Information Technology Capabilities, Organizational Agility, and Competitive Advantage: A Study of Micro, Small, and Medium Enterprises in Indonesia

Abstract

This paper aims to explore the relationship between information technology (IT) capabilities and competitive advantage, with organizational agility as a mediator, in the case of micro, small, and medium enterprises engaged in the fashion industry in Indonesia. Data were collected by distributing questionnaires to 180 small to medium-sized enterprises in Indonesia’s fashion industry that have used e-commerce platforms to conduct their business activities. The data were analyzed using partial least squares structural equation modeling (PLS-SEM) in SmartPLS 3.0 software. The study suggests that IT capabilities significantly influence organizational agility and competitive advantage. Therefore, the study can serve as a basis for the Indonesian government to promote digitalization and the use of e-commerce among micro, small, and medium enterprise owners in order to face changes in the market and remain competitive. It can also be beneficial for business owners and managers that aim to increase awareness of the importance of technology in their business operations. The work of this paper deepens the understanding of the relationship between IT capabilities, organizational agility, and competitive advantage, which are becoming increasingly important in the current digitalized and ever-changing business environment. It enriches the literature about micro, small and medium enterprise that is related to their IT capabilities level, how they use it to handle changes and factors that contributes in obtaining competitive advantage.

Does Financial Resource Development Effort Affect the Dynamic Entrepreneurial Capability and Performance of SMEs?

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Pengembangan Keunggulan Bersaing UMKM Sektor Fashion di Kota Denpasar Berbasis Digitalisasi dan Kapabilitas Inovasi: Peran Mediasi Organizational Agility

“…Organizational agility atau kegesitan organisasi mencerminkan integrasi kompleks dari berbagai aktivitas, prosedur, dan tugas, yang memungkinkan perusahaan mengubah praktik operasional dan responsif terhadap perubahan pasar. UMKM saat ini harus mampu merespon dengan cepat, memiliki siklus produk yang singkat, dan beradaptasi dengan perubahan permintaan konsumen (Lovely et al, 2021). Kelincahan tersebut dianggap sebagai kemampuan untuk mengeksplorasi perubahan lingkungan yang tidak terduga untuk meningkatkan keunggulan bersaing (Wu et al, 2017).…”

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