Adoption of information technology encourages the creation of innovation to improve industrial performance in the digital era

Abstract

Technology is becoming a trend, so this research examines technology information as a driver of productivity for small or medium industries (SMEs). This research examines the impact of innovation on the performance of small and medium enterprises, the impact of information technology on industrial performance, and the role of information technology as a mediator of innovation on company performance. Data was collected through an online survey. The total population is 346, so that many questionnaires were distributed to MSMEs using path analysis and Smart PLS as processing tools. The findings are that innovation has an influence on increasing the productivity of small businesses, innovation has a positive role on information systems, remains insignificant on the performance of industrial Performance, and information technology does not mediate the relationship between innovation and performance. So it can be said that innovation plays an important role in improving company performance.