Understanding the Determinants of SMEs Performance: The Role of Technology Adoption and Financial Resources

The performance of Small and Medium Enterprises (SMEs) is a crucial metric for assessing the efficiency and effectiveness of their operations. This study examines the factors that can enhance the performance of SMEs in Indonesia. This study employs the theoretical framework of the Resource-Based View (RBV) Theory. This study specifically investigates the impact of adopting technology and the availability of financial resources. This study employs a survey methodology inside a quantitative research framework. This study employed purposive sampling to choose a sample of 166 SMEs owners or managers in Yogyakarta, Indonesia, who participated in the research. The research findings indicate that adopting technology and allocating financial resources significantly contribute to enhancing the performance of SMEs. In addition, it was shown that technology implementation can occur when SMEs have adequate financial resources.