Integration of the Technology Readiness and Adoption Models
for Assessing IT Use among SMEs in Indonesia
Asrul Sani
1
, A’ang Subiyakto
2
and Titik Khawa
3
1
STMIK Widuri Jakarta, Indonesia
2
Syarif Hidayatullah State Islamic University Jakarta, Indonesia
3
Asia e University Selangor, Malaysia
Keywords: Readiness, Adoption, SMEs, Model development, Indonesia
Abstract: In developing a company, the interaction between the customer and the company is very important in
relation to the development of a company. The use of technology-based systems is certainly very much
needed and service to customers. In this case, the company must improve technology-based system
services so that customers can easily obtain information or other knowledge from the company. Building
technology-based systems require the readiness to operate, develop and improve technology. This article
will begin with how to develop the technology readiness of an SME company so that it can undergo the
activities of the company well, and will end with a practical discussion whether the application of IT
technology in SME companies require deeper development or just simply there. The aim of the research is
to deepen our understanding of the role of technology in its use in SME companies in terms of marketing
and serving customers.
1 INTRODUCTION
To be able to survive in the development of the
company, in this case, new economies, belonging
SMEs, are encouraged to adopt a technology
development. Businesses that do not adopt the
philosophy and practice the application of
information technology will be left behind by users.
Furthermore, stated by Jerry Jesionowski, President
of the US National Producers Association, in the wall
street journal that small companies need to enter into
the application of IT technology or they will be closed
from an important part of the market (Shah Alam et
al., 2011).
For the success and improvement of a country's
economy and social development, entrepreneurship
plays a major role that contributes to economic
improvement. Entrepreneurial activity is a
precondition for the success of economic growth,
development, job creation, social welfare and
political stability(Eggers et al., 2013, Filser and
Eggers, 2014).
The development of small and medium
enterprises (SMEs) is very important in developing
countries for the role of society in terms of economic
improvement; improving the distribution of income
and sales, productivity, efficiency and structure and
economic foundations during the economic downturn
(Abdullah et al., 2011). In this case Indonesia, the role
of entrepreneurship is very important to make
Indonesia become a developing country (Nugroho,
2015).
Along with increasing universal competitiveness
in the market and economic region, it is now SMEs
must develop themselves in order to have and have
strong competition. SME business development has
been well developed and highly regarded by the
Government of the Republic of Indonesia as stated in
the Long-term Development Plan (RPJP) 2005 -
2025, as a contribution to the greater economic
development and competitive spirit . To achieve this,
it is very important to reinforce and develop SMEs,
and one of its development strategies is through the
application and development of innovations and the
utilization of technology. At the application level of
technology, especially the application of information
technology is very low, which is about 30 to 40%
(2011).
Implementation the application of information
technology can be intended as the use of technology-
based systems to monitor information at all levels of
organizations and business. The positive influence
utilization of information technology applications for
SMEs is a valuable performance improvement in the
marketing division, communication, and network
division, as well as on the planning division of
resources, so as to improve financial management and
all of operation achievement if information
technology can be utilized properly (Fathian et al.,
Sani, A., Subiyakto, A. and Khawa, T.
Integration of the Technology Readiness and Adoption Models for Assessing IT Use among SMEs in Indonesia.
DOI: 10.5220/0009948131073113
In Proceedings of the 1st International Conference on Recent Innovations (ICRI 2018), pages 3107-3113
ISBN: 978-989-758-458-9
Copyright
c
2020 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
3107
2008). From the results of the research that will be
carried out and already mentioned, there will be two
questions that will be given to guide the
implementation of research on the exploration of this
research namely.
Q1: How to understand the connection between
technology readiness and technology adoption
constructs?
Q2: How to develop the technology readiness and
technology adoption models in terms of IT use
among SMEs in Indonesia?
This paper is divided into five parts. The first part
will explain the research is research program. Then
followed by a literature review, research method,
results and discussion, and conclusions in the second,
third, fourth, and fifth sections respectively
2 LITERATURE REVIEW
A preliminary studies that have been done by
Parasuraman (Parasuraman, 2000), was a study that
explains how the level of readiness of users to the
implementation of technology in an organization.
Users are the level of maturity of a person who must
have knowledge of information technology so it is
easy to digest the application system that will be
implemented. At the same time, the utility of a
technology is the ultimate goal of the user to master
the information communication and technology (A.
Parasuraman 2014).
