E-business adoption models in organizational

contexts on the TAM extended model: A

preliminary assessment
Asrul Sani Nur Nawaningtyas P Rizal
Department of Informatics Department of Informatics Department of informatics
STMIK Widuri STMIK Widuri STMIK Widuri
Jakarta, Indonesia Jakarta, Indonesia Jakarta, Indonesia
asrulsani@kampuswiduri.ac.id tyaspusparini@kampuswiduri.ac.id rizal@kampuswiduri.ac.id

Yenni Khristiana Achmad Udin Zailani T. Husain

Department of Accounting Department of Informatics Department of Information System
STIE Adi Unggul Bhirawa Universitas Pamulang STMIK Widuri
Surakarta, Indonesia Banten, Indonesia Jakarta, Indonesia
yenni.kristi@stie-aub.ac.id dosen00270@unpam.ac.id thusain050686@gmail.com

Abstract—Small and Medium Enterprises (SMEs)
performance studies is a step that can be implemented and
applied to several types of SMEs. One of them is developing a
model by combining and integrating a pre-existing model, the e-
business adoption model with the TAM (Technology Acceptance
Model) model. The development of this model is done by using
the logic of the IPO (input-process-output) and the causal model
by combining, adopting, and adapting the previous model. The
questionnaire uses a Likert scale with 5 Likert scales. The
influence of the path formed is composed of 12 links and
produces seven variables. The formed variables are developed
into 35 indicators, where one variable forms five indicators. The
results of the validity and reliability tests showed positive results
with two indicators rejections because both item unfullfilled the
used threshold. These two indicators were no longer used atthe
next research stage. Based on this, this model is worthy of
consideration for testing the inner model, so that it can provide
a further picture for the development of the model.
Keywords— E-Business, Model Development, SMEs, TAM
I. INTRODUCTION
The economic crisis faced by the people of Indonesia in
1997-1998 was a crisis that became a landmark in the
founding of SMEs in all regions of Indonesia, especially in
Java. Data from the Central Statistics Agency (BPS) shows
that the labor force rose to 116.67 million in 2017 after the
economic crisis. The Ministry of Cooperatives published
growth statistics for SMEs between 2012-2017 of 13.98
percent with a 14.7 percent rise in employment [1]. The
success of SMEs can also be demonstrated by other factors
such as the level of expertise and education of staff and SMEs
owners, skills and entrepreneurship rates, access by SMEs to
funding sources, access to business development agencies,
external factors such as ease of licensing and transactional
costs. Although the size of the competitiveness of SMEs is
very varied, identifying competitiveness of SMEs includes
three characteristics, namely ability, process, and
performance [2].
This helps the business sector in small and medium-sized
enterprises grow with the growing use of IT in its
management [3, 4]. The importance of using information
technology is based on how easy it is to use and obtain it. A
variety of applications used in its application, being a
business at SMEs have a very positive impact on the
increasing welfare of the owner [5].
The aim of this analysis was to evaluate the
questionnaire's psychometric properties in order to
understand the instrument with respect to the respondent's
responsiveness and cognition. The goals were the evaluation
based on the interpretation of the respondent and the
investigation using the researchers' points of view. This study
provides an overview of the SMEs, how e-business can have
a good effect on the growth of their business by embracing
information technology in this case. The e-business model
will be combined with the Technology Acceptance Model
(TAM) [6], which in this case looks at what factors influence
technology adoption of technology acceptance. This model
aims to follow the flow of thought from the readiness model
to the IT adoption model [7], where the model being built will
be made a quantitative analysis, so that an understanding of
the current SMEs can be generated.
II. THEORITICAL FRAMEWORK
In table 1 below, some reference models and theories used
in research are shown, in this case, the theory which shows the
relationship between input , process and output so that a model
can be integrated with other models.
TABLE I. LIST OF MODEL AND THEORIES
Models and Teories Reference
Information Process Model [7-9]
E-business Adoption Model [10, 11]
Technology Acceptance Model [6]
[8, 12, 13]
Logic Model Input, Process, Output
Process and Causal Models on [14-16]
Development Models
Figure 1 shows the results of the integration model, where
this research is a development of the previous model, which
The 8th International Conference on Cyber and IT Service Management (CITSM 2020)
Pangkalpinang, September 24-25, 2020

