Some business factors as well as firm and owner characteristics play significant role in explaining the barriers of adopting digital innovation. The research of Sylviana Maya Damayanti reveal that fact. Besides Sylviana, there are Irwan Trinugroho, Putra Pamungkas, Jamal Wiwoho, and Teddie Pramono involved as co-authors in the research. The article “Adoption of Digital Technologies for Micro and Small Business in Indonesia” was published in Finance Research Letters.
A substantial proportion of Indonesian households in Indonesia depend on micro and small enterprises for their income. Mobile phone and internet penetration is expected to substantially drive micro and small enterprises to use technological-based innovation which eventually will improve the productivity and efficiency of those firms.
In the paper, using a survey of 2,222 micro and small enterprises in Indonesia, they estimate an empirical model on the determinants of the use of technological-based innovation including digital finance technologies and online sales for micro and small enterprises. By doing so, we are able to improve understanding of the barriers to micro and small business use of digital technologies in Indonesia. They also find that firms with higher income and selling during Covid-19 pandemic mostly adopt digital technologies in their business activity.
For further information: Adoption of digital technologies for micro and small business in Indonesia – ScienceDirect