Analysis of technological, organizational, environmental, and digital adoption factors on the net benefit of the mses sector in east java-indonesia
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Published:
Feb 28, 2023
Keywords:
TOE Framework, Digital Adoption, Net Benefit, MSEs Sector, Quantitative
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Computer Science
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Abstract
Digital transformation is a necessity for organizations in the current new normal era. Most organizations have successfully adapted and continued to carry out business activities during the crisis due to the Covid-19 pandemic by carrying out digital transformation. Digital transformation is challenging to implement in small-scale organizations, especially the MSME sector, which has many limitations. So, the success of digital transformation in the MSME sector is still in doubt. To examine this phenomenon, this research proposed a conceptual model developed based on TOE and D&M (DeLone and McLean). Using quantitative methods in the new normal era, the proposed conceptual model aims to determine how technological, organizational, environmental, and digital adoption influences net benefits in the MSME sector. The survey has been distributed online to the MSME sector in East Java. It obtained 400 respondent data based on a random sampling technique and analyzed using PLS-SEM. Based on the conceptual model, the researcher has proposed four hypotheses that have been tested using PLS. The results of this research found that technological, organizational, environmental, and digital adoption positively affected net benefits in the MSME sector. The four proposed hypotheses are proven.
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Kusumawati, A., Asfari, U. ., Ramadhanti, A. P. A. ., Jaya, E. D. A. . and Hadyanto, F. D. . (2023) “Analysis of technological, organizational, environmental, and digital adoption factors on the net benefit of the mses sector in east java-indonesia”, Jurnal Mantik, 6(4), pp. 3873-3883. doi: 10.35335/mantik.v6i4.3556.
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O’Leary, D. E. (2020). Evolving Information Systems and Technology Research Issues for COVID-19 and Other Pandemics. Journal of Organizational Computing and Electronic Commerce, 30(1), 1–8.
Oppong, M., & Owiredu, A. (2014). Micro And Small Scale Enterprises Development In Ghana. European Journal of Accounting Auditing and Finance Research, 2(6), 84–97.
Puspitawati, L., Hertati, L., Zarkasyi, W., Suharman, H., & Umar, H. (2022). The Environmental Uncertainty, Manager Competency and Its Impact on Successful Use of Financial Applications inTthe Covid-19 Pandemic Era. Journal of Eastern European and Central Asian Research, 9(1), 10–20.
Roosa, M. (2022). Kontribusi Koperasi dan UMKM untuk Ekonomi Jawa Timur Meningkat Jadi 57,81 Persen. Suarasurabaya.Net. https://www.suarasurabaya.net/ekonomibisnis/2022/kontribusi-koperasi-dan-umkm-untuk-ekonomi-jawa-timur-meningkat-jadi-5781-persen/#:~:text=Dari aspek kewilayahan%2C terdapat lima,terkait perhitungan nilai tambah ini.
Wang, Z., & Tang, K. (2020). Digital Technology and COVID-19. Nature Medicine, 26(4), 458.
Zebua, S., & Widuri, R. (2023). Analysis Of Factors Affecting Adoption Of Cloud Accounting In Indonesia. Journal of Theoretical and Applied Information Technology, 101(1), 89–105.
Zhu, K., Kraemer, K. L., Xu, S., Zhu, K., Kraemer, K. L., & Xu, S. (2006). The Process of Innovation Assimilation by Firms in Different Countries?: A Technology Diffusion Perspective on E-Business. Management Science, 52(10), 1557–1576.
AlBar, A. M., & Hoque, M. R. (2019). Factors Affecting the Adoption of Information and Communication Technology in Small and Medium Enterprises: a Perspective From Rural Saudi Arabia. Information Technology for Development, 25(4), 715–738. https://doi.org/10.1080/02681102.2017.1390437
Ali, M., Ramayah, T., & Cheah, J. (2021). PLS-SEM Statistical Programs?: A Review. Journal of Applied Structural Equation Modeling, 5(1), i–xiv.
Ali, O. (2020). Cloud Computing Technology Adoption?: An Evaluation Of Key Factors In Local Governments. Information Technology & People, 34(2), 666–703.
Angelina, R. J., Hermawan, A., & Suroso, A. I. (2019). Analyzing E-Commerce Success using DeLone and McLean Model. Journal of Information Systems Engineering and Business Intelligence, 5(2), 156–162.
Awan, U., & Arnold, M. G. (2021). Enhancing Green Product And Process Innovation?: Towards An Integrative Framework Of Knowledge Acquisition And Environmental Investment. Business Strategy and the Environment, 30(2), 1–13.
Bai, C., Quayson, M., & Sarkis, J. (2021). COVID-19 Pandemic Digitization Lessons for Sustainable Development of Micro-and Small- Enterprises. Sustainable Production and Consumption, 27, 1989–2001.
Baron, J. R. (2019). What Lessons Can Be Learned From the US Archivist’s Digital Mandate for 2019 And Is There Potential For Applying Them in Lower Resource Countries? Records Management Journal, 26(2), 1–15.
Blankson, C., & Nukpezah, J. A. (2019). Market Orientation and Poverty Reduction?: A Study of Rural Microentrepreneurs in Ghana. Africa Journal of Management, 5(4), 332–357.
Bose, R., & Luo, X. (2013). Journal of Strategic Information Systems Integrative framework for Assessing Firms ’ Potential to Undertake Green IT Initiatives Via Virtualization – A Theoretical Perspective. Journal of Strategic Information Systems, 20(1), 38–54.
