| Summary: | One of the challenges in development at Indonesia overcomes the
obstacle of unemployment because many job seekers have a low quality in
education. Therefore, the informal sector becomes the buffer of job seekers.
SMEs are the part of the informal sector. SMEs generally have
characteristics that are informal, low productivity, and rely on a network.
The development of information technology that is helpful in daily life can
be applied to assist SMEs improving their performance using social
networking technologies. The purpose of this study determines how the
effect of the use of social networking technologies on the performance of
SMEs in the city of Yogyakarta.
This study uses quantitative analysis using statistical models of SEM
(Structural Equation Model) with PLS (Partial Least Square). This study
uses a sampling technique with random sampling through questionnaires
and data analysis techniques using a 1-5 Likert scale.
The results of this study show that all of the variables have a
significant effect on the performance of SMEs in the city of Yogyakarta by
using a significance value of 95%. By looking at the value of R-Square on
PLS, three independent variables affect the dependent variable by 39%.
From the results obtained demonstrate the use of social network variables
under study have a significant effect on the performance of SMEs in a small
percentage values, so that the use of social networks still need to be applied
to support the performance of SMEs.
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