The Role of Social Media in Indonesia for Business Transformation Strategy

Eliot Simangunsong, Rudy Handoko School of Business and Economics, Universitas Prasetiya Mulya, Kampus Cilandak, Jakarta Jl. RA. Kartini (TB Simatupang) Cilandak Barat, Jakarta, 12430, Indonesia. S A R I P A T I Vol. 13 | No. 1 ISSN: 2089-6271 | e-ISSN: 2338-4565 | https://doi.org/10.21632/irjbs

The rise of social media in today's digital era is considered important because it helps people communicate and share information online. It is not surprising that ease of sharing information and communicating through social media has an impact on increasing many online activities, including business activities.
This phenomenon is an inspiration that researchers can use to uncover the role of social media in Indonesia for business activities by knowing the factors that can influence a social media follower or fans into actual buyers. By surveying users of social media, 546 responses were collected from social media entrepreneurs and social media buyers. The data analysis showed there is enough evidence that social media is being used for business. The frequency of social media usage has strong links to users to use to buy products or do business in that venue. Young people, such as college students, tend to use social media for business more than those with higher levels of education who may already have permanent jobs. Multiple regression analyses have resulted in a proposed model of social media use for business and offers five major factors that influence satisfaction and performance when doing business on social media.

INTRODUCTION
Social media is a network -and cellular -based technology that functions as an interactive platform for individuals or groups, so they can communicate and share information (Kietzmann, Hermkens, McCarthy, & Silvestre, 2011). Social networking and its communication activities are one of the most popular online activities. Social media is very popular in Indonesia, and its use is expected to continue to increase as a revenue source for businesses. Statista (2018) reported that in 2017, there were 2.46 billion social media users worldwide (see Figure 1). Social media can be classified into blogs, social networking sites, virtual social worlds, collaborative projects, communities, and virtual gaming worlds (Gavino, Williams, Jacobson, & Smith, 2018). There are indications that explaining the role of social media is increasingly varied, not just limited to tools being used for social communication (Kaplan & Haenlein, 2010), but also tools now being used for business purposes. The importance of social media for business can be seen in the growth of social media as a technology platform that is user friendly and can be easily used without the need for sophisticated technical experience, which is Analisis data menunjukkan ada cukup bukti bahwa media sosial telah digunakan untuk berbisnis. Frekuensi penggunaan media sosial memiliki hubungan yang kuat dengan pengguna yang menggunakan media sosial untuk membeli produk atau melakukan bisnis. Kaum muda, seperti mahasiswa, cenderung menggunakan media sosial untuk berbisnis melebihi mereka yang memiliki tingkat pendidikan yang lebih tinggi yang mungkin sudah memiliki pekerjaan tetap. Analisis regresi berganda telah menghasilkan model penggunaan media sosial untuk berbisnis yang memperlihatkan lima faktor utama yang mempengaruhi kepuasan dan kinerja berbisnis di media sosial.
quite different from other Internet applications, such as websites and e-commerce (Rahbi & Abdullah, 2017). Creativity when utilizing social media enables someone to organize their company for promotion purposes and/or sell their products (Hatammimi & Sharif, 2014;Holmes, McLean, & Green, 2012).
Through social media, companies can sell their products and services effectively without the need for large costs. The company's marketing function can utilize social media to support the consumer's decision-making process and consumer shopping behavior (Huang & Benyoucef, 2013). The study by Lockett (2018) provides an interesting illustration of the use of social media, such as Facebook, LinkedIn, Twitter, and YouTube, by businesses to promote their corporate brands and connections and reach their target consumers.
It is important to understand why and how social media was adopted for business and for what purposes (He, Wang, Chen, & Zha, 2017). Gavino et al. (2018) did further research on relevant and validated measurements of the impact of social media use on business performance and corporate income. Lockett (2018) found that SME businesses generally do not have the tools and strategies to use social media. Rahbi & Abdullah (2017) added that unlike SMEs in the developed countries, SMEs in developing countries are still less aware of and do not understand the benefits of business innovation gained by using social media. He et al. (2017) also argued that although many non-manufacturing SMEs have adopted social media and benefited their businesses, they face many problems and challenges when using social media. Burgess et al. (2017) suspected that SMEs seem to only follow the trends when using social media rather than applying clear strategic goals or planning. SMEs adopt social media for no particular reason besides wanting to join the other SMEs that use them.
The purpose of this research is to explain the extent to which social media has been used to do business in Indonesia and identify important factors that can be used by companies there to change their company's social media followers into actual buyers.. The outcome of this research is expected to contribute to new guidelines for social media adoption plans, including precise planning for the use of social media when making decisions to adopt that for business.
However, when dealing with members during social media activities, such as discussion, sharing, and ongoing collaboration, the content on social media needs to be updated frequently. Statista (2017) reports that there are 2.46 billion social media users worldwide and this number will continue to grow and reach 2.77 billion in 2019. Facebook, for example, has more than 2.1 billion active members, Youtube has 1.9 billion, and Whatsapp has reached 1.5 billion. In addition to using computers to access social media on the Internet, people use Smartphones and tablets with special social media applications like Facebook, YouTube, WhatsApp, and others, all of which also continue to increase in numbers. This high use of social media certainly has potential to make social media a means to sell products or transact business.
A study by Legowo and Noer (2017) of university students in Indonesia found Facebook to be the most used social media network for respondents. It was followed by Twitter. Another study by Ekawati The factors that were considered most influential for the choice to use social media were saving time and ease of use.
Social media has also been used by various businesses, small, medium and large. Kahar et al. (2012) found that the main use of social media is to build and strengthen relationships with consumers.
For example, Fenton (2018) explained how social media helps football clubs to connect with their fans so they become better known throughout the world.
Another study by Jussila, Kärkkäinen, and Aramo-Immonen (2014) also showed brand strengthening as the most common reason whys companies use social media. Michaelidou, Siamagka, and Christodoulides (2011) added in their study that 91% of companies use social media to get new customers. Social media like Facebook, Twitter, Google Plus, Youtube and blogs, have been widely adopted in various industries (He et al., 2017).