is an empirical study based on models that have been there
before [7, 17]. Integration models are developed by adopting,
developing, and adapting e-business adoption models [11]
with the Technology Acceptable Model [6]. E-business
variables consist of Firm Scope (FC) and Firm Size (FZ) [7],
and TAM variables include of Perceived Usefulness (PU),
Perceived Ease of Use (PE), Attitude Toward Using (AT) and
Behavioral Intention to Use (BI) [6]. The output is the
expected adoption (AD). Some previous research that has
been done has produced the effect of developing an adoption
of information technology on SMEs with positive results with
an achievement rate of 76% [3, 18, 19], and provides a deeper
understanding of how important a technology is in operating
a business so that it has an impact best towards the company's
model draft is created. Phase 3 is the creation of indicators by
asking questions and statements which are then proposed in
the questionnaire distribution (4). At the validity and
reliability review point, the findings of the questionnaire were
continued, which is to find out whether the model built can
be continued or whether any variables and indicators have to
be omitted or added. Following the defined limits, the results
of the validity and reliability test are then analyzed. Report
writing (5) is done to provide information to researchers and
readers to find out the shortcomings of the research so that it
can be reviewed before the research is published (6).
Draft Model
Concept
Statement &
Question
Review Report

progress.

(1) (2) (3)

(4) (5) (6)
Literature Dev. Model Indicator
H5 Review Integration Development
Questionnaire Report Writing Publication

FC H1 PU Analysis
Initial Model
Validity &
Draft
Reliability
AT BI H12 AD

Fig 2. Research Method

FZ PE

The number of questionnaires distributed to respondents

H6 was 68 respondents, with a total of 42 completed and
Input
Process Output
returned. The survey was coded using a Likert scale,
Fig 1. Research Model Design consisting of 1. Strongly Disagree (STS), 2. Disagree (TS), 3.
Don't Know (TT), 4. Agree (ST), 5. Strongly Agree (SS ).
TABLE II. VARIABLE DEFINITION The number of male respondents is 32, while there are ten
Code Item Definition female respondents. The age of respondents ranged from 25
The level of confidence of horizontal
to 48 years, and the respondents were the highest owners or
FC Firm Scope implementers in the management of MSMEs. Based on the
expansion of an enterprise’s operations
The level confidence of which to a education of the respondents, for D3 education, there are 17
FZ Firm Size larger company may have a competitive people and S1 for 25 people.
advantage over its smaller counterparts.
The level of confidence in which the IV. RESULT AND DISCUSSION
Perceived
PU use of the system will be one's work
Usefulness
performance Usage of the SmartPls 2.0 program to process data by
Perceive Ease The level of confidence in IT that will generating the route diagram shown in Figure 3. The path
PE
of Use be applied is what helps the work diagram is constructed using the predetermined model 's
Attitude The level of confidence in the
AT Toward evaluation of the user about his variable variables by taking the number of indicators for each
Using curiosity in using technology. variable totaling five indicators.
Behavioral The level of confidence in the tendency
BI Intention to of behavior to continue to apply a
Use technology
Actual The level of confidence in the
AD Acceptance acceptance of the system used
System

