Social media technology as borderless media has made it easier for small and medium-sized businesses (SMEs) to interact with their customers. The application of social media has impacted the operation and information sharing of SMEs, allowing them to develop innovation opportunities, to meet customer needs, and to improve firm performance. This study examined the influence of social media use on business networking quality and product innovativeness of SMEs. The data for this cross-sectional study were gathered from jewelry crafting SMEs in Bali, Indonesia using the survey method. The data were analyzed using the covariance-based statistical analysis technique with SPSS via AMOS 23. The results indicate that, while the direct link between social media adoption and firm performance is not significant, this path is fully mediated through business networking quality and product innovativeness. Hence, these SMEs should leverage their social media adoption due to strong business networking quality and product innovativeness enabling competitive advantage that heightens firm performance. Firm-level product innovation can harness the economic performance of the SMEs. The study limitations and future research endeavors are presented at the end of this paper.

Social media empowers small and medium enterprises (SMEs) in engaging with their stakeholders economically and effectively. Social media use affects SMEs operation and knowledge sharing which creates innovation opportunities, speeds time to market, satisfies firm's customers, and improves business performance. Current research aims to explore the impact of social media use on the market entry agility, product innovativeness, reducing the market entry time for the SME and improving the firm performance. Cross-sectional survey-based data was collected from the jewelry crafting SMEs in Bali, Indonesia. The data was analyzed with the covariance-based statistical analysis technique with the SPSS based AMOS 23. The study results identify that social media use and market entry agility significantly impact firm performance. However, product innovativeness insignificantly influences firm performance. Furthermore, the market entry agility mediates for the firm performance so, SMEs need to leverage social media use, and market entry agility enables the dynamic capacity to enhance firm performance. Firms’ level innovativeness capability should be considered as a mediating role but should support another variable to leverage firm performance. The study limitation and future research options are reported at the end.