Adoption of Information Technology for Improving The Small Medium Enterprises Performance in Indonesia

Mercurius Broto Legowo, Harjanto Prabowo, Ford Lumban Gaol, Muhammad Hamsal

doi:10.17762/pae.v57i9.271

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Published: Jan 26, 2021

DOI: https://doi.org/10.17762/pae.v57i9.271

Mercurius Broto Legowo, Harjanto Prabowo, Ford Lumban Gaol, Muhammad Hamsal

Abstract

In Indonesia, Small Medium Enterprises (SMEs) are the backbone of the economy and are today faced with global competitio. However, there are still many SMEs in Indonesia that have problems with the performance of their organisations. Information Technology (IT) adoption is one of the efforts that is needed to improve the performance of SMEs in Indonesia. The purpose of this research is to understand the effect of IT adoption such as ERP implementation and the use of Payment Gateway in improving the performance of Indonesian SMEs. Data collection was based on surveys of 100 Indonesian SMEs. Quantitative approaches were used in this study and data were analysed using the smartPLS software. This study also uses the size of SME employees as a control variable for SMEs performance. The results of this research indicates that the adoption of IT through the success of the ERP system has a significant impact on SMEs performance, but IT Adoption through the utilisation of payment gateway has failed to moderate the performance of SMEs.The results may contribute to SMEs managers to consider the factors identified in this research before adopting the IT to improve their SMEs performance.

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Vol. 57 No. 9 (2020): Volume 57 No. 9 (2020)

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