Al-Kharaj: Journal of Islamic Economic and Business
Vol. 7 No. 4 (2025): All articles in this issue include authors from 3 countries of origin (Indonesi

MSMEs Competitiveness In Eastern Java: The Role of Innovation and Information Systems Within Organizational Culture

Efendi, Hofifatul Musyarrofah (Unknown)
Abdul Qodir (Unknown)
Pardiman (Unknown)



Article Info

Publish Date
24 Nov 2025

Abstract

This study aims to analyze the effect of organizational culture on performance through the mediating roles of innovation capability and management information systems among Micro, Small, and Medium Enterprises (MSMEs) in the eastern region of Java. The research employs a quantitative approach using a partial least squares structural equation modeling (PLS-SEM) technique. Data were collected through questionnaires distributed to 98 MSME owners and managers. The results indicate that organizational culture has a positive and significant influence on innovation capability and management information systems, both of which, in turn, significantly affect performance. Furthermore, innovation capability and management information systems partially mediate the relationship between organizational culture and performance. These findings suggest that fostering a strong organizational culture can enhance MSME performance when supported by innovative capabilities and effective information management systems. The study contributes to empirical evidence in strategic management and organizational behavior, particularly in the MSME context in eastern Java.

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Journal Info

Abbrev

alkharaj

Publisher

Subject

Economics, Econometrics & Finance

Description

Al-Kharaj, Journal of Islamic Economic and Business is peer-reviewed journal published by program studi ekonomi syariah , Institut Agama Islam Negeri (IAIN) Palopo. Al-Kharaj focus on the research of Islamic Economic and Business. The aims of this journal is to explore and develop economic related ...