Analysis of The Digital Technology Adoption by MSMEs Using Diffusion of Innovation

The empowerment of MSMEs (Micro, Small and Medium Enterprises) in in global changes and intense competition required MSMEs being strong enough to encounter demands globally and as a whole.In contrast to statistics has shown them to have little export-related activity, since they barely represented 14% of the non-oil and gas region's or sector's overall export value.This study built on the Diffusion of Innovation (DOI) Framework in order to determine the impact of digital technology in enhancing the competitiveness of MSMEs with an export focus.The method used was to analyze DOI framework factor using Structural Equation Model-Partial Least Square (SEM-PLS) method.The results of DOI models especially the technological dimension was formed by the variables complexity, relative advantage, trialability, and observability which had a straight and non-significant impact on technology adoption from export-oriented MSMEs.In the DOI model, only the trialability variable had a straight and significant relationship, even the compatibility variable had a negative and insignificant influence on the adoption of digital technology