The impact of digital technology on MSME performance: A Rasch Jakpreneur study in Indonesia

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Suyono Thamrin, Tuty Sariwulan, M. Calvin Capnary, Yaya Jakaria

2026 International Journal of Advanced and Applied Sciences Vol. 13 Issue 4 Article Cited by 0 SDG 9SDG 17 Quartile

Abstract

The aim of this study is to examine the relationship between digital technology use and business performance among micro, small, and medium enterprises (MSMEs) participating in the Jakpreneur program in Jakarta (n = 200). A 30-item instrument was calibrated using the Rasch model and demonstrated high measurement precision, with strong person reliability (0.94) and item reliability (0.95). The person–item map revealed under-targeting at higher ability levels, indicating a ceiling effect and the need for more difficult items. Ordinary least squares regression analysis showed that digital technology use has a strong and statistically significant effect on business performance (B = 0.741, SE = 0.030, β = 0.866, t(198) = 24.424, p < 0.001), explaining 75.1% of the variance in performance (R2 = 0.751; adjusted R2 = 0.750). These findings highlight the importance of strengthening digital capabilities, from basic to advanced levels, in performance improvement strategies for urban MSMEs. Methodologically, expanding the item bank with higher-difficulty items is necessary to improve measurement targeting and maintain validity as respondents’ competencies increase. The main limitations of this study are its cross-sectional design and purposive sampling; future research should adopt longitudinal designs and include differential item functioning analyses across sectors and income groups. © 2026 The Authors.

Affiliations

Faculty of Defense Management, Defense University, Bogor, Indonesia; Faculty of Economics and Business, State University of Jakarta, Jakarta, Indonesia; Faculty of Management and Business, Binus University, Jakarta, Indonesia

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