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Competition Intensity, Uncertainty Environmental on the use of Information Technology and its Impact on Business Performance Small and Medium Enterprises

Author

Listed:
  • Chamdan Purnama

    (School of Economics, Al-Anwar Mojokerto, Indonesia,)

  • Waspodo Tjipto Subroto

    (Faculty of Economic, Universitas Negeri Surabaya, Indonesia.)

Abstract

In the business world, the information technology revolution led to tremendous changes in competition, production, marketing and human resource management. The use of information technology is a vital component of business performance (BP). By this study wanted to know of competition intensity (CI), uncertainty environment (UE) of business and the use of information technology and its impact on BP. The sample number in this study are 130 respondences of small and medium enterprises (SMEs) printing management in East Java, using purposive sampling technique. Through testing with analysis of structural equation modeling the results of this study found that: First, CI impact significant positive on the information technology investment (IIT). But CI impact significant negative BP SMEs. Second, UE of business impact significant positive on the BP of SMEs and IIT. Third, IIT impact significant positive on the BP of SMEs.

Suggested Citation

  • Chamdan Purnama & Waspodo Tjipto Subroto, 2016. "Competition Intensity, Uncertainty Environmental on the use of Information Technology and its Impact on Business Performance Small and Medium Enterprises," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 984-992.
    • Handle: RePEc:eco:journ3:2016-04-45
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    References listed on IDEAS

    as
    1. Hargo Utomo & Mark Dodgson, 2001. "Contributing Factors to the Diffusion of IT within Small and Medium-Sized Firms in Indonesia," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 4(2), pages 22-37, April.
    2. Ale Ebrahim, Nader & Ahmed, Shamsuddin & Taha, Zahari, 2010. "SMEs; Virtual research and development (R&D) teams and new product development: A literature review," MPRA Paper 26989, University Library of Munich, Germany, revised 10 Jun 2010.
    3. Bromwich, Michael, 1990. "The case for strategic management accounting: The role of accounting information for strategy in competitive markets," Accounting, Organizations and Society, Elsevier, vol. 15(1-2), pages 27-46.
    4. Dr. Waspodo Tjipto Subroto, 2013. "Entrepreneurship Development Course to Foster Character Merchandise in Support Economic Growth," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(6), pages 762-771, June.
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    Cited by:

    1. Dewi Hanggraeni & Beata Ślusarczyk & Liyu Adhi Kasari Sulung & Athor Subroto, 2019. "The Impact of Internal, External and Enterprise Risk Management on the Performance of Micro, Small and Medium Enterprises," Sustainability, MDPI, vol. 11(7), pages 1-17, April.
    2. Chamdan Purnama & Ludi Wishnu Wardana & Yusriyah Rahmah & Dinda Fatmah & Mirhamida Rahmah, 2020. "The Impact of External Integration and Internal Integration to Product Innovation and Competitive Advantage on Small and Medium Enterprises (SMEs)," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 6(4), pages 82-95, October.

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    More about this item

    Keywords

    Information Technology; Competition Intensity; Uncertainty Environment of Business; Business Performance; Small and Medium Enterprises;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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