The MSMEs Digital Readiness in Indonesia: A Test of Moderating Effect of Intrinsic Motivation and ICT Knowledge

Abstract

Purpose

This study focuses on the impact of internal factors, namely intrinsic motivation, ICT knowledge, and the moderating effect of demographic factors such as education level, age, gender on digital readiness of Indonesian MSMEs.

Design/methodology

The sample data selected in this study include owners of culinary SMEs in the Salatiga area, Central Java, and who already has had a building to run their business. This study employed a quantitative approach using a statistical package to perform descriptive and inferential analyses with the help of IBM SPSS and Smart PLS.

Findings

Four hypotheses have been formulated and tested using the structured equation model. The results revealed that intrinsic motivation and ICT knowledge have a positive significant influence on the digital readiness of MSMEs.

Original/value of the paper

The study concluded that the internal encouragement of the culinary MSME owners in the city of Salatiga will continue to advance and develop following the current digital technology era.

Research limitations/implications

The results from the moderation testing show that women have a slightly higher average answer than men in the number of indicators of intrinsic motivation and in the number of indicators of digital readiness.

Practical implications

Micro Small Medium Enterprises (MSMEs) in Indonesia benefit from the digital era. It is important to apply digitalization in the Indonesian MSMEs so that they can develop and compete with other countries, and digital readiness is one of the key successes in the global competition.

Citation

Abdi, R., Suharti, L., Usmanij, P. and Ratten, V. (2022), "The MSMEs Digital Readiness in Indonesia: A Test of Moderating Effect of Intrinsic Motivation and ICT Knowledge", Ratten, V. (Ed.) Strategic Entrepreneurial Ecosystems and Business Model Innovation, Emerald Publishing Limited, Leeds, pp. 155-180. https://doi.org/10.1108/978-1-80382-137-520221010