TESTING THE EFFECT OF CUSTOMER CAPITAL AND TECHNOLOGICAL INNOVATION ON BUSINESS PERFORMANCE

Abstract

The digital era, which should be implemented and able to get high opportunities, can also become a threat if MSMEs keep their business the same. To face business competition that is now increasingly complex, every SME actor is required to be able to adapt to the company's external environment by continuously monitoring and managing customer capital and applying innovation in technology. This study analyzes and examines the effect of customer capital and technological innovation on business performance.This study uses a causality quantitative research design. The number of samples used in this study was 110 SME business actors. Data analysis used an instrument test, normality test, regression test, hypothesis test, and correlation test, as well as the coefficient of determination. The results of the data analysis confirm that customer capital and technology have a positive and significant impact on business performance. This research concludes that effective customer capital management and the readiness of SMEs to deal with rapidly changing technology are believed to impact business performance significantly. It can be implemented with a good idea that can be replicated more easily, requiring continuously new and better product usage methods, processes, and faster services