Browse > Article
http://dx.doi.org/10.13106/jafeb.2020.vol7.no10.969

Information and Communication Technology Adoption in Small- and Medium-Sized Enterprises: Demographic Characteristics  

KUSUMA, Hadri (School of Accounting, Universitas Islam Indonesia)
MUAFI, Muafi (School of Management, Universitas Islam Indonesia)
AJI, Hendy Mustiko (School of Management, Universitas Islam Indonesia)
PAMUNGKAS, Sigit (School of Accounting, Universitas Islam Indonesia)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.10, 2020 , pp. 969-980 More about this Journal
Abstract
This study examines the acceptance factors, barriers, benefits, and strategies for resolving Information and Communication Technology (ICT) adoption and usage problems based on the different demographic characteristics of SMEs. The demographic characteristics investigated are gender, educational qualifications, age, managerial status, and years of business experience. To the best of our knowledge, this paper is the first to examine a more comprehensive demographic characteristics in the context of ICT adoption. A survey using self-administered questionnaires was conducted to retrieve information from SME owners/managers in Pekalongan, the local city of Indonesia. The items in the questionnaire were discussed with various experts in the field and a pilot study was conducted prior to the distribution of the research instrument. The study made some interesting findings. No significant differences were found in the SMEs' adoption factors between the demographics of gender groups and educational qualifications. However, significant disparities were found to exist among the age compositions, managerial status, and years in business. Additionally, younger managers/owners of SMEs find it easier to understand the background factors of ICT adoption. Lastly, older managers/owners are more likely to stick to the organizational status quo, be less able to learn new technology, and more likely to avoid risky decisions.
Keywords
Demographic Characteristics; Technology Acceptance Model; Technology Acceptance Benefits; Technology Acceptance Barriers;
Citations & Related Records
Times Cited By KSCI : 8  (Citation Analysis)
연도 인용수 순위
1 Ting, I. W. K., Azizan, N. A. B., & Kweh, Q. L. (2015). Upper Echelon Theory Revisited: The Relationship between CEO Personal Characteristics and Financial Leverage Decision. Procedia - Social and Behavioral Sciences, 195, 686-694. https://doi.org/10.1016/j.sbspro.2015.06.276
2 Tob-Ogu, A., Kumar, N., & Cullen, J. (2018). ICT adoption in road freight transport in Nigeria - A case study of the petroleum downstream sector. Technological Forecasting and Social Change, 131(November 2016), 240-252. https://doi.org/10.1016/j.techfore.2017.09.021   DOI
3 Van Wart, M., Roman, A., Wang, X. H., & Liu, C. (2017). Integrating ICT adoption issues into e-leadership theory. Telematics and Informatics, 34(5), 527-537. https://doi.org/10.1016/j.tele.2016.11.003   DOI
4 Ndiege, J., Herselman, M., & Flowerday, S. (2014). Absorptive Capacity and Information Technology Adoption Strategies: A Study of SMEs in Kenya. The African Journal of Information Systems Volume, 6(4), 140-155.
5 Nguyen, A. H., Ha, H. H., & Nguyen, S. La. (2020). Determinants of Information Technology Audit Quality: Evidence from Vietnam. Journal of Asian Finance, Economics and Business, 7(4), 41-50. https://doi.org/10.13106/jafeb.2020.vol7.no4.41   DOI
