Business Process Maturity Level of MSMEs in East Java, Indonesia

Abstract

The purpose of this research is to evaluate the degree of Micro, Small and Medium Enterprises (MSMEs)’s in East Java using business process maturity model. McCormack model is fine to use for assessing the MSME’s business process that brings out the business process maturity level of MSMEs. On the ninth element of information systems support on BPOM model, we try to adjust the questionnaire items based on the condition of MSMEs in Indonesia which still lagging in the implementation of IT, so it is directing to the concept of IT readiness model by combining the state of IT infrastructure and application of MSMEs. This research also assessing the IT readiness of MSMEs and analyze the result by comparing with the level of maturity. The findings result from this research shows that the maturity of MSMEs in East Java are varying. Yet, the IT readiness of these MSMEs presents high score that indicates there seems to be a strong connection between IT usage, leadership and the maturity level of business process within the organization and explained how business process maturity is relevant to MSMEs.