The Influence of Social Media Strategy, Corporate Entrepreneurship and Innovation Capability on Firm Performance Mediated by Managing Business Strategy in Cosmetic Companies in Jabodetabek

Nadia Stefanie Destiana1, Willy Arafah2, & Kusnadi3
1,2,3Faculty of Economics and Business University Trisakti Jakarta, Indonesia
DOI – http://doi.org/10.37502/IJSMR.2024.7208

Abstract

The aim of the research is to analyze the influence of social media strategy, corporate entrepreneurship, innovation capability on the firm performance of cosmetic business actors mediated by managing business strategy. The research method used in this research is hypothesis testing. This research is quantitative, using a questionnaire given to 193 policy actors, owners, or leaders of cosmetics companies in the Jabodetabek area. Data analysis used SPSS and PLS.3.20 software with the Structural Equation Model (SEM) multivariate analysis method. The results of this research have a direct influence on the variables of social media strategy, corporate entrepreneurship, innovation capability and have a significant and positive effect on firm performance. Social media strategy has no negative influence on managing business strategy. The variable corporate entrepreneurship and innovation capability has the strongest influence on managing business strategy. The direct influence of managing business strategy on firm performance. The indirect influence of social media strategy on firm performance through managing business strategy results are unsupportive or negative. The indirect influence for corporate entrepreneurship, innovation capability has a significant and positive influence on firm performance which is mediated by the managing business strategy of cosmetic business actors. The strongest influence is the innovation capability variable on firm performance which is mediated by managing business strategy. The research implications of the existence of a social media strategy are not yet optimal in supporting the managing business strategy of cosmetic business actors and this needs to be paid attention to by cosmetic business actors in the process of utilizing social media in marketing strategies, especially in promotional strategies through digital marketing. Corporate entrepreneurship and innovation capability the results of this research significantly strengthen the influence of corporate entrepreneurship and innovation capability on the firm performance of cosmetic business actors. Managing business strategy as mediation of social media strategy has not been able to improve the firm performance of cosmetic business actors.

Keywords: Social Media Strategy, Corporate Entrepreneurship, Innovation, Capability, Managing Business Strategy, Firm Performance.

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