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The Effect of Information Communication Technology Readiness and Knowledge Management on Entrepreneurial Strategic Orientation and its Implications on Firm Performance Cover

The Effect of Information Communication Technology Readiness and Knowledge Management on Entrepreneurial Strategic Orientation and its Implications on Firm Performance

Open Access
|Apr 2023

Figures & Tables

Figure 1.

Conceptual framework
Conceptual framework

Figure 2.

Structural equation modeling (Standardised Solutions)
Source: Processing Results with LISREL 8.80.
Structural equation modeling (Standardised Solutions) Source: Processing Results with LISREL 8.80.

Figure 3.

Structural equation modeling (T values)
Source: Processing results with LISREL 8.80.
Structural equation modeling (T values) Source: Processing results with LISREL 8.80.

Figure 4.

Structural Models (Estimates)
Source: Processing results with LISREL 8.80.
Structural Models (Estimates) Source: Processing results with LISREL 8.80.

Table 12.

Direct and indirect results of SEM
Source: Processing results with LISREL 8.80.
Direct and indirect results of SEM Source: Processing results with LISREL 8.80.

Formal education

Formal educationFrequencyPercentage
Elementary-senior high school  68    17.3
Bachelor268    68.4
Master  53    13.5
Doctoral    3      0.8
Total392100

Barriers to social media use

BARRIERS TO THE USE OF SOCIAL MEDIASMEs
ABCD
Lack of knowledge XXX
Lack of training XXX
Little or any budget for social networksXXXX
Negative perception (it’s waste of time) X X

Profile of MSMEs in Mexico

PROFILESSMEs
ABCD
Size
No. of Employees551535
Type of business
IncorporatedYesNoYesYes
Industry
Tourism and gastronomyTravel agencyRestaurantTour operatorHotel
Geographical MarketWorldwideState of Colima MexicoWorldwideWorldwide
Budget
MarketingInformalInformalInformalInformal
Social NetworksInformalInformalInformalInformal

Data Development of micro, small, medium enterprises (MSMEs) and large enterprises (UB) for 2012–2013

