Unveiling the Power of Adaptive InformationTechnology: A Catalyst for Elevating SME Performance in Indonesia – A Case Study in Malang City

Authors

  • Ghozali Department of Economics, Faculty of Economics and Business, Universitas Brawijaya, Malang, East Java 65145, Indonesia
  • Rachmad Kresna Sakti Department of Economics, Faculty of Economics and Business, Universitas Brawijaya, Malang, East Java 65145, Indonesia
  • Yenny Kormitasari Department of Economics, Faculty of Economics and Business, Universitas Brawijaya, Malang, East Java 65145, Indonesia
  • Amalia Rahmawati Department of Economics, Faculty of Economics and Business, Universitas Brawijaya, Malang, East Java 65145, Indonesia
  • Ghifary Duyufur Rohman Department of Economics, Faculty of Economics and Business, Universitas Brawijaya, Malang, East Java 65145, Indonesia

DOI:

https://doi.org/10.51601/ijcs.v4i2.263

Abstract

This research seeks to comprehend the impact of information technology (IT) utilization on the performance of Small and Medium Enterprises (SMEs) in Malang. The study investigates the perceptions of SMEs stakeholders through a survey involving 90 SMEs respondents in Malang. Employing a questionnaire and utilizing the Partial Least Squares Structural Equation Modeling (PLS-SEM) method for data analysis, the research reveals positive and significant outcomes for latent variables such as performance expectations, business expectations, social influence, hedonic motivation, and habits concerning SMEs behavior in adopting information technology, based on the Unified Theory of Acceptance and Use of Technology (UTAUT 2). However, the latent variable of price value does not exert a significant influence on SMEs behavioral interest in adopting information technology. Additionally, SMEs behavioral interest positively and significantly influences their usage behavior in utilizing information technology, and the subsequent usage behavior has a positive and significant effect on SME performance.

Downloads

Download data is not yet available.

References

Ajzen, I., & Schmidt, P. (2020). Changing behavior using the theory of planned behavior. The Handbook of Behavior Change, 17–31.

Alalwan, A. A., Dwivedi, Y. K., Rana, N. P., & Algharabat, R. (2018). Examining factors influencing Jordanian customers’ intentions and adoption of internet banking: Extending UTAUT2 with risk. Journal of Retailing and Consumer Services, 40, 125–138.

Analia, D. (2020). Peran Stakeholder dalam Meningkatkan Kinerja Usaha Mikro Kecil di Kota Padang, Sumatera Barat. Industria: Jurnal Teknologi Dan Manajemen Agroindustri, 9(3), 203–216.

Arjang, A., Sutrisno, S., Permana, R. M., Kusumastuti, R., & Ausat, A. M. A. (2023). Strategies for Improving the Competitiveness of MSMEs through the Utilisation of Information and Communication Technology. Al-Buhuts, 19(1), 462–478.

Ashraf, A. R., Tek, N. T., Anwar, A., Lapa, L., & Venkatesh, V. (2021). Perceived values and motivations influencing m-commerce use: A nine-country comparative study. International Journal of Information Management, 59, 102318.

Baptista, G., & Oliveira, T. (2015). Understanding mobile banking: The unified theory of acceptance and use of technology combined with cultural moderators. Computers in Human Behavior, 50, 418–430.

Bi, R., Davison, R. M., & Smyrnios, K. X. (2017). E-business and fast growth SMEs. Small Business Economics, 48, 559–576.

Chao, C.-M. (2019). Factors determining the behavioral intention to use mobile learning: An application and extension of the UTAUT model. Frontiers in Psychology, 10, 1652.

Chopdar, P. K., Korfiatis, N., Sivakumar, V. J., & Lytras, M. D. (2018). Mobile shopping apps adoption and perceived risks: A cross-country perspective utilizing the Unified Theory of Acceptance and Use of Technology. Computers in Human Behavior, 86, 109–128.

Ciekanowski, Z., & Wyrębek, H. (2020). Impact of micro, small and medium-sized enterprises on economic security. Polish Journal of Management Studies, 22(1), 86–102.

Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User acceptance of computer technology: A comparison of two theoretical models. Management Science, 35(8), 982–1003.

Dewi, D. M., Setiadi, Y., Ikhwanuddin, M., & Fadhilah, L. A. (2022). Kontribusi Teknologi Informasi dan Komunikasi terhadap Kelompok Ketimpangan Pendapatan Daerah. Jurnal Ekonomi Dan Pembangunan Indonesia, 22(2), 5.

Hale, J. L., Householder, B. J., & Greene, K. L. (2002). The theory of reasoned action. The Persuasion Handbook: Developments in Theory and Practice, 14(2002), 259–286.

Hermawati, A., Anam, C., & Suhermin, S.(2020).Determining strategy to improve human resources performance by identifying tourism condition SMEs.Academic Journal of Interdisciplinary Studies,9(6),228–238.

Hernita, H., Surya, B., Perwira, I., Abubakar, H., & Idris, M. (2021). Economic business sustainability and strengthening human resource capacity based on increasing the productivity of small and medium enterprises (SMES) in Makassar city, Indonesia. Sustainability, 13(6), 3177.

