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

Tri Yuwono, Weni Novandari, Agus Suroso, Refius Pradipta Setyanto

Journal of Enterprising Communities: People and Places in the Global Economy

ISSN: 1750-6204

Article publication date: 31 January 2025

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Abstract

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 (Ringle et 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.

Keywords

Acknowledgements

The authors want to acknowledge and thank the (1) Center for Higher Education Funding (Balai Pembiayaan Pendidikan Tinggi – BPPT), Ministry of Higher Education, Science and Technology Republic of Indonesia and (2) Indonesia Endowment Fund for Education (Lembaga Pengelola Dana Pendidikan – LPDP), Ministry of Finance Republic of Indonesia for granting a scholarship to the first author to complete his studies (Registration Number: B3172023011028195727 and BPI Number: 202329113409).

Citation

Yuwono, T., Novandari, W., Suroso, A. and Setyanto, R.P. (2025), "The importance of ICT adoption on MSMEs performance: the mediating role of distinctive competencies", Journal of Enterprising Communities: People and Places in the Global Economy, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JEC-06-2024-0113

Publisher

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Emerald Publishing Limited

Copyright © 2025, Emerald Publishing Limited

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