Abstract
The purpose of this research was to further understanding of the readiness of Indonesian SMEs to adopt a business improvement approach like Six Sigma. Data were collected from 148 SMEs competing in the metal goods industry using a questionnaire survey and interviews conducted with SME owners/managers and stakeholders. Findings showed that SME owners/managers were supportive of adopting new approaches like Six Sigma. However, a low level of technology use by SMEs made the direct adoption of a sophisticated business improvement method like Six Sigma problematic. Key customers, other SMEs, resource availability and employees commitment were found to be most influential on SMEs having a positive belief about the success of adopting a new business improvement method like Six Sigma. This research assists understanding factors that contribute to Indonesian SMEs adopting new technology, especially approaches to business improvement. Results support the use and further development of demonstrations sites to foster the adoption of new technologies by SMEs.
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