The Influence of Information Technology and SCM on Competitive Advantage to Improve MSMEs Performance

Andri Ikhwana,Sasi Dianti

doi:10.29040/ijcis.v3i1.54

Andri Ikhwana, Sasi Dianti

Open Access

https://doi.org/10.29040/ijcis.v3i1.54

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Abstract

The increasing number of MSMEs has a role for the national and regional economies. However, this increasing has not totally been released from the obstacles obstructing business development, especially in Garut Regency. Lack of capital, high raw materials, and difficulty in marketing products are some of the obstacles faced by business actors in Garut Regency. Meanwhile, based on the results of the regional competitiveness index report in 2019, it is known that Garut Regency falls into the moderate category and business dynamics are the pillars with the lowest conditions. The contribution of MSMEs and the increasing number of business competition as well as the condition of MSMEs of Garut Regency is currently the reason that MSMEs deserve attention. This research aims to explain the interactions occurring between variables in this study by testing the influence of information technology and SCM on competitive advantage to improve organizational performance in MSMEs in Garut Regency. Data on this study was obtained from 109 MSME actors in Garut Regency through the results of the spread questionnaires. While the technique used to analyse the data is Pearson product-moment correlation analysis and regression using SPSS statistics. This research reveals that: 1) Information technology influences supply chain management, 2) Information technology influences competitive advantage, 3) Information technology influences competitive advantage, and 4) Competitive advantage influences organizational performance.

Highlights

Micro Small and Medium Enterprises (MSMEs) play an important role in the national and regional economies
This study aims to know: 1) the relationships and influences of information technology on supply chain management, 2) the relationships and influences of information technology and supply chain management partially on competitive advantage, 3) the influences of information technology and supply chain management simultaneously on competitive advantage, 4) the relationships and influences of competitive advantage on organizational performance, and 5) to explain the interactions that occur between information technology and supply chain management to competitive advantage and competitive advantage on organizational performance
The approach used in this research is quantitative, while the research instrument used to collect research data is by spreading questionnaires that contain statements regarding indicators from information technology variables, supply chain management, competitive advantage, and organizational performance

Summary

Introduction

Micro Small and Medium Enterprises (MSMEs) play an important role in the national and regional economies. The development of technology today brings certain changes in the business world, such as product innovation produced by MSMEs which is increasingly diverse and competition between business actors is getting higher [2]. Business competition is the success or failure condition of a company in carrying out its business activities, while competitive advantage is the ability of the organization or company in creating positions above its competitors. To achieve the competitive excellence, organizations must strive to increase productivity, create innovations, increase efficiency, and accelerate and facilitate services to be able to compete, excel, and still maintain their business [2]. MSME actors can coordinate relationships in the supply chain, support sales and marketing, production and operations, and report the processes from work results. Slamet [4] in his research said that the strategy in developing MSMEs digitally is needed in the production process and market expansion so that it will have competitiveness in improving the company's performance [2]

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