Parasuraman and Colby explain technological
readiness as a tendency for people to get together and
use new technologies to achieve goals at home and at
work, TRI (Technology Readiness Index) developed
by Parasuraman to measure a person's beliefs and
thoughts in general about the application of
technology. Someone thinking about the application
of technology can be more positive right, that was
optimism in speaking of application technology and
also a tendency to gain discomfort and skepticism
over the application of technology. That's why there
are four dimensions in technology readiness:
optimism, innovation, discomfort, and insecurity
arise (Parasuraman and Colby, 2015, Parasuraman,
2000).
The first two measure of readiness technology are
optimism and innovation benefactor that can update
the readiness towards the use of technology, while for
the rest that is discomfort and insecurity are
considered as an inhibitor that can suppress the
degree of readiness technology (Colby, 2016).
Parasuraman and Colby stressing that the
readiness of applying a technology is a measurement
tool to provide perceptions or thoughts about the use
of technology, not as a measure of one's ability or
capacity to use technology. Based on the level of
technology application readiness scores, users are
classified into five sections: explorer, pioneer,
skeptic, paranoids, and sluggish. Cruiser type has the
top score in the benefactor dimension (optimism,
innovative) and low score in the dimension of the
inhibitor (discomfort, insecurity) (Parasuraman and
Colby, 2015).
Explorers are easily enamored to new technology
and become the first group to try it out. Meanwhile,
on the other side, sluggish is the last group type to
adopt new technology and has the top score on the
dimensions of the inhibitor and the low score on the
benefactor dimension. Meanwhile, three things
another is pioneers, skeptics, paranoids have a more
complex assumption of technology. Pioneers have
high optimism and innovation like exploration, but at
the same time, they can be easy stop using if they get
any discomfort (Parasuraman and Colby, 2015, A.
Parasuraman 2014).
Sceptics have low encouragement to use
technology but they have too low obstacle rates so
they need to be convinced about the utility of
technology. Study on Parasuraman and Colby show
that explorers and pioneer types incline to use new
technologies earlier than others, the paranoid,
technology is indeed interesting but they also take
into consideration the risks factor, this indicated by a
high level of discomfort (Rojas-Méndez et al., 2017).
Lucchetti and Sterlacchini who have studied
several cases of SMEs that occurred in Italy and they
found that attitude towards the adoption of
Information and Communication Technology (ICT).
The results of their research revealed that effective
adoption and use of ICT was differentiated,
depending on internal funds and technological skills
the company that has been done and utilized, on the
one hand, and the nature of the business, on the other
(Lucchetti and Sterlacchini, 2004)
Harindranath et al. also found and tried to explain
the reasons for the low use of ICT by UK SMEs.
According to their findings, one of the main concerns
of UK managers was the fear of limited use and
obsolescence of an IT that will, moreover, require
frequent updates. This happens because the
unpreparedness of the user and the technology that
will be used is an important problem in SMEs
(Harindranath et al., 2008).
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3 RESEARCH METHODS
The study of model development was conducted
into four main stages (Fig. 1). First, the preliminary
study (1) was carried out by conducting initial
preparations, namely the study of literature and
preparing the model to be developed including
looking at the type of organization, and social aspects
of the IS study, for example, usefulness, satisfaction,
and readiness (Shah Alam et al., 2011, Eggers et al.,
2013, Nugroho, 2015, Parasuraman, 2000, A.
Parasuraman 2014, Rojas-Méndez et al., 2017). In
addition to reviewing the literature, it was also carried
out to formulate the research program to be
conducted.
(1)
Preliminary
Study
Research
Programs
(2)
Model
Development
Model
Adopted
preparation
of models
and initial
theories
Model
Combination
Draft of
Model
(3)
Instrument
Development
Indicator
Definition
Question
(4)
Writing of
Report
Report
Figure 1: Research procedure
Then the second stage was modeling by adopting
and combining the models that have been developed
(2) which produce a draft model.
Third, the results of the draft model, then produce
instrument development. At this stage, the
researchers define indicators in their development,
and then develop questions from each item
measurement considering the study context.
Finally, the implementation of research
instrument development was then reported. As
explained in this paper, the design of the proposed
model consists of two main parts, namely the self-
developed model and the question list question (Table
1).
