Effect of Information Communication and Technology Use and Its Implications To Firm Performance In SME

Masyhuri Masyhuri, Elivia Niadianti, Syahrul Nur Rizky, Nurhajati Nurhajati

Abstract


Research on firm performance during the Covid-19 pandemic, especially in SMEs, is important because it is related to efforts to survive in uncertain conditions due to the pandemic and the government's policy of restrictions that affect all businesses, both small and large. Therefore, this study aims to investigate the factors that can improve film performance, namely ICT use and as an update from previous research we add the innovation variable as a mediation. This research was conducted on SMEs in Malang City by involving as many as 179 samples after validating the answers to the questionnaire. Questionnaires were distributed through google forms which were distributed directly to respondents. The data is collected and then tested for validity and reliability so that the data used is of high quality. After testing the quality of the data, it is continued with hypothesis testing which is carried out using the boothstrapping method using the Smartpls 3.0 application. The results showed that ICT use had a significant effect on firm performance. Furthermore, innovation did not succeed in mediating the effect of ICT use on firm performance.

Keywords


ICT Use, Innovation, Firm Perormance, Small Medium Enterprise, Covid-19

Full Text:

PDF

References


Aesaert, K., & Van Braak, J. (2015). Gender and socioeconomic related differences in performance based ICT competences. Computers & Education, 84, 8–25.

Alam, S. S., & Noor, M. K. M. (2009). ICT adoption in small and medium enterprises: An empirical evidence of service sectors in Malaysia. International Journal of Business and Management, 4(2), 112–125.

Amabile, T. M., Conti, R., Coon, H., Lazenby, J., & Herron, M. (1996). Assessing the work environment for creativity. Academy of Management Journal, 39(5), 1154–1184.

Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002). Learning orientation, firm innovation capability, and firm performance. Industrial Marketing Management, 31(6), 515–524.

Chege, S. M., Wang, D., & Suntu, S. L. (2020). Impact of information technology innovation on firm performance in Kenya. Information Technology for Development, 26(2), 316–345.

Chin, W. W., & Newsted, P. R. (1999). Structural equation modeling analysis with small samples using partial least squares. Statistical Strategies for Small Sample Research, 1(1), 307–341.

Darroch, J. (2005). Knowledge management, innovation and firm performance. Journal of Knowledge Management.

Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 319–340.

De Jong, J. P., & Den Hartog, D. N. (2007). How leaders influence employees’ innovative behaviour. European Journal of Innovation Management.

Del Gaudio, B. L., Porzio, C., Sampagnaro, G., & Verdoliva, V. (2020). How do mobile, internet and ICT diffusion affect the banking industry? An empirical analysis. European Management Journal.

DeStefano, T., Kneller, R., & Timmis, J. (2018). Broadband infrastructure, ICT use and firm performance: Evidence for UK firms. Journal of Economic Behavior & Organization, 155, 110–139.

Feng, C., Ma, R., & Jiang, L. (2020). The impact of service innovation on firm performance: A meta-analysis. Journal of Service Management.

Gatignon, H., Tushman, M. L., Smith, W., & Anderson, P. (2002). A structural approach to assessing innovation: Construct development of innovation locus, type, and characteristics. Management Science, 48(9), 1103–1122.

Gërguri-Rashiti, S., Ramadani, V., Abazi-Alili, H., Dana, L.-P., & Ratten, V. (2017). ICT, innovation and firm performance: The transition economies context. Thunderbird International Business Review, 59(1), 93–102.

Grant, D., & Yeo, B. (2018). A global perspective on tech investment, financing, and ICT on manufacturing and service industry performance. International Journal of Information Management, 43, 130–145.

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152.

Hanelt, A., Firk, S., Hildebrandt, B., & Kolbe, L. M. (2020). Digital M&A, digital innovation, and firm performance: An empirical investigation. European Journal of Information Systems, 1–24.

Irani, Z., Arvanitis, S., Loukis, E., & Diamantopoulou, V. (2013). The effect of soft ICT capital on innovation performance of Greek firms. Journal of Enterprise Information Management.

Jankingthong, K., & Rurkkhum, S. (2012). Factors affecting job performance: A review of literature. Humanities, Arts and Social Sciences Studies (FORMER NAME SILPAKORN UNIVERSITY JOURNAL OF SOCIAL SCIENCES, HUMANITIES, AND ARTS), 115–128.

