Social Media Engagement as an Intervening Variable between Digital Literacy, Entrepreneurial Skills and SME Performance in Tangkahan Ecotourism

Abstract

The Langkat Regency Government is developing village tourism to support the Tangkahan tourism area. However, limited exposure to the village’s tourism potential is due to the underuse of information technology, such as social media, to showcase its natural beauty. As a result, Tangkahan village tourism has been underdeveloped, and the welfare of the local community, primarily small and medium-sized enterprises (SMEs) in the tourism sector, remains limited. This study aims to examine the effects of digital literacy, entrepreneurial skills, and social media engagement on SME performance in the tourism village. The study involved 150 SME operators in Tangkahan Ecotourism Village, using multistage area sampling and path analysis. The results show that digital literacy negatively impacts SME performance, while entrepreneurial skills and social media engagement positively influence it. Social media engagement does not mediate the relationship between digital literacy and SME performance, but it significantly mediates the effect of entrepreneurial skills on SME performance in Tangkahan Ecotourism