Table 1: List of the models and theories
The Models and Theories
References
Theory of information
processing
(Davis and Yen, 1998)
The Models and Theories
References
Readiness model
technology
(Parasuraman and Colby,
2015, Parasuraman,
2000, A. Parasuraman
2014, Rojas-Méndez et
al., 2017)
IT Adoption
(Hanclova et al., 2015,
Gangwar et al., 2014)
Professional and casual
models of a model
development
(Subiyakto and Ahlan,
2014, Subiyakto, 2017,
Subiyakto et al., 2015)
Following the assumptions developed,
Parasuraman and Colby's technology readiness model
(Parasuraman and Colby, 2015) was later adopted,
combined, and adapted in the second stage (2). A
draft model was obtained which was then developed
at the level of research instruments in the operational
phase (3). Finally, the research model developed and
the data collection instruments are then proposed in
the reporting phase, in terms of conducting research.
4 RESULT AND DISCUSSION
The resulting model is a combination of the
Parasuraman readiness model (Parasuraman and
Colby, 2015), the Chatzoglou adoption model
(Chatzoglou and Chatzoudes, 2016) and Zhu et al
(Zhu et al., 2006) . Figure 2 shows the proposed
model with eleven variables and 30 relational
hypotheses.
Process
Input
TEC
FSC
FSZ
CRD
OPT
INV
DCF
ISC
CPR
TPR
Output
ITA
Readiness Adoption
Figure 2: The Proposed model
Readiness, adoption, and adjustment of both
models are carried out based on input process output
logic (IPO) theory of information processing (Anfara
Jr and Mertz, 2014) and process logic and causal
concepts of development model (Belout and
Gauvreau, 2004). The authors hypothesize that
technology readiness model variables (Parasuraman
and Colby, 2015) (i.e., [OPT] Optimism, [INV]
Integration of the Technology Readiness and Adoption Models for Assessing IT Use among SMEs in Indonesia
3109
innovation, discomfort [DCF], and insecurity [ISC])
influence adoption in Chatzoglou SMEs (Chatzoglou
and Chatzoudes, 2016) and Zhu et al. (Zhu et al.,
2006) (i.e., Technology Competence [TEC ], Firm
Scope [FSC], Firm Size [FSZ], Customer Readiness
[CRD], Competitive Pressure [CPR], Lack of Trading
Partner Readiness (TPR), and IT Adoption [ITA]).
The level of an organization's technology is an
important element that can influence the adoption
model and implementation of IS / IT innovation.
According to Zhu et al. (Zhu et al., 2006) the level of
a technology is strongly influenced by technological
competencies and employee technical skills and
suggested that technology competencies, firm scope,
firm size, consumer readiness, competitive pressure
and lack of readiness trading partners used to assess
IT Usage among SMEs in Indonesia.
Table 2: List of the variables (Chatzoglou and Chatzoudes,
2016, Parasuraman and Colby, 2015, Zhu et al., 2006)
Codes
Definitions
OPT
The level of confidence in believing that
technology adoption might occur.
INV
The level of confidence of seeing that
adoption technology is part of a system.
DCF
The level of confidence in knowing that
technology is uncomfortable.
ISC
The level of confidence of distrust that
technology adoption can be properly
implemented and concerns about
potentially harmful consequences
TEC
The level of confidence of technologies
(hardware) that enable an organization to
develop processes
FSC
The level of confidence of horizontal
expansion of an enterprise’s operations
FSZ
The level confidence of which to a larger
company may have a competitive
advantage over its smaller counterparts
CRD
The level of confidence of a combination
of consumer willingness and Internet
penetration
CPR
The level of confidence to affect the
industry structure, and leverage new
ways to outperform rivals, thus changing
the competitive environment
TPR
The level confidence of status of its
trading partners along the value chain,
since for an electronic trade to take
place, it is necessary that all trading
partners adopt compatible electronic
trading systems
ITA
The level of confidence to which a
company adopts a technology for the
development of its industry
Table 3: List of the indicators (Chatzoglou and Chatzoudes,
2016, Parasuraman and Colby, 2015, Zhu et al., 2006)
Codes
Names
Definitions
OPT1
Easiness
The level connected to system
achievement to get freedom from
obstacles, difficulties, and
problems
OPT2
Connectivity
The level connected to the system
achievement so that it is connected
successfully with the existing
system
OPT3
Efficiency
The level connected to the system
achievement to get output with
comparison of the resources
needed to achieve output
OPT4
Effectiveness
The level connected to the ability
of the system to reach its
utilization targets
OPT5
Productivity
The level connected to the system
support to produce output
compared to the revenue needed to
producing output
INV1
Solve Problem
The level connected to the system
support for make solutions to
subject
INV2
Independency
The level connected to the system
able to support user free from the
influences
INV3
Challenges
The level connected to the system
support to successfully repair or
