Information Technology Adoption Efforts in Improving The Performance of Indonesia SMEs

Mercurius Broto Legowo, Budi Indiarto, Deden Prayitno

Abstract


Information Technology (IT) adoption efforts and implementation of new technology in the Small Medium Enterprises (SMEs) sector with a good level of success is very important in the performance of SMEs business. This study aims to analyze the causal relationship between the success of ERP system with SMEs performance and payment gateway by adopting it as a moderation variable, then consider employee size of SMEs as a control variable. The owner or manager of SMEs from 63 SMEs in Indonesia completed the questionnaire analyzed through empirical analysis by using Smart PLS. In investigating the analysis of control variable will empirically using the Random Effect Model to analyze the effect of employee size on SMEs performance. The results of this study indicate that the adoption of IT through the success of the ERP system has a significant impact on SMEs performance, but the implementation of payment gateways has failed to moderate the performance of SMEs, and then the employees size of SMEs (as a variable control) has an impact on Indonesian SMEs performance. Furthermore, the research contribution shows that IT adoption efforts in ERP system success and Payment Gateway implementation as new technology will have the impact on improving the SMEs performance.

Keywords


ERP System Success; Employee Size; Indonesian SMEs; Payment Gateway; SMEs Performance

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References


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