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The Urgency of Business Agility During COVID-19 Pandemic: Distribution of Small and Medium Business Products and Services

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2022, v.20 no.6, pp.57-66
https://doi.org/https://doi.org/10.15722/jds.20.06.202206.57
BONGSO, Gromyko
HARTOYO, Rachmat

Abstract

Purpose: Business agility is an important key to survival for SMEs in Indonesia, especially during the COVID-19 pandemic. Indonesian local product distribution and service distribution are mostly served by SMEs. Agile businesses will be able to assist them in the proper distribution of products and services. This research examines how the direct and indirect influence of IT capabilities on business agility through organizational learning and business intelligence for small and medium enterprises in the distribution of Indonesian products and services. Research design, data and methodology: This research uses SEM method with SmartPLS tool. The sample of this research was conducted on small and medium enterprises in the distribution of Indonesian products and services. The sample obtained in this study was 202 SME owners or managers (strategic level). Results: Business intelligence plays a key role in improving business agility. The results of IT capability can directly and indirectly affect business agility through organizational learning. Conclusions: Business intelligence has the biggest role in increasing business agility in SMEs in Indonesia. IT capability has an indirect effect on business agility through organizational learning. The findings of this study prove that IT capabilities do not indirectly affect business agility through business intelligence.

keywords
Business Agility, Organizational Learning, Business Intelligence, IT Capability, Product Distribution, Service Distribution

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