The Determinant Factors of Technology Adoption for Improving Firm’s Performance: An Empirical Research of Indonesia’s Electricity Company

  • Zainal Arifin PT PLN Indonesia
  • Firmanszah Firmanszah Universitas Indonesia
  • Avanti Fontana Universitas Indonesia
  • Setyo Hari Wijayanto Universitas Indonesia
Keywords: Technology Adoption, Firm’s Performance, Indonesia’s Electricity Company

Abstract

This study investigates the determinant factors of technology adoption by connecting Technology Organizational Environment (TOE) with the dynamic capability factors. Using 518 respondents representing 222 business units of Indonesia’s electricity company, the study found that only the absorptive capability has a positively significant effect on technology adoption. Practically, the study emphasizes that without the absorptive capability for managing the resource, the core competence of a firm will not occur and the adoption of technology will be less effective. Another finding is the absorptive capability’s typology mapping the eight technology adoption statuses in an organization, based on three of the determinant factors: the externalities, entrepreneurial leadership and slack resources.

Author Biographies

Zainal Arifin, PT PLN Indonesia

Senior Manager of PLN Research Institute. He earned his Doctor (2016) in Strategic Management from Universitas Indonesia, Indonesia; and his M.B.A (2010) in Operation Management from University of Missouri - St. Louis (UMSL), USA. He has published articles in peer-reviewed journal such as Advanced Science Letters, and Elsevier Procedia – Social Behavioral Sciences.

Author contact details: Research Institute PT PLN (Persero) (Puslitbang Ketenagalistikan), Jl. Duren Tiga Raya No.102, Jakarta Selatan 12760, Indonesia; phone: +62 21 7973774; e-mail: zainal.arifin22@pln.co.id.

Firmanszah Firmanszah, Universitas Indonesia

Professor at Faculty of Economics and Business, Universitas Indonesia. He earned his Ph.D. (2005) in Strategic and International Management from Pau and Pays De l’Adour University, France; his M.Phil. (2002) in Organization and Management Strategic, from  Lille University, France. He has published article in national peer-reviewed journal The South East Asian Journal of Management, and an article in Management Usahawan Indonesia (Magazine).

Author contact details: Faculty Economics and Business, Universitas Indonesia, Jl Prof. Dr. Sumitro Djojohadikusumo, Depok, Jawa Barat 16424, Indonesia; phone: +62 021 7270164; e-mail firmanzah@gmail.com.

Avanti Fontana, Universitas Indonesia

Lecturer at Faculty of Economics and Business, Universitas Indonesia. She has earned her Doctorat en Sciences de Gestion (2003) in Management from ESSEC Business School, Universite Paul Cezanne, France; and her Master of Science (1988) in Strategy and Management from Université de Paris X – Nanterre, France.

Author contact details: Faculty of Economics and Business, Universitas Indonesia, Jl Prof. Dr. Sumitro Djojohadikusumo, Depok , Jawa Barat 16424, Indonesia; Phone: +62 21 7270164; e-mail: avanti@ciptainovasi.com.

Setyo Hari Wijayanto, Universitas Indonesia

Lecturer at at Faculty of Economics and Business, Universitas Indonesia, Indonesia. He has earned  his Doctor in Management, and his  Master of Management in Management, from the same univesity.

Author contact details: Faculty of Economics and Business, Universitas Indonesia, Jl Prof. Dr. Sumitro Djojohadikusumo, Depok , Jawa Barat 16424, Indonesia; Phone: +62 21 7270164; e-mail: setyohw@gmail.com.

References

-
Published
2016-12-02
How to Cite
Arifin, Z., Firmanszah, F., Fontana, A., & Wijayanto, S. H. (2016). The Determinant Factors of Technology Adoption for Improving Firm’s Performance: An Empirical Research of Indonesia’s Electricity Company. Gadjah Mada International Journal of Business, 18(3), 237-261. Retrieved from https://journal.ugm.ac.id/v3/gamaijb/article/view/15555