PERKEMBANGAN DATA USAHA MIKRO, KECIL, MENENGAH (UMKM) DAN USAHA BESAR (UB) TAHUN 2012–2013
NOINDIKATORSATUANTAHUN 2012TAHUN 2013PERKEMBANGAN TAHUN 2012-2013
JUMLAHPANGSA (%)JUMLAHPANGSA (%)JUMLAHPANGSA (%)
12367891011
1UNIT USAHA (A»B)(Unit)56.539.560 57.900.787 1.361.2272,41
A. Usaha Mikro, Kecil dan Menengah (UMKM)(Unit)56.534.59299,9957.895.72199,991.361.1292.41
– Usaha Mikro (UMi)(Unit)55.856.17698,7957.189.39398,771.333.2172.39
– Usaha Kecil (UK)(Unit)629.4181,11654.2221,1324.8033,94
– Usaha Menengah(UM)(Unit)48.9970,0952.1060,093.1106.35
B. Usaha Besar (UB)(Unit)4.9680,015.0660,01981.97
2TENAGA KERJA (A*B)(Orang)110.808.154 117.681.244 6.873.0906,20
A. Usaha Mikro, Kecil dan Menengah (UMKM)(Orang)107.657.50997,16114.144.08296,996.486.5736,03
– Usaha Mikro (UMi)(Orang)99.859.51790,12104.624.46688,904.764.9494,77
– Usaha Kecil (UK)(Orang)4.535.9704,095.570.2314,731.034.26222,80
– Usaha Menengah(UM)(Orang)3.262.0232,943.949.3853,36687.36321,07
B. Usaha Besar (UB)(Orang)3.150.6452,843.537.1623,01386.51712,27
3PDB ATAS DASAR HARGA BERLAKU (A+B)(Rp. MiIyar)8.241.864,3 9.014.951,2 773.086,99,38
A. Usaha Mikro, Kecil dan Menengah (UMKM)(Rp. Milyar)4.869.568,159,085.440.007,960,34570.439,811,71
– Usaha Mikro (UMi)(Rp. Milyar)2.951.120,635,813.326.564,836,90375.444,212,72
– Usaha Kecil (UK)(Rp. Milyar)798.122,29,68876.385.39,7278.263,19,81
– Usaha Menengah(UM)(Rp. Milyar)1.120.325,313,591.237.057,813,72116.732,510,42
B. Usaha Besar (UB)(Rp. Milyar)3.372.296,140,923.574.943,339,66202.647,26,01
4PDB ATAS DASAR HARGA KONSTAN 2000 (A*B)(Rp. Milyar)2.525.120,4 2.670.314,8 145.194,45,75
A. Usaha Mikro, Kecil dan Menengah (UMKM)(Rp. Milyar)1.451.460,257,481.536.918,857,5685.458,55,89
– Usaha Mikro (UMi)(Rp. Milyar)790.825,631,32807.804,5030,2516.978,92,15
– Usaha Kecil (UK)(Rp. Milyar)294.260,711,65342.579,1912,8348.318,516,42
– Usaha Menengah(UM)(Rp. Milyar)366.373,914,51386.535,0714,4820.161,15,50
B. Usaha Besar (UB)(Rp. Milyar)1.073.660.142,521.133.396,0542,4459.735,95,56
5TOTAL EKSPOR NON MIGAS (A+B)(Rp. Milyar)1.185.391,0 1.161.327,5 (24.063,4)(2,03)
A. Usaha Mikro, Kecil dan Menengah (UMKM)(Rp. Milyar)166.626,514,06182.112,715,6815.486,39,29
– Usaha Mikro (UMi)(Rp. Milyar)15.235,21,2915.989,51,38754,34,95
– Usaha Kecil (UK)(Rp. Milyar)32.508,82,7432.051,82,76(457,0)(141)
– Usaha Menengah(UM)(Rp. Milyar)118.882,410,03134.071,411,5415.189,012,78
B. Usaha Besar (UB)(Rp. Milyar)1.018.764,585,94979.214,884,32(39.549,7)(3,88)
6INVESTASI ATAS DASAR HARGA BERLAKU (A+B)(Rp. Milyar)2.283.872,9 2.609.778,8 325.905,814,27
A. Usaha Mikro, Kecil dan Menengah (UMKM)(Rp. Milyar)1.250.801,154,771.655.233,563,42404.432,532,33
– Usaha Mikro (UMi)(Rp. Milyar)175.529,17,69185.717,27,1210.188,15,80
– Usaha Kecil (UK)(Rp. Milyar)452.790,019,83620.216,023,77167.426,036,98
– Usaha Menengah(UM)(Rp. Milyar)622.482,027,26849.300,332,54226.818,336,44
B. Usaha Besar (UB)(Rp. Milyar)1.033.071,945,23954.545,236,58(78.526,6)(7,60)
7INVESTASI ATAS DASAR HARGA KONSTAN 2000 (A+B)(Rp. Milyar)583.426,4 607.879,3 24.452,94,19
A. Usaha Mikro, Kecil dan Menengah (UMKM)(Rp. Milyar)300.175,751,45341.341,656,1541.165,913,71
– Usaha Mikro (UMi)(Rp. Milyar)44.711,37,6642.053,36,92(2.658,0)(5,94)
– Usaha Kecil (UK)(Rp. Milyar)104.726,417,95111.652,818,376.926,46,61
– Usaha Menengah(UM)(Rp. Milyar)150.738,025,84187.635,530,8736.897,524,48
B. Usaha Besar (UB)(Rp. Milyar)283.250,748,55266.537,743,85(16.713,0)(5,90)

Limitations of MSMEs in the UK and Commonwealth countries in increasing entrepreneurial strategic orientation and brand firm performance

