The Use and Adoption of Digital Technology among Small and Medium Enterprises (SMEs) in Indonesia: A Multi-Stage Approach

Many small and medium enterprises (SMEs) struggle to adopt digital technology, threatening their competitiveness. Therefore, this research examines factors that encourage or discourage digital uptake among Indonesian SMEs. Drawing on both quantitative and qualitative data, the findings reveal that top management support, a strong digital culture, and an international orientation are particularly influential from an organisational perspective. Meanwhile, from an environmental perspective, government regulations and access to training also shape how SMEs decide whether to adopt new technologies. These insights can help SME managers prioritise digital initiatives and guide policymakers in developing strategies to support SMEs’ in a digital world.