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

Full Text:

PDF

References


Bruque, S., and Moyano, J. (2007). Organizational determinants of information technology adoption and implementation in SMEs: The case of family and cooperative firms. Technovation, 27(5). 241–253

Zeng, S.X., Xie, X.M. and Tam., C.M. (2010). Relationship between Cooperation Networks and Innovation Performance of SMEs. Technovation 30(3). 181–194

Biro Pusat Statistik Indonesia, Data Perkembangan UKM - BPS File 2016, unpublished

Tambunan, T.(2012). Usaha Kecil dan Menengah di Indonesia: Beberapa Isu Penting, Penerbit Salemba Empat, Jakarta

Suliyanto. (2009). Kesesuaian (Fit) Antara Lingkungan dengan Orientasi Strategi Untuk Meningkatkan Kinerja Usaha Kecil Menengah (UKM): Sebuah Model Pengembangan Teoritis. Jurnal Performance Vol. 10 No.1 September 2009, 88-101

Ariawan., S, Made., D & Maskie, G. (Suliyanto. (2009). Kesesuaian (Fit) Antara Lingkungan dengan Orientasi Strategi Untuk Meningkatkan Kinerja Usaha Kecil Menengah (UKM): Sebuah Model Pengembangan Teoritis. Jurnal Performance Vol. 10 No.1 September 2009, 88-1012017). Penerapan Strategi Bisnis Untuk Menigkatkan Kinerja UKM (Studi Pada UKM Karawo di Kota Gorontalo). Jurnal Strategi Bisnis UKM. Vol 1 No.2 Tahun 2017, 1-12

Hamilton, S. (2004). Classification of ERP Success . Retrieved April 1, 2014 from www.technologyevaluation.com

Mudianto. (2013). Upaya Meningkatkan Keberhasilan Implementasi ERP Untuk Membangun Keunggulan Bersaing pada UKM di Jawa Tengah, JMK , Vol. 1 5, No. 2, September 2013, 153- 164, ISSN 1411- 1438

Wibowo, A.S, Ajib & Mulyono, I.U.W.(2016). Sistem Enterprise Resource Planning (ERP) Modul Operasi Berbasis Online Untuk Usaha Kecil Menengah (UKM). Techno.COM, Vol. 15, No. 3, Agustus 2016, 246-251

Ruivo, P, Johansson, B, Oliveira, T & Neto, M. (2013)., Commercial ERP systems and user productivity: A study across European SMEs”, Procedia Technology 9 ( 2013 ), 84 – 93

Dantes, G.R & Hasibuan, Z.A. (2015). The Impact of Enterprise Resource Planning (ERP) System Implementation on Organization: Case Study ERP Implementation in Indonesia. IBIMA Business Review. Vol. 2011 (2011), Article ID 210664, DOI: 10.5171/2011.210664

Venkatraman, S & Fahd, K. (2017). Challenges and Success Factors of ERP Systems in Australian SMEs. Systems 2016. 1-18

Gable, G.G, Sedera, D and Chan, T. (2003). Enterprise Systems Success: A Measurement Model. Proceedings of the 24th. ICIS, 2003, 576-591

Ifinedo, P, Udo, G and Ifinedo, A.(2010). Organisational Culture and IT Resources Impacts on ERP system success: an empirical investigation. International Journal Business and Systems Research, Vol. 4, No. 2, 2010.

Shang, S.S.C. and Wu, T.(2005).A Model for Analyzing Organizational Performance of ERP Systems from a Resource-based View. 2nd International Conference on Enterprise Systems and Accounting (ICESAcc’05). 11-12 July 2005, Thessaloniki, Greece

Teja, A. (2017). Indonesian Fintech Business: New Innovations or Foster and Collaborate in Business Ecosystems?. The Asian Journal of Technology Management Vol. 10 No. 1 (2017), 10-18

Varga, D.(2017). Fintech, The New Era Of Financial Services. Budapest Management Review. ISSN 0133-0179 DOI: 10.14267, 22-23

Dogan, M. (2013). Does Firm Size Affect The Firm Profitability? Evidence from Turkey. Research Journal of Finance and Accounting. ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online) . Vol.4, No.4, 2013

Raziq, A. (2014). The Relationship Between Firm Size and High Performace Management Practices In Pakistani SMEs. Indian Journal of Commerce & Management Studies. ISSN: 2240-0310 EISSN: 2229-5674

