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Procedia Computer Science 197 (2022) 110–117

Sixth Information Systems International Conference (ISICO 2021)

Sixth Information Systems International Conference (ISICO 2021)
Social media-based online
Social media-based online entrepreneurship
entrepreneurship approach
approach on
on
millennials: A measurement of job pursuit intention on multi-level
millennials: A measurement of job pursuit intention on multi-level
marketing
marketing
Reny Nadlifatina,a,*, Satria Fadil Persadabb, Mutiara Clarindabb, Gogor Arif Handiwibowobb,
Reny Nadlifatin *, Satria cFadil Persada , Mutiara Clarinda , Gogor Arif Handiwibowo ,
Rr Ratih Laksitowatic, Yogi Tri Prasetyodd, Anak Agung Ngurah Perwira Rediee
Rr Ratih Laksitowati , Yogi Tri Prasetyo , Anak Agung Ngurah Perwira Redi
a
Department of Information System, Institut Teknologi Sepuluh Nopember, Campus ITS Sukolilo, Surabaya 60111, Indonesia
b
a
DepartmentofofBusiness
Department Information System, Institut
Management, InstitutTeknologi
TeknologiSepuluh
SepuluhNopember,
Nopember,Campus
CampusITS
ITSSukolilo,
Sukolilo,Surabaya
Surabaya60111,
60111,Indonesia
Indonesia
c Department of Business Management, Institut Teknologi Sepuluh Nopember, Campus ITS Sukolilo, Surabaya 60111, Indonesia
b
Department of Technology Management, Institut Teknologi Sepuluh Nopember, Campus ITS Sukolilo, Surabaya 60264, Indonesia
d
c
Department
School of Technology
of Industrial EngineeringManagement, Institut
and Engineering Teknologi Sepuluh
Management, Nopember, 658
Mapúa University, Campus ITS St.,
Muralla Sukolilo, Surabaya
Intramuros, 60264,
Manila Indonesia
1002, Philippines
d
School of IndustrialeEngineering and Engineering
Industrial Engineering Management,
Department, Mapúa University,
BINUS Graduate 658 Muralla
Program-Master St., Intramuros,
of Industrial Manila 1002, Philippines
Engineering,
e
Industrial EngineeringBina
Department,
NusantaraBINUS Graduate
University, Program-Master
Jakarta of Industrial Engineering,
11480, Indonesia
Bina Nusantara University, Jakarta 11480, Indonesia

Abstract
Abstract
The present research explores the behavioral perspective of the millennial generation on job pursuit intention on Multi-Level
The presentcompanies
Marketing research explores the behavioral
through social perspective
media. Theory of theBehavior
of Planned millennial generation
(TPB) on job pursuit
and Technology intention
Acceptance Modelon Multi-Level
(TAM) are
Marketing
used to assess the job pursuit intention. The data were analyzed by Structural Equation Model (SEM). Analysis reveals(TAM)
companies through social media. Theory of Planned Behavior (TPB) and Technology Acceptance Model are
the strong
used to assess
influence the job on
of attitude pursuit intention.
job pursuit The dataThe
intention. were analyzed
result in thisbyresearch
Structural
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companies, intention.
investors, andThe result in thisinresearch
academicians can Further
marketing. be used theoretical
as the theoretical basis that
and practical can be very
suggestions are
beneficial
discussed. for MLM companies, investors, and academicians in marketing. Further theoretical and practical suggestions are
discussed.
© 2021
© 2021 The
The Authors.
Authors. Published
Published byby Elsevier
ELSEVIER B.V.B.V.
© 2021
This is The
an Authors.
open access Published
article by ELSEVIER
under the CC B.V.
BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
(https://creativecommons.org/licenses/by-nc-nd/4.0)
This
This is an
is an open
open access
access article under
article under the
the CC
CC BY-NC-ND
BY-NC-ND license
license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review
Peer-review under
under responsibility
responsibility of
ofthe
the scientific
scientificcommittee
committee ofofthe
theSixth
SixthInformation
InformationSystems
SystemsInternational Conference.
International Conference.
Peer-review under responsibility of the scientific committee of the Sixth Information Systems International Conference.
Keywords: Millennial; MLM; social media; TPB; TAM
Keywords: Millennial; MLM; social media; TPB; TAM

* Corresponding author. Tel.: +62-31-599-9944.