get things in difficult situations or
conditions
INV4
Stimulation
The level connected to the system
support to reach something that is
and is developing, or enhanced
INV5
Strength of
Competition
The level connected to the system
capabilities to support users so
that they can be more successful
than their competitors
DCF1
Complication
The level connected to the system
view that is confusing and difficult
to understand and modify
DCF2
Difficulty
The level connected to the system
conditions that cannot be easily
operated or used
DCF3
Dependence
The level connected to the system
conditions that require other
parties to run the system
DCF4
Lack of Support
The level connected to a system
that has no source, or is sufficient,
from the needs in its operation
DCF5
Incompatibility
The level connected to the
circumstances where there is a
discrepancy
ISC1
Failure
The level connected to the
circumstances where unpleasant
or dangerous systems can occur
ISC2
Threat
The level connected to the system
situation that could cause harm or
danger
ISC3
Reducing
Interaction
The level connected to the
application of a system that makes
human relations less in size,
quantity, and interest
ISC4
Distraction
The level connected to use the
system to get attention and avoid
people thinking about something
else
ISC5
Incredulity
The level connected the system is
doubtful of its use
TEC1
Technologies
The level connected to hardware
and software devices in carrying
out work processes so that it is
easy to implement
TEC2
Internet
The level connected to this type of
work in the context of the use of
technology
TEC3
Intranet
The level connected to the
relationship between users and
other users in a work environment
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TEC4
E-mail
The level connected to
correspondence using electronic
mail so that it is easy to reach
TEC5
Tools
The level connected to use of the
device so that it is easy to connect
to each other and easy to use
FSC1
Reaches
The level connected to business
reach that can be achieved in terms
of marketing
FSC2
Variation
The level connected to types of
work that can be done according to
capacity
FSC3
Establishment
The level connected to Strengths
and weaknesses of the firm being
developed
FSC4
Operationalization
The level connected to ongoing
production activities
FSC5
Geographic’s
The level connected to the state of
the work atmosphere in the
process activity
FSZ1
Data
The level connected to seeing the
amount of data used based on the
size of the firm
FSZ2
Clustering
The level connected of a small
group of people or things that are
very close to each other
FSZ3
Employees
The level connected to a number
of employees used
FSZ4
Classified
The level connected to a category
of industrial types produced by
looking at the magnitude of
activity
FSZ5
Model
The level connected to a model
used in the firm is adjusted to the
number of employees
CRD1
Strategic
The level connected to carefully
planned to get the desired results
CRD2
Consumer
The level connected to someone
who buys and uses goods
and services
CRD3
Penetration
The level connected to companies
or teams are against each other
before entering the computer era
CRD4
Industry
The level connected to people and
organizations involved in
producing goods
CRD5
Driver
The level connected to something
that makes important things
happen, for example in an
organization or economy
CPR1
Competitive
The level connected to companies
or teams are against each other
CPR2
Pressure
The level connected to attempts to
persuade, thread, or force
someone to do something
CPR3
Structure
The level connected to a
company's strengths in dealing
with the times
CPR4
Analysis
The level connected to the process
of studying or examining
something in detail in order to
understand it or explain it
CPR5
Integration
The process of becoming involved
completely in its activities
TPR1
Beyond
The level connected to a company
must have a far-sighted thinking to
build together
TPR2
Supply Chain
The level connected to the process
involved in supplying a product to
someone
TPR3
Compatible
The level connected to ideas or
systems that are compatible can
exist together
TPR4
Business partner
The level connected of
relationships that are caring for the
development of the organization
together
TPR5
Significant
The level connected to company
relationships
ITA1
Adoption
The level connected to decide to
use or accept a particular idea,
method or attitude
ITA2
Facilitators
The level connected to helps a
person or organization to find a
solution to a problem
ITA3
Coefficient
The level connected of a number
written before a variable.
ITA4
Framework
The level connected to a set of
principles, ideas etc that you use
when you are forming your
decisions and judgments
ITA5
Adaptation
The level connected to the process
of changing something so that it
can be used for a different purpose
In terms of model development (Subiyakto et al.,
2015), this study will provide two main points,
namely, the confidence and validity of the problem.
