Title: The role of education and ICT in improving the performance of enterprises: evidence from micro and small enterprises survey

Authors: Eny Sulistyaningrum; Elan Satriawan; Esa Azali Asyahid

Addresses: Faculty of Economics and Business, Department of Economics, Universitas Gadjah Mada, Yogyakarta, 55281, Indonesia ' Faculty of Economics and Business, Department of Economics, Universitas Gadjah Mada, Yogyakarta, 55281, Indonesia ' Faculty of Economics and Business, Department of Economics, Universitas Gadjah Mada, Yogyakarta, 55281, Indonesia

Abstract: The advancement in information and communication technology (ICT), particularly the internet, has positively affected business performance, including for micro and small enterprises (MSEs). Human capital, primarily owners' education, is one of the substantial factors influencing the capabilities of ICT utilisation. This study aims to examine the potential nexus between those two findings by testing whether the education of micro and small enterprise owners augments the positive impact of internet adoption on export outcomes. We conducted a survey of 576 MSEs residing in the province of Yogyakarta, Indonesia, in January 2018. This study found that the education of micro and small enterprise owners augments the positive impacts of internet adoption on export outcomes, particularly export probability. For owners with or without primary education, internet adoption has not brought any effects. Three specific uses of the internet-business communication, buying and selling, and financial transactions-were found to be augmented by education in bringing positive effects on export probability.

Keywords: MSEs; ICT adoption; education; export outcomes; Indonesia.

DOI: 10.1504/IJGSB.2024.138673

International Journal of Globalisation and Small Business, 2024 Vol.14 No.1, pp.18 - 40

Received: 03 Jun 2023
Accepted: 21 Dec 2023
Published online: 23 May 2024 *

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