Effect of Strategic Decision, Innovation, and Information Technology Adoption on Competitive Advantages and MSME Performance: Studies at MSME Food and Beverage Industry Sector in Bandung Raya

Abstract

The objectives of this research are (1) to analyze and to explain the influence of strategic decision on MSME performance, (2) to analyze and to explain the influence of strategic decision on competitive advantage, (3) to analyze and to explain the influence of innovation on MSME performance, (4) to analyze and to explain the influence of innovation on competitive advantage, (5) to analyze and to explain the influence of information technology adoption on MSME performance, (6) to analyze and to explain the influence of technology information adoption on competitive advantage (7) to analyze and to explain the influence of competitive advantage on MSME performance.Research uses explanatory research to explain the relationship between research variables. It is conducted at micro, small and medium enterprises (MSME) in food and beverage industry sector. Unit of analysis is 152 owners of micro, small and .medium enterprises. Statistic analysis is used for hypothesis testing. Method of this analysis is Structural Equation Model (SEM).Result of research has indicated that there are seven (7) direct relation paths, five (5) significant relation paths, and two (2) not significant paths. The significant relation paths are (1) strategic decision on competitive advantage, (2) Innovation on MSME performance, (3) Innovation on competitive advantage, (4) information technology adoption on MSME performance, and (5) information technology adoption on competitive advantage. The not significant relation paths are (1) strategic decision on MSME performance, and (2) competitive advantage on MSME performance.

Keywords: Strategic Decision, Innovation, Information Technology Adoption, Competitive Advantage, MSME performance