The Role of Social Media and Social Influence on Firm Performance: Case Study of Financial Industry in Indonesia

Pujangga Abdillah

Abstract


The purpose of this research is to verify the impact of social media and social influence on firm performance in Indonesia’s financial industry. Samples were taken using the judgment sampling technique with a total sample of 126 observations. This research utilizes content analysis, fixed-effects, and random-effects models to verify the effect of engaging in social media and social influence on firm performance. The empirical study consists of panel data in the financial industry listed on the Indonesia Stock Exchange (IDX) for the period 2019 to 2021. All secondary data is analyzed by moderated regression analysis (MRA) with STATA program. The results explained that social media has an impact on firm performance as estimated by return on asset (ROA). That is, a higher social media made firm can improve firm performance. The study result also suggests that social influence estimates have the pressure to predict firm performance.

 

 


Full Text:

PDF

References


Abdillah, P. (2016). Implementation of Responsibility Accounting (Case Study at PG. Kebon Agung). Jurnal Ilmiah Mahasiswa FEB, 4(1).

Abdillah, P., Saraswati, E., & Purwanti, L. (2020). Effect of Corporate Social Responsibility Disclosure (CSRD) on Financial Performance and Role of Media as Moderation Variables. International Journal of Multicultural and Multireligious Understanding, 7(4), 457-475 doi:http://dx.doi.org/10.18415/ijmmu.v7i4

Abdullah, M. D., Ardiansyah, M. N., & Hamidah, N. (2017). The Effect of Company Size, Company Age, Public Ownership and Audit Quality on Internet Financial Reporting. Sriwijaya International Journal of Dynamic Economics and Business, 1(2), 153 - 166. doi:https://doi.org/10.29259/sijdeb.v1i2.153-166

Akmese, H., Aras, S., & Alev, K. (2016). Financial Performance and Social Media: A Research on Tourism Enterprises Quoted in Istanbul Stock Exchange (BIST). Procedia Economics and Finance, 39:705-710. doi:https://doi.org/10.1016/S2212-5671(16)30281-7

Aksak, E., & Duman, S. A. (2014). The online presence of Turkish banks: Communicating the softer side of corporate identity. Public Relations Review, 41(1). doi:DOI:10.1016/j.pubrev.2014.10.004

Alberghini, E., Cricelli, L., & Grimaldi, M. (2014). A methodology to manage and monitor social media inside a company: A case study. Journal of Knowledge Management, 18(2), 255-277.

Al-Matari, E. M., Al-Swidi, A. K., & Fadzil, F. H. (2014). The Measurements of Firm Performance's Dimension. Asian Journal of Finance and Accounting, 6(1), 22 - 49.

Armstrong, M. (2014). Armstrong's Handbook of Human Resource Management Practice 13th Edition. London: Ashford Colorur Press Ltd.

Baraldi, P., Maio, F. D., Turati, P., & Zio, E. (2015). Robust signal reconstruction for condition monitoring of industrial components via a modified Auto Associative Kernel Regression method. Mechanical Systems and Signal Processing, 60 - 61. doi:10.1016/j.ymssp.2014.09.013

Chung, N., & Koo, C. (2014). The Use of Social Media in Travel Information Search. Telematics and Informatics, 32(2), 215-229

Daowd, A., Kamal, M. M., Eldabi, T., & Hasan, R. (2021). The Impact of Social Media on the Performance of Microfinance Institutions in Developing Countries: A Quantitative Approach. Information Technology & People. doi:DOI:10.1108/ITP-03-2018-0135

Du, H., & Jiang, W. (2014). Social Media Matter? Initial Empirical Evidence. Journal of Information Systems, 29 (2), 51-70

Dutot, V., & Lichy, J. (2019). The role of social media in accelerating the process of acculturation to the global consumer culture: An empirical analysis. International Journal of Technology and Human Interaction (IJTHI), 15(1), 65–84. doi: DOI:10.4018/IJTHI.2019010105

Emrinaldi, N. D. (2021). The Impact of Social Media on Firm Value: A Case Study of Oil and Gas Firms in Indonesia. Journal of Asian Finance, Economics and Business, 8(3), 987-996

Fukuyama, F. (1999). Social Capital and Civil Society. Virginia: The Institute of Public Policy, George Mason University.

