ICT and Entrepreneurial Orientation as Drivers of SME Performance: Insights from Padang Pariaman Regency, Indonesia
DOI:
https://doi.org/10.24191//jibe.v9i2.2417Keywords:
Entrepreneurship Orientation, ICT, SMEs PerformanceAbstract
This study aims to empirically examine the impact of the implementation of information communication and technology (ICT) and entrepreneurship orientation on the performance of SMEs in Padang Pariaman Regency, West Sumatra province of Indonesia. This research uses purposive sampling with a sample of 100 SMEs registered at the Department of Cooperatives and SMEs, Padang Pariaman Regency. The data collection method used in this study was a survey. Questionnaires were distributed by visiting SMEs to their place of business directly. The results empirically prove that ICT and entrepreneurship orientation have a significant effect on the performance of SMEs. This research only uses two independent variables, so it needs additional mediating or moderating variables, such as innovation and learning orientation. Likewise, the respondents of this study were only SMEs in Padang Pariaman Regency with various types of businesses. It is suggested that further research expands research objects such as the provincial level with one SME business. The implementation of ICT can provide benefits for the performance of SMEs in developing businesses and also to be globally competitive. Likewise, entrepreneurship orientation has a significant relationship with improving the performance and level of competitiveness of SMEs.
References
Agarwal, R., & Prasad, J. (1998). The antecedents and consequents of user perceptions in information technology adoption. Decision Support Systems, 22(1), 5–29.
Al-Jinini, & Khalid, D. (2018). ). Intellectual capital, entrepreneurial orientation, and technical innovation in small and medium-sized enterprises. Know Process Manage, 1–17.
Al Mamun, A., Kumar, N., Ibrahim, M., & Hakimin, M. (2017). Validating the measurement of entrepreneurial orientation. Economic & Sociology, 10(4), 44–53.
Alam, S. S., & Mohammad Noor, M. K. (2009). ICT adoption in small and medium enterprises: empirical evidence of service sectors in Malaysia. International Journal of Business and Management, 4(2), 112–125. doi: 10.553 9/ijbm.v4n2p112.
Anggraini, F., Ilhamda, T., & N, N. (2020). Peranan intellectual capital dan orientasi kewirausahaan pada usaha kecil dan menengah. Jurnal Benefita, 5(2), 238. https://doi.org/10.22216/jbe.v5i2.5233
Anggraini, F.,Yunilma, Desriyanti R., Hakim L., (2023), The impacts of intellectual capital and entrepreneurship orientation on business performance. Jurnal Ekonomi dan Bisnis. 26(2) 313-330.
Anggraini, F.; Puttri, D. & El Pebrian, D. (2024). The mediating role of financial innovation and women's entrepreneurial practices: Bridging the adoption of ICT with SMEs business performance. Interdisciplinary Journal of Management Studies (IJMS), 17 (4), 1141-1153.
Azmi, N., Mohammad, B., Ansari, M., Ologbo, A. C., & Rezaei, G. (2013). Investigating the effect of intellectual capital on organizational performance and mediating role of entrepreneurial orientation. International Review of Business Research Papers, 9(3), 99–113.
Buli, B. M. (2017). Entrepreneurial orientation, market orientation, and performance of SMEs in the manufacturing industry: evidence from Ethiopian enterprises Bereket. Management Research Review, 40(3).
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. https://doi.org/doi: 10.1080/02681102.2019.1573717
Dankiewicz, R., Ostrowska-Dankiewicz, A., & Bulut, C. (2020). The attitudes of entrepreneurs of the small and medium-sized enterprises sector in Poland to key business risks. Equilibrium Quarterly. Journal of Economics and Economic Policy, 15(3), 511– 536. https://doi.org/10.24136/eq.2020.023.
Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User acceptance of computer technology: a comparison of two theoretical models. Management Science, 35(8), 982–1003.