Boži?, K., & Dimovski, V. (2019). Journal Of Strategic Information Systems Business Intelligence And Analytics Use , Innovation Ambidexterity , And Firm Performance?: A Dynamic Capabilities Perspective. Journal of Strategic Information Systems, October, 101578. https://doi.org/10.1016/j.jsis.2019.101578
Burstr, T. (2021). AI-Enabled Business-Model Innovation and Transformation in Industrial Ecosystems?: A Framework , Model and Outline for Further Research. Journal of Business Research, 127(January), 85–95.
Cruz-jesus, F., Pinheiro, A., & Oliveira, T. (2019). Computers in Industry Understanding CRM adoption stages?: empirical analysis building on the TOE framework. Computers in Industry, 109, 1–13.
Dutta, G., Kumar, R., Sindhwani, R., & Singh, R. K. (2020). Digital Transformation Priorities of India’s Discrete Manufacturing SMEs – A Conceptual Study in Perspective of Industry 4.0. Competitiveness Review, 30(3), 289–314.
Effendi, M. I., Sugandini, D., & Istanto, Y. (2020). Social Media Adoption in SMEs Impacted by COVID-19: The TOE Model. Journal of Asian Finance, Economics and Business, 7(11), 915–925. https://doi.org/10.13106/jafeb.2020.vol7.no11.915
Katebi, A., Homami, P., & Najmeddin, M. (2022). Acceptance Model of Precast Concrete Components in Building Construction Based on Technology Acceptance Model (TAM) and Technology, Organization, and Environment (TOE) Framework. Journal of Building Engineering, 45(July 2021), 103518. https://doi.org/10.1016/j.jobe.2021.103518
Kumar, K., Kumar, N., & Shah, R. (2020). Role of IoT to avoid spreading of COVID-19. International Journal of Intelligent Networks, 1(January), 32–35.
Kusumawati, A., & Subriadi, A. P. (2019). Intuition in Information Technology Investment Decision: A Quantitative Method. IPTEK Journal of Proceedings Series, 0(1), 53. https://doi.org/10.12962/j23546026.y2019i1.5107
Liang, W., Yao, J., Chen, A., Lv, Q., Zanin, M., Liu, J., Wong, S. S., Li, Y., Lu, J., Liang, H., Chen, G., Guo, H., Guo, J., Zhou, R., Ou, L., Zhou, N., Chen, H., Yang, F., Han, X., … He, J. (2020). Early Triage of Critically ill COVID-19 Patients Using Deep Learning. Nature Communications, 11(1), 1–7.
Liu, C., & Cheng, J. (2018). Exploring Driving Forces of Innovation in the MSEs?: The Case of the Sustainable B & B Tourism Industry. Journal Sustainability, 10(11), 1–19.
Lokuge, S., Sedera, D., Grover, V., & Dongming, X. (2019). Organizational Readiness for Digital Innovation: Development and Empirical Calibration of a Construct. Information and Management, 56(3), 445–461.
Masudin, I., Jie, F., & Widayat, W. (2020). Impact of halal supplier service quality and staff readiness to adopt halal technology on halal logistics performance: A study of Indonesian halal meat supply chain. International Journal of Agile Systems and Management, 13(3), 315–338.
Mustafa, S. Z., Kar, A. K., & Janssen, M. F. W. H. A. (2020). Understanding the Impact of Digital Service Failure on Users: Integrating Tan’s Failure and DeLone and McLean’s Success Model. International Journal of Information Management, 53(April 2019), 102119. https://doi.org/10.1016/j.ijinfomgt.2020.102119
Nugroho, M. A., Susilo, A. Z., Fajar, M. A., & Rahmawati, D. (2017). Exploratory Study of SMEs Technology Adoption Readiness Factors. Procedia Computer Science, 124, 329–336. https://doi.org/10.1016/j.procs.2017.12.162
O’Leary, D. E. (2020). Evolving Information Systems and Technology Research Issues for COVID-19 and Other Pandemics. Journal of Organizational Computing and Electronic Commerce, 30(1), 1–8.
Oppong, M., & Owiredu, A. (2014). Micro And Small Scale Enterprises Development In Ghana. European Journal of Accounting Auditing and Finance Research, 2(6), 84–97.
Puspitawati, L., Hertati, L., Zarkasyi, W., Suharman, H., & Umar, H. (2022). The Environmental Uncertainty, Manager Competency and Its Impact on Successful Use of Financial Applications inTthe Covid-19 Pandemic Era. Journal of Eastern European and Central Asian Research, 9(1), 10–20.
Roosa, M. (2022). Kontribusi Koperasi dan UMKM untuk Ekonomi Jawa Timur Meningkat Jadi 57,81 Persen. Suarasurabaya.Net. https://www.suarasurabaya.net/ekonomibisnis/2022/kontribusi-koperasi-dan-umkm-untuk-ekonomi-jawa-timur-meningkat-jadi-5781-persen/#:~:text=Dari aspek kewilayahan%2C terdapat lima,terkait perhitungan nilai tambah ini.
Wang, Z., & Tang, K. (2020). Digital Technology and COVID-19. Nature Medicine, 26(4), 458.
Zebua, S., & Widuri, R. (2023). Analysis Of Factors Affecting Adoption Of Cloud Accounting In Indonesia. Journal of Theoretical and Applied Information Technology, 101(1), 89–105.
Zhu, K., Kraemer, K. L., Xu, S., Zhu, K., Kraemer, K. L., & Xu, S. (2006). The Process of Innovation Assimilation by Firms in Different Countries?: A Technology Diffusion Perspective on E-Business. Management Science, 52(10), 1557–1576.
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