The Influence of Management Quality and Innovation Strategy on Operational Performance Through Information Technology as an Intervening Variable at LPDB KUMKM

The use of technology is useful to encourage the emergence of new innovations in the implementation of corporate action strategies. Innovation is a way out for LPDB-KUMKM to adapt the organization’s circumstances to dynamic external environmental issues. Information technology is increasingly being used to measure, understand and improve the quality of sustainable organizational management by increasing awareness of the concept of quality, improving services and reducing costs that arise in the process of obtaining quality management. LPDB-KUMKM continues to strive to make various innovations by designing a core micro financing system, which is a system to monitor the process of distributing revolving funds at revolving fund management institutions in Indonesia. This study uses purposive sampling with the number of samples used as many as 261 LPDB-KUMKM employees, while the analysis technique uses structural equation modeling analysis. The research results obtained are: (1) the quality of management has an effect on information technology; (2) the innovation strategy has an effect on information technology; (3) management quality has an effect on operational performance; (4) innovation strategy has an effect on operational performance; and (5) information technology has an effect on operational performance.