INFORMATION TECHNOLOGY AND BUSINESS PERFORMANCE A CASE STUDY ON SMALL FOOD PROCESSING FIRMS

Abstract

Small and medium enterprise (SME), including small food processing firm (SFF), based on its unit \nnumbers and the number of involved labors, has the potentials to play an important role in the \nIndonesia’s economy. However, its contribution to the national economy (i.e., GDP) has been \nminimal as to compare with its unit numbers and number involved labor. This indicates that \nimprovement of SME’s productivity is required. Information technology, especially internet \ntechnology, application within SMEs is regarded to have significant impact on their business \nperformance. This study is intended to investigate factors that affect internet adoption and the \nimpact of internet adoption on business performance within small food processing firm operators. \nModified Supply Process Model, 100 SFF operators—from which primary data were collected, and \npath analysis were used in this study. It was found that internet adoption was significantly affected \nby perceived usefulness, perceived ease of use, internet self efficacy, and internet anxiety. Firms’ \nbusiness performance, however, was not significantly affected by internet adoption.

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