Dut, V.V. (2015). The Effects Of Local Business Environments On SMEs Performance: Empirical Evidence From The Mekong Delta. Asian Academy of Management Journal, Vol. 20, No. 1, 101–122, 2015

Minerva, R. (2016). The Potential Of The Fintech Industry To Support The Growth Of SMEs in Indonesia. MBA Degree Thesis, 1-60

Falgenti, K & Pahlevi, S.M. (2013). Evaluasi Kesuksesan Sistem Informasi ERP pada Usaha Kecil Menengah Studi Kasus: Implementasi SAP Be One di PT CP. Jurnal Manajemen Teknologi. Vol 12. No.2 Juli 2013 pp:161-183

Sa’diyah, M.A & Mudiantono.(2015).Analisis Kinerja Pemasaran Melalui Keberhasilan Implementasi Sistem Enterprise Resource Planning (Erp) Pada Umkm Di Semarang. The 2nd Conference in Business, Accounting and Management. ISSN 2302-9791, Vol.2.No.1. May 2015. pp: 150-160

Tambunan, T.(2012). Usaha Kecil dan Menengah di Indonesia: Beberapa Isu Penting, Penerbit Salemba Empat, Jakarta

Law, C.H. & Ngai, W.T. (2007). ERP systems adoption: An exploratory study of the organizational factors and impacts of ERP success. Information & Management 44 (2007) pp: 418–432

Croteau, A.M & Bergeron, F.(2001). An Information Technology Trilogy: Business Strategic, Technological deployment, and Organizational Performance. Journal of Strategic Informaton System 10(2001). pp:77-99

Hamilton, S. (2004). Classification of ERP Success . Retrieved April 1, 2014 from www.technologyevaluation.com

Bharadwaj, A. (2016). Transforming Business: Integrating ERP with E-Business. International Journal of Advanced Research in Computer Science and Software Engineering 3(7), July - 2013, 653-656

Jamdaade, K and Hetal Champaneri, H. (2015). A Review: Secured Electronic Payment Gateway. International Journal Of Technology Enhancements And Emerging Engineering Reseach,. Vol 3, Issue 06 70. ISSN 2347-4289

Damanik, E. (2012). Perancangan Sistem Informasi Pembayaran Online Mengunakan Payment Gateway. JSM STMIK Mikroskil. ISSN. 1412-0100. Vol. 13, No 1, April 2012, 63-71

Wang, Xiangyu & Tu, Yan. (2017). A Study on P2P Lending Mode using Generalized Stochastic Petri Nets. The International Journal of Social Sciences and Humanities Invention 4(1): 3202-3214, 2017

Wulan,V.R.(2017). Financial Technology (Fintech) A New Transaction In Future. Journal of Electrical Engineering and Computer Sciences ISSN : 2528 – 0260. Vol. 2, No.1, June 2017, 177-182

Farhanghi, A.A., Abbaspour, A. and Ghassem, A.R. (2013). The Effect of Information Technology on Organizational Structure and Firm Performance: An Analysis of Consultant Engineers Firms (CEF) in Iran. Procedia - Social and Behavioral Sciences 81 ( 2013 ) 644 – 649

Haddara, M. (2013). ERP in SMEs: Exploring ERP Lifecycle Cost Issues. Doctoral Dissertation, University of Agder Faculty of Economics and Social Sciences Department of Information Systems 2013, ISSN: 1504-9272, ISBN: 978-82-7117-742-3, pp: 1-110

Almgren, K & Bach,C. (2014). ERP Systems and their Effects on Organizations: A Proposed Scheme for ERP Success. ASEE 2014 Zone I Conference, April 3-5, 2014, University of Bridgeport, Bridgeport, CT, USA

John, A.O & Adebayo, O. (2013). Effect of Firm Size on Profitability: Evidence from Nigerian Manufacturing Sector. Prime Journal of Business Administration and Management (BAM). ISSN: 2251-1261. Vol. 3(9), pp. 1171-1175, September 30th, 2013

Ringle, C.M., Wende,S., and Becker, J.M. (2015). SmartPLS 3. Boenningstedt: SmartPLS GmbH, http://www.smartpls.com




DOI: http://dx.doi.org/10.52155/ijpsat.v21.2.1935

Refbacks

  • There are currently no refbacks.


Copyright (c) 2020 Mercurius Broto Legowo, Budi Indiarto, Deden Prayitno

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.