This study extends the understanding of social media adoption in Small and Medium-sized Enterprises (SMEs) by integrating technological complexity, cost, and organizational capability into the Technology-Organization-Environment (TOE) framework. It investigates how these factors influence the adoption of social media marketing strategies and, in turn, improve SME performance. Data were collected from 508 Indonesian SMEs, and Structural Equation Modeling was employed to test the proposed hypotheses. Findings reveal a notable hesitancy among SMEs to adopt social media marketing due to perceived technological challenges, including complexity, cost, and relative advantage. Conversely, organizational factors, such as top management support and employee capability, together with environmental pressures from customers and vendors, significantly facilitate adoption. Importantly, the study confirms that strategic social media marketing adoption positively enhances SME performance. This research contributes to the TOE framework literature by providing practical and theoretical insights for SMEs seeking to overcome adoption barriers and optimize digital marketing investments.
