Information Systems Adoption Among SMEs in Surabaya Greater Area

Abstract

The rapid growth of Internet Technology (IT) in Indonesia proposes many new improvement opportunities for small and medium enterprises (SMEs) particularly in business process automation. Observing the cost of acquisitioning IT has become more affordable now compared to ten years ago, more and more SMEs are implementing it. Various studies in the field of SMEs have been done, but not much focusing on how SMEs adopting Integrated Information Systems. Specifically, in Surabaya greater area, most of SMEs are trying to automate their business processes, however not many realize that in terms of IT adoption context, SMEs are not just merely a simple scaled-down model of large firms, hence many project implementations in SMEs were failing. This study focuses on examining four important antecedents of technology adoption using Technology Acceptance Model framework. The perceived efficiency benefit and perceived service benefit were proposed as the antecedents of Perceived Usefulness. Familiarity and Owner's ICT Knowledge were proposed as antecedents of Perceived Ease of Use. The collected data of 264 SME owners or managers were tabulated and analyzed using path analysis to measure the causal effects. Result findings from final model confirmed the significance of Perceived Ease of Use as the largest predictor of Intention to Use IT for business process automation. Despite solid theoretical contribution of the findings, this study offers practical means of increasing the success rate of IT adoption by SMEs.