Intergenerational technology adoption barriers in Indonesian family-owned MSME: A multi-level structural equation modeling analysis

Enina Putri () and Sabar Aritonang Rajaguguk ()
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Enina Putri: Bina Nusantara University
Sabar Aritonang Rajaguguk: Bina Nusantara University

Priviet Social Sciences Journal, 2025, vol. 5, issue 6, 14-29

Abstract: The digital transformation of Micro, Small, and Medium Enterprises (MSME) in Indonesia faces unique challenges in family owned businesses, where intergenerational dynamics significantly influence technology adoption decisions. This study examines how generational differences create barriers to technology adoption in Indonesian family owned MSME using a multilevel structural equation modeling approach. Using a multi-generational dyadic design with 350 family owned MSME representatives from two or more generations (N=700), we investigated the relationships between generational gaps, family harmony, and digital adoption intentions. Data were collected through structured interviews across traditional industries including textiles, food processing, and handicrafts. The results revealed that family harmony significantly mediates the relationship between generational gaps and technology adoption intentions (β=0.42, p

Date: 2025
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DOI: 10.55942/pssj.v5i6.426

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