The Role of Social Media Usage in Linking Technology Adoption Costs and Competitive Pressure to Hotel Business Performance

The decline in government-funded MICE activities in Indonesia has encouraged hotels to strengthen their business-to-consumer (B2C) market through digital marketing, particularly social media. This study examines the effects of Technology Adoption Costs and Competitive Pressure on Social Media Usage and their implications for Business Performance in the hotel industry. A quantitative survey was conducted among 73 three- to five-star hotels in Batam and Bintan, Indonesia. Data were collected from General Managers and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results indicate that both Technology Adoption Costs and Competitive Pressure positively and significantly influence Social Media Usage. Furthermore, Social Media Usage has a positive effect on Business Performance and significantly mediates the relationships between Technology Adoption Costs, Competitive Pressure, and Business Performance. These findings suggest that the benefits of technology cost efficiency and competitive pressure are realized through the effective use of social media rather than through direct effects on business performance. This study contributes to the hospitality literature by providing empirical evidence of the strategic role of social media in improving hotel performance and offers practical insights for hotel managers in developing effective digital marketing strategies to sustain competitiveness in a rapidly changing business environment.