The Information Technology (IT) Adoption Process and E- Readiness to Use within Yogyakarta Indonesian Small Medium Enterprises (SME)

To understand adoption process and its relevant factors influencing this research model will integrate model that uses T-O-E approach (technology, organization, and environment) by Tornatzky and Fleisher (1990) and orientation process approach by Soh and Markus (1995). Survey method is applied in this research. The population is the entire SME (small medium enterprises) in Yogyakarta City, Daerah Istimewa Yogyakarta, Indonesia. The sample quantity is 108 SME. The technique of sample drawing used is method of proportional area sampling. This research applies statistical technique of Partial Least Square (PLS). The conclusion of all the hypothesis proposed are; (1) there is positive influence of technology competence on IT usage, (2) there is positive influence of government policies on IT usage, (3) there is positive influence of government policies on technology competence, (4) there is positive influence of IT usage on IT value, and (5) there is positive influence of IT usage on E-readines to use.