Kijkasiwat, P., & Phuensane, P. (2020). Innovation and firm performance: The moderating and mediating roles of firm size and small and medium enterprise finance. Journal of Risk and Financial Management, 13(5), 97.

Kindström, D., Kowalkowski, C., & Sandberg, E. (2013). Enabling service innovation: A dynamic capabilities approach. Journal of Business Research, 66(8), 1063–1073.

Kumar, A., Singh, R. K., & Modgil, S. (2020). Exploring the relationship between ICT, SCM practices and organizational performance in agri-food supply chain. Benchmarking: An International Journal.

Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135–172.

Nasution, I., & Rosanti, R. (2020). Pengaruh Bekerja Dari Rrumah (Work From Home) Terhadap Kinerja Karyawan BPKP. Jurnal Ilmiah Akuntansi Budgeting, 1(1), 9–14.

O’Cass, A., & Weerawardena, J. (2010). The effects of perceived industry competitive intensity and marketing-related capabilities: Drivers of superior brand performance. Industrial Marketing Management, 39(4),

–581.

Odell, B., Cutumisu, M., & Gierl, M. (2020). A scoping review of the relationship between students’ ICT and performance in mathematics and science in the PISA data. Social Psychology of Education, 1–33. Pawirosumarto, S., Sarjana, P. K., & Muchtar, M. (2017). Factors affecting employee performance of PT. Kiyokuni Indonesia. International Journal of Law and Management.

Roberts, P. W., & Amit, R. (2003). The dynamics of innovative activity and competitive advantage: The case of Australian retail banking, 1981 to 1995. Organization Science, 14(2), 107–122.

Shah, S. Z. A., & Hussain, Z. (2012). Impact of ownership structure on firm performance evidence from non-financial listed companies at Karachi Stock Exchange. International Research Journal of Finance and Economics, 84, 6–13.

Siswanto, S., Supriyanto, A., Ni’mah, U. Asnawi, N., & Wekke, I. (2019). Does a workload influence the performance of bank employees? Management Science Letters, 9(5), 639–650.

Supriyanto, A. S., Ekowati, V. M., Idris, I., Susminingsih, S., & Iswanto, B. (2020). Leadership styles as a predictor of the voluntary work behaviors of bank employees. IJEM International Journal of Economics and Management, 14(1), 1–11.

Supriyanto, A. S., & Maharani, V. (2013). Metodologi Penelitian Manajemen Sumber Daya Manusia Teori, Kuesioner, dan Analisis Data. Cetakan II.

Tarutė, A., & Gatautis, R. (2014). ICT impact on SMEs performance. ProcediaSocial and Behavioral Sciences, 110, 1218–1225.

Teece, D., & Pisano, G. (2003). The dynamic capabilities of firms. In Handbook on knowledge management (pp. 195–213). Springer.

Wade, M., & Hulland, J. (2004). The resource-based view and information systems research: Review, extension, and suggestions for future research. MIS Quarterly, 107–142.

Wang, Z., & Wang, N. (2012). Knowledge sharing, innovation and firm performance. Expert Systems with Applications, 39(10), 8899–8908.

Yunis, M., Tarhini, A., & Kassar, A. (2018). The role of ICT and innovation in enhancing organizational performance: The catalysing effect of corporate entrepreneurship. Journal of Business Research, 88, 344–356.

Zhang, Y., Hult, G. T. M., Ketchen, D. J., & Calantone, R. J. (2020). Effects of firm-, industry-, and country-level innovation on firm performance. Marketing Letters, 31(2), 231–245




DOI: https://doi.org/10.18860/iq.v17i2.13472



Editorial Office:
Management Department,
Faculty of Economics,
State Islamic University of Maulana Malik Ibrahim
Gajayana Str. No. 50 Phone. 082334248882
E-mail: iqtishoduna@uin-malang.ac.id

E-ISSN 2614-3437
P-ISSN 1829-524X

Lisensi Creative Commons
IQTISHODUNA under CC BY SA 4.0 Internasional.

Indexed by: 

  Hasil gambar untuk gambar onesearchResearchBib  

Member of:


View My Stats