Development Model of Cloud Computing Adoption for Industrial 4.0 Implementation Strategy to Improve MSMEs Performance
Aditia Ayu Rahma Nabila (a*), Bambang Syairudin (a)

a) Department of Industrial and Systems Engineering, Institut Teknologi Sepuluh Nopember, 60111, Surabaya, Indonesia
*aditia.nabila05[at]gmail.com

Abstract

The presence of Industry 4.0, along with the emergence of the Covid-19 outbreak, has brought radical changes to Micro, Small and Medium Enterprises (MSMEs). Many MSMEs have experienced disruption due to shifts in lifestyle, work patterns, and business strategies, which resulted in a 94.69% decrease in sales during the pandemic. The Indonesian government designed Making Indonesia 4.0 to empower MSMEs to adopt digital technology to increase productivity, flexibility, and competitiveness. The adoption of digital technology is low among Indonesian MSMEs (12.5%). There are barriers among lack of capital, human resources, technology readiness, security to use, knowledge of the benefits, and unsure which technology to adopt. Cloud computing technology can be a solution for MSMEs that can offer products and services online, support planning and utilisation of shared resources, control processes, evaluate performance, enhance collaboration, and succeed in increasing sales by 163%. This study aims to examine the intentions of MSMEs on factors that affect the use of cloud computing and investigate its relationship to business performance. The research was analysed using the PLS-SEM method from questionnaire distribution data to 60 MSMEs. The results of the hypothesis analysis found that knowledge acquisition, sharing, perceived usefulness, ease of use, risk, and cost had no significant effect on behavioural intention to adopt cloud computing. Meanwhile, behavioural intention significantly affects cloud computing adoption and performance by improving productivity and flexibility. The research implications can assist researchers, owners/managers, and policymakers by offering valuable insights regarding cloud computing adoption decisions in MSMEs.

Keywords: Cloud Computing Adoption- Industry 4.0- Business Performance- MSMEs- PLS-SEM

Topic: Business and Economic