Analysis of Factors Influencing Technology Adoption to Increase MSME Productivity in Malang City
DOI:
https://doi.org/10.38142/jtep.v5i4.1633Keywords:
Technology Adoption, MSME Productivity, UTAUT2, Digitalization, Malang CityAbstract
This study aims to analyze the factors influencing technology adoption by Micro, Small, and Medium Enterprises (MSMEs) in Malang City during the digitalization era, using the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) as the theoretical framework. Data were collected from 100 MSME respondents in Malang City and analyzed using Structural Equation Modeling with the Partial Least Squares (SEM-PLS) method. The UTAUT2 model was applied to examine the influence of performance expectancy, effort expectancy, social influence, facilitating conditions, hedonic motivation, and habit on technology adoption and productivity. The findings indicate that performance expectancy, facilitating conditions, and habit have a significant positive impact on productivity, highlighting the importance of efficiency, infrastructure support, and consistent technology usage. Conversely, effort expectancy, social influence, and hedonic motivation do not significantly affect technology adoption. The study emphasizes the need for policymakers and stakeholders to enhance digital infrastructure, provide technology training, and offer incentives to increase technology adoption among MSMEs. These strategies are expected to strengthen competitiveness, foster innovation, and drive sustainable economic growth in Malang City.
References
Afonso, C., & Sousa, R. (2021). The role of digital adoption in SMEs: Evidence from emerging economies. Journal of Business Research, 124(3), 54-68.
Agung Purwanto. (2017). "Building Trust in Technology Adoption: A Review." Technology and Innovation Management Review, 7(3), 34-45.
Alasmari, T. M. (2022). Factors Affecting the Behavioral Intention to Adopt and Use E-Learning Platforms: Extending UTAUT2. International Journal of Emerging Technologies in Learning, 17(11), 193-209.
Al-Azzam, Z. F., & Al-Sharari, T. (2023). "Social Influence and Digital Transformation in SMEs: A Study in the Middle East." Journal of Business & Technology, 35(2), 189-207.
Ardjouman, D. (2014). "Factors influencing Small and Medium Enterprises (SMEs) in adoption and use of technology in Cote d'Ivoire." International Journal of Business and Management, 9(8), 179-190. https://doi.org/10.5539/ijbm.v9n8p179
Banerjee, A., & Duflo, E. (2023). "Good Economics for Hard Times: Better Answers to Our Biggest Problems." PublicAffairs.
Beck, T., Demirgüç-Kunt, A., & Levine, R. (2021). "Finance and the Growth of Firms." Journal of Financial Economics, 141(2), 682-704.
Bestari, S. (1993). "Social Change and Technology Adoption in SMEs." Sociology Review, 8(2), 112-126.
Brynjolfsson, E., & McAfee, A. (2022). "The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies." W. W. Norton & Company.
Chang, C.-M., Yu, T. K., & Lu, H. P. (2021). "Understanding the impact of social influence on technology adoption among small businesses." Technological Forecasting & Social Change, 169, 120780.
Eller, R., Alford, P., Jones, P., & McLean, G. (2020). "Digital transformation in SMEs: An analysis of the adoption process." Technovation, 94, 102112.
Ferreira, J. J., Mueller, J., & Papa, A. (2021). "The role of e-commerce in SME productivity growth: Evidence from Brazil." Journal of Business Research, 132, 307-317.
Gómez, R., Ramírez, J., & Torres, M. (2021). Technology and productivity in small enterprises: The missing link in economic development. International Journal of Economics, 45(2), 120-136. [DOI: 10.1080/ijec.2021.102355].
Gupta, A., Jain, S., & Singh, R. (2024). "Pandemic-Induced Technology Adoption: Evidence from Small and Medium Enterprises." Small Business Economics, 63(2), 489-506.
Hsieh, C.-T., & Olken, B. A. (2020). "The Missing ‘Missing Middle’ in Developing Countries." Journal of Economic Perspectives, 34(3), 80-102.
Kim, S. M., Park, J., & Lee, J. (2022). "Government Support and Technology Adoption in SMEs." Public Administration Review, 82(5), 897-910.
Kumar, A., Singh, R., & Kumar, V. (2024). "Effective Strategies for Technology Adoption in Small Businesses." Business Strategy Review, 32(1), 12-29.
Li, X., & Hu, H. (2020). "Adoption of Technological Innovations in Small Enterprises." Technology Forecasting & Social Change, 157, 120110.