III. RESEARCH METHOD

The model is developed by planning six stages (Figure 2).
Phase 1 begins with the literature analysis by drafting the
concept model, namely the e-business adoption model and
the acceptance model of technology (TAM). This model
analyzes the type of organization and social dimensions of
current studies of the information system, such as efficiency, Fig 3. Path Cart
satisfaction and readiness [7, 20].
Phase 2 is the development of the integration model by Table.2 shows the rule of thumb of the quality of
changing the e-business model and the TAM model so that measurement of a model. The indicators included in the
the desired integration model is generated so that an initial
 The 8th International Conference on Cyber and IT Service Management (CITSM 2020)
Pangkalpinang, September 24-25, 2020

questionnaire will have a quality impact on the analysis of a Var Ind OL

Cross Loading (CL)
model. FC FZ PU PE AT BI AD
FZ1 0.74 0.67 0.74 0.67 0.69 0.77 0.75 0.39
TABLE III. VALIDITY TEST PARAMETERS
FZ2 0.83 0.65 0.83 0.68 0.77 0.71 0.77 0.50
Testing Parameter Rule of Tumbs
FZ FZ3 0.93 0.85 0.93 0.95 0.95 0.91 0.91 0.50
Outer Loading (OL)  0.7
Convergent FZ4 0.84 0.73 0.84 0.78 0.86 0.77 0.72 0.27
Validity Average Variance Extracted
 0.5
(AVE) FZ5 0.91 0.78 0.91 0.88 0.93 0.81 0.88 0.49
AVE Square 
AVE Square and
Correlation PU1 0.74 0.57 0.66 0.73 0.71 0.64 0.71 0.52
Discriminant Correlation Between Latent
Between Latent
Validity Variables PU2 0.96 0.90 0.91 0.96 0.94 0.95 0.89 0.39
Variables
Cross Loading (CL)  0.7 PU PU3 0.98 0.92 0.90 0.98 0.93 0.96 0.92 0.45
Cronbach Alpha (CA)  0.7 PU4 0.98 0.92 0.90 0.98 0.93 0.96 0.92 0.45
Realiabily
Composite Reliability (CR)  0.7 PU5 0.86 0.80 0.83 0.86 0.82 0.88 0.79 0.49

PE1 0.86 0.73 0.83 0.78 0.86 0.75 0.72 0.24

A. Validity Test PE2 0.88 0.77 0.83 0.87 0.88 0.79 0.90 0.51
A validity test is conducted to assess whether or not the PE PE3 0.87 0.75 0.90 0.78 0.87 0.77 0.90 0.46
variables that occur in each variable may be assumed to be
accurate, this is shown by the threshold value of the test PE4 0.95 0.80 0.94 0.87 0.95 0.81 0.86 0.43
results that were calculated. Outer loading test results (OL) PE5 0.82 0.82 0.82 0.90 0.82 0.94 0.78 0.49
show FC3 and AD2, the values of which are below a specified
AT1 0.88 0.85 0.81 0.88 0.84 0.88 0.79 0.27
threshold below 0.7. Therefore for both FC3 and AD2
indicators have validity that does not meet the criteria, so AT2 0.98 0.89 0.87 0.93 0.87 0.98 0.88 0.47
these two measures need to be excluded and not used in AT AT3 0.89 0.80 0.91 0.89 0.90 0.89 0.84 0.55
hypothesis testing. The average extracted value of variance
(AVE), all metrics meet the requirements above the 0.5 AT4 0.86 0.72 0.83 0.80 0.80 0.86 0.80 0.50
threshold. Whereas there are two markers for cross-loading AT5 0.96 0.87 0.82 0.93 0.84 0.96 0.83 0.49
(CL) values which are below the 0.7 threshold, namely FC3
BI1 0.87 0.90 0.84 0.96 0.87 0.96 0.87 0.42
and AD2 (Table IV). In terms of statements and questions on
the questionnaire, both FC3 and AD2 measures may have BI2 0.80 0.56 0.69 0.57 0.68 0.55 0.79 0.43
misled respondents or filled in with non-conformities [21-
BI BI3 0.90 0.75 0.82 0.81 0.87 0.71 0.90 0.46
25].
BI4 0.84 0.71 0.89 0.74 0.83 0.76 0.84 0.51
B. Reliability Test
BI5 0.76 0.83 0.67 0.79 0.70 0.79 0.76 0.26
The reliability test is conducted to prove the instrument 's
precision, durability and accuracy in measuring indicators. AD1 0.75 0.39 0.46 0.43 0.42 0.46 0.40 0.75
The results of the reliability test are obtained by looking at the
AD2 0.51 0.14 0.15 0.21 0.15 0.25 0.18 0.51
results of the Cronbach alpha (CA) values, which have a
threshold above 0.7 and the results of the composite reliability AD AD3 0.71 0.35 0.34 0.40 0.36 0.40 0.42 0.71
( CR) significance, which also has a limit above 0.7. Based on
AD4 0.72 0.33 0.36 0.32 0.35 0.28 0.36 0.72
Table V. It can be shown that the CA and CR values for all
variables are above the threshold suggesting that the model's AD5 0.71 0.10 0.32 0.26 0.30 0.23 0.29 0.71
variables follow the reliability criterion and can then be used
in the hypothesis check [21-23, 26]. TABLE V. STATISTICAL RESULT (CONTINUED)

