The importance of ICT adoption on MSMEs performance: the mediating role of distinctive competencies

Purpose - This study aims to examine and identify how the resource-based view and dynamic capability theory contribute to information and communication technology (ICT) adoption to improve micro, small and medium enterprise (MSME) performance, mediated by distinctive competencies. This research provides insight into how MSMEs can improve performance by strategically adopting ICT tools and developing distinctive competencies. Design/methodology/approach - Data were collected through online questionnaires from creative industry MSMEs (fashion, culinary and crafts) in Indonesia. The results were analyzed using the partial least squares-structural equation method technique (Fornell and Cha, 1994) with Smart PLS 3.0 (Ringleet al., 2015). Findings - The results show that ICT adoption significantly impacts the MSMEs marketing performance in the creative industry sector. In addition, adopting ICT tools influences the development of distinctive competencies among MSMEs, improving MSMEs marketing performance. Distinctive competencies were found to mediate the relationship between ICT adoption and MSMEs marketing performance, which underscores the importance of technology skills, organizational skills, environmental skills and entrepreneurial mindset in driving business success. These findings highlight the critical role of distinctive competencies as a key factor in leveraging ICT adoption to improve MSMEs marketing performance. Research limitations/implications - The main limitation is that this research coverage area is less extensive due to the time constraints of this study. Future work could cover different regions and explore other mediators in the ICT–performance relationship. Practical implications - This research assists MSMEs in improving performance by adopting ICT and developing distinctive competencies with targeted training in relevant skills. Social implications - This research highlights the potential to improve MSMEs marketing performance and drive economic growth and resilience through ICT adoption. Originality/value - This study contributes to the existing literature by providing empirical evidence of the relationship between ICT adoption, distinctive competencies and MSME marketing performance in the context of the creative industries sector. This study offers a new perspective on how MSMEs can use ICT tools and develop distinctive competencies to enhance their marketing performance competitive advantage and achieve sustainable growth. By emphasizing the mediating role of distinctive competencies, this study highlights how ICT adoption impacts positively MSME marketing performance, providing valuable insights for practitioners, policymakers and researchers in entrepreneurship and technology adoption.