Demartini, M. C., & Beretta, V. (2020). Intellectual capital and SMEs’ performance: A structured literature review. Journal of Small Business Management, 58(2), 288–332. https://doi.org/10.1080/00472778.2019.1659680
Etemad, H., Wilkinson, I., & Dana, L. P. (2010). Internalization is the necessary condition for internationalization in the newly emerging economy. Journal of International Entrepreneurship, 8(4), 319–342. https://doi.org/10.1007/s10843-010-0062-x
Fatimah, S., & Azlina, N. (2021). Pengaruh teknologi informasi dan inovasi terhadap kinerja usaha kecil dan menengah (UKM) (studi pada UKM berbasis online di kota Dumai. Jurnal Riset Akuntansi Dan Perbankan, 15(1), 444–459.
Głodowska, A., Maciejewski, M., & Wach, K. (2019). How does entrepreneurial orientation stimulate different types of knowledge in the internationalization process of firms from Poland? Entrepreneurial Business and Economics Review, 7(1), 61–73. https://doi.org/10.15678/EBER.2019.070104
Hussain Haider, S. (2017). Entrepreneurial orientation and business performance of manufacturing sector small and medium scale enterprises of Punjab Pakistan. European Business & Management, 3(2), 21. https://doi.org/10.11648/j.ebm.20170302.12
Ilham, J. D. (2018). Pengaruh orientasi kewirausahaan, inovasi dan karakteristik wirausahawan terhadap kinerja usaha. Journal of Chemical Information and Modeling, 53(9), 108.
INDEF. (2024). Transformasi digital dan pengaruhnya terhadap UMKM di Indonesia: Laporan hasil survei. Jakarta: Institute for Development of Economics and Finance (INDEF).
Isa, F. M., Muhammad, N. M. N., Ahmad, A., & Noor, S. (2021). Effect of ICT on women entrepreneur business performance: Case of Malaysia. Journal of Economics and Business, 4(1), 137–146. https://doi.org/10.31014/aior.1992.04.01.326
Isichei, E. E., Agbaeze, K. E., & Odiba, M. O. (2020). Entrepreneurial orientation and performance in SMEs. International Journal of Emerging Markets, 15(6), 1219–1241. https://doi.org/10.1108/IJOEM-08-2019-0671.
Kiyabo, K., & Isaga, N. (2020). Entrepreneurial orientation, competitive advantage, and SMEs’ performance: application of firm growth and personal wealth measures. Journal of Innovation and Entrepreneurship, 9(1). https://doi.org/10.1186/s13731-020-00123-7
Ključnikov, A., Civelek, M., Čech, P., & Kloudová, J. (2019). Entrepreneurial orientation of SMEs? executives in the comparative perspective of Czechia and Turkey. Oeconomia Copernicana, 10(4), 773–795. https://doi.org/10.24136/oc.2019.035.
Kramoliš, J., & Dobeš, K. (2020). Debt as a financial risk factor in SMEs in the Czech Republic. Equilibrium. Quarterly Journal of Economics and Economic Policy, 15(1), 87– 105. https://doi.org/10.24136/eq.2020.005.
Kurnia, S., Choudrie, J., Mahbubur, R. M., & Alzougool, B. (2015). E-commerce technology adoption: a Malaysian grocery SME retail sector study. Journal of Business Research, 68(9), 1906–1918.
Lailah, F. A., & Soehari, T. D. (2020). The effect of innovation, information technology, and entrepreneurial orientation on business performance. Akademika, 9(02), 161–176. https://doi.org/10.34005/akademika.v9i02.914
Li, K., Wang, X., & Du, T. C. (2022). Entrepreneurial orientation, online credibility, and online performance: Evidence from SMEs in a B2B electronic market in China. Journal of Small Business Management, 60(1), 93–118. https://doi.org/10.1080/00472778.2019.1695495
Liliany, B. E., & Yuliana, E. (2014). Analisis penerapan teknologi informasi dan komunikasi untuk pengembangan kewirausahaan sosial.
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. https://doi.org/10.5465/amr.1996.9602161568.
