TikTok Influencer Marketing for Competitive Advantage: Social Commerce Strategies among Indonesian MSMEs

Abstract

The rapid integration of social commerce platforms like TikTok has reshaped competitive dynamics for micro, small, and medium enterprises (MSMEs) in Indonesia, particularly through influencer marketing targeting Generation Z consumers. This conceptual literature review synthesizes recent empirical evidence to examine how TikTok's ecosystem, encompassing TikTok Shop and TikTok Live, enables MSMEs to build differentiation and cost-based competitive advantages. Despite regulatory challenges such as Minister of Trade Regulation No. 31 of 2023, influencer strategies foster brand trust, community engagement, and purchase intention among Gen Z buyers, offering MSMEs scalable alternatives to traditional advertising. The study develops a framework linking influencer marketing mechanisms to sustained competitive positioning and proposes strategic recommendations alongside future research directions. Findings underscore TikTok influencer marketing's strategic value for MSMEs navigating digital and regulatory landscapes in Indonesia, particularly within social commerce strategies among Indonesian MSMEs.