The factors that influence small and medium enterprises’ intention to adopt the government credit program

Abstract

Purpose This study aims to analyze the adoption of the people entrepreneurship credit with online platform – a government-sponsored subsidy of small and medium enterprises to reduce poverty and to improve welfare – in the Central Java, Indonesia. The objective of the research is also to analyze the motivation of small and medium enterprises to adopt the credit with online platform in supporting business activities. The research framework used the technology acceptance model – the effect of perception of usefulness, perception of ease of use, subjective norm and four As – availability, affordability, awareness, acceptability and trust – to analyze them as the determinants on the intention to adopt the People Entrepreneurship Credit. Design/methodology/approach The quantitative method with survey was deployed in the study by distributing questionnaires. The number of collected data was 380 credit users, and the criteria used for the respondents were the small entrepreneurs with the use of the people entrepreneurship credit as the micro credit program. Findings Results indicated that perception of usefulness, perception of ease of use, subjective norm, availability, trust and affordability have direct effect on the intention to adopt the credit. Interestingly, the strongest direct effect on the adoption intention was more likely to come from the perception of ease of use. Meanwhile, awareness and acceptability have no direct effect on the intention to adopt. Originality/value This study provides new theoretical insights regarding the implementation of technology acceptance model to analyze the intention to adopt and the analysis of four As concept. The findings of the study will provide a better strategy for banking as service industries in formulating the program of credit access for the entrepreneurs to run the business properly.

Technology Adoption in Small-Medium Enterprises based on Technology Acceptance Model: A Critical Review

“…other variables such as ATU the system, BI, and U were observed to have been used by some studies while others do not use them. Type of Technology TAM Model [60] Online Government Credit Program Extended TAM with Model 4 As [61] E-Commerce TAM and entrepreneurial traits theory [55] Social Media Marketing Extended TAM with added variable (education) [52] Financial Technology Application Extended TAM with added variable (Trust) [56] Financial technology Extended TAM [5], [6] Digital Payment System Extended TAM with added variable (Trust) [5] Financial Technology Extended TAM [43] Digital Media Theory of Pace of technological innovation and TAM [37] Accounting Information System TAM [54], [62] Social Media Marketing Extended TAM [44] Internet Banking Extended TAM [9] Knowledge Management based web application…”

“…Subjective norms are perceptions of certain behaviour an individual is or does not expect to perform which is very subjective according to each person [64]. This variable was reported to have the ability to influence community members to use online loan programs [60]. Meanwhile, another study also used factors of quality such as quality of the system, information and service to analyse the adoption of mobile banking services based on their influence on the perceived ease of use which indirectly affects the use of technology [46].…”

“…This variable is considered important due to the risk perceived by users regarding the payment systems through the internet or digital technology, especially in developing countries [63]. also added brand and service trust variables into the model for financial technology while some other studies were observed to vary some external factors such as personal innovativeness, regulatory support, readiness to use technology, financial support, competitive pressures, quality; and Model 4As which include availability, awareness, affordability and acceptability considered to have the ability of explaining the use of microfinance credit[60].Subjective norms are perceptions of certain behaviour an individual is or does not expect to perform which is very subjective according to each person[64]. This variable was reported to have the ability to influence community members to use online loan programs[60].…”

“…also added brand and service trust variables into the model for financial technology while some other studies were observed to vary some external factors such as personal innovativeness, regulatory support, readiness to use technology, financial support, competitive pressures, quality; and Model 4As which include availability, awareness, affordability and acceptability considered to have the ability of explaining the use of microfinance credit[60].Subjective norms are perceptions of certain behaviour an individual is or does not expect to perform which is very subjective according to each person[64]. This variable was reported to have the ability to influence community members to use online loan programs[60]. Meanwhile, another study also used factors of quality such as quality of the system, information and service to analyse the adoption of mobile banking services based on their influence on the perceived ease of use which indirectly affects the use of technology[46].Technologies related to sales and marketing include social media marketing, digital media, e-commerce and webbased marketing application and social media marketing was found to be the growing trend and perceived to be an efficient channel for business communications[62].…”

Digital technology use of SMEs during the COVID-19 pandemic in Turkey: mobile applications’ role on motivation and job performance

“…1.1 SMEs in emerging countries and the case of Turkey SMEs are the most important driver of economies (European Commission, 2021). They make up the majority of all businesses, especially in developing countries (Rakshit et al, 2021;Rokhim et al, 2018). SMEs are also claimed to be parties that are more likely to be exposed to the economic risks caused by COVID-19 (Khalil et al, 2022).…”