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Information Technology and Competitiveness: Evidence from Micro, Small and Medium Enterprise Survey in Cimahi District, Indonesia

Author

Listed:
  • Maman Setiawan

    () (Faculty of Economics and Business, University of Padjadjaran)

  • Rina Indiastuti

    () (Faculty of Economics and Business, University of Padjadjaran)

  • Peggie Destevanie

    () (Faculty of Economics and Business, University of Padjadjaran)

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, 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. It 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. We also found the adoption of information technology has a positive contribution to competitiveness.

Suggested Citation

  • Maman Setiawan & Rina Indiastuti & Peggie Destevanie, 2014. "Information Technology and Competitiveness: Evidence from Micro, Small and Medium Enterprise Survey in Cimahi District, Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 201401, Department of Economics, Padjadjaran University, revised Feb 2014.
  • Handle: RePEc:unp:wpaper:201401
    as

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    File URL: http://ceds.feb.unpad.ac.id/wopeds/201401.pdf
    File Function: First version, 2014
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    References listed on IDEAS

    as
    1. Lefebvre, L A & Lefebvre, E, 1993. "Competitive Positioning and Innovative Efforts in SMEs," Small Business Economics, Springer, vol. 5(4), pages 297-305, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    competitiveness; micro; small and medium enterprises; information technology; path analysis; factor analysis;

    JEL classification:

    • O0 - Economic Development, Innovation, Technological Change, and Growth - - General

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