International Journal of Management Science and Information Technology (IJMSIT)
Vol. 5 No. 1 (2025): January - June 2025

The Role of Business Size and Technology Adoption in Enhancing MSME Financial Performance

Umar Rofi'i, Yulianto (Unknown)



Article Info

Publish Date
04 Mar 2025

Abstract

This study examines the impact of business size and technology adoption on the financial performance of SMEs (Small and Medium Enterprises). Business size is measured based on operational scale, such as the number of employees and sales volume. At the same time, technology adoption refers to using digital tools and information systems in business operations. Multiple linear regression is applied to analyze data collected from 100 SMEs across various industries. The analysis results show that business size significantly positively affects financial performance, with a regression coefficient of 0.35 (p-value = 0.002). This means that increasing business size will drive an improvement in economic performance. Technology adoption also has a significant impact, with a regression coefficient of 0.42 (p-value = 0.001), indicating that the use of technology can enhance financial performance. The coefficient of determination (R²) of 0.58 suggests that 58% of the variation in economic performance can be explained by business size and technology adoption. These findings are important for SME owners and policymakers to design strategies to accelerate SMEs' growth and sustainability through business scaling and digital technology implementation.

Copyrights © 2025






Journal Info

Abbrev

IJMSIT

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

The development of science related to good technology, information, and communication, both theoretically and empirically has proven to have a positive impact on various aspects of people lives. The development of the science of Information and Communication Technology provides many benefits to ...