The Effect of IT Acceptance on Business Performance Mediated by IT Capability, IT Adoption, and Digital Marketing: Empirical Study of Small and Medium Industries Weaving

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SUSANTI MARGARETHA KUWAY, EDI ABDURACHMAN, WIBOWO KOSASIH, NGATINDRIATUN

Abstract

Technological improvements positively affect increasing business performance across industries, including large, medium, and small scale. Therefore, this study proposes to explain the impact of IT acceptance on business performance mediated by IT capability, IT adoption, and digital marketing in the weaving industry in West Kalimantan, Indonesia. The total population 139, We have transferred a questionnaire survey on 128 small and medium enterprises in the weaving industry that used information technology to support their business using purposive sampling. To answer the research hypothesis, we used the SEM method and partial least square for statistic analysis. The results of the research have confirmed that IT acceptance affects IT capability and adoption. IT adoption affects digital marketing and business performance. Finally, IT capability affects business performance. Meanwhile, IT capabilities do not affect digital marketing, and digital marketing does not affect business performance. This study’s outcomes serve as guidelines for weaving SMIs members in planning the alignment of business strategies with information technology support to improve their business performance.


 

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