* E-mail
Corresponding
address:author. Tel.: +62-31-599-9944.
reny@its.ac.id
E-mail address: reny@its.ac.id
1877-0509 © 2021 The Authors. Published by ELSEVIER B.V.
1877-0509 © 2021
This is an open Thearticle
access Authors. Published
under by ELSEVIER
the CC BY-NC-ND B.V.(https://creativecommons.org/licenses/by-nc-nd/4.0)
license
This is an open
Peer-review access
under article under
responsibility the scientific
of the CC BY-NC-ND license
committee (https://creativecommons.org/licenses/by-nc-nd/4.0)
of the Sixth Information Systems International Conference.
Peer-review under responsibility of the scientific committee of the Sixth Information Systems International Conference.

1877-0509 © 2021 The Authors. Published by Elsevier B.V.

This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0)
Peer-review under responsibility of the scientific committee of the Sixth Information Systems International Conference.
10.1016/j.procs.2021.12.124
 Reny Nadlifatin et al. / Procedia Computer Science 197 (2022) 110–117 111
2 Reny Nadlifatin et al./ Procedia Computer Science 00 (2021) 000–000

1. Introduction

National economic growth must be considered at this time as a measure in assessing the progress of a country. One
of the factors that can indicate an increase in economic growth is through the Gross Domestic Product (GDP) data,
which Governments worldwide tried to give easy access to business in improving the GDP, including Indonesia.
Business is considered by any means of people or organization in making money or conducting business. The freedom
in doing business provides an opportunity for the Indonesian people to establish various lines of business online and
offline. In the digital era 4.0, companies are increasingly developing in implementing modern trading systems, such
as Multi-Level Marketing (MLM). The MLM business is a form of new and creative innovation in marketing products
that have been widely applied by local, national, and international companies. The concept of MLM was first practiced
in the 1900s as a form of solution to involve consumers in product marketing activities [1]. The idea was developed
to aim those consumers can get financial benefits and product benefits. In MLM practice, the financial benefits that
can be felt are in the form of incentives or bonuses from the promoter and can even be shared ownership in the
company. This marketing technique is like the affiliate marketing and direct marketing models that refer to the viral
marketing approach [2], which is a digital version of word-of-mouth marketing that involves making videos,
advertisements, and other marketing content that is highly convincing so that customers will find or share it with their
surroundings [3]. This MLM practice aims to increase recognition and return on product sales through social networks
among consumers [4]. MLM is an alternative form of business that can minimize fixed costs and optimize business
opportunities. With the increasing number of companies applying MLM techniques, more distributors or trading
partners invite other individuals to become members to expand the customer network and market. This recruitment
process will generate profits for the company and trading partners in incentives or bonuses. From a job opening
perspective, MLM companies can contribute to opening wider employment opportunities for many people. MLM can
also contribute to overcoming the slow-economic growth across the generations, especially for gen Y as the current
domination generation for the productive ages. The Y generation is said to be the millennial generation because they
were raised in the digital era, where all technological advances have supported every job. This generation is implicitly
known to be more experienced in technology than the previous generation, so they often interact with social media
and many digital platforms.
The present research examines the intention of the millennial generation to join MLM companies with the famous
Theory of Planned Behavior (TPB) model [5]. The intention is assumed to be an attempt to capture the behavioral
factors that influence individual behavior, which is indicated by how hard the individual wants to try, how much effort
is planned to do, and to perform the behavior. Few studies raise the issue of the recruitment process in MLM businesses
through social media. The literature lacks an empirical examination of how the drivers of TPB can influence
millennials to enter the MLM business. It is essential to understand the recruitment process for the MLM business and
the factors driving the millennial generation's interest in a more comprehensive way for MLM companies to increase
the flexibility of members so that they can find the best way to work. The present research aims to identify factors that
can influence an individual's intention to join the MLM business through social media. The public underestimates
MLM business because of the rampant cases of fraud regarding investing in this business. Prevalent fraud is usually
in the business sector that offers services, such as insurance, investment, and online social gathering, to trigger a money
game that requires investors to find as many members as possible so that investment funds will increase. Besides that,
it also remembers the role of the millennial generation, which will be very influential in the world of work in the future.
This research is expected to contribute to theory and practice to the MLM business to expand its market network and
increase sales of its products, which will impact Indonesia's economic growth.
This study is extending a TPB model from Ajzen [5] to include the Technology Acceptance Model (TAM) [6].
Specifically, perceived usefulness and perceived ease of use were added to be examined with data processing
techniques using Structure Equation Modeling (SEM). The use of research models and data processing techniques is
what distinguishes this research from previous studies. Specifically, the research provides the usage of the models in
the case study of job pursuit intention. There has not been much literature and empirical evidence on online recruitment
for case studies of MLM companies and samples of the millennial generation.
112 Reny Nadlifatin et al. / Procedia Computer Science 197 (2022) 110–117
Reny Nadlifatin et al. / Procedia Computer Science 00 (2021) 000–000 3

