Title: Information technology and competitiveness: evidence from micro, small and medium enterprises in Cimahi District, Indonesia

Authors: Maman Setiawan; Rina Indiastuti; Peggie Destevanie

Addresses: Department of Economics, Faculty of Economics and Business, University of Padjadjaran, Jl. Dipati Ukur No. 35, Bandung 40132, Jawa Barat, Indonesia ' Department of Economics, Faculty of Economics and Business, University of Padjadjaran, Jl. Dipati Ukur No. 35, Bandung 40132, Jawa Barat, Indonesia ' Yolita Jaya Indonesia Inc., Jl. Industri Cimareme 1 No. 1, Padalarang 40553, Jawa Barat, Indonesia

Abstract: This paper investigates the role of information technology in its contribution toward the competitiveness of micro, small and medium enterprises. The data used in the analysis is based on a survey of micro, small and medium enterprises in Cimahi District, Jawa Barat (West Java) Province, Indonesia. Variables to measure the degree of adoption of information technology, competitiveness, and other control latent variables are constructed by factor analysis using various relevant indicators. Path analysis is also undertaken to investigate the effect of the adoption of information technology on competitiveness. This research found that there is a lack of use of information technologies among the micro, small and medium enterprises surveyed. The information technologies are used for some purposes such as administration, marketing, production, and other activities related to the business. This research also found that the adoption of information technology has a positive contribution to competitiveness.

Keywords: competitiveness; micro small and medium-sized enterprises; MSMEs; SMEs; information technology; path analysis; factor analysis; Indonesia.

DOI: 10.1504/IJESB.2015.070219

International Journal of Entrepreneurship and Small Business, 2015 Vol.25 No.4, pp.475 - 493

Received: 10 Mar 2014
Accepted: 22 Dec 2014
Published online: 29 Jun 2015 *

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