Title: Enhancing dynamic capability towards SMEs performance: the role of ICT and knowledge resources

Authors: Heru Sulistyo; Sri Ayuni

Addresses: Faculty of Economics, Universitas Islam Sultan Agung Semarang, Jl. Raya Kaligawe KM. 4, Semarang, Central Java, 50112, Indonesia ' Faculty of Economics, Universitas Islam Sultan Agung Semarang, Jl. Raya Kaligawe KM. 4, Semarang, Central Java, 50112, Indonesia

Abstract: In the era of Industrial Revolution 4.0, companies and SMEs are required to have dynamic capabilities in responding to environmental changes and increasingly fierce competition. Reconfiguring ICT knowledge resources and capabilities is a must for companies to create performance and competitive advantage. This study aims to fill the research gap between knowledge resources and performance with dynamic capability as an intervening variable. This study also examines the effect of knowledge resources and ICT on dynamic capability and performance. This study used primary data through questionnaires, in-depth interviews, and focus group discussions with SMEs in Jepara, Rembang, Semarang, and Pekalongan, Indonesia. The sample used was 292 owners of SMEs. The data analysis using SEM with AMOS software shows that ICT significantly affects dynamic capability and SMEs performance. Knowledge resources also significantly affect dynamic capability and SMEs performance. In addition, dynamic capability significantly affects SMEs performance.

Keywords: knowledge resource; ICT; dynamic capability; performance; small and medium enterprises; SMEs.

DOI: 10.1504/IJLIC.2023.132173

International Journal of Learning and Intellectual Capital, 2023 Vol.20 No.4, pp.378 - 393

Received: 14 Nov 2021
Accepted: 26 May 2022
Published online: 12 Jul 2023 *

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