2. Review of literature

2.1. Millennial generation

Generation Y, also interpreted as the millennial generation, is born in the range of 1980s [7]. According to DeVaney
[8], this generation has optimism, upholding values in work balance, independence, adaptability, idealistic,
competitive, loyal, seeking personal fulfillment, and a solid work ethic. One of the advantages of this generation is its
technological intelligence. The millennial generation has a different mindset from the previous generation. Millennials
tend to be open-minded, brave, uphold freedom, and are critical in solving problems. Their characteristic that is always
focused on organizational goals makes them have a competitive advantage in looking for new opportunities and
willing to make extra efforts to help the success of an organization. Kowske et al. [9] explained that the current
education system had instilled a sense of responsibility that causes millennials to focus on achieving their goals so
that most of this generation have a sense of responsibility for their work and actions. Job satisfaction is also one of the
productivities driving factors needed for the millennial generation in recognition, job security, career development,
and salaries and benefits. In a study conducted by Devaney [8], a recruiter revealed that the focus of the millennial
generation is whether the work they do is right for them. Because so far, the preference of most millennials is to work
for smaller companies, where they believe they can have a direct role and make a more significant impact in the
company. In addition, they tend to do what they love because their orientation is to have fun doing work, and
millennials are not afraid to leave jobs they do not like. Recruiters also observe that millennials are willing to switch
jobs to maintain their perception of a good and comfortable life. Therefore, it is undeniable that millennials are very
open in expressing their desires [10].
The main thing that distinguishes millennials from previous generations is related to using technology and
adaptation. The millennial generation is a generation that develops simultaneously with digital technology. Because
of their ability to master technology, millennials can be motivated and greatly influenced by personal relationships
and human connections as they are influenced by technology and social media skills [11]. It can also be said that they
are a generation that has engagement. They prefer to see product advertisements through video content on the internet
and other digital marketing, compared to advertisements through television and print media. Marketers take advantage
of this generation as a potential market because they see the unique characteristics of this generation, namely
purchasing power [12].

2.2. Multi-level marketing

A variety knows Multi-Level Marketing of names such as network marketing, affiliate marketing, referral
marketing, direct consumer marketing, or home-based business franchising. According to Chikohomero [13], MLM
is a multi-level sales process from independent distributors that can bring opportunities and benefits in two ways,
namely through selling products directly to consumers and discounting the purchase or use of some products by new
members for sales, also including the number of personal sales. This direct selling system provides opportunities for
business actors to find alternative income without working full time and not thinking about ethnicity, gender, age,
education, and work experience.
In the multi-level marketing practice, there is often a misunderstanding between MLM and the Pyramid Scheme
(Ponzi Scheme). Ponzi schemes are a form of fraudulent investment in which returns on previous investors' funds are
paid from subsequent investor contributions [14]. The way Ponzi schemes work focuses on recruiting or attracting
new members so that bonuses can continue to be earned. Therefore, this cash game system does not require
complicated product sales techniques, but actors can create favorable impressions or prospects. The elements of a
Ponzi scheme include investor savings, illegal or sometimes non-existent business operations, little or no business
profit or income, and sources of returns to investors that come from the cash received from new investors. Investors
not only lose the principal invested, but they may have to repay the amount received from the investment before
discovering that the investment is fraudulent. The fraud contrasts with MLM practices which emphasize bonuses on
the total results of product sales.
 Reny Nadlifatin et al. / Procedia Computer Science 197 (2022) 110–117 113
4 Reny Nadlifatin et al./ Procedia Computer Science 00 (2021) 000–000

