Technology Acceptance Model of Financial Technology in Micro, Small, and Medium Enterprises (MSME) in Indonesia

Abstract

Seeing the existence of MSME needs that have still not been met although this sector is undeniably important in Indonesian economy, changes in community behaviour and the intensity of the use of technology in the community, financial technology (fintech) has a lot of potentials to become a part of the solution of the problem commonly faced by MSMEs. Therefore this research needs to be done to observe the potential of fintech in integrating MSMEs in terms of the application of technology and knowledge from the community related to fintech. By using Technology Acceptance Model, this research tries to understand the determinant factors of the fintech application used by MSME. Based on the research framework and model, path analysis method used in this research. This research uses primary data gathered by the questioner, which was distributed to MSME. From the analysis conducted, we can conclude that the external factors tested in this research could have an effect on the behaviour intention through perceived usefulness in MSME practice of financial technology. Large variation in MSME educational background, busineess age and size would become a challenge in promoting fintech application, therefore this finding suggests that fintech should be promoted by highlighting what benefits can be obtained by using fintech application.

Technology Adoption in Small-Medium Enterprises based on Technology Acceptance Model: A Critical Review

“…3 Extended Model of TAM (TAM2) [22] TAM was used between 1986-2003 to analyse user acceptance in different types of technologies ranging from communication, general-purpose, office and specialised business systems [23]. Recent studies also showed its application in studying building information modelling [26], digital payment systems [5], [27] , financial technology [4] and knowledge management [8]. According to [9], TAM has a robust implication on technology adoption from both theoretical and conceptual perspectives.…”

“…Moreover, [30] explained PU as the degree to which users believe that the use of technology will boost their performance. This means it is possible to measure perceived usefulness based on the technology's ability to improve firm performance, productivity, effectiveness, which will benefit businesses [4].…”

“…3. Attitude towards using (ATU) This was explained by [4] as the feeling, either positive or negative, when an individual uses new technologies. This variable can be measured based on the user's feeling and perception of the technology to be a good experience, valuable and favourable [33].…”

“…Significant Insignificant Perceived ease of use (PEOU) affects perceived usefulness (PU) [5], [6], [9], [30], [35], [43]- [47] -Perceived ease of use (PEOU) affects Behavioural Intention (BI) [44], [45] [48]-[50] Perceived ease of use (PEOU) affects usage (U) [8], [37] [51] Perceived ease of use (PEOU) affects attitude towards using (ATU) [5], [6], [30], [35], [52]- [54] [55] Perceived usefulness (PU) affects attitude towards using (ATU) [5], [6], [30], [35], [46], [52]-[54] -Perceived usefulness (PU) affects behavioural intention (BI) [5], [44], [45], [48], [53], [56] [4], [50] Perceived usefulness (PU) affects usage (U) [37], [57] -Attitude towards using (ATU) affects behavioural intention (BI) [5], [52], [53] -Attitude (ATU) affects Usage (U) [4], [35], [46], [54] -Behavioural Intention (BI) affects Usage (U) [48], [49], [56] -…”

“…Previous studies have discussed several theories and models on technology adoption with the theory of reasoned action and theory of planned behaviour used in developing Technology 163 acceptance model (TAM) model and diffusion of innovation (DOI) theory, subsequently the technology-organisationenvironment (TOE) model discovered to be the most popular. According to [4], TAM is a solid model to evaluate the determinant factors of financial technology usually applied in MSMEs. TAM is the most powerful model to explain the behaviour towards the acceptance of new technology, especially in relation to the recent digital technology being adopted by different businesses [5].…”