THE EFFECT OF SOCIAL CAPITAL ON MARKETING INNOVATION: MEDIATED BY VIRTUAL COMMUNITY ROLE

Abstract

Indonesia is a country in Asia that has the potential to develop women entrepreneurs. Bank Indonesia data states that the total Micro, Small and Medium Enterprises (SMEs) in 2018 reached 57.83 million with more than 60% managed by women where female MSME actors reached 37 million. Social capital is one of the supporting factors for the sustainability of an SME. Social capital is a relational resource that is inherent in cross-sectoral personal relationships. Social capital theory defines social networks, norms, and trust that facilitate coordination and cooperation for mutual benefit. The development of Virtual Communities in Indonesia provides opportunities for women entrepreneurs to innovate in marketing. The purpose of this study is expected to provide input for women entrepreneurs in increasing marketing innovation by using social capital theory through the role of virtual communities. This research was conducted in one of the virtual entrepreneurial communities in Indonesia involving 42 female respondents with a quantitative research method using Path Analysis. The results of the study explain that social capital which consists of Networking, Norms and Trust simultaneously has a significant direct influence on virtual communities and marketing innovations. This research can show that women entrepreneurs in increasing marketing innovation through the role of social capital directly have a greater impact than through virtual communities.

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