Jackson, J. M., & Latane, B. (1981). Strength and Number of Solicitors and The Urge toward Altruism. Personality and Social Psychology Bulletin, 7,415-422.

Jamal, A. A., Ramlan, W., Mohidin, R., & Karim, M. R. (2015). The Effects of Social Influence and Financial Literacy on Savings Behavior: A Study on Students of Higher Learning Institutions in Kota Kinabalu, Sabah. International Journal of Business and Social Science, 6(11).

Kasmir. (2014). Analisis Laporan Keuangan, Edisi Pertama, Cetakan Ketujuh. Jakarta: PT. Rajagrafindo Persada.

Kemp, S. (2022, July 25). DIGITAL 2022: INDONESIA. Retrieved from dataportal.com: https://datareportal.com/reports/digital-2022-indonesia

Laksmi, & Elnumeri. (2020). Issues of Social Capital in Developing Collaboration of Information Professional Organizations in Indonesia. LIBRARIA: Jurnal Perpustakaan, 8(2).181-210

Latane, B., & L'Herrou, T. (1996). Spatial Clustering in The Conformity Game: Dynamic Social Impact in Electronic Groups. Journal of Personality and Social Psychology, 70(6), 2018-1230 doi:https://doi.org/10.1037/0022-3514.70.6.1218

Luo, P., Chen, K., & Wu, C. (2016). Measuring Social Influence for Firm-Level Financial Performance. Electronic Commerce Research and Applications, 20, 15-29. doi:http://dx.doi.org/10.1016/j.elerap.2016.09.004

Luo, P., Guo, G., & Zhang, W. (2022). The Role of Social Influence in Green Travel Behavior in Rural China. Transportation Research Part D: Transport and Environment, 107. doi:https://doi.org/10.1016/j.trd.2022.103284

Mariutti, F., & Giraldi, J. M. (2020). Country Brand Equity: The Role of Image and Reputation. BAR - Brazilian Administration Review, 17(3):1-24. doi: https://doi.org/10.1590/1807-7692bar2020180128

Miqdad, M., & Oktaviani , S. A. (2021). The Contribution of Social Media Value to Company's Financial Performance: Empirical Evidence from Indonesia. The Journal of Asian Finance, Economics and Business, 8(1). doi:https://doi.org/10.13106/jafeb.2021.8(1), 305-315

Muntiah, S. (2013). Pengaruh Mekanisme Corporate Governance terhadap Kinerja Perusahaan (Studi Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2010-2012). Jurnal Akuntansi & Keuangan Kontemporer, 2(2), 83-101

Obeitoh, O. (2018). Social Capital and Financial Performance of Small and Medium Scale Enterprises. Penerbit Akademia Baru.

Reilly, A. H., & Hynan, K. A. (2014). Corporate Communication, Sustainability, and Social Media: It’s Not Easy (really) being Green. Business Horizons, 57, 747-758.

Sikarwar, T. S. (2019). Social Influence and Individual Financial Behavior for Digital Banking: A Causal Study. International Journal of Accounting and Financial Reporting, 9(4), 242-159. doi:https://doi.org/10.5296/ijafr.v9i4.15905

Uyar, A., Boyar, E., & Kuzey, C. (2018). Does Social Media Enhance Firm Value? Evidence from Turkish; Firms Using Three Social Media Metrics. The Electronic Journal of Information Systems Evaluation, 21(2), 131-142.

Wang, Z., Wang, N., & Liang, H. (2014). Knowledge sharing, intellectual capital and firm performance. Management Decision , 52(2), 230-258. doi:10.1108/MD-02-2013-0064

Weller , K. (2015). Trying to understand social media users and usage. Online Information Review, 40(2). 256- 254




DOI: https://doi.org/10.26905/bismar.v1i2.8197

Refbacks

  • There are currently no refbacks.



Business Management Research (BISMAR)
Management Department Faculty of Economics
University of Merdeka Malang

MAILING ADDRESS
Terusan Dieng Street 62-64, Sukun, Malang City, East Java, 65146, Indonesia
Phone: +62 813-3268-4538
Email: bismar@unmer.ac.id


Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.