Hew, J.-J., Lee, V.-H., Ooi, K.-B., & Wei, J. (2015). What catalyses mobile apps usage intention: an empirical analysis. Industrial Management & Data Systems, 115(7), 1269–1291.

Ho, J. C., Wu, C.-G., Lee, C.-S., & Pham, T.-T. T. (2020). Factors affecting the behavioral intention to adopt mobile banking: An international comparison. Technology in Society, 63, 101360.

Horas, E., Iskandar, S., Abidin, Z., & Daryanti, D. (2023). Effect of Performance Expectations, Effort Expectations, Social Influence, and Facilitation Conditions on Behavioral Intentions in Sharia Entrepreneurship. JESI (Jurnal Ekonomi Syariah Indonesia), 13(2), 170–182.

Jeyaraj, A., Dwivedi, Y. K., & Venkatesh, V. (2023). Intention in information systems adoption and use:Current state and research directions.In International Journal of Information Management(Vol.73,p.102680). Elsevier.

Kalinić, Z., Marinković, V., Kalinić, L., & Liébana-Cabanillas, F. (2021). Neural network modeling of consumer satisfaction in mobile commerce: An empirical analysis. Expert Systems with Applications, 175, 114803.

Kamar, K., Lewaherilla, N. C., Ausat, A. M. A., Ukar, K., & Gadzali, S. S. (2023). The Influence of Information Technology and Human Resource Management Capabilities on SMEs Performance. International Journal of Artificial Intelligence Research, 6(1.2).

Lin, W. R., Lin, C.-Y., & Ding, Y.-H. (2020). Factors affecting the behavioral intention to adopt mobile payment: An empirical study in Taiwan. Mathematics, 8(10), 1851.

Mai, K. N., & Nguyen, V. T. (2023). Entrepreneurial ecosystem affects organisational learning, creativity and success. Cogent Business & Management, 10(3), 2260125.

Mohd Dzin, N. H., & Lay, Y. F. (2021). Validity and reliability of adapted self-efficacy scales in Malaysian context using PLS-SEM approach. Education Sciences, 11(11), 676.

Naradda Gamage, S. K., Ekanayake, E. M. S., Abeyrathne, G., Prasanna, R., Jayasundara, J., & Rajapakshe, P. S. K. (2020). A review of global challenges and survival strategies of small and medium enterprises (SMEs). Economies, 8(4), 79.

Onu, P., & Mbohwa, C. (2021). Industry 4.0 opportunities in manufacturing SMEs: Sustainability outlook. Materials Today: Proceedings, 44, 1925–1930.

Potts, J. (2019). Innovation commons: The origin of economic growth. Oxford University Press.

Prasanna, R., Upulwehera, J., Senarath, B., Abeyrathne, G., Rajapakshe, P. S. K., Jayasundara, J., Ekanayake, E. M. S., & Gamage, S. K. N. (2021). Factors Determining the Competitive Strategic Positions of the SMEs in Asian Developing Nations: Case Study of SMEs in the Agricultural Sector in Sri Lanka. Economies, 9(4), 193.

Prasetyo, H. D. (2023a). Strategy for Increasing the Competitiveness of Smes in the Era Of Society 5.0. Journal of Management, Accounting, General Finance And International Economic Issues, 2(4), 958–965.

Prasetyo, H. D. (2023b). Strategy for Increasing the Competitiveness of Smes in the Era Of Society 5.0. Journal of Management, Accounting, General Finance And International Economic Issues, 2(4), 958–965.

Singh, S., & Srivastava, R. K. (2020). Understanding the intention to use mobile banking by existing online banking customers: an empirical study. Journal of Financial Services Marketing, 25(3–4), 86–96.

Surya, B. , M. F. , S. H. , S. S. , A. H. , & I. M. (2021). Economic growth, increasing productivity of SMEs, and open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 20.

Vahdat, A., Alizadeh, A., Quach, S., & Hamelin, N. (2021). Would you like to shop via mobile app technology? The technology acceptance model, social factors and purchase intention. Australasian Marketing Journal, 29(2), 187–197.

Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 425–478.

Venkatesh, V., Thong, J. Y. L., & Xu, X. (2012). Consumer acceptance and use of information technology: extending the unified theory of acceptance and use of technology. MIS Quarterly, 157–178.

Venkatesh, V., Thong, J. Y. L., & Xu, X. (2016). Unified theory of acceptance and use of technology: A synthesis and the road ahead. Journal of the Association for Information Systems, 17(5), 328–376.

Windusancono, B. A. (2021). Upaya Percepatan Pertumbuhan Usaha Mikro Kecil Dan Menengah (Umkm) Di Indonesia. Mimbar Administrasi, 18(1), 1–14.

Downloads

Published

2024-05-25

How to Cite

Maski, G. ., Kresna Sakti, R., Kormitasari, Y. ., Rahmawati, A. ., & Duyufur Rohman, G. . (2024). Unveiling the Power of Adaptive InformationTechnology: A Catalyst for Elevating SME Performance in Indonesia – A Case Study in Malang City. International Journal Of Community Service, 4(2), 110–118. https://doi.org/10.51601/ijcs.v4i2.263

Issue

Section

Articles