Mahdzar, M., Saiful Raznan, A. M., Ahmad Jasmin, N., & Abdul Aziz , N. A. (2020). Exploring Relationships between Experience Economy and Satisfaction of Visitors in Rural Tourism Destination. Journal of International Business, Economics and Entrepreneurship, 5(1), 69. https://doi.org/10.24191/jibe.v5i1.14294
Małkowska, A., & Uhruska, M. (2022). Factors affecting SMEs growth: the case of the real estate valuation service industry. Oeconomia Copernicana, 13(1), 79– 108. https://doi.org/doi: 10.24136/oc.2022.003.
Meekaewkunchorn, N., Szczepańska-Woszczyna K., Muangmee, C., Kassakorn, N., & Khalid, B. (2021). Entrepreneurial orientation and SME performance: The mediating role of learning orientation. Economics and Sociology, 14(2), 294–312. https://doi.org/doi:10.14254/2071-789X.2021/14-2/16
Monteiro, A. P., Soares, A. M., & Rua, O. L. (2017). Linking intangible resources and export performance: The role of entrepreneurial orientation and dynamic capabilities. Baltic Journal of Management, 12(3), 329–347. https://doi.org/10.1108/BJM-05-2016-0097
Mukoffi, A., & As’adi, A. (2021). Karakteristik wirausaha, modal usaha dan kecanggihan teknologi terhadap kinerja UMKM di masa pandemi Covid-19. Jurnal Paradigma Ekonomika, 16(2), 235–246. https://doi.org/10.22437/jpe.v16i2.12552
Mustafa, H. (2015). The role of ICT management to achieve organizational innovation. International Journal of Organizational Innovation, 7(4), 48–56.
Mustari, Arisah, N., Thaief, I., Fatmawati, & Hasan, M. (2021). pengaruh orientasi kewirausahaan dan orientasi pasar terhadap kinerja UMKM di Kota Makassar. Teknologi Pendidikan Seminar Daring Nasional 2021: Digital Generation for Digital Nation, 165–177.
Mustikowati, R. I., & Tysari, I. (2015). orientasi kewirausahaan, inovasi, dan strategi bisnis untuk meningkatkan kinerja perusahaan (Studi Pada UKM Sentra Kabupaten Malang). Jurnal Ekonomi Modernisasi, 10(1), 23. https://doi.org/10.21067/jem.v10i1.771
Napitupulu, D., Syafrullah, M., Rahim, R., Abdullah, D., & Setiawan, M. I. (2018). Analysis of user readiness toward ICT usage at small medium enterprise in South tangerang. Journal of Physics: Conference Series, 1007(1). https://doi.org/doi: 10.1088/1742-6596/1007/1/012042
Ngoasong, & Michael, Z. (2015). Digital entrepreneurship in emerging economies: The role of ICTs and local context. 42nd AIB-UKI Conference, 16–18.
Okundaye, K., Fan, S. K., & Dwyer, R. J. (2019). Impact of information and communication technology in Nigerian small-to-medium-sized enterprises. Journal of Economics, Finance and Administrative Science, 24(47), 29–46. https://doi.org/10.1108/JEFAS-08-2018-0086
Ong, S., On Yong, Y. O., Habidin, Nurul, F. H., & Salleh, M. I. S. (2020). The relationship between women’s entrepreneurship practice ICT adoption, and business performance in Malaysia and Indonesia. 39(4), 530–547.
Oni, O., Agbobli, E. K., & Iwu, C. G. (2019). Entrepreneurial orientation and performance of small business in Vryburg region north west Province South Africa. Journal of Reviews on Global Economics, 8(February, 63–71. https://doi.org/10.6000/1929-7092.2019.08.07
Onileowo. T., T & Fasiku, A. I. (2021). The Concept and Application of ICT on SMEs performance in Nigeria: Limitation and Challenges. E-Academia Journal of UiTM Cawangan Terengganu, 10(1), 1–8. https://e-ajuitmct.uitm.edu.my/v3/
Pamungkas, R., Mochammad, Rizal, M., Arifianti, R., & Husna, A. (2021). Pengaruh orientasi kewirausahaan, kinerja pemasaran, dan kapabilitas TIK terhadap keunggulan bersaing pada pelaku UMKM di Sentra Industri Sepatu Cibaduyut Kota Bandung. Bahtera Inovasi, 4(2), 120–127.
