The adoption of information technology as decision support system in SMEs

Abstract

The purpose of the study is to develop the information systems (IS) for SMEs as well as to investigate the factors that influence the decision of SMEs to adopt information technology (IT). Using a development research approach, it focuses on developing the Web-based Decision Support System (DSS) IT on SMEs, with the Waterfall model’s implementation. Structured interview (by phone) was conducted with 120 SMEs, and the results were tested using Confirmatory Factor Analysis. It shows that the implementation of the Web-based DSS for SMEs provides benefits for them as a database for management decision-making tools. In addition, it is also beneficial to the Indonesian policy makers in regards to the empowerment of SMEs. The findings of the study confirm the Technological, Organizational and Environmental (TOE) framework, that the decision to adopt IT by SMEs in Indonesia are influenced by technological factors including consideration of benefits, compatibility, and costs; organizational factors include the readiness of companies to adopt technologies including technological infrastructure readiness, relevant systems, and technical skills; environmental factors include customer/supplier pressures and competitor pressures. The findings also show that different sector of SMEs (manufacturing and service sectors) has different considerations in deciding the implementation of IT.

Analysing the issues surrounding information and communication technology penetration and growth

“…The TOE framework was used to investigate 13 determinants that affect ICT adoption and growth. The papers are filtered and searched as part of the review process, which is tracked using the SIFRIA (Abdullahi et al, 2021;Ahmadi et al, 2016;Chiu et al, 2017;Ilin et al, 2017;Kulkarni & Patil, 2020;Mohamed & Anter, 2018;Pateli & Mylonas, 2020;Religia et al, 2021;Senarathna et al, 2018;Seong-yuen, 2017;Jere & Ngidi, 2016;Senyo et al, 2016(Tyasari et al, 2021 14 Ngongo et al, 2019;Wang et al, 2016) 2 Security and privacy (Ahmadi et al, 2016;Ali, 2020;Asiaei et al, 2019;Jianwen, 2019;Kulkarni & Patil, 2020;Mohamed & Anter, 2018;Njenga et al, 2018;Pateli & Mylonas, 2020;Priyadarshinee et al, 2017;Senarathna et al, 2018;Sharma et al, 2017;Skafi et al, 2020); (Chiju et al, 2017;Senyo et al, 2016) 15 (Abed, 2020;Joubert & Jokonya, 2021) 3 Compatibility (Ahmadi et al, 2016;Ali, 2020;Chiu et al, 2017;Eze & Chinedu-eze, 2020;Jianwen, 2019;Kulkarni & Patil, 2020;Mohamed & Anter, 2018;Religia et al, 2021;…”

“…Information system (Abdullahi et al, 2021;Ahmadi et al, 2016;Hart Okorie Awa et al, 2016;Cruz-jesus et al, 2019;Jere & Ngidi, 2016;Joubert & Jokonya, 2021;Lawan et al, 2020;Y. Mohamed & Jokonya, 2021;Naheem, 2019;Siew et al, 2019;Tyasari et al, 2021), (Hwang et al, 2016;Kulkarni & Patil, 2020) 13 Source: Author.…”

“…SMEs (Abed, 2020;Adam et al, 2020;Ahmed, 2020;Alkhater et al, 2017;Asiaei et al, 2019;Chiu et al, 2017;Cruz-jesus et al, 2019;Eze & Chinedu-eze, 2020;Hassan et al, 2017;Hiran & Henten, 2019;Ilin et al, 2017;Jere & Ngidi, 2016;Jianwen, 2019;Joubert & Jokonya, 2021;Lynn et al, 2020;A. Mohamed & Anter, 2018;Ngongo et al, 2019;Priyadarshinee et al, 2017;Religia et al, 2021;Senyo et al, 2016;Siew et al, 2019;Skafi et al, 2020;Tyasari et al, 2021) 24 Health (Ahmadi et al, 2016;Alharbi et al, 2016;Ngongo et al, 2019) 3…”

“…Africa was rated as the continent with the lowest ICT penetration and growth, indicating approximately 75% of the global offline population, compared with Arab States and Asia/Pacific with 58%, Europe with 21% and the United States with 35% (Bogdan-Martin, 2017). Most developing countries are experiencing a problem of inadequate knowledge about the issues surrounding ICT adoption determinants as one of the biggest obstacles against its penetration and growth (Tyasari et al, 2021). Akintolu and Uleanya (2021) explained that the effective utilisation of ICT benefits is directly changing the approach to how people live, work, learn and socialise.…”

Analisis Technology Acceptance Model (TAM) Berdasarkan Partisipasi UMKM Perempuan: Kajian Studi Kota Padang

“…Sejumlah penelitian sebelumnya telah menginvestigasi faktor-faktor yang mempengaruhi bagaimana UMKM perempuan menerima dan mengadopsi Teknologi Informasi dan Komunikasi (TIK), termasuk faktor internal seperti persepsi pengguna terhadap kegunaan dan kebermanfaatan teknologi, serta faktor eksternal seperti dukungan sosial, aksesibilitas, dan lingkungan bisnis. Penelitian mengungkapkan bahwa UMKM di Indonesia harus mampu mengadopsi penggunaan TIK untuk keberlangsungan usaha mereka (Tyasari et al, 2021). Penelitian lain juga mengungkapkan perlu adanya strategi pemasaran baru dan adopsi teknologi untuk memperluas pasar bagi UMKM Perempuan (Widia & Octafia, 2021).…”