2.3. Development model

Theory of Planned Behavior (TPB) is a development of Theory of Reasoned Action, which describes an individual's
intention to perform certain behaviors [5]. The intention is assumed to capture the motivational factors that influence
behavior, and it is indicated how hard people are willing to try and how much effort they are planning to do the
behavior. This theory postulates three independent determinants of conceptual intention. The first is the attitude
towards behavior, which refers to the extent to which the person evaluates favorable or unfavorable behavior [15].
The second predictor is a social factor called subjective norm, which refers to the social pressure felt to do or not to
do a behavior. Then the third antecedent that is new and not part of the TPB is perceived behavioral control. PBC
factor can be seen as the perceived ease or difficulty in carrying out behavior and reflects past experiences and
obstacles that the individual anticipates.
TAM is a behavioral model that measures the acceptance model perceived by the user. Davis firstly discussed TAM
in exploring the fundamental factors affecting the acceptance of Information Technology [6]. TAM comprises three
fundamental factors: perceived ease of use (PEU), perceived usefulness (PU), and attitude (AT). PEU is a predictor
that explains the degree of utilizing a particular system without any difficulty. PU can be seen as a latent factor that
expresses that the usage in a particular system can enhance performance. Attitude is a dependent factor that depicts a
person's favorable feeling in conducting a particular behavior.
There are various components such as attitude, subjective norm, perceived behavioral attitude, and behavior
intention in the TPB model that can be hypothesized (See Fig. 1). Theory of Planned Behavior describes how attitudes
and perceptions shape a person's behavior. In the context of this study, Jaidi et al. [16] stated that the primary
antecedent of job-seeking behavior is the intention factor to pursue the intended job. The dimension includes activities
such as the extent to which individuals have positive or negative evaluations to pursue the desired job (JPA),
perceptions of social pressure to apply for jobs in desired organizations (SN), and perceived or perceived difficulties
(PBC). Thus, in controlling one's intention, a behavior's performance occurs when people have high control over the
required resources. Several studies have found support for planned TPB elements in predicting job search intentions
such as TPB such as online job search [17][18], recruitment process [16], job placement, and job-related intention.
The results were able to reveal the influence of factors from the behavioral perspectives. Thus, the following
hypothesis is formed in this research.
H1: Job Pursuit Attitude (JPA) positively affects Job Pursuit Intention (JPI) to join MLM companies through social
media.
H2: Subjective Norm (SN) positively affects Job Pursuit Intention (JPI) to join MLM companies through social
media.
H3: Perceived Behavioral Control (PBC) positively affects Job Pursuit Intention (JPI) to join MLM companies
through social media.

Fig. 1. Development model.

The complexity of technology is one of the main obstacles that cause the system not to be used, and usually, users
prefer technology that is easy to use [17]. Over the decades, behavioral studies of social media users have highlighted
the importance of performance and system usage expectations as determinants of user acceptance in adopting Internet-
based services, such as virtual communities. In the context of recruitment services, perceived benefits could be in the
114 Reny Nadlifatin et al. / Procedia Computer Science 197 (2022) 110–117
Reny Nadlifatin et al. / Procedia Computer Science 00 (2021) 000–000 5

form of increasing job seekers' confidence in their ability to obtain job information, increasing their job search
effectiveness, and increasing their chances of finding suitable jobs when using job search sites. In addition, perceived
ease of use indicates whether job seekers find the job search website easy to operate. TAM was discussed by many
research studies, especially on the usage of technologies such as social media [19], electronic recruitment [20], and
jobs with technology processes [21][ 22]. Therefore, this study applies TAM to the context of recruitment services
and proposes the following hypothesis.
H4: Perceived Ease of Use (PE) positively affects Job Pursuit Attitude (JPA) to join MLM companies through
social media.
H5: Perceived Ease of Use (PE) positively affects Perceived Usefulness (PU) to join MLM companies through
social media.
H6: Perceived Usefulness (PU) positively affects Job Pursuit Attitude (JPA) to join MLM companies through social
media.

