Analysis of SMEs Consideration in Adopting New Technology Using Technology Acceptance Model

Nowadays, a business cannot be separated from optimizing technology. Many businesses implement technology to enhance and support their business performance. However, many software developers in the market create similar applications to help SMEs perform. On the other hand, SMEs have limited resources and time to learn and adopt those applications. This study aims to assess the factors that become a consideration for SMEs if they want to adopt new technology for their business using the Technology Acceptance Model (TAM) and Innovation Diffusion Theory (IDT) approach. Using the quantitative method with a purposive sampling approach, we get 225 representative respondents. We analyzed using Structured Equation Models (SEM) with PLS-SEM analysis tools. Our findings show that all variables, including perceived usefulness, perceived ease of use, compatibility, and cost-effectiveness, significantly influence the attitude and intention to use applications. The variable compatibility and cost-effectiveness have the highest score in this model, meaning that it is an essential consideration for SMEs to choose the application before selecting the fitness of the application for the company.