The Role of Technology and Innovation Capabilities in Achieving Business Resilience of MSMEs during Covid-19: Empirical Study

Anggadwita, G.; Martini, E.; Hendayani, R.; Kamil, M. R.

The purpose of this study was to identify the role of technology and innovation capabilities in the resilience of Micro, Small and Medium Enterprises (MSMEs) during the Covid-19 pandemic. In addition, it examined the mediating role of innovation capability on the relationship between technology capability and business resilience. This quantitative study used a causality approach and a structural equation model to examine, predict and estimate the relationships between the variables. For this reason, as many as 400 MSME owners in Jakarta, Indonesia were surveyed using a random sampling technique. The results indicated that technology and innovation capabilities have a positive and significant effect on the business resilience of MSMEs during the Covid-19 pandemic. Besides, innovation capability was also proven to play a significant role as the mediator in the relationship between technology capability and business resilience. This study emphasizes the importance of the business resilience concept as well as increasing technology and innovation capabilities of MSMEs in dealing with the Covid-19 pandemic. © 2021 IEEE.