The Impact of Information and Communication Technology Capability on the Competitive Advantage of Small Businesses
The aim of this paper is to establish how Information and Communication Technology (ICT) capability has no effect on competitive advantage through the entrepreneurial orientation and organizational agility of Indonesian SMEs in the apparel retail sector. The study is based on resources that can...
| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universitas Indonesia
2019-01-01
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| Series: | International Journal of Technology |
| Subjects: | |
| Online Access: | http://ijtech.eng.ui.ac.id/article/view/2332 |
| Summary: | The aim of this paper is to establish
how Information and Communication
Technology (ICT) capability has
no effect on competitive advantage through the entrepreneurial orientation and
organizational agility of Indonesian SMEs in the apparel retail sector. The
study is based on resources that cannot be directly converted into the competitive
advantage of companies but must instead be subjected to an entrepreneurial
process and offer new insights into the use of ICT as a valuable corporate
resource. The paper is based on a quantitative approach using a population
comprising apparel retailers from traditional markets in Jakarta, Indonesia.
The sample was obtained using random sampling. The survey was conducted among
462 small businesses across five traditional apparel markets managed by PD.
Pasar Jaya. The data were processed using Structural Equation Modeling-Partial Least Squares. The
results show that ICT capability has no significant effect on competitive
advantage, although it does have a significant effect on entrepreneurial
orientation and organizational agility. Organizational agility and entrepreneurial
orientation have a significant effect on competitive advantage, thus indicating
that ICT capability in small businesses cannot be directly converted into a competitive advantage. The finding of the
research is that ICT capability is able to create competitive advantage in
small businesses but only when present in conjunction with entrepreneurial orientation
and organizational agility. |
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| ISSN: | 2086-9614 2087-2100 |