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The Impact of Social Commerce Restriction Legislation on the Growth of MSMEs in Indonesia

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  • Cheng-Wen Lee
  • Ignatius Reyner Giovanni

Abstract

This study investigates the impact of recent Indonesian government legislation that restricts the use of social media for commercial purposes. Specifically, the study focuses on users of social commerce platforms such as TikTok. The research aims to provide a clear understanding of the opportunities and challenges businesses face while navigating social commerce amid regulatory changes. The study primarily focuses on user trust, attractiveness, satisfaction, behavior intention, and actual behavior to determine how social commerce restrictions affect TikTok. The sample population consisted of 385 valid respondents from Java Island and beyond Java Island, and the study model was analyzed using partial least squares analysis. The research presented in this paper offers valuable insights into how Indonesia is adapting to the digital age and implementing technology, particularly with regard to social media in the twenty-first century. Â

Suggested Citation

  • Cheng-Wen Lee & Ignatius Reyner Giovanni, 2024. "The Impact of Social Commerce Restriction Legislation on the Growth of MSMEs in Indonesia," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 14(6), pages 1-15.
    • Handle: RePEc:spt:admaec:v:14:y:2024:i:6:f:14_6_15
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    References listed on IDEAS

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    1. Sung Youl Jun & Tae Wook Ju & Hye Kyung Park & Jacob C. Lee & Tae Min Kim, 2023. "Information distortion in word-of-mouth retransmission: the effects of retransmitter intention and source expertise," Asian Business & Management, Palgrave Macmillan, vol. 22(5), pages 1848-1876, November.
    2. Meng Wang & Xu Qin & Wei Jiang & Chunshu Li & Guilin Qi & Jianxin Li, 2021. "Link Trustworthiness Evaluation over Multiple Heterogeneous Information Networks," Complexity, Hindawi, vol. 2021, pages 1-11, March.
    3. Yuangang Zhang & Lijuan Wang, 2019. "Influence of Sustainable Development by Tourists’ Place Emotion: Analysis of the Multiply Mediating Effect of Attitude," Sustainability, MDPI, vol. 11(5), pages 1-15, March.
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