent with RBV, which stresses the significance of a company’s vital resources and competencies, and are as expected.