IT LITERACY AND TECHNOLOGY ADOPTION: SMES RESPONSES DURING COVID-19 PANDEMIC
The Covid-19 pandemic has forced Small and Medium Enterprises (SMEs) to be more adaptive to changes in the business environment. SMEs must respond quickly to changes in consumer behavior that are digitally oriented to survive and thrive. This study aims to examine the effect of IT Literacy on Technology Adoption as measured by Perceived Usefulness, Perceived Ease of Use, Attitude, and Intention. This research is explanatory research with a quantitative approach involving 330 SMEs in three leading sectors (culinary, handicrafts, and fashions) in Great Malang (Malang Raya). The sampling technique used quota sampling, and data collection was carried out by distributing questionnaires both offline and online. Data analysis uses partial least squares using high-order (second-order) construction. The results showed that IT Literacy had a positive and significant effect on Technology Adoption. It means that the higher the IT Literacy, the higher the ability of SMEs to adopt the technology. It is undoubtedly instrumental in enhancing the business resilience of SMEs during the Covid-19 pandemic. IT Literacy has also been shown to affect Perceived Usefulness, Perceived Ease of Use, Attitude, and Intention informing Technology Adoption.
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