Adoption of Digital Technology in Micro, Small, and Medium Enterprises (MSMEs): Integration of Innovation Diffusion Theory and Resource-Based View (RBV) Theory (A Case Study on MSMEs in Surakarta City)

Abstract

This research focuses on the adoption of digital technology in Micro, Small and Medium Enterprises (MSMEs) in the City of Surakarta, with a focus on the use of social media, cashier applications and digital payments. Based on the diffusion of innovation theory and resource-based view (RBV) theory, the research used purposive sampling techniques to collect data from 145 MSMEs through questionnaires and analyzed the data using logistic regression with SPSS25.

The research results show that direct selling has no effect on the use of cashier and digital payment applications, but has a positive effect on the use of social media. Onlinepay other/competitive pressure has a positive effect on the use of social media, cashier applications and digital payments. Owner funds/ownership of funds by MSME owners has a positive effect on the use of social media, but has no effect on the use of cashier and digital payment applications. Technology user/awareness has a positive effect on the use of social media, but has no effect on the use of cashier and digital payment applications. Internet connectivity has a positive effect on the use of social media, but has no effect on the use of cashier applications and has a negative effect on digital payments. Access to capital has a positive effect on the use of social media, cashier applications and digital payments. This research provides insight into the factors influencing the adoption of digital technology by MSMEs, which is important for the development of strategies and policies that support the growth of the MSME sector in the economy.