First, the implementation of this research was carried
out transparently and clearly, as explained in the
research method section. Readers can pay attention to
how the authors use the assumption of model
readiness development (Parasuraman and Colby,
2015) and adoption (Chatzoglou and Chatzoudes,
2016, Zhu et al., 2006, Tarutė and Gatautis, 2014),
combine the two models, and adjust variables,
indicators, and questions, in terms of the construct of
system utilization. This can be noted with certainty
that the clarity of the model of the study development
process can show the point of confidence for the
development of the model. Second, in addition to
utilizing assumptions, combinations and processes of
adaptation, readers can also pay attention to how
questions can be taken upside down referring to
indicators, variables, and assumptions. The above
variable is defined as the state where the level of
readiness and adoption model developed will express
it characteristics in terms of assessing IT use among
SMEs in Indonesia
In short, it is clear that the transparency of the
model development process and the model rationality
developed can be two contributions from this
research.
Table 4: List of the questionnaire statements
Codes
Statements of the questionnaires
OPT1
System is free from obstacles, difficulties, and
problems
OPT2
System can be connected success with the
existing system
OPT3
System runs in within limited resources
Codes
Statements of the questionnaires
OPT4
System runs in within the maximum output
OPT5
System can be run in a measurable and effective
manner
INV1
System is a problem-solving tool for users
Integration of the Technology Readiness and Adoption Models for Assessing IT Use among SMEs in Indonesia
3111
INV2
System helps users to be free from the
influences
INV3
System supports users for reaching goals in a
difficult condition
INV4
System encourages users for reaching goals
INV5
System supports users to be more successful
than their competitors
DCF1
System confuses users in using it
DCF2
System cannot be used simply
DCF3
System cannot be used freely
DCF4
System is used without full operating system
support
DCF5
System is not in accordance with the
development plan
ISC1
System was not successfully operated in
accordance with its development planning
ISC2
System is in a condition that can cause harm or
danger
ISC3
System will make users less in association
ISC4
System makes users not focus on their interests
ISC5
System is no doubt used for technology
improvement and development
TEC1
Systems and technologies used are easy to
implement
TEC2
Ease of using the internet as a work facility
TEC3
System used in internal supports work activities
TEC4
System support in the case of correspondence so
as to facilitate work
TEC5
System is the use of tools that are very
supportive in activities
FSC1
System can reach and can be relied upon to
support marketing
FSC2
System is able to maximize work well according
to capacity
FSC3
System is not easy to error if the data capacity is
increasing
FSC4
System is able to be connected to all units so
that the activity goes well
FSC5
System is that the device can work well despite
the transfer of labor
FSZ1
System is capable of having resources and can
facilitate adoption
FSZ2
System is what can increase the level of
economy and large income
FSZ3
System is something that can bear the risk in the
initial stages of business
FSZ4
System is able to create a model by putting
forward results in accordance with the number
of employees
FSZ5
System is able to adopt technology with trading
partners so that it can be integrated
Codes
Statements of the questionnaires
CRD1
System is able to connect consumers with
existing technology
CRD2
System is what can translate technological
innovation into a profit
CRD3
System is the readiness of consumers for
technology penetration
CRD4
System is to provide improvements to the
technological process developed
CRD5
System is the development in the field of
facilities to facilitate consumers in accessing
technology
CPR1
System is capable of changing competition rules
so that they are more competitive in competition
CPR2
System is capable of utilizing new ways of
competitive competition
CPR3
System is what can affect the structure of the
industry to be more efficient
CPR4
System is to provide new means to increase
competition through technological
developments
CPR5
System is able to facilitate customers so that
they can increase company profits
TPR1
System is one that requires tighter integration
with customers and suppliers
TPR2
System is that which facilitates the supply chain
in the company
TPR3
System is able to produce data analysis properly
so that decisions taken are correct and correct
TPR4
System is able to connect all trading partners by
adopting a compatible electronic trading system
TPR5
System is able to provide Internet-enabled
services for each other
ITA1
System is the development of technology so that
it can follow the method that has been used
ITA2
System is technology development that can
solve problems based on available data
ITA3
System is able to repair and read customer
numerical data based on technology readiness
ITA4
System is capable of solving problems and
providing ideas for technological development
and decision making
ITA5
System is designed according to the needs and
development of the company
5 CONCLUSIONS
This study will improve understanding of how the
link between readiness and IT adoption factors in
terms of development in SMEs and how to integrate
readiness models and adoption IT models in terms of
system use and development. The authors propose a
combination model by integrating four readiness
model variables and six variables from the adoption
IT model, in terms of SME development. In addition
to the process of developing clarity, a coherent
relationship between models, variables, indicators,
and questions from each indicator is also shown by
the author. In regard to the limitations of the study
around the understanding, assumptions, and
perspective issues of the author; In addition to the
limitations recommended to be a consideration point
for future work, the proposed model and its
instruments can also be recommended to proceed to
the examination and development stage.
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