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

Oscar Jayanagara
Oscar Jayanagara
 et 
Kelly Azaryas Chen
Kelly Azaryas Chen
   | 11 avr. 2023
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Article Category: research article
Publié en ligne: 11 avr. 2023
Pages: 71 - 104
Reçu: 03 janv. 2023
Accepté: 16 mars 2023
DOI: https://doi.org/10.2478/minib-2023-0005
© 2023 Oscar Jayanagara et al., published by Sciendo
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

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 education Frequency Percentage
Elementary-senior high school   68     17.3
Bachelor 268     68.4
Master   53     13.5
Doctoral     3       0.8
Total 392 100

Barriers to social media use

BARRIERS TO THE USE OF SOCIAL MEDIA SMEs
A B C D
Lack of knowledge X X X
Lack of training X X X
Little or any budget for social networks X X X X
Negative perception (it’s waste of time) X X

Profile of MSMEs in Mexico

PROFILES SMEs
A B C D
Size
No. of Employees 5 5 15 35
Type of business
Incorporated Yes No Yes Yes
Industry
Tourism and gastronomy Travel agency Restaurant Tour operator Hotel
Geographical Market Worldwide State of Colima Mexico Worldwide Worldwide
Budget
Marketing Informal Informal Informal Informal
Social Networks Informal Informal Informal Informal

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
NO INDIKATOR SATUAN TAHUN 2012 TAHUN 2013 PERKEMBANGAN TAHUN 2012-2013
JUMLAH PANGSA (%) JUMLAH PANGSA (%) JUMLAH PANGSA (%)
1 2 3 6 7 8 9 10 11
1 UNIT USAHA (A»B) (Unit) 56.539.560 57.900.787 1.361.227 2,41
A. Usaha Mikro, Kecil dan Menengah (UMKM) (Unit) 56.534.592 99,99 57.895.721 99,99 1.361.129 2.41
– Usaha Mikro (UMi) (Unit) 55.856.176 98,79 57.189.393 98,77 1.333.217 2.39
– Usaha Kecil (UK) (Unit) 629.418 1,11 654.222 1,13 24.803 3,94
– Usaha Menengah(UM) (Unit) 48.997 0,09 52.106 0,09 3.110 6.35
B. Usaha Besar (UB) (Unit) 4.968 0,01 5.066 0,01 98 1.97
2 TENAGA KERJA (A*B) (Orang) 110.808.154 117.681.244 6.873.090 6,20
A. Usaha Mikro, Kecil dan Menengah (UMKM) (Orang) 107.657.509 97,16 114.144.082 96,99 6.486.573 6,03
– Usaha Mikro (UMi) (Orang) 99.859.517 90,12 104.624.466 88,90 4.764.949 4,77
– Usaha Kecil (UK) (Orang) 4.535.970 4,09 5.570.231 4,73 1.034.262 22,80
– Usaha Menengah(UM) (Orang) 3.262.023 2,94 3.949.385 3,36 687.363 21,07
B. Usaha Besar (UB) (Orang) 3.150.645 2,84 3.537.162 3,01 386.517 12,27
3 PDB ATAS DASAR HARGA BERLAKU (A+B) (Rp. MiIyar) 8.241.864,3 9.014.951,2 773.086,9 9,38
A. Usaha Mikro, Kecil dan Menengah (UMKM) (Rp. Milyar) 4.869.568,1 59,08 5.440.007,9 60,34 570.439,8 11,71
– Usaha Mikro (UMi) (Rp. Milyar) 2.951.120,6 35,81 3.326.564,8 36,90 375.444,2 12,72
– Usaha Kecil (UK) (Rp. Milyar) 798.122,2 9,68 876.385.3 9,72 78.263,1 9,81
– Usaha Menengah(UM) (Rp. Milyar) 1.120.325,3 13,59 1.237.057,8 13,72 116.732,5 10,42
B. Usaha Besar (UB) (Rp. Milyar) 3.372.296,1 40,92 3.574.943,3 39,66 202.647,2 6,01
4 PDB ATAS DASAR HARGA KONSTAN 2000 (A*B) (Rp. Milyar) 2.525.120,4 2.670.314,8 145.194,4 5,75
A. Usaha Mikro, Kecil dan Menengah (UMKM) (Rp. Milyar) 1.451.460,2 57,48 1.536.918,8 57,56 85.458,5 5,89
– Usaha Mikro (UMi) (Rp. Milyar) 790.825,6 31,32 807.804,50 30,25 16.978,9 2,15
– Usaha Kecil (UK) (Rp. Milyar) 294.260,7 11,65 342.579,19 12,83 48.318,5 16,42
– Usaha Menengah(UM) (Rp. Milyar) 366.373,9 14,51 386.535,07 14,48 20.161,1 5,50
B. Usaha Besar (UB) (Rp. Milyar) 1.073.660.1 42,52 1.133.396,05 42,44 59.735,9 5,56
5 TOTAL 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) 166.626,5 14,06 182.112,7 15,68 15.486,3 9,29
– Usaha Mikro (UMi) (Rp. Milyar) 15.235,2 1,29 15.989,5 1,38 754,3 4,95
– Usaha Kecil (UK) (Rp. Milyar) 32.508,8 2,74 32.051,8 2,76 (457,0) (141)
– Usaha Menengah(UM) (Rp. Milyar) 118.882,4 10,03 134.071,4 11,54 15.189,0 12,78
B. Usaha Besar (UB) (Rp. Milyar) 1.018.764,5 85,94 979.214,8 84,32 (39.549,7) (3,88)
6 INVESTASI ATAS DASAR HARGA BERLAKU (A+B) (Rp. Milyar) 2.283.872,9 2.609.778,8 325.905,8 14,27
A. Usaha Mikro, Kecil dan Menengah (UMKM) (Rp. Milyar) 1.250.801,1 54,77 1.655.233,5 63,42 404.432,5 32,33
– Usaha Mikro (UMi) (Rp. Milyar) 175.529,1 7,69 185.717,2 7,12 10.188,1 5,80
– Usaha Kecil (UK) (Rp. Milyar) 452.790,0 19,83 620.216,0 23,77 167.426,0 36,98
– Usaha Menengah(UM) (Rp. Milyar) 622.482,0 27,26 849.300,3 32,54 226.818,3 36,44
B. Usaha Besar (UB) (Rp. Milyar) 1.033.071,9 45,23 954.545,2 36,58 (78.526,6) (7,60)
7 INVESTASI ATAS DASAR HARGA KONSTAN 2000 (A+B) (Rp. Milyar) 583.426,4 607.879,3 24.452,9 4,19
A. Usaha Mikro, Kecil dan Menengah (UMKM) (Rp. Milyar) 300.175,7 51,45 341.341,6 56,15 41.165,9 13,71
– Usaha Mikro (UMi) (Rp. Milyar) 44.711,3 7,66 42.053,3 6,92 (2.658,0) (5,94)
– Usaha Kecil (UK) (Rp. Milyar) 104.726,4 17,95 111.652,8 18,37 6.926,4 6,61
– Usaha Menengah(UM) (Rp. Milyar) 150.738,0 25,84 187.635,5 30,87 36.897,5 24,48
B. Usaha Besar (UB) (Rp. Milyar) 283.250,7 48,55 266.537,7 43,85 (16.713,0) (5,90)

