International Journal of Data and Network Science (Jan 2021)

The role of relational and informational capabilities in mediating the effect of social media adoption on business performance in fashion industry

  • Ni Nyoman Kerti Yasa,
  • I Gusti Ayu Ketut Giantari,
  • I Putu Gde Sukaatmadja,
  • Tjokorda Gde Raka Sukawati,
  • Ni Wayan Ekawati,
  • I Nyoman Nurcaya,
  • Gede Bayu Rahanatha,
  • Anak Agung Elik Astari

DOI
https://doi.org/10.5267/j.ijdns.2021.8.011
Journal volume & issue
Vol. 5, no. 4
pp. 569 – 578

Abstract

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This study aims to explain the role of relational capability and informational capability in mediating the effect of social media adoption on business performance. The population of this study is the owners of the fashion sector SMEs in Bali. The sample size used was 114 businesses with a purposive sampling approach. The analytical technique used is Path Analysis using the SEM-PLS approach. The results show that the adoption of social media has a positive and significant effect on business performance. Social media adoption has a positive and significant effect on relational capability and social media adoption also has a positive and significant effect on informational capability. Furthermore, relational capability has a positive and significant effect on business performance and informational capability has a positive and significant effect on business performance. Relational capability and informational capability can significantly mediate the effect of social media adoption on business performance. Therefore, it is important for SME owners in the fashion sector in Bali to intensify the adoption of social media to build relational and informational capabilities in order to increase business performance.