Analysis of the Effect of Information Technology Development, Absorbility Capacity on MSMe Business Performance

Abstract

Information technology absorption capacity is a factor that can affect business performance. The development of information technology can positively impact businesses to improve business performance. Absorption capacity also affects improving business performance. The more absorption capacity you have, your business performance will improve. The development of technology and its absorption capacity will positively impact businesses to improve their business performance. This study aims to determine whether or not the influence of information technology and absorption capacity on business performance in Tegal Regency-Indonesia. The sampling technique in this study used the Proportional Cluster Random Sampling technique. In this study, the Slovin formula was used, and the samples obtained were 96 people. The analytical method used is multiple linear regression analysis. The study's results found a significant effect of information technology on business performance. Then there is a significant effect of absorption capacity on MSME business performance in Tegal Regency. Suggestions that can be given based on the results of this study are that MSMEs should pay more attention to the development of information technology and develop their absorption capacity so that MSMEs can further improve their business performance and achieve maximum results as expected.

influence of product quality and digital marketing on the performance of SMEs

“…The study indicates a positive and significant influence of product quality on MSME performance, aligning with previous research (Khumaidah, 2023;Primadhita et al, 2023;Ernita & Suseno, 2023;Harini & Rahmayuna, 2023;Olshavsky & Miller, 1972;Nindhita et al, 2022;Lailla & Sriminarti, 2022;Oktahirsa et al, 2021;Prihatini et al, 2021;Saefudin et al, 2023;Tirtayasa et al, 2021;Suchánek et al, 2014;Aristha, 2020;Lakhal & Pasin, 2008). This suggests that higher product quality positively impacts the performance of MSMEs.…”

Increasing access to business incubation services for cottage start-ups to promote inclusive entrepreneurship in Southwest Uganda

“…The study by Hasanah, Shino, and Kosasih (2022) explores the role of information technology in improving the competitiveness of small and SME enterprises, emphasizing the crucial link between IT adoption and business competitiveness. Nindhita et al (2022) analyzed the effect of information technology development and absorptive capacity on MSME business performance, providing insights into the intricate relationship between technology, capacity, and business outcomes. Furthermore, Hernandez et al (2022) investigate the green information technology readiness of small and medium enterprises in the Philippines, highlighting the growing importance of environmentally conscious IT practices.…”

“…Hasanah, Shino, and Kosasih (2022) also looked at how IT might help small firms become more competitive. The impact of IT development and absorptive capacity on the success of small businesses was examined by Nindhita et al (2022). These studies offer insightful information about the elaborate relationship that exists between technology, capability, and business results.…”