3. Research methodology

The present research uses conclusive research because it has the aim to test the development hypotheses. The
sampling method in this research is convenience sampling with an online form instrument questionnaire. The eligible
respondents are millennials and the respondent who have experience joining MLM by social media and can be
contacted through social media. With a 10 percent error from the roughly six million population of the millennial
generation and Yamane Taro's formula [23][24], the research comes up with a minimum sampling of 97 respondents.
The questionnaire was distributed with multiple cross-sectional approaches between May to June 2019. The type of
data needed in this study is primary data with the questionnaire. There are two sections in the questionnaire. The first
section asks about the demography of gender, age, occupation, and education level. The second section is asking about
the latent variables. The questions in the second section are scaled-response questions, which are answered using a 5-
point Likert Scale. The Likert scale in this research is measured with five categories of responses from "strongly
disagree" to "strongly agree." The questionnaire answers are analyzed by using the structural equation model (SEM).
SEM will determine the proportion of the accepted and rejected hypotheses based on the analysis. The detail of
questions in the questionnaire after the re-specification model can be seen in Table 1 below.

Table 1. The latent variable questions.

Latent Variable Definition of Variable Operational Indicator

Job Pursuit Attitude
(JPA)
Perceived Usefulness
(PU)
Perceived Ease of Use
(PEU)
Subjective Norm (SN)
Perceived Behavioural
Control (PBC)
Job Pursuit Intention
(JPI)
The positive or negative views of a person to
an object, or event [25].
The level to which a person believes that using
a particular technology will improve his job
performance [26].
The level when someone finds it easy to
operate a particular system [6]
A form of behaviour that is influenced by
social pressure in the surrounding environment
[27]
Perception of ease or difficulty from control
belief in shaping certain behaviours [27].
The desire of someone to apply or show a
desire to enter or join as an applicant [28]
JPA1.Pursuing an MLM job is interesting
JPA2.Pursuing an MLM job is good
JPA3.Pursuing an MLM job is favourable
PU1.Joining MLM through social media helps me in
gathering information
PU2.Joining MLM with social media helps me in processing
the right distributor
PU3.Joining MLM with social media helps me in improving
effectiveness in processing information
PU4.Joining MLM with social media brings benefits
PEU1.I feel it easy to interact on social media
PEU2.Using the media social for MLM is easy to learn
SN1.The role of social media in encouraging me to join
MLM
SN2.I get advice given by my surrounding to join MLM
PBC1.I take full control in joining MLM with social media
PBC2.I have knowledge to join MLM with social media
PB3.I have enough time to join MLM with social media
JPI1.I have a desire to join MLM with social media
JPI2.I tried to join MLM with social media
JPI3.I plan to join MLM with social media
 Reny Nadlifatin et al. / Procedia Computer Science 197 (2022) 110–117 115
6 Reny Nadlifatin et al./ Procedia Computer Science 00 (2021) 000–000

4. Result and Discussion

Data collection was carried out from May to June 2019. From the results of dis-tributing questionnaires, 206
respondents were obtained who were willing to fill out the questionnaire within the specified time limit. The number
of sampling has met the predetermined target of respondents, a minimum of 100 respondents. However, from the total
number of respondents, only 186 respondents met the criteria for filling out the questionnaire until the final stage, so
20 respondents did not meet the characteristics of the sample in this study. The error was primarily identified as
repeatable answers. The second error is that those who are not the millennial generation also filled the questionnaire
caused by open question types. Demographic analysis is used to determine the profile of respondents who participated
in filling out the research questionnaire. The respondents consist of 65 males and 121 females. Most of the age comes
from 26-31 years old with 90 people, followed by 19-25 with 63 people, and above 32 with 33 people. The respondents
commonly work with 114 respondents, followed by 63 respondents with no job, and nine are unidentified. The
respondents have a diploma degree with 114 numbers, 64 with a high school degree, and 8 with a graduate degree.
The further analysis determines the reliability and convergent validity values presented by factor loading, construct
reliability, and average variance extracted (AVE). Several prior research studies mention the rule of thumbs on these
values with the minimum values of 0.7, 0.7, and 0.5, respectively [29]-[32]. The present research produces the overall
satisfied values, as can be seen in Table 2. SN2 was identified to be in the threshold of 0.7. Therefore, the data in this
research appear to be robust and reliable. The present research also produces the Goodness Fit Index (GFI) value of
0.802 and the Comparative Fit Index (CFI) value of 0.837. The GFI and CFI values are mentioned in several prior
research studies to be good above 0.8 value [33]-[35].

