Antecedent and Consequence of Implementation Information Technology Adoption at Small Medium Enterprise (SMEs)

Budhi Cahyono, Chrisna Suhendi, Ahmad Suffian Mohd Zahari and Rosman Mahmood
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Budhi Cahyono: Faculty of Economy, Universitas Islam Sultan Agung (UNISSULA), Indonesia
Chrisna Suhendi: Faculty of Economy, Universitas Islam Sultan Agung (UNISSULA), Indonesia
Ahmad Suffian Mohd Zahari: Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Malaysia
Rosman Mahmood: Faculty of Business and Management, Universiti Teknologi MARA (UiTM), Malaysia

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 1, 22874-2888

Abstract: This study has examined the importance of information technology adoption for small and medium enterprises (SMEs), by determining the influence of factor perceived simplicity, compatibility, and performance expectancy. Furthermore, the impact of IT adoption will be assessed on sustainable competitive advantage. There are three hypotheses tested; H1: The higher the level of IT adoption, the higher the Sustainable Competitive Advantage (SCA), H2: The higher the level of simplicity in using new technology, the higher the rate of adoption of information technology, H3: The greater the suitability of a technology, the greater the interest in IT adoption. Performance Expectancy to IT Adoption and H4: The higher the level of expected performance of someone in the organization, the higher the intention to adopt technology. This research has been conducted by testing SEM (Structural Equation Modeling) using SmartPLS statistical software. The data were collected using survey questionnaires to 250 managers who handled IT adoption in Indonesian companies. Results obtained using structural equation modeling (SEM) reveal a positive relationship of IT adoption on sustainable competitive advantage. The other result show that there was relationship among perceived simplicity, compatibility, and performance expectancy on IT adoption. IT adoption practices are very urgent implemented by SMEs to ensure sustainable competitive advantage. Implementation focus on technology simplicity and impact of IT on creating sustainable competitive advantage.

Date: 2025
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