Mahendra, P. (2014). "Productivity Measurement and Its Influence on Business Efficiency." International Journal of Business and Management Studies, 3(2), 45-62.
Manajemen UMA. (2021). "Technological Changes and Their Impact on Human Life." Journal of Technology Management, 12(1), 72-85.
Merhi, M., Hone, K., & Tarhini, A. (2019). "A cross-cultural study of the intention to use mobile banking between Lebanese and British consumers: Extending UTAUT2 with security, privacy and trust." Technology in Society, 59, 101151. https://doi.org/10.1016/j.techsoc.2019.101151
Mohammad Rizal. (2018). "Cultural Norms and Technology Adoption in Small Businesses." International Journal of Technology and Management, 15(4), 87-104.
Motta, V. (2020). "Lack of access to external finance and SME labor productivity: Does project quality matter?" Small Business Economics, 54(1), 119-134. https://doi.org/10.1007/s11187-018-0082-9
Ndiaye, N., Razak, L. A., Nagayev, R., & Ng, A. (2018). "Demystifying small and medium enterprises' (SMEs) performance in emerging and developing economies." Borsa Istanbul Review, 18(4), 269-281. https://doi.org/10.1016/j.bir.2018.04.003
Neirotti, P., Raguseo, E., & Paolucci, E. (2018). "How SMEs develop ICT-based capabilities in response to their environment: Past evidence and implications for the uptake of the new ICT paradigm." Journal of Enterprise Information Management, 31(1), 10-37. https://doi.org/10.1108/JEIM-09-2016-0158
Nikolopoulou, K., Gialamas, V., & Lavidas, K. (2021). "Acceptance of mobile phone by University students for their studies: An investigation applying UTAUT2 model." Education and Information Technologies, 26(1), 737-756.
OECD. (2022). Digital transformation of SMEs: Benefits and challenges. OECD Publishing.
Rahayu, R., & Day, J. (2017). "E-commerce adoption by SMEs in developing countries: evidence from Indonesia." Eurasian Business Review, 7(1), 25-41. https://doi.org/10.1007/s40821-016-0044-6
Raka et al. (2022). "Social Networks and Technology Adoption in Emerging Markets." Journal of Social and Economic Dynamics, 29(1), 55-70.
Raza, S. A., Umer, R., & Qazi, W. (2023). "Examining the role of social influence on technology adoption: Evidence from developing economies." Information Technology & People, 36(1), 55-78.
Rimata Deby Pratiwi. (2023). "The Impact of Technology on Education: A Comprehensive Review." Journal of Educational Technology, 19(1), 25-38.
Romer, P. (2022). Technology, productivity, and growth: A new perspective on economic development. Harvard Economic Review, 39(4), 65-89.
Sari, Y. R., Rifai, M. H., & Juliansyah, H. (2020). "Strengthening the role of MSMEs in Indonesia to support the national economy in the era of the COVID-19 pandemic." In Proceedings of the 1st Annual Management, Business and Economic Conference (AMBEC 2020) (pp. 145-150).
Smith, A., & Anderson, M. (2023). "The Impact of COVID-19 on Digital Technology Adoption by SMEs." Digital Economy Review, 18(2), 47-63.
Tambunan, T. (2008). "SME development, economic growth, and government intervention in a developing country: The Indonesian story." Journal of International Entrepreneurship, 6(4), 147-167. https://doi.org/10.1007/s10843-008-0025-7
Tamilmani, K., Rana, N. P., Prakasam, N., & Dwivedi, Y. K. (2019). The battle of Brain vs. Heart: A literature review and meta-analysis of "hedonic motivation" use in UTAUT2. International Journal of Information Management, 46, 222-235. https://doi.org/10.1016/j.ijinfomgt.2019.01.008
Venkatesh, V., Thong, J. Y. L., & Xu, X. (2012). "Consumer Acceptance and Use of Information Technology: Extending the Unified Theory of Acceptance and Use of Technology." MIS Quarterly, 36(1), 157-178. https://doi.org/10.2307/41410412
Zhang, Y., Yang, Y., & Liu, X. (2021). "Early Adopters and Innovators in Technology Adoption." Journal of Innovation and Entrepreneurship, 10(1), 24-36.
Zhou, L., Wang, X., & Li, J. (2023). Digital entrepreneurship and SME productivity: A case study of China’s small businesses. Asian Economic Journal, 37(2), 98-112.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Rizqi Aprilia SARI, Yenny KORNITASARI
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Creative Commons Attribution-NonCommercial 4.0 International License.