Table 2. Reliability and convergent validity tests.

Indicators Factor Loading Construct Reliability AVE

Job Pursuit Attitude (JPA)
JPA1 0,852 0,857 0,667
JPA2 0,787
JPA3 0,809
Subjective Norm (SN)
SN1 0,747 0,675 0,510
SN2 0,680
Perceived Behavioural Control (PBC)
PBC1 0,809 0,844 0,644
PBC2 0,814
PBC3 0,784
Perceived Usefulness (PU)
PU1 0,712 0,850 0,588
PU2 0,798
PU3 0,793
PU4 0,760
Perceived Ease of Use (PEU)
PEU1 0.804 0.769 0.624
PEU2 0.776
Job Pursuit Intention (JPI)
JPI1 0.811 0.887 0.724
JPI2 0.892
JPI3 0.848

The following analysis is to test the path analysis to be positive significant or not. The detail of the validation is
shown at Table 3. From the SEM analysis, the result shows that four hypotheses are accepted. Two rejected hypotheses
are concluded due to an insignificant p-value. Millennial's ability to access internet networks anytime and anywhere
encourages them to find information about MLM easily through social media (H3). The benefits of online media users
refer to consumers' perceptions of the results of the surfing experience. Perceived ease of use refers to their perceptions
of the processes that lead to the results. Each search can lead to behavior that leads to desires, plans and joins to
become an MLM member (H5). It can be concluded that if consumers think social media is easy to operate and easy
to navigate, it will lead to a positive attitude towards the millennial generation's interest to join (H4&H1). Hypothesis
116 Reny Nadlifatin et al. / Procedia Computer Science 197 (2022) 110–117
Reny Nadlifatin et al. / Procedia Computer Science 00 (2021) 000–000 7

6 states that Perceived Usefulness has a positive effect on Job Pursuit Attitude. This value has not met the requirements
for a significant value. It can be concluded that hypothesis 6 is rejected. A similar situation appears to hypothesis 2,
where the hypothesis is rejected due to an insignificant value. The overall model represents the R2 JPI of 38 percent,
which explained that the present model depicts the potential of 38 percent job pursuit intention to MLM in social
media. The possibility of 62 percent others might be influenced by other factors.

Table 3. Hypothesis validation.

Hypothesis Influence Path Coefficient P-Value Note Result

H1 (JPA) → (JPI) 0,589 0,0*** Significant Accepted
H2 (SN) → (JPI) 0,119 0,4 Insignificant Rejected
H3 (PBC) → (JPI) 0,132 0,1* Significant Accepted
H4 (PEU) → (JPA) 0,336 0,1* Significant Accepted
H5 (PEU) → (PU) 0,828 0,0*** Significant Accepted
H6 (PU) → (JPA) 0,143 0,6 Insignificant Rejected

*** < 1%; ** < 5%; * <10%

5. Conclusion

Based on the result and discussion, it can be concluded that attitude is revealed to be the most substantial direct
influence factor to job pursuit intention (β = 0.589). PEU factor is also described as the valuable significant antecedent
factor (β = 0.828). Both relations have the most considerable value to affect the predictors, which are PEU and JPI,
respectively. Four out of six hypotheses are accepted. The research contributes 38 percent of the representation model
in depicting the millennials' job pursuit intention to MLM through social media. This research has several limitations.
The first limitation is related to the composition of the number of respondents. This study was dominated by women,
thus affecting the characteristics of the respondent's behavior in responding. Most of the respondents who filled out
the questionnaire were domiciled in Surabaya, so the data on millennial characteristics was not varied to represent the
characteristics of the millennial generation throughout Indonesia. Suggestions are given that can be used for further
research, such as the potential factors outside this research can be further explored and the possibility to analyze with
a deep qualitative approach to better understand the millennial characteristics.

Acknowledgments

The present research is funded by "Penelitian Dana Departemen ITS 2021" with contract code 1552/PKS/ITS/2021

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