Information and communication technology among MSMEs: Drivers and Barriers
Main Article Content
Abstract
There is an increasing trend of Information and Communication Technology (ICT) among micro, small, and medium enterprises (MSMEs) today. However, implementing ICT in MSMEs is still challenging due to financial and resource limitations. This study identifies and analyzes the driving and inhibiting factors affecting ICT implementation in MSMEs. Data from 175 MSMEs were analyzed using quantitative descriptive techniques in percentages and smart PLS for confirmatory factor analysis (CFA). Based on the analysis results, nine driving factors and eleven inhibiting factors for ICT adoption in MSMEs were found. Although much research has been conducted in the field of ICT, there is still a need to adjust strategies and policies that can support ICT adoption for MSMEs, especially in developing countries.
Article Details
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
References
S. Z. Zamani, “Small and Medium Enterprises (SMEs) facing an evolving technological era: a systematic literature review on the adoption of technologies in SMEs,” Eur. J. Innov. Manag., vol. 25, no. 6, pp. 735–757, 2022, doi: 10.1108/EJIM-07-2021-0360.
T. Y. Wicaksono and A. Simangunsong, “Digital Technology Adoption and Indonesia’s MSMEs during the COVID-19 Pandemic,” ERIA Discuss. Pap. Ser., vol. 3, no. 426, pp. 1–33, 2022.
A. A. Ahi, N. Sinkovics, and R. R. Sinkovics, “E-commerce Policy and the Global Economy: A Path to More Inclusive Development?,” Manag. Int. Rev., vol. 63, no. 1, pp. 27–56, 2023, doi: 10.1007/s11575-022-00490-1.
T. Yuwono, A. Suroso, and W. Novandari, “Information and communication technology in SMEs : a systematic literature review,” J. Innov. Entrep., vol. 13, no. 31, 2024, doi: 10.1186/s13731-024-00392-6.
P. N. I. Nugroho, “Analysis of Financial Aspect and Operational Aspect in the Estabilishment of the Rural Bank Branch Office Cilacap County in Pandemic Covid-19,” in Proceeding of International Sustainable Competitive Advantage, 2020, vol. 1, no. 1, pp. 17–24. [Online]. Available: http://jp.feb.unsoed.ac.id/index.php/sca-1/article/view/1858%0Ahttp://jp.feb.unsoed.ac.id/index.php/sca-1/article/download/1858/1738
O. K. Maps, “Knowledge Map for research on ict adoption among smes in indonesia,” 2024. https://openknowledgemaps.org/map/1f4c5e1592085dc394a384637f4e3b07. (accessed May 18, 2024).
F. Faiz, “Factors Influencing Digital Technologies Adoption among Indonesian SMEs: A Conceptual Framework,” 2024, no. Icelbi 2022, pp. 227–241.
C. S. de Mattos, G. Pellegrini, G. Hagelaar, and W. Dolfsma, “Systematic literature review on technological transformation in SMEs: a transformation encompassing technology assimilation and business model innovation,” Manag. Rev. Q., vol. 74, no. 2, pp. 1057–1095, 2023, doi: 10.1007/s11301-023-00327-7.
T. Yuwono, R. N. Triwibowo, T. Tajudin, and H. N. Sefiani, Digital Marketing UMKM. Cilacap: UNAIC Press Cilacap, 2024.
K. Kiyabo and N. Isaga, “Entrepreneurial orientation, competitive advantage, and SMEs’ performance: application of firm growth and personal wealth measures,” J. Innov. Entrep., vol. 9, no. 1, 2020, doi: 10.1186/s13731-020-00123-7.
I. Rachmawati, T. Yuwono, and M. Raihan, “Decision Analysis Of Msmes Investment In Cilacap Regency,” J. Ekon., vol. 11, no. 03, pp. 1218–1221, 2022, [Online]. Available: https://ejournal.seaninstitute.or.id/index.php/Ekonomi/article/view/858/712
W. Novandari, D. S. Gunawan, I. R. Bawono, R. Naufalin, and S. Maryani, “Analisis Minat Pelaku Usaha General Trade Terhadap Penggunaan Aplikasi Belanja Online B2B (Studi Dengan Pendekatan Unified Theory of Acceptance and Use of Technology),” Perform. J. Pers. Financ. Oper. Mark. Dan Sist. Inf., vol. 29, no. 2, pp. 82–98, 2022, doi: 10.32424/1.jp.2022.29.2.6891.
M. Özşahin, B. A. Çallı, and E. Coşkun, “ICT Adoption Scale Development for SMEs,” Sustainability, vol. 14, p. 14897, 2022, doi: 10.3390/su142214897.
A. I. Neicu, A. C. Radu, G. Zaman, I. Stoica, and F. Rapan, “Cloud computing usage in SMEs. An empirical study based on SMEs employees perceptions,” Sustainability, vol. 12, no. 12, pp. 1–14, 2020, doi: 10.3390/su12124960.
R. P. Setyanto and W. A. Sunarjo, “Will Cashless Payment Become Consumer’s Transaction Habit In The ‘New Normal’ Era?,” Trikonomika, vol. 20, no. 1, pp. 47–53, Jun. 2021, doi: 10.23969/trikonomika.v20i1.3418.
Sulasih, Suliyanto, W. Novandari, and A. Munawaroh, “Memprediksi Niat Beli Produk Fashion Melalui Aplikasi Marketplace Dengan Theory Planned Behaviour Dan Product Knowledge Sebagai Variabel Moderasi Dengan Analisa Partial Least Square (PLS),” el-Jizya J. Ekon. Islam, vol. 10, no. 1, pp. 1–20, 2022, doi: 10.24090/ej.v10i1.5718.
A. Mishrif and A. Khan, “Technology adoption as survival strategy for small and medium enterprises during COVID-19,” J. Innov. Entrep., vol. 12, no. 1, 2023, doi: 10.1186/s13731-023-00317-9.
J. Gao, A. B. Siddik, S. Khawar Abbas, M. Hamayun, M. Masukujjaman, and S. S. Alam, “Impact of E-Commerce and Digital Marketing Adoption on the Financial and Sustainability Performance of MSMEs during the COVID-19 Pandemic: An Empirical Study,” Sustain., vol. 15, no. 2, p. 1594, 2023, doi: 10.3390/su15021594.
E. Bruce, Z. Shurong, D. Ying, M. Yaqi, J. Amoah, and S. B. Egala, “The Effect of Digital Marketing Adoption on SMEs Sustainable Growth: Empirical Evidence from Ghana,” Sustainability, vol. 15, no. 6, p. 4760, 2023, doi: 10.3390/su15064760.
Sulasih, W. Novandari, A. Suroso, and R. P. Setyanto, “Use of Social Media Marketing among MSMEs : Driving and Inhibiting Factors,” J. Manaj. Indones. J., vol. 24, no. 1, pp. 21–29, 2024, doi: 10.25124/jmi.v24i1.5475.
R. M. Mushi, “Assessing the acceptance of mobile phone technology in Tanzanian SMEs,” J. Electron. Bus. Digit. Econ., 2024, doi: 10.1108/jebde-10-2023-0026.
J. F. Hair, J. J. Risher, M. Sarstedt, and C. M. Ringle, “When to use and how to report the results of PLS-SEM,” Eur. Bus. Rev., vol. 31, no. 1, pp. 2–24, 2019, doi: 10.1108/EBR-11-2018-0203.