Exploratory Study of SMEs Technology Adoption Readiness Factors

Abstract

The rapid technological development in recent decades has influenced the business world. One of the most developed technology is information technology. In addition to large companies, SMEs should also start using information technology to improve its competitiveness. Despite its popular perceived benefit in assisting business, the level of information technology usage in SMEs in Yogyakarta is very low. This research is conducted by using qualitative methods with SMEs in Yogyakarta as the research samples. The samples are business owners of selected SMEs in Yogyakarta who has different background in education and experience. This research focuses on their readiness and determination in implementing information technology. The research result indicates that there are many factors affecting SMEs’ readiness to adopt information technology. Based on the research result, pressure from customers has become one of the prominent factors. In addition to pressure from customer, in general ease of use, need and capital are the factors affecting the readiness in adopting information technology. Furthermore, this research also revealed that urgency factor is the main supporting factor to adopt information technology in SMEs in Yogyakarta.