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The relationship among organisations' factors, information technology, innovation and performance: an Indonesian SMEs study

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  • Ervi Cofriyanti
  • Achmad Nizar Hidayanto

Abstract

Information technology has enormous benefits for small and medium enterprises (SMEs) especially to develop innovations in order to enhance their competitiveness. However, currently only few SMEs in Indonesia have used information technology. This study was conducted to examine the factors that influenced SMEs in utilising information technology as well as the impact of information technology utilisation for innovation and performance of SMEs. Based on survey data collected from 115 Indonesian SMEs, it is concluded that the perceived benefits, organisational readiness, and external encouragement have significant positive influence on the utilisation of information technology, with the most dominant factor being organisational readiness. The results also showed that the utilisation of information technology has a significant positive impact on innovation and performance.

Suggested Citation

  • Ervi Cofriyanti & Achmad Nizar Hidayanto, 2013. "The relationship among organisations' factors, information technology, innovation and performance: an Indonesian SMEs study," International Journal of Innovation and Learning, Inderscience Enterprises Ltd, vol. 14(3/4), pages 422-443.
    • Handle: RePEc:ids:ijilea:v:14:y:2013:i:3/4:p:422-443
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    Cited by:

    1. Yunis, Manal & Tarhini, Abbas & Kassar, Abdulnasser, 2018. "The role of ICT and innovation in enhancing organizational performance: The catalysing effect of corporate entrepreneurship," Journal of Business Research, Elsevier, vol. 88(C), pages 344-356.
    2. Amanat Ali & Shahid Iqbal & Syed Arslan Haider & Shehnaz Tehseen & Bilal Anwar & Mariam Sohail & Khalid Rehman, 2021. "Does Governance in Information Technology Matter When It Comes to Organizational Performance in Pakistani Public Sector Organizations? Mediating Effect of Innovation," SAGE Open, , vol. 11(2), pages 21582440211, May.

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