6 Nunnally, J. C. (1978). Psychometric Theory (2nd ed.). New York, NY: McGraw-Hill.
7 Okundaye, K., Fan, S. K., & Dwyer, R. J. (2019). Impact of information and communication technology in Nigerian small-to medium-sized enterprises. Journal of Economics, Finance and Administrative Science, 24(47), 29-46. https://doi.org/10.1108/JEFAS-08-2018-0086   DOI
8 Ongori, H., & Migiro, S. O. (2010). Information and communication technologies adoption in SMEs: literature review. Journal of Chinese Entrepreneurship, 2(1), 93-104. https://doi.org/10.1108/17561391011019041   DOI
9 Orens, R., & Reheul, A. M. (2013). Do CEO demographics explain cash holdings in SMEs? European Management Journal, 31(6), 549-563. https://doi.org/10.1016/j.emj.2013.01.003   DOI
10 Ono, H., & Zavodny, M. (2005). Gender Differences in Information Technology Usage: a U.S-Japan comparison. Sociological Perspectives, 48(1), 105-133. https://doi.org/10.4018/978-1-87828-991-9.ch151   DOI
11 Pekalongan, P. (2018). Regent Working Visit to Balikpapan, Establish UMKM Cooperation. http://pekalongankab.go.id/v2/berita-lokal/10464-bupati-kunker-ke-balikpapan-jalin-kerjasama-umkm
12 Qualtrics. (2018). Sample Size Calculator. https://www.qualtrics.com/blog/calculating-sample-size/
13 Sekaran, U. (2003). Research Methods: A Skill Building Approach (4th ed.). Hoboken, NJ: John Wiley & Sons, Inc.
14 Shah Alam, S., Fauzi Mohd Jani, M., Asiah Omar, N., Hossain, T., & Ahsan, M. N. (2012). Empirical Study of Theory of Reason Action (TRA) Model for ICT Adoption among the Malay Based SMEs in Malaysia. Business Management and Strategy, 3(2), 43-53. https://doi.org/10.5296/bms.v3i2.2911
15 Steelyana, E. (2012). Batik, A Beautiful Cultural Heritage that Preserve Culture and Supporteconomic Development in Indonesia. Binus Business Review, 3(1), 116. https://doi.org/10.21512/bbr.v3i1.1288   DOI
16 Bahli, B., & Rivard, S. (2003). The information technology outsourcing risk: A transaction cost and agency theory-based perspective. Journal of Information Technology, 18(3), 211-221. https://doi.org/10.1080/0268396032000130214   DOI
17 Tan, K. S., Chong, S. C., Lin, B., & Eze, U. C. (2010). Internet-based ICT adoption among SMEs: Demographic versus benefits, barriers, and adoption intention. Journal of Enterprise Information Management, 23(1), 27-55. https://doi.org/http://dx.doi.org/10.1108/17410391011008897   DOI
18 Tight, M. (2018). Human and Social Capital and Their Application in Higher Education Research. Theory and Method in Higher Education Research, 4, 209-223. https://doi.org/10.1108/s2056-375220180000004013
19 Altuwaijri, B. M., & Kalyanaraman, L. (2020). CEO Education-Performance Relationship : Evidence from Saudi Arabia. Journal of Asian Finance, Economics and Business, 7(8), 259-268. https://doi.org/10.13106/jafeb.2020.vol7.no8.259   DOI
20 BarNir, A. (2015). Starting technologically innovative ventures: reasons, human capital, and gender. Management Decision, 50(3), 399-419. https://doi.org/http://dx.doi.org/10.1108/0025174121121620   DOI
21 Bayo-Moriones, A., Billón, M., & Lera-López, F. (2013). Perceived performance effects of ICT in manufacturing SMEs. Industrial Management and Data Systems, 113(1), 117-135. https://doi.org/10.1108/02635571311289700   DOI
22 Becker, G. (1964). Human capital: A theoretical and empirical analysis, with special reference to education. National Bureau of Economic Research/Columbia University Press.
23 Bruderl, J., Preisendorfer, P., & Ziegler, R. (1992). Survival Chances of Newly Founded Business Organizations. American Sociological Review, 57(2), 227-242. https://doi.org/10.2307/2096207   DOI
24 Al-weshah, G. a, & Al-zubi, K. (2012). Study of Smes in Jordanian Communication. Global Journal of Business Research, 6(3), 1-16.
