Author(s): Willy Arafah, Raden Ricy Batara, Hamdy Hady
This research aims to investigate about the effect of the information communication technology readiness and knowledge management on entrepreneurial strategic orientation, and their implication to firm performance. The methodology of this research was explanatory research with hypothesis testing for examining seven hypotheses. Populations were the small medium enterprises, which were located in Jakarta, with sample size were 392 SMEs, data for this study were collected using questionnaires and SEM (Structural Equation Modeling) was employed for data analysis techniques. The resulted of this research were as follows: (1) information communication technology readiness positively and significantly influenced entrepreneurial strategic orientation; (2) knowledge management positively and significantly influenced entrepreneurial strategic orientation; (3) information communication technology readiness and knowledge management positively and significantly influenced entrepreneurial strategic orientation; (4) information communication technology readiness positively and significantly influenced firm performance; (5) knowledge management positively and significantly influenced firm performance; (6) entrepreneurial strategic orientation positively and significantly influenced firm performance; (7) information communication technology readiness, knowledge management, and entrepreneurial strategic orientation positively and significantly influenced firm performance. Mediating effect of entrepreneurial strategic orientation increased the effects of information communication technology readiness and knowledge management on firm performance. the resulted of this research in general there was the effect of information communication technology readiness, and knowledge management on entrepreneurial strategic orientation, information communication technology readiness, and knowledge management on entrepreneurial strategic orientation on firm performance of SMEs of Jakarta. All of seven hypotheses which proposed in this research were being given can be accepted. Information communication technology readiness as an independent variable was the strongest influence on entrepreneurial strategic orientation, and entrepreneurial strategic orientation was the strongest influence on firm performance. This reserach also provides discussion on the findings as well as limitations, theoretical and practical contribution, theoretical and managerial implications of the study, and suggestions for future research.