TABLE IV. STATISTICAL RESULT Var AVE CA CR

Cross Loading (CL) FC 0.64 0.86 0.89
Var Ind OL
FC FZ PU PE AT BI AD
FZ 0.73 0.91 0.93
FC1 0.75 0.75 0.46 0.50 0.50 0.44 0.52 0.17
PU 0.83 0.94 0.96
FC2 0.91 0.91 0.72 0.86 0.76 0.86 0.79 0.31
PE 0.77 0.92 0.94
FC FC3 0.65 0.65 0.83 0.68 0.77 0.71 0.77 0.50
AT 0.84 0.95 0.96
FC4 0.90 0.90 0.84 0.96 0.87 0.96 0.87 0.42
BI 0.70 0.89 0.92
FC5 0.75 0.75 0.46 0.50 0.50 0.44 0.52 0.17
AD 0.51 0.71 0.81
The 8th International Conference on Cyber and IT Service Management (CITSM 2020)
Pangkalpinang, September 24-25, 2020
As for the reliability and validity value of the tests, as the
psychometric analysis showed before; the findings were
then used to start the interpretative analysis by considering
the respondent's cognition and responsiveness indications.
The findings of this study, as described in the summary
below:
a. The results of the previous E-business study show that
FC3 and AD2 are valid items, on the contrary, this
assessment study rejects the items. Researchers feel
that the resistance may be related to the focus of
respondents referring to their demographic
characteristics.
b. Based on cases of rejection of FC3 and AD2, the
investigators show similar indications. This is related
to item development bias, whereas points of utility
and validity may need to be mentioned in detail.
c. Improvements to the questions and questionnaire
statements are likely to be corrected again given the
rejection cases for the two items above, and
improvements to respondent data collection will also
be the main reference when distributing the
questionnaire so that it can provide calculation data
that gives better results
V. CONCLUSION
The result of the positive implementation of the e-
business adoption model integration model within the
TAM model's organizational context went according to
plan. Current variables and indicators based on validity and
reliability tests show that the removal of two indicators,
namely FC3 and AD2, is needed. Also worth considering
in its use in the sense of evaluating information systems are
the instruments used in this research. It is known that the
two organizational variables, FC and FZ, affect 4 TAM
variables, namely PU, PE, AT and BI, so that the impact of
the influence has a positive effect on SME growth. For its
application to SMEs this model can be considered as it has
a major impact based on the results of the validity and
reliability check. This model can be enhanced by testing the
structural models in subsequent studies for further
discussion.
ACKNOWLEDGMENT
The researchers thanks to the research project reviewers
for their assessment and feedback, and the research project
team members for their support during the implementation
process of the study. Ideally, thanks to the institution which
provided grants for the continuation of this research, it will
be useful for academics and SMEs in Indonesia.
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