Model of information technology adoption in SMEs Batik case study SMEs Batik Solo and Pekalongan

Information Technology (IT) provides new opportunities that can overcome some of the obstacles faced by Small and Medium Enterprises (SME). More than 50% of SMEs productivity is achieved through investment in IT in Europe. Although IT provides substantial opportunities for SMEs, but most of research shows that IT adoption by SMEs is still low compared with IT adoption by large companies. Only 20% of SMEs have adopted IT in supporting their business. Based on this phenomenon, this research aims to identify the factors that may affect the IT adoption in SMEs “Batik” in order to construct a model of IT adoption in SMEs Solo and Pekalongan (Central Java Region, Indonesia). Research carried out by using Structural Equation Modeling (SEM). The results of this research showed that, for SMEs Batik Solo, readiness and preparedness of organizations have a positive influence on the successful adoption of IT; whereas for SMEs Batik Pekalongan, organizational readiness, national preparedness, and environmental influences have a positive influence on the successful adoption of IT.