Abstract

Indonesian MSMEs role in job creation and economic growth is extremely significant. However, their recruitment practices are still embedded in their social capital through word of mouth (WOM) and social media. Despite the growing studies in WOM and social media recruitment, there is a lack of research that focuses on Indonesian MSMEs through the lens of Social Capital. Employing a qualitative approach, we conducted semi-structured interviews with 12 Indonesian MSMEs owners or managers to understand the dynamics of WOM and social media in MSMEs recruitment. It is revealed that referrals are still evaluated despite sourced from social ties, with cultural fit commonly preferred and professionalism outweighs pressure to hire from personal networks. Social media raises credibility and authenticity concerns despite its expansive reach, while WOM is widely used due to trust factor, credibility, and cultural alignment. The research contributes to the Indonesian MSMEs recruitment literature by integrating Social Capital with WOM and social media. © 2025 IEEE.