| Issue |
SHS Web Conf.
Volume 217, 2025
1st UNSIQ International Symposium on Economics and Business “SMEs’ Competitive Advantage: Digital Technology and Internationalization” (UISEB 2024)
|
|
|---|---|---|
| Article Number | 05002 | |
| Number of page(s) | 12 | |
| Section | Technology Integration and SME Competitiveness | |
| DOI | https://doi.org/10.1051/shsconf/202521705002 | |
| Published online | 26 May 2025 | |
Innovation as a Mediation to Improve Business Performance with The Antecedents of Technological Ability and Absorptive Capacity
Management, Faculty of Economics and Busieness, Universitas Sains Al-Qur’an
* Corresponding author: aurelfairuska25@gmail.com
Innovation plays an important role in improving business performance, especially for SMEs facing fierce competition and rapid market changes. Technological capability and absorptive capacity are the main factors that influence how SMEs can innovate and adapt to technological developments and new information. The purpose of this paper is to explore the role of innovation as a mediator in improving SME business performance through the influence of technological capability and absorptive capacity. This study focuses on SMEs in certain regions, with samples taken using the Hair et al., (2018) method and involving a minimum of 100 respondents. The data analysis technique was carried out using SEM-PLS 4.0. The implications of this study indicate that SMEs that are able to develop technological capabilities and strengthen their absorptive capacity will be better able to innovate, which in turn will improve their business performance. This study offers new insights into how innovation can be maximized through optimizing the company’s internal capabilities, especially among SMEs, which are rarely discussed in previous studies.
Key words: Business Performance / Technology Capabilities / Absorptive Capacity
© The Authors, published by EDP Sciences, 2025
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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