Impact of Dynamic Capabilities and ICT Utilization on Performance of SMEs and Moderating Role of Agile Leadership: A Case Study for Indonesia

Abstract

Everything is changing rapidly, including the business world. Business actors (SMEs) must innovate to survive in the digital era. One of the efforts that can be done is to improve performance through dynamic capabilities, ICT utilization, and agile leadership. This study aims to analyze the effect of dynamic capabilities and ICT utilization on the performance of SMEs, the effect of dynamic capabilities on ICT utilization, and the influence of agile leadership in moderating the relationship between dynamic capabilities and SME performance. The sample in this study was 240 respondents from SMEs in Central Java, Indonesia, who were selected using the purposive sampling method. The data analysis technique used Structural Equation Modeling (SEM), operated through Partial Least Squares (PLS) software. The results showed that all hypotheses were accepted.