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

Factor Chapman, 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 cost X X X X X
Insufficient Time & amount of work required to maintain Ecommerce X X X X
Insufficient Education/Information into benefits & Uncertainty on how to implement X X X
Lack of IT
Expertise/Skills/Training/Personnel X X X X X
Feras & concerns over Security X X X X
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 business Frequency Percentage
< 1 year   56     14.3
1–5 year(s) 155     39.5
> 5 years 181     46.2
Total 392 100

Gender

Gender Frequency Percentage
Male 287     73.2
Female 105     26.8
Total 392 100

Turnover per year

Turnover per year Frequency Percentage
< 100 IDR million   54     13.8
100 — IDR 150 million 185     47.2
> IDR 150 million 153     39.0
Total 392 100

Structural equation modeling coefficient evaluation

Path Estimated t-value Conclusion
ICT readiness has a positive effect and significantly on entrepreneurial strategic orientation 0.48 8.29 Accepted
Knowledge management has a positive effect and significantly on entrepreneurial strategic orientation 0.25 4.79 Accepted
ICT readiness and knowledge management have a positive effect and significantly on entrepreneurial strategic orientation Fvalue212.651 R Square0.34 Accepted
ICT readiness has a positive effect and significantly on firm performance 0.21 5.14 Accepted
Knowledge management has a positive and significant effect on firm performance 0.17 4.87 Accepted
Entrepreneurial Strategic Orientation has a positive effect and significantly on firm performance 0.69 13.75 Accepted
ICT readiness, knowledge management and entrepreneurial strategic orientation simultaneously have a positive and significant effect on firm performance Fvalue235.529 R Square0.80 Accepted

Model fit index

GOF indicator Expected size Estimated results Conclusion
Absolute fit size
RMSEA RMSEA < 0,08 0,073 Good fit
Incremental fit size
NFI NFI > 0.99 0,91 Good fit
NNFI NNFI > 0,90 0,92 Good fit
CFI CFI > 0,90 0,92 Good fit
IFI IFI > 0,90 0,92 Good fit
RFI RFI > 0,90 0,91 Good fit
GFI GFI > 0,90 0,92 Good fit
AGFI AGFI > 0,90 0,90 Good 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

Age Frequency Percentage
< 35 years old 104 26.5
35–45 years old 170 43.4
> 45 years old 118 30.1
Total 392 100      

Research variable reliability test results

No Variable Nilai Cronbach’s alpha Decision
1 ICT readiness 0.924 Reliable
2 Knowledge management 0.932 Reliable
3 Entrepreneurial strategic orientation 0.938 Reliable
4 Firm performance 0.939 Reliable
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