25 Corporate Finance Institute. (2019). What are Small and Mediumsized Enterprises (SMEs)? Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/knowledge/other/small-and-medium-sized-enterprises-smes/
26 Delloite. (2015). Deloitte Report: SMEs Powering Indonesia's success. Dellloites Access Economics. https://www2.deloitte.com/id/en/pages/financial-advisory/articles/smes-powering-indonesia-success-report.html
27 Adom, K., & Asare-Yeboa, I. (2016). An evaluation of human capital theory and female entrepreneurship in sub-Sahara Africa. International Journal of Gender and Entrepreneurship, 8(4), 402-423. https://doi.org/https://doi.org/10.1108/IJGE-12-2015-0048
28 Gujarati, D. N. (2003). Essentials of Econometrics (4th ed.). New York, NY: McGraw-Hill.
29 Hambrick, D. C., & Mason, P. a. (1984). Echelons: of Reflection The Its Organization as Top a. The Academy of Management Review, 9(2), 193-206. https://doi.org/10.2307/258434   DOI
30 Heritage, I. C. (2009). Indonesian Batik. Convention for the Safeguarding of the Intangible Cultural Heritage. https://ich.unesco.org/en/RL/indonesian-batik-00170
31 Hillman, A. J., & Dalziel, T. (2003). Boards of Directors and Firm Performance: Integrating Agency and Resource Dependence Perspectives. The Academy of Management Review, 28(3), 383-396. https://doi.org/10.2307/30040728   DOI
32 Kannabiran, G. (2012). Enablers and inhibitors of advanced information technologies adoption by SMEs: An empirical study of auto ancillaries in India. Journal of Enterprise Information Management, 25(2), 186-209. https://doi.org/10.1108/17410391211204419   DOI
33 Indonesian Government. (2009). Law of the Republic of Indonesia Number 20 concerning Micro, Small, and Medium Enterprises. Retrieved April 19, 2019 from: https://www.ojk.go.id/sustainable-finance/id/peraturan/undang-undang/Documents/Undang-Undang%20Nomor%2020%20Tahun%202008%20Tentang%20Usaha%20Mikro,%20Kecil,%20dan%20Menengah.pdf
34 Indonesian Government. (2019). Development of Data on Micro, Small, Medium Enterprises and Large Enterprises Years 2016 - 2017. Retrieved April 22, 2019 from: http://www.depkop.go.id/uploads/laporan/1549946778_UMKM 2016-2017 rev.pdf
35 Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: managerial behavioragency and ownership structure. Journal of Financial Economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X   DOI
36 Karake, Z. A. (1994). Relative Information Technology Index (RITI): Logistics Information Management, 7(4), 6-14. https://doi.org/10.1108/09576059410066363   DOI
37 Karake, Z. A. (1995). Information technology performance: agency and upper echelon theories. Management Decision, 33(9), 30-37. https://doi.org/doi:10.1108/00251749510098964   DOI
38 Khan, U., Zhang, Y., & Salik, M. (2020). The Financial Performance of Korean Manufacturing SMEs : Influence of Human Resources Management. Journal of Asian Finance, Economics and Business, 7(8), 599-611. https://doi.org/10.13106/jafeb.2020.vol7.no8.599   DOI
39 Kim, S.-S., & Lee, J. H. (2016). The Marginal Value of Cash and Agency Conflicts in Korean Firms. Journal of Asian Finance, Economics and Business, 3(4), 5-16. https://doi.org/10.13106/jafeb.2016.vol3.no4.5   DOI
40 Kiveu, M., & Ofafa, G. (2013). Enhancing market access in Kenyan SMEs using ICT. Global Business and Economics Research Journal, 2(9), 29-46. http://www.journal.globejournal.orghttp//www.journal.globejournal.org
41 Landstrom, H. (1993). Agency Theory and Its Application to Small Firms: Evidence from the Swedish Venture Capital Market. Journal of Entrepreneurial Finance, 2(3), 203-218.
42 Li, J., & Tang, Y. (2010). CEO Hubris and Firm Risk Taking in China: The Moderating Role of Managerial Discretion. Academy Of Management Journal, 53(41), 45-68. https://doi.org/10.1111/1467-9442.00135
43 Meggiolaro, S. (2018). Information and communication technologies use, gender and mathematics achievement: evidence from Italy. Social Psychology of Education, 21(2), 497-516. https://doi.org/10.1007/s11218-017-9425-7   DOI
44 Mokaya, S. (2012). The Adoption of Information and Communication Technology by Small Enterprises in Thika Municipality, Kenya. International Journal of Business and Social Science, 3(13), 172-177.