A Research of Technology Adoption in Small and Medium-sized Enterprises in Yogyakarta

Abstract

This study compares the impact of different size of SMEs and the age of SMEs on the technology adoption. This survey was conducted on the use of IT in SMEs in Yogyakarta, Indonesia. As a developing country, most of the Indonesian economy is dominated by SMEs. One factor that plays an important role in increasing the competitiveness of SMEs is information technology (IT) adoption. However, not all SMEs have similarities in their efforts to adopt IT. The theory underlying the process of adopting information technology is the Technology Acceptance Model (TAM). TAM have 3 main variables. There are Perceived Ease of Use, Perceived usefulness and Acceptance of IT. In this study analyzed differences in IT adoption based on the age of SMEs and the SME category (micro, small and medium). This study also examined differences based on competitive advantage. The results show that there are no significant differences in IT acceptance based on the age of SMEs and they have similarities in competitive advantage. The results of this study provide benefits for SMEs to evaluate their adoption of technology. In addition, this research is also beneficial for the government to develop SMEs in the region. Keywords: Adoption of IT, TAM, Competitive advantage, SMEs