IMPACT OF SOCIAL INFLUENCE ON INDIVIDUALS’ ADOPTION OF SOCIAL NETWORKS IN SMES

Abstract

While prior studies focused on the determinants of adoption of technological innovation in large scale businesses, there is a lack of empirical research on this issue of acceptance of social networks in SMEs in emerging economies. This study addresses this lacuna by focusing on the social factors driving Indonesian SMEs' adoption of technological innovation. A theoretical model based on the extant literature and established theories in the relevant field is empirically tested in this study. Data were collected through a structured questionnaire and analyzed using correlation matrices and multiple regressions. The most striking finding of this study is that social factors which has been rarely explored in prior research in SMEs' context is instrumental in broadening our understanding SMEs' practice of technological innovation in an emerging economy. This finding has implications for SMEs and the government in designing an appropriate strategy for the implementation of technological innovation that are highlighted in the study.

Mobile Phone Banking Usage Behaviour: An Australian Perspective

“…According to this perspective, employees may adopt an innovation not because of its usefulness but because of perceived social pressure. Such pressure may be perceived as coming from individuals whose beliefs and opinions are important, including peers and people who are in social networks (Igbaria, Parasuraman, & Baroudi 1996;Talukder, Quazi & Djatikusumo 2013). According to Abrahamson and Rosenkopf (1997), it is a largely internal influence that potential adopters exert on each other that persuades them to adopt technological innovation.…”

Changing thoughts towards digital literacy interventions for South African entrepreneurs

“…It seems that even the researcher's own focus should shift, even though she is an avid entrepreneurial researcher. Many countries noted the need to invest in SMEs because they form a large part of the country's economy (Esselaar et al 2006;Kunene 2008;Merkofer & Murphy 2009:1198Oke et al 2007;Talukder et al 2013;Thomas et al 2004). However, we all make mistakes when it comes to entrepreneurial interventions and entrepreneurs' digital literacy skills, and we all assume that certain barriers still exist.…”

“…It has long been a focus of many countries around the world to see their entrepreneurs grow. These countries have introduced interventions to assist entrepreneurs because they realise the impact these entrepreneurs have on their economies (Esselaar et al 2006;Kunene 2008;Merkofer & Murphy 2009;Oke, Burke & Myers 2007;Talukder, Quazi & Djatikusumo 2013;Thomas et al 2004). This, in turn, leads to an increased need for digital literacy interventions for these entrepreneurs.…”

Potential of digital technologies in academic entrepreneurship – a study

“…Therefore, with the proposition that because of the high level of awareness and benefits on social media platforms, peer referents are likely to play a nonsignificant role in AES usage behavior of social media platforms. Talukder et al (2013) examined the impact between SI (peers) and owners of small-medium enterprises' views on social networks adoption in Indonesia and detected a significant impact. Venkatesh et al (2003) proposed in their study that SI determinants (e.g.…”

“…Venkatesh et al (2003) argued that it is most relevant to study the connection between business owner (user) acceptance and usage outcomes, because, most often, using any technology is believed to end up in the actual results. Talukder et al (2013) studied 350 small-medium enterprises and discovered that Facebook is an innovative technology platform widely used in the operational activities of Indonesian businesses. Related research was also carried out by Nawi et al (2017) in Malaysia among 300 student entrepreneurs, and the outcome proved that Facebook is the most common platform used, followed by Twitter and Tumblr.…”