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Determinants of ICT Adoption in Business for Emerging SME Entrepreneurs in Indonesia

Author

Listed:
  • Muhammad Noor Ardiansah

    (Semarang State Polytechnic, Indonesia)

  • Sri Murtini

    (Semarang State Polytechnic, Indonesia)

  • Rani Raharjanti

    (Semarang State Polytechnic, Indonesia)

  • Ulfah Hidayati

    (Semarang State Polytechnic, Indonesia)

  • Ahmad Wafa Mansur

    (Semarang State Polytechnic, Indonesia)

Abstract

This study investigates the factors of ICT adoption by early-level small and medium-sized enterprises (SMEs) in Indonesia after the pandemic. The study was conducted among 237 new SME entrepreneurs from Indonesia's sixth-highest economic growth regions, with a confirmatory analysis of ICT adoption constructs in a structural equation model (SEM) analysis. This study showed that the benefits and integration with consumers are SMEs' main determinants when adopting ICT when starting their business. This condition is a rational response from SMEs when they begin their business in Indonesia's post-pandemic economic recovery conditions, which need to immediately emerge to capture the market with the efficiency and effectiveness of business processes. The study's results empirically provide a valid and reliable description of the determinants of ICT adoption for strengthening post-pandemic SME business practices and theoretically offer empirical evidence of factors for improving and strengthening digital transformation in business through usefulness and integration with consumers.

Suggested Citation

  • Muhammad Noor Ardiansah & Sri Murtini & Rani Raharjanti & Ulfah Hidayati & Ahmad Wafa Mansur, 2024. "Determinants of ICT Adoption in Business for Emerging SME Entrepreneurs in Indonesia," European Journal of Business and Management Research, European Open Science, vol. 9(5), pages 177-184, September.
    • Handle: RePEc:epw:ejbmr0:v:9:y:2024:i:5:id:52476
    DOI: 10.24018/ejbmr.2024.9.5.2476
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