Examples include Dell, Domino's Pizza, Starwood
Hotels, and Starbucks as those that have adopted social media since 2010 and have gained benefits like increased customer loyalty, sales, customer satisfaction, brand awareness, and an increasingly better reputation. Social media both influences and shapes consumers' perceptions of brands and business equity (Gavino et al., 2018). This view is important for all businesses because it allows companies to take a different approach when communicating and listening to their consumers (Jussila, Kärkkäinen, & Aramo-Immonen, 2014). Culnan et al. (2010) analyzed the content of Fortune 500 company web sites and learning the extent to which social media is used by industry category. Table 1 shows the results of their survey where, on average, each Fortune 500 company actually adopted more than one social media platform. Rahbi and Abdullah (2017) argued that when social media is adopted in a corporate organization, it changes the company's activities when developing its business potential. Ejupi (2017)  Therefore, further research is needed on how social media is utilized to benefit a company's business (Jussila et al., 2014). Anderson and Mirosa (2014) proposed the importance of such further research to discover innovative ways for changing fans on corporate social media from «like» to «buy». In addition, more in-depth research is needed on establishing social commerce models, such as the types of data that relates to consumers, indicators of buying and selling behavior, and demographic data to help understand the conversations on social media, thereby tracking not only what media users buy on social media, but also what their friends buy.
In the context of the business world in Indonesia, further research is needed on the potential positive use of social media by corporate business.

This research studied how the business world in
Indonesia perceives the potential, opportunities, and challenges of using social media for business. The researcher previously conducted research on the use of social media both for individual purposes and for business (Simangunsong, 2016 SPSS statistical software was used to process the survey data obtained. Data was calculated and analyzed using descriptive and inferential statistical approaches, such as an independent sample t-test, ANOVA and multiple regression analysis so as to explain in detail the relationship between the research variables and social commerce models and thus meet the objectives of the research.

RESULTS AND DISCUSSION
The research questionnaire was distributed to respondents who used social media actively, including using it for business purposes. By using Google forms and conducting surveys directly with the population, a total of 546 responses were received. The next process was a descriptive data analysis and test of the hypotheses using SPSS application. Profiles of the respondents are summarized in Table 2 Table 7 shows small p-value (p = .0.08) < 0.05 which means the variable is significant to the model/prediction.  with an R 2 = 0.074). The individual variables were examined further using a stepwise regression analysis, which indicated that "energetic/talkative person" (t = 4.214, p = .000) and "easily agitated/ Results of the multiple linear regression indicated that there was a collective significant effect between social influence and satisfaction, (F(df=1, 256) = 11.336, p < .001, with an R2 = 0.042). The individual predictors were examined further using stepwise regression analysis, which indicated that "increase market share" (t = 3.367, p = .001) was a significant predictor in the model. This indicates that increased market share is the main satisfaction indicator for doing business in social media compared to two other factors i.e., increased profit or an increased relationship with a customer. Figure 2 summarizes the results of the hypothesis testing of factors that have a causal relationship with business performance and satisfaction using social media. The first major factor influencing business performance on social media is the pleasure of social media owners when using social media. The enthusiasm of social media account owners when conducting updates is very influential for business performance on social media. A previous study by Paridon & Carraher (2009)  The regression results provide enough evidence to support the importance of social influence through ongoing discussions about products on social media platforms. It seems that if many consumers talk about and discuss a product, it will increase consumer interest in that product. This finding shows that the more often you talk about a product on a social media platform, the more likely the consumers will remember that product. Business owners on social media can take advantage of this trend by bringing up and focusing the topic of that conversation so it relate to the product they want to sell. This finding may be because those who buy on social media have more variation in their use social media, hence higher usage, than those who have never bought and who only use social media to socialize or network. A higher frequency of using social media also relate to those who use social media for business. This finding can be explained because doing business on social media requires an active presence in order to carry out sales activities and respond to questions from potential buyers.

Discussion
The one-way ANOVA test suggests there is enough evidence that education level relates to using social media for business. SMA graduates or active university students were significantly different in their usage of social than those at other education levels were (Diploma, Sarjana and Pascasarjana).
These results indicate that young people, such as college students, will tend to use more social media for business than those users with higher levels of education who may already have permanent jobs.
Finally, multiple regression analysis resulted in a proposed model of social media usage for business.
Five major factors were determined to influence both satisfaction and performance whendoing business on social media.