Pramesti, N. M. V., & Giantari, I. G. A. K. (2016). Peran orientasi pasar memediasi pengaruh orientasi kewirausahaan terhadap kinerja UKM Industri Kerajinan Endek. Journal of Marketing, 54(4), 20–35.
Prieto, L. C. (2010). Proactive personality and entrepreneurial leadership: Exploring the moderating role of organizational identification and political skill. Academy of Entrepreneurship Journal, 16(2), 107–121.
Rahayu, R., & Day, J. (2017). E-commerce adoption by SMEs in developing countries: evidence from Indonesia. Eurasian Business Review, 7(1), 25–41. http://dx.doi.org/10.1007/s40821-016-0044-6
Rogers, C. (1995). A way of being. Harcourt: Houghton Mifflin.
Runyan, R. C., Huddleston, P., & Swinney, J. (2006). Entrepreneurial orientation and social capital as small firm strategies: A study of gender differences from a resource-based view. International Entrepreneurship and Management Journal, 2(4), 455–477. https://doi.org/10.1007/s11365-006-0010-3
Simsek, Z., & Heavey, C. (2011). The Mediating Role of Knowledge‐Based Capital for Corporate Entrepreneurship Effects on Performance: A Study of Small‐to Medium‐Sized Firms. Strategic Entrepreneurship Journal, 5(1), 81–100.
Sok, P., Snell, L., Lee, W. J. (Thomas), & Sok, K. M. (2017). Linking entrepreneurial orientation and small service firm performance through marketing resources and marketing capability: A moderated mediation model. Journal of Service Theory and Practice, 27(1), 231–249. https://doi.org/10.1108/JSTP-01-2016-0001
Tob-Ogu, A., Kumar, N., & Cullen, J. (2018). ICT adoption in road freight transport in Nigeria – A case study of the petroleum downstream sector. Technological Forecasting and Social Change, 131, 240–252. https://doi.org/doi: 10.1016/j.techfore.2017.09.021
Turban, E. (2010). Electronic Commerce (A Manager). Upper Saddle River.
Wardi, Y., Susanto, P., & Abdullah, N. L. (2017). 113559-ID-orientasi-kewirausahaan-pada-kinerja-usa. 16(1), 46–61.
Yunis, M., El-Kassar, A.-N., & Tarhini, A. (2017). Impact of ICT-based innovations on organizational performance. Journal of Enterprise Information Management, 30(1), 122–141. https://doi.org/10.1108/jeim-01-2016-0040
Zafar, A., & Mustafa, S. (2017). SMEs and their role in the economic and socio-economic development of Pakistan. International Journal of Academic Research in Accounting, Finance and Management Sciences, 7(4), 195–205. https://doi.org/doi: 10.6007/IJARAFMS/v7-i4/3484
Zarefar, A., Oktari, V., & Zarefar, A. (2021). Pengaruh orientasi kewirausahaan, inovasi, kemampuan menyusun laporan keuangan dan literasi keuangan terhadap kinerja UKM. 22(2), 148–161.
Zaremohzzabieh, Z., Samah, B. A., Muhammad, M., Omar, S. Z., Bolong, J., Hassan, M. S., & Shaffril, H. A. M. (2015). A test of the technology acceptance model for understanding the ict adoption behavior of rural young entrepreneurs. International Journal of Business and Management, 10(2). https://doi.org/10.5539/ijbm.v10n2p158
Zehir, C., Can, E., & Karaboga, T. (2015). Linking entrepreneurial orientation to firm performance: the role of differentiation strategy and innovation performance. Procedia - Social and Behavioral Sciences, 210, 358–367. https://doi.org/10.1016/j.sbspro.2015.11.381.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Fivi Anggraini, Aulia Intan Purnama
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
