DETERMINING DETERMINANTS AND BARRIERS THAT INFLUENCE SMART HOME APPLIANCES ADOPTION INTENTION USING THE BEHAVIORAL REASONING THEORY METHOD

• Main Author: Alifah, Qinthar
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57656
• Institution: Institut Teknologi Bandung

In today condition, the adoption of Smart Home appliances in Indonesia is not as powerful as expected. As one of the countries with largest number of internet users in the world, Indonesia was initially expected to create a promising market for Internet of Things (IoT) devices, especially for the IoT home products, Smart Home appliances. However, the country's average revenue per Smart Home built so far is only USD 40.77 when the worldwide average revenue generates USD 392.62. This number is surprisingly low, especially compared to other similar developing countries, for example Malaysia, where it is counted that the average revenue reach USD 209.81. Applying the Behavioral Reasoning Theory (BRT) method, this study examined the relative influence of context-specific reasons, which are "reasons for" and "reasons against" in predicting attitude and intentions of Smart Home appliances adoption. This study surveys 518 active internet users in Indonesia and use PLS-SEM to test hypotheses and measure the relationship between variables. The findings of the study demonstrate that "reasons for" and individual's attitude towards the Smart Home appliances itself create a positive significant influence towards the adoption intention. On th other hand, this study confirmed that "reasons against" serve as negative influence towards Smart Home appliances adoption intention and have bigger effect on it compared to the "reasons for". As another result, among the "reasons for", Convenience serves as the top determinant for Smart Home appliances adoption intention while among the "reasons against", Traditional Barrier acts as the most important variable against Smart Home appliances adoption intention. This study also confirmed that value of openness to change significantly influences the reasons for and reasons against adoption of Smart Home appliance.