ICT adoption in affecting organizational performance among Indonesian SMEs

Setyawan Widyarto

Abstract


The objective of this research is to identify conceptually factors affecting ICT adoption and its impact among Indonesian SMEs. The prior studies involve conceptual model of the combination between Diffusion of Innovation (DOI) theory, The technology-organization-environment (TEO) theory, and Iocovou’s framework. The prior studies believed the Internal and external factors influencing ICT adoption. This study found that the characteristic of technology, organization, and managerial are included as internal factors in adopting ICT. In the meantime, environment factors also are included as the external factor. Thus, the impact of ICT adoption would gave contributions on the efficiency and effectiveness of the organization as reflected in the organization performance. Hence, the organization performance could be measured based on the performance of business processes (operational performance) and financial performance (final performance). Reducing cost, increasing productivity related to operational performance, and profit margin, market share related to final performance. In brief, this study presents the conceptual framework of ICT adoption among Indonesian SMEs. Reviewing numerous prior studies to develop the research framework of this study is undertaken. However, the empirical study of current paper should be continued in the further research.

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