EFFETCS OF INFORMATION TECHNOLOGY ON FIRM PERFORMANCE: DO SMALL BUSINESS OWNERS BELIEVE IT?
Building: Discovery Kartika
Room: RAMA ROOM
Date: 2010-04-28 01:30 PM – 03:00 PM
Last modified: 2010-04-26
Abstract
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EFFETCS OF INFORMATION TECHNOLOGY ON FIRM PERFORMANCE: DO SMALL BUSINESS OWNERS BELIEVE IT?
Toto Sugiharto1, Budi Hermana, and Susy Suhendra
Lecturers, Faculty of Economics, Gunadarma University, Jakarta
1 Corresponding author (tsharto@staff.gunadarma.ac.id)
Abstract
Economic contribution of small business firms in Indonesia has been higher as to compare with medium and large business firms. However, based on their unit number and number of labor involved, this contribution was relatively low indicating that their productivity (i.e., financial performance) was lower than that of their medium and large business firms. A number of factors affecting small business performance have been identified. Two of which were innovation and productivity which were lacking. Information technology (i.e., Internet) was believed to have the potential—through variety of ways— to improve small business innovation and productivity. This study was aimed at investigating small business owners’ perception towards Internet technology and how it affects their business performance. Three hundred and twenty six respondents consisting of 88 small food processing firm owners, 101 small agribusiness firm owners, and 137 small embroidery firm owners were used in this study. Descriptive analysis was performed. The study results found that perception of small business towards internet technology varies according to a number of factors such as age, education, level of technology adoption, and business types. Interestingly, it was found that the majority of respondents do not entirely believe that Internet technology will increase their firm performance.
Keywords: Internet technology; small business firms; perception; firm performance
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