ICT AND INNOVATION ENABLED BUSINESS PERFORMANCE: THE EFFECT OF COVID 19
DOI:
https://doi.org/10.22441/mix.2021.v11i3.010Keywords:
Information and Communication Technology (ICT), Innovation, Corporate Entrepreneurship, Performance, Covid-19Abstract
Information communication technology has provided a transformative impetus for how an individual lives, interacts and works. COVID-19 has pushed the cessation of social and economic activities that led Information and Communication Technologies (ICT) as significant tool for business can communicate, store, and manage the necessary information. However not all businesses have the aptitude to change and adopt the necessary ICT to survive such a dynamic market. Therefore, this study aims to examine the influence of ICT, innovation, and corporate entrepreneurship on business performance. This is a quantitative study using a non-probability purposive sampling design. The study includes 204 respondents who are business owners currently using ICT to run their businesses. The data was obtained through online questionnaires and all the data processed and analyzed using SPSS and AMOS. The results show a direct and indirect relationship between ICT and innovation towards business performance, with corporate entrepreneurship as a significant meditating variable. The study brings further empirical proof that ICT literacy needs to paired with innovation and entrepreneurial movement of business that could improve performance.
References
Amit, R., Glosten, L., & Muller, E. (1993). Challenges to Theory Development In Entrepreneurship Research*. Journal of Management Studies, 815-834.
Business Vibes. (2016, January 31). How ICT Can Improve Business Efficiency. Retrieved from Business 2 Community: https://www.business2community.com/communications/ict-can-improve-business-efficiency-01438043
Brynjolfsson, E. (1993). The Productivity Paradox of Information Technology: Review and Assessment. Communications of the ACM, 66-77.
Chaney, P. K., Devinney, T. M., & Winer, R. S. (1991). The Impact of New Product Introductions on the Market Value of Firms. Journal of Business, 573-610.
Dermawan, A. M. (2020, July 23). Brave new technology for post-pandemic society. Retrieved from The Jakarta Post: https://www.thejakartapost.com/life/2020/07/22/brave-new-technology-for-post-pandemic-society.html
Erel, O. (2014, December 2). A Lot of IT Projects Fail, But Why? Retrieved from SaaSAddict: https://saasaddict.walkme.com/lot-project-fails/
Fan, Z., & Xiao, Y. (2020, April 27). 10 technology trends to watch in the COVID-19 pandemic. Retrieved from World Economic Forum: https://www.weforum.org/agenda/2020/04/10-technology-trends-coronavirus-covid19-pandemic-robotics-telehealth/
Franco, M., & Garcia, M. (2017). Drivers of ICT acceptance and implementation in micro-firms in the estate agent sector: influence on organizational performance. Information Technology for Development, 1-23.
Hair Jr., J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis. Harlow: Pearson Education Limited.
Hair Jr., J. F., Hult, G. T., Ringle, C. M., & Sarstedt, M. (2017). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM). Los Angeles: SAGE Publications, Inc.
Haryono, S. (2016). Metode SEM Untuk Penelitian Manajemen dengan AMOS LISREL PLS. Bekasi: PT Intermedia Personalia Utama.
Henrion, M. (2019, December 4). Why most big data analytics projects fail. Retrieved from ORMS TODAY: https://pubsonline.informs.org/do/10.1287/orms.2019.06.08/full/
Kapurubandara, M., Hol, A., & Ginige, A. (2010). SMEs in Developed and Developing Countries Treading Similar Paths Towards ETransformation. The International Joint Conference on e-Business and Telecommunications (pp. 1-11). Research Gate.
Karacaoglu, K., Bayrakdaroğlu, A., & San, F. B. (2013). The Impact of Corporate Entrepreneurship on Firms’ Financial Performance: Evidence from Istanbul Stock Exchange Firms . International Business Research, 163-175.
Kemkominfo. (2019, February 27). Pertumbuhan e-Commerce Indonesia Capai 78 Persen. Retrieved from Kementrian Komunikasi dan Informatika Republik Indonesia: https://kominfo.go.id/content/detail/16770/kemkominfo-pertumbuhan-e-commerce-indonesia-capai-78-persen/0/sorotan_media
Kirchhoff, B. A. (1997). Organization Effectiveness Measurement and Policy Research. Academy of Management Review, 347-355.
Koellinger, P. (2008). The relationship between technology, innovation, and firm performance--Empirical evidence from e-business in Europe. Research Policy, 1317-1328.
Kumar, V., Malik, M. B., & Arif, T. (2014, November). Role of ICT in driving e-commerce business in developing countries. National Conference on Recent Innovations & Advancements in Information Technology (RIAIT’ 2014) (pp. 22-28). Jammu & Kashmir: Research Gate.
Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance. Academy of Management Review, 135-172.
Manochehri, N. N., Al-Esmail, R. A., & Ashrafi, R. (2012). Examining the Impact of Information and Communication Technologies (ICT) on Enterprise Practices: A Preliminary Perspective From Qatar. Electronic Journal of Information Systems in Developing Countries, 1-16.
McDougall, P. P., Covin, J. G., Robinson Jr., R. B., & Herron, L. (1994). The effects of industry growth and strategic breadth on new venture performance and strategy content. Strategic Management Journal, 537-554.
Melluso, N., Fareri, S., Coli, E., Fantoni, G., Manfredi, P., & Giordano, V. (2020, April 28). Lights and Shadows of COVID-19, Technology and Industry 4.0. Pisa, Italy.
Miller, D. (1983). The Correlates of Entrepreneurship in Three Types of Firms. Management Science, 770-791.
Mustafa, H. H. (2015). The Role of ICT Management to Achieve Organizational Innovation. International Journal of Organizational Innovation, 48-56.
Naman, J. L., & Slevin, D. P. (1993). Entrepreneurship and the Concept of Fit: A Model and Empirical Tests. Strategic Management Journal, 137-153.
Naudé, W., & Szirmai, A. (2013). Technological Innovation, Entrepreneurship, and Development. The European Business Review, 3-13.
OECD. (2003). SEIZING THE BENEFITS OF ICT IN A DIGITAL ECONOMY. Retrieved from http://www.oecd.org/digital/ieconomy/2507572.pdf
Ongori, H., & Migiro, S. O. (2010). Information and communication technologies adoption in SMEs: literature review. Journal of Chinese Entrepreneurship, 93-104.
Papaioannou, S. K., & Dimelis, S. P. (2007). Information Technology as a Factor of Economic Development: Evidence from Developed and Developing Countries. Economics of Innovation and New Technology, 179-194.
Phocas Software. (2014, March 26). 5 Mistakes Organisations Make with Business Intelligence. Retrieved from Phocas: https://www.phocassoftware.com/5-mistakes-organisations-make-with-business-intelligence
Rashiti, S. G., Ramadani, V., Alili, H. A., Dana, L. P., & Ratten, V. (2015). ICT, Innovation and Firm Performance: The Transition Economies Context. Thunderbird International Business Review, 93-102.
Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach. Chichester, West Sussex: John Wiley & Sons Ltd.
Serdyukov, P. (2017). Innovation in education: what works, what doesn’t, and what to do about it? Journal of Research in Innovative Teaching & Learning, 4-33.
Setyowati, R., Hartoyo, Daryanto, H. K., & Arifin, B. (2015). The effects of ICT adoption on marketing capabilities and business performance of Indonesian SMEs in the fashion industry. Journal of Business and Retail Management Research, 100-115.
Spiezia, V. (2011). Are ICT Users More Innovative? OECD Journal: Economic Studies, 99-119.
Thornberry, N. (2001). Corporate Entrepreneurship: Antidote or Oxymoron? European Management Journal, 526-533.
Yunis, M., Tarhini, A., & Kassar, A. (2017). The role of ICT and innovation in enhancing organizational performance: The catalysing effect of corporate entrepreneurship. Journal of Business Research, 344-356.
Zahra, S. A. (1991). Predictors and financial outcomes of corporate entrepreneurship: An exploratory study. Journal of Business Venturing, 259-285.
Zoroja, J. (2016). Impact of ICTs on Innovation Activities: Indication for selected European countries. Naše gospodarstvo/Our Economy, 39-51.
Downloads
Published
How to Cite
Issue
Section
License
The copyright to this article is transferred to Universitas Mercu Buana (UMB) if and when the article is accepted for publication. The undersigned hereby transfers any and all rights in and to the paper including without limitation all copyrights to UMB. The undersigned hereby represents and warrants that the paper is original and that he/she is the author of the paper, except for material that is clearly identified as to its original source, with permission notices from the copyright owners where required. The undersigned represents that he/she has the power and authority to make and execute this assignment.
We declare that this paper has not been published in the same form elsewhere.
Furthermore, I/We hereby transfer the unlimited rights of publication of the above mentioned paper in whole to UMB. The copyright transfer covers the right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline, online) or any other reproductions of similar nature.
The corresponding author signs for and accepts responsibility for releasing this material on behalf of any and all co-authors. This agreement is to be signed by at least one of the authors who have obtained the assent of the co-author(s) where applicable. After submission of this agreement signed by the corresponding author, changes of authorship or in the order of the authors listed will not be accepted.
Retained Rights/Terms and Conditions
Although authors are permitted to re-use all or portions of the Work in other works, this does not include granting third-party requests for reprinting, republishing, or other types of re-use.