FactorChapman, James, Moore, Szczygiel Thompson (2000)Elsammani, Scown & Hackney (2000)Jqcobs Dowsland (2000)Chapel & Feindt (1999)Lewis & Cockrill (2002)Moussi & Davcy (2000)Nath, Akmanakigil, Hjelm (2000)Smith & Webster (2000)Strader & Shaw (2000)Van Akkcrcn & Cavaye (1999)
Lack of financial resources & high costXXXX X
Insufficient Time & amount of work required to maintain EcommerceXXX X
Insufficient Education/Information into benefits & Uncertainty on how to implementXX X
Lack of IT
Expertise/Skills/Training/PersonnelXXX XX
Feras & concerns over Security XX XX
Competition X
Applicability of Ebusiness to enterprise X
Legal Issues X
Cultural Barriers & Infrastructure issues X X
Low use by customers & suppliers
Hierarchical Trasnaction Governance X
Lack of Management
Reluctance to use new systems by employees X
Lack of Priority

Length of business

Length of businessFrequencyPercentage
< 1 year  56    14.3
1–5 year(s)155    39.5
> 5 years181    46.2
Total392100

Gender

GenderFrequencyPercentage
Male287    73.2
Female105    26.8
Total392100

Turnover per year

Turnover per yearFrequencyPercentage
< 100 IDR million  54    13.8
100 — IDR 150 million185    47.2
> IDR 150 million153    39.0
Total392100

Structural equation modeling coefficient evaluation

PathEstimatedt-valueConclusion
ICT readiness has a positive effect and significantly on entrepreneurial strategic orientation0.488.29Accepted
Knowledge management has a positive effect and significantly on entrepreneurial strategic orientation0.254.79Accepted
ICT readiness and knowledge management have a positive effect and significantly on entrepreneurial strategic orientationFvalue212.651R Square0.34Accepted
ICT readiness has a positive effect and significantly on firm performance0.215.14Accepted
Knowledge management has a positive and significant effect on firm performance0.174.87Accepted
Entrepreneurial Strategic Orientation has a positive effect and significantly on firm performance0.6913.75Accepted
ICT readiness, knowledge management and entrepreneurial strategic orientation simultaneously have a positive and significant effect on firm performanceFvalue235.529R Square0.80Accepted

Model fit index

GOF indicatorExpected sizeEstimated resultsConclusion
Absolute fit size
RMSEARMSEA < 0,080,073Good fit
Incremental fit size
NFINFI > 0.990,91Good fit
NNFINNFI > 0,900,92Good fit
CFICFI > 0,900,92Good fit
IFIIFI > 0,900,92Good fit
RFIRFI > 0,900,91Good fit
GFIGFI > 0,900,92Good fit
AGFIAGFI > 0,900,90Good fit
RMSEA: The Root Mean Square Error Approximation
NFI: Normed-Fit Index
NNFI: Non Normed-Fit Index
CFI: Comparative Fit Index
IFI: Incremental Fit Indices
RFI: Relative Fit Index
GFI: Goodness of Fit Index
AGFI: Adjust Goodness of Fit Index

Age

AgeFrequencyPercentage
< 35 years old10426.5
35–45 years old17043.4
> 45 years old11830.1
Total392100      

Research variable reliability test results

NoVariableNilai Cronbach’s alphaDecision
1ICT readiness0.924Reliable
2Knowledge management0.932Reliable
3Entrepreneurial strategic orientation0.938Reliable
4Firm performance0.939Reliable
DOI: https://doi.org/10.2478/minib-2023-0005 | Journal eISSN: 2353-8414 | Journal ISSN: 2353-8503
Language: English
Page range: 71 - 104
Submitted on: Jan 3, 2023
|
Accepted on: Mar 16, 2023
|
Published on: Apr 11, 2023
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year

© 2023 Oscar Jayanagara, Kelly Azaryas Chen, published by ŁUKASIEWICZ RESEARCH NETWORK – INSTITUTE OF AVIATION
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.