Exploring the Impact of Technology, Organization, and Environment on MSME Performance: The Role of Social Media and Organizational Culture as Moderators

Micro, Small, and Medium Enterprises (MSMEs) are key drivers of the economy in Central Java, Indonesia, particularly in Klaten, Jepara, and Semarang. The 2016 Economic Census found that internet-enabled businesses, especially those using social media, tend to experience greater profit growth. This study explores the impact of Technology, Organization, and Environment (TOE) factors on MSME performance, focusing on social media adoption. Using a quantitative approach and Structural Equation Modeling (SEM) with SMART PLS 3.0, the study surveyed 400 respondents. Results show that TOE factors significantly influence MSME performance, with social media adoption positively impacting business outcomes. However, organizational culture did not moderate the social media-MSME performance relationship in Klaten. The research underscores the importance of selecting the right social media platforms to foster direct and responsive communication, enhancing MSME performance through better engagement with customers and stakeholders.