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.