Research Pilot Study for Delone Success Model with the E-Business Model among SMEs in Medan Area

Abstract

The development of SMEs in the Medan city area is growing along with the significant development of information technology (IT). The increasingly important use of IT in SMEs will increase productivity, marketing, and efficiency. This study will measure the success rate in the applicationi of IT which is used to explore the success rate of IT applications and to examinei the factors that influence its implementation in addition to the index value established by the threshold. Software for partial least squares structural equation modeling (PLS-SEM) will be used to process the data. The model used is the integration of the Delone & McLean successi modeli with the adoption of an e-business model. The stakeholders of Small and Medium Enterprises were the focus of the survey in the city of Medan, which was conducted using interview techniques and questionnaires with responses (n = 212). Interviews and surveys were performed with decision-makers in SMEs companies so that the data obtained would provide accurate results. The results showed that most respondents (96.7%) answered that they were willing to interview and fill out the questionnaire. Experience using IT over five years 24.53% between 4-5 years as much as 27.83%. Meanwhile, from the ability level, only 22.64% cannot use IT. Six reject indicators and four hypotheses were rejected from the measurement and structural tests in PLS-SEM.