DETERMINANTS OF TWO SEQUENTIAL STAGES INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) ADOPTION IN MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMEs) AND THEIR IMPACT ON BUSINESS PERFORMANCE

• Main Author: Nafi'atul Huda, Nisrina
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35006
• Institution: Institut Teknologi Bandung

The existence of advanced and rapid technological developments has brought many benefits and changes in the business environment. Especially in developing countries such as Indonesia where most businesses are still implementing customer driven innovation as their business strategy for entering the market, so that any changes in the downstream, which is consumer behavior, will inevitably encourage the upstream to change. Miserably, the technology adoption level of Indonesian MSMEs still fall below expectation. In regards to its position as national economy driver, the above condition can lead this country to a burden and risky economic condition. Using 52 samples of MSMEs in Yogyakarta, this study aims to examine the key determinant factors of two stages ICT Adoption and their impact on MSMEs’ business performance. Finally, the results of data processing using PLS-SEM method show that technological context is the most powerful factor followed by organizational context that drives MSMEs to their ICT adoption decision. Furthermore, the environmental context becomes a great mediating variable on post-adoption stage that strengthens the positive relationship between ICT use and business performance.