Social Media in Micro, Small, and Medium Enterprises (MSMEs) Adoption of Functional Beverages in Solo Raya Using a Modified Technology-Organization-Environment-Individual (TOE-I) Model

The increasing diversity of functional beverages directly contributes to the high number of micro, small, and medium enterprises (MSMEs), allowing businesses to innovate through digital marketing and social media adoption. Functional beverage MSMEs face customer, social, and competitor pressures while gain relative advantage. Although social media has been adopted, its utilization remains suboptimal. Therefore, this study aims to determine effect of technology, organization, environment, and individual factors on the social media adoption by functional beverage MSMEs in Solo Raya. A descriptive and quantitative methods was employed using a survey of 105 functional beverage producers in Solo Raya. The analysis uses technology-organization-environment (TOE) framework and the individual model. Data were analysed using Structural Equation Modeling with Partial Least Squares (SEM-PLS). The results show that technological, environmental, and individual factors significantly affect social media adoption, while organizational factors have no significant effect. Technology has a significant effect due to ease of use, promotional effectiveness, and relative advantage. Environmental factors, such as customer, social, and competitor pressures, also enable MSMEs to adopt social media in improving competitiveness. Knowledge and experience of individual businesses play an important role in the decision to adopt social media for business.