Bridging Digital Marketing and Tourism Development: The Role of Social Media Marketing in Enhancing Business Performance

This study examines the influence of technological, organizational, and environmental factors on the adoption of social media marketing and its impact on the performance of Micro, Small, and Medium Enterprises (MSMEs) in Labuan Bajo, a tourism destination. Grounded in the Diffusion of Innovation (DOI) theory and the Technology-Organization-Environment (TOE) framework, it explores how internal and external factors drive digital marketing adoption. A quantitative method was used, collecting data from 150 MSME actors via surveys conducted between October and December 2024. Sampling followed Hair’s (2010) SEM parameter guidelines, and responses were measured using a 5-point Likert scale. The Structural Equation Modeling (SEM) results show that technological, organizational, and environmental factors significantly influence social media marketing adoption. Moreover, technological factors and social media use positively affect business performance, while organizational and environmental factors do not have a direct impact. These findings highlight the importance of digital readiness and strategic use of social media in improving MSME performance. This study contributes to the integration of DOI and TOE theories in MSME research and offers insights for enhancing digital capability in emerging tourism economies.