TECHNOLOGICAL CAPABILITY AS ANTECEDENT TO IMPROVE THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN THE ARCHIPELAGIC GEOGRAPHIC REGION

This is a qualitative research which will be further developed in quantitative. A survey conducted on SME Furniture in Jepara Central Java as a pilot test to show the right construction. We find that technological capabilities are already being utilized by business agents to produce superior products to competitors. The role of integrated information in the system becomes a communication bridge to improve performance and connect SMEs with other parties. Employee's knowledge becomes the power of the company to be able to compete in the market. So that integrated technology and information systems supported with knowledge and utilization can be the company's advantage