Optimizing SME Performance through ICT Diversification and Competence Development Strategies

Objective: This study examines the moderating role of employee competence in the relationship between ICT diversification and employee performance in SMEs within the e-commerce shoe sector in East Java, Indonesia. Research Design & Methods: An explanatory approach was used, employing Moderated R...

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Main Authors: Chamdan Purnama, Dinda Fatmah, Mirhamida Rahmah, Syaiful Hasani, Yusriyah Rahmah, Zakiyah Zulfa Rahmah
Format: Article
Language:English
Published: Universitas Islam Nahdlatul Ulama Jepara 2024-12-01
Series:Journal of Management and Entrepreneurship Research
Subjects:
Online Access:https://doi.org/10.34001/jmer.2024.12.05.2-50
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author Chamdan Purnama
Dinda Fatmah
Mirhamida Rahmah
Syaiful Hasani
Yusriyah Rahmah
Zakiyah Zulfa Rahmah
author_facet Chamdan Purnama
Dinda Fatmah
Mirhamida Rahmah
Syaiful Hasani
Yusriyah Rahmah
Zakiyah Zulfa Rahmah
author_sort Chamdan Purnama
collection DOAJ
description Objective: This study examines the moderating role of employee competence in the relationship between ICT diversification and employee performance in SMEs within the e-commerce shoe sector in East Java, Indonesia. Research Design & Methods: An explanatory approach was used, employing Moderated Regression Analysis (MRA) to test the hypothesis. Data were collected from 90 employees using standardized questionnaires and analyzed with IBM SPSS Statistics version 25. Findings: The results show that both ICT diversification and employee competency positively and significantly influence employee performance. The interaction between ICT diversification and employee competency further enhances the relationship between these factors and employee performance. Initially, the model demonstrated a strong relationship between ICT diversification and employee performance, which became even stronger when employee competency was included as a moderating variable. This indicates that employee competency plays a significant role in amplifying the positive effects of ICT diversification on performance. Implications and Recommendations: The findings offer practical insights for SMEs to improve performance through targeted ICT training and competency development. However, the study is limited to the e-commerce shoe sector in East Java, which may limit the generalizability of the results. Future research should expand to diverse industries and wider geographical locations to validate these findings. Contribution & Value Added: This research addresses the gap in understanding the moderating effect of employee competence on the relationship between ICT and performance in SMEs, offering new insights into strategic human resource management.
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institution Kabale University
issn 2723-1658
2723-1666
language English
publishDate 2024-12-01
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spelling doaj-art-f2767ebb6565493f8366f1b6da67a8c12025-01-13T03:19:27ZengUniversitas Islam Nahdlatul Ulama JeparaJournal of Management and Entrepreneurship Research2723-16582723-16662024-12-0152708410.34001/jmer.2024.12.05.2-50Optimizing SME Performance through ICT Diversification and Competence Development StrategiesChamdan Purnama0Dinda Fatmah1Mirhamida Rahmah2Syaiful Hasani3Yusriyah Rahmah4Zakiyah Zulfa Rahmah5Sekolah Tinggi Ilmu Ekonomi Al-Anwar, IndonesiaSekolah Tinggi Ilmu Ekonomi Al-Anwar, IndonesiaSekolah Tinggi Ilmu Ekonomi Al-Anwar, IndonesiaUniversitas Negeri Malang, IndonesiaUniversitas Bina Sehat PPNI Mojokerto, IndonesiaInstitut Agama Islam Negeri Kediri, IndonesiaObjective: This study examines the moderating role of employee competence in the relationship between ICT diversification and employee performance in SMEs within the e-commerce shoe sector in East Java, Indonesia. Research Design & Methods: An explanatory approach was used, employing Moderated Regression Analysis (MRA) to test the hypothesis. Data were collected from 90 employees using standardized questionnaires and analyzed with IBM SPSS Statistics version 25. Findings: The results show that both ICT diversification and employee competency positively and significantly influence employee performance. The interaction between ICT diversification and employee competency further enhances the relationship between these factors and employee performance. Initially, the model demonstrated a strong relationship between ICT diversification and employee performance, which became even stronger when employee competency was included as a moderating variable. This indicates that employee competency plays a significant role in amplifying the positive effects of ICT diversification on performance. Implications and Recommendations: The findings offer practical insights for SMEs to improve performance through targeted ICT training and competency development. However, the study is limited to the e-commerce shoe sector in East Java, which may limit the generalizability of the results. Future research should expand to diverse industries and wider geographical locations to validate these findings. Contribution & Value Added: This research addresses the gap in understanding the moderating effect of employee competence on the relationship between ICT and performance in SMEs, offering new insights into strategic human resource management.https://doi.org/10.34001/jmer.2024.12.05.2-50employee competencyemployee performanceict diversificationsmes
spellingShingle Chamdan Purnama
Dinda Fatmah
Mirhamida Rahmah
Syaiful Hasani
Yusriyah Rahmah
Zakiyah Zulfa Rahmah
Optimizing SME Performance through ICT Diversification and Competence Development Strategies
Journal of Management and Entrepreneurship Research
employee competency
employee performance
ict diversification
smes
title Optimizing SME Performance through ICT Diversification and Competence Development Strategies
title_full Optimizing SME Performance through ICT Diversification and Competence Development Strategies
title_fullStr Optimizing SME Performance through ICT Diversification and Competence Development Strategies
title_full_unstemmed Optimizing SME Performance through ICT Diversification and Competence Development Strategies
title_short Optimizing SME Performance through ICT Diversification and Competence Development Strategies
title_sort optimizing sme performance through ict diversification and competence development strategies
topic employee competency
employee performance
ict diversification
smes
url https://doi.org/10.34001/jmer.2024.12.05.2-50
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