Testing of technology readiness index model based on exploratory factor analysis approach

Abstract

SMEs readiness in using ICT will determine the adoption of ICT in the future. This study aims to evaluate the model of technology readiness in order to apply the technology on SMEs. The model is tested to find if TRI model is relevant to measure ICT adoption, especially for SMEs in Indonesia. The research method used in this paper is survey to a group of SMEs in South Tangerang. The survey measures the readiness to adopt ICT based on four variables which is Optimism, Innovativeness, Discomfort, and Insecurity. Each variable contains several indicators to make sure the variable is measured thoroughly. The data collected through survey is analysed using factor analysis methodwith the help of SPSS software. The result of this study shows that TRI model gives more descendants on some indicators and variables. This result can be caused by SMEs owners’ knowledge is not homogeneous about either the technology that they are used, knowledge or the type of their business.