Journal of Information System Exploration and Research
Vol. 2 No. 1 (2024): January 2024

The Effect of Digitalization on Business Performance in the MSME Industry Context

Umar, Fadhil (Unknown)
Septian, M. Rivaldi Ali (Unknown)
Pertiwi, Dwika Ananda Agustina (Unknown)



Article Info

Publish Date
26 Dec 2023

Abstract

The current digital era is increasingly developing in the use of new technology that creates value for companies and offers benefits. Digitalization is useful for increasing competitive advantage to improve business performance. The purpose of this study is to find out whether digitalization affects business performance and to find out whether competitive advantage can mediate digitalization on business performance. The sample of this research is 115 SMEs in Semarang. data were analyzed using the SEM approach with the smartPLS tool. The results of the study show that the digitalization variable has an influence on business performance, furthermore, competitive advantage also has a positive and significant effect on business performance. The results of the indirect effect test also show that competitive advantage can mediate the relationship between digitalization and business performance. The better the implementation of digitalization, the higher the competitive advantage MSMEs, consequently leading to an increase the business performance.

Copyrights © 2024






Journal Info

Abbrev

joiser

Publisher

Subject

Computer Science & IT Decision Sciences, Operations Research & Management Engineering

Description

Journal of Information System Exploration and Research (JOISER) (e-ISSN: 2963-6361, p-ISSN: 2964-1160) is a journal that publishes and disseminates scientific research papers on information systems to a wide audience, particularly within the information system society. Articles devoted to discussing ...