The Role Of Social Media In Promoting The Sustainability Of (Micro, Small, And Medium Enterprises (Msmes) In The Digital Era

Abstract

Sustainable transformation is key for MSMEs in the digital age, amid the complexity and technological developments that shorten business cycles. This study aims to explore the influence of social media on the sustainability of MSMEs in Yogyakarta, which increasingly rely on digital marketing through platforms such as Instagram. With more than 346 thousand MSMEs in Yogyakarta utilizing digital services, this study uses a quantitative approach with a survey method of 100 respondents. Data analysis was conducted using the partial least square structural equation modelling (PLS-SEM) model. The results show that social media has a significant influence on the sustainability of MSMEs (t-statistic = 6.545, p < 0.001), increasing visibility, expanding market reach, and strengthening customer loyalty. These findings are in line with the importance of interactive digital marketing communication, where MSMEs can interact directly with consumers. This study recommends that MSMEs be more active in utilizing social media and that policymakers design digital training programs to improve marketing skills. Despite its limitations, such as its focus on Yogyakarta, this study confirms that effective use of social media can support the sustainability of MSMEs, with the right strategies to face challenges in the digital era.