Social Media Marketing as a Strategic Driver of Competitive Advantage in Bali’s Creative Sector

Ni Putu Nita Anggraini; I Gusti Ngurah Agung Gede Eka Teja Kusuma; I Made Dauh Wijana

doi:10.32535/ijabim.v11i1.4526

Social Media Marketing as a Strategic Driver of Competitive Advantage in Bali’s Creative Sector

Ni Putu Nita Anggraini, I Gusti Ngurah Agung Gede Eka Teja Kusuma, I Made Dauh Wijana

Abstract

The rapid growth of digital technology has increased the importance of social media marketing as a strategic tool for improving business performance in the creative industry. This study aims to examine the effect of Social Media Marketing (SMM) on Business Performance (BP) and investigate the mediating roles of Customer Engagement (CE) and Value Co-Creation (VCC) among creative enterprises in Bali. A quantitative approach was employed using a cross-sectional survey of 210 owners and managers of creative businesses. Data were analyzed using PLS-SEM. The results indicate that SMM significantly influences BP (? = 0.262, p = 0.001), CE (? = 0.702, p < 0.001), and VCC (? = 0.613, p < 0.001). In addition, CE (? = 0.420, p < 0.001) and VCC (? = 0.274, p < 0.001) significantly enhance BP. Mediation analysis confirms that CE (? = 0.295, p < 0.001) and VCC (? = 0.168, p < 0.001) significantly mediate the relationship between SMM and BP. The model explains 71.2% of the variance in BP (R² = 0.712). These findings highlight the importance of social media strategies in fostering engagement and VCC to improve BP and strengthen competitiveness in Bali’s creative sector.

Keywords

Business Performance; Creative Sector; Customer Engagement; Service Dominant Logic; Social Media Marketing; Value Co-Creation

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DOI: https://doi.org/10.32535/ijabim.v11i1.4526