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All Journal International Journal of Business Economics (IJBE) Priviet Social Sciences Journal
Sabar Aritonang Rajagukguk
Management Department, BINUS Online Learning, Bina Nusantara University, Jakarta, Indonesia 11480
Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Environmental Science Law, Crime, Criminology & Criminal Justice Social Sciences

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Intergenerational technology adoption barriers in Indonesian family-owned MSME: A multi-level structural equation modeling analysis Enina Putri; Sabar Aritonang Rajaguguk
Priviet Social Sciences Journal Vol. 5 No. 6 (2025): June 2025
Publisher : Privietlab

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55942/pssj.v5i6.426

Abstract

The digital transformation of Micro, Small, and Medium Enterprises (MSME) in Indonesia faces unique challenges in family owned businesses, where intergenerational dynamics significantly influence technology adoption decisions. This study examines how generational differences create barriers to technology adoption in Indonesian family owned MSME using a multilevel structural equation modeling approach. Using a multi-generational dyadic design with 350 family owned MSME representatives from two or more generations (N=700), we investigated the relationships between generational gaps, family harmony, and digital adoption intentions. Data were collected through structured interviews across traditional industries including textiles, food processing, and handicrafts. The results revealed that family harmony significantly mediates the relationship between generational gaps and technology adoption intentions (β=0.42, p<0.001), while communication quality moderates this relationship (β=0.28, p<0.01). Younger generations’ technology advocacy proves more effective when combined with respect for older decision-making authority, suggesting that successful digital transformation requires culturally sensitive approaches that honor traditional family hierarchies while embracing technological innovation. This study contributes a theoretically grounded framework for understanding technology adoption in family businesses within collectivist cultures, offering practical implications for policymakers and business consultants in designing digital transformation programs for MSME.
Towards Whom Do Consumers Exhibit Loyalty? Sabar Aritonang Rajagukguk; Dedy Sofyan; Yuniarty Yuniarty
International Journal of Business Economics (IJBE) Vol 6, No 2 (2025): MARCH - AUGUST 2025
Publisher : Fakultas Ekonomi dan Bisnis, Universitas Muhammadiyah Sumatera Utara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30596/ijbe.v6i2.23681

Abstract

Purpose – This research aims to test the effect of perceived effectiveness of loyalty programs, perceived online channel value and customer loyalty on repurchase decision.Methodology – This study employs a quantitative approach. A study involving 210 samples from ACE Hardware members who are also MISS ACE app users examined the influence of perceived online channel value and perceived effectiveness of loyalty programs on repurchase decisions, mediated by customer loyalty, using the method of SEM, with SMART-PLS software for data analysis.Findings – Both perceived effectiveness of loyalty programs and perceived online channel value significantly influence repurchase decisions, both directly and indirectly through customer loyalty. The fact that the perceived online channel value has a greater impact than loyalty programs emphasises the need to enhance the value of online platforms as the primary means of creating loyalty and driving repurchases.Originality/Novelty – This research tests four research variables that have not been studied: perceived effectiveness of loyalty programs, perceived online channel value and customer loyalty on repurchase decision.Implications – The findings suggest that ACE Hardware members value the app's functionality more than the loyalty programs in making repurchase decisions, emphasising the need for investing in app features le tailoring more market-relevant loyalty programs.
Co-Authors Dedy Sofyan Enina Putri Yuniarty Yuniarty