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.