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Contribution Small medium enterprises in Indonesia GDP about 60% (CNN Indonesia, 2016). As one of the existing business units, MSMES should follow these developments immediately in order to compete even worldwide. MSMES is a vital sector in the growth and economic development both in developed and developing countries because of its role in providing jobs. MSMES have the ability to absorb labors and have a large number of total business units in Indonesia ( Detik finance, 2016). Hill [10] stated that MSMES plays an important role in economic development in Indonesia. Research on operational performance of SMES conducted by Nehemiah [46] shows the supply chain management practices have a positive effect on SMES operating performance across the sectors of trade and information technology. Some studies that specifically discuss the operational performance of SMES conducted by Njenga (2015) found that innovation was widely practiced in SMES. Some factors such as employee training programs, competitive pressures and market segments served were identified to have a large influence on adoption of innovation. The study also established that innovation discovered while improving operational performance in the practicing firms. While Hsueh and Tu stated that the innovation resulted in a positive relationship with operational performance of new enterprises. A study by Moorthy et al., [45] shows that there is a positive and significant relationship between the use of marketing information and information technology applications to SMES performance. On the contrary, ineffective entrepreneurship and inappropriate human resource management (HRM) have a negative and significant influence on performance MSMES. Meanwhile Ashrafi and Murtaza stated that the use of information communication technology can improve the performance of SMES. Other ascendants affecting the performance of SMES are firm size. In previous studies Jung [26] has shown that firm size influences firm entrepreneurship and SMES longevity performance, but for firm entrepreneurship and SMES variable contribution or profitability performance have no effect against the size of the company in SMES. Other research Raziq [48] claimed that there was a positive relationship between company size and application of high performance management practices in Pakistani SMES. Another aspect that supports SMES performance is business strategy. Basically, strategy has a positive relationship with business unit performance, however Gibcus and Kemp [21] claimed that strategy does not influence performance. On the other hand, a study by Leitner and Guldenberg [28] at MSMES in Austria stated that there is a difference performance when distinct strategies were applied. MSMES that follow a combination strategy outperform a company without generic strategy in terms of profitability and growth achieve a higher profit rate than companies that follow a differentiation strategy. Based on the background research on the performance of SMES above, it is very relevant in Indonesia, with many obstacles in developing its performance world bank and Hayashi, whereas the contribution of SMES in various sectors of the economy is quite high. The difference of this study with the previous one is by adding independent variables and changing the sample research[20-40].

The Influence Of Application Technology,Firms Size, and Strategy of Operating Performance of Micro, Small and Medium Enterprises