Information Technology Governance and Islamic Business Ethics as Factors Influencing Information Technology Adoption

Abstract

This paper is aimed at investigating the factors that affect the intention to adopt information technology in Micro, Small, and Medium Enterprises of Batik in Pekalongan, Central Java, Indonesia. Besides, this paper also examines the moderation impact of Islamic Strategic Management on the intention of adopting information technologies at Batik micro, small, and medium enterprises. Using the purposive sampling method, questionnaires of 152 respondents were obtained and used in this study. The data is analyzed using Structural Equation Modeling. The test results evidence that the intention to adopt information technologies at Batik small and medium enterprises in Pekalongan is affected significantly by information technologies governance and Islamic Strategic Management. However, this study also found that Islamic Business Ethics does not have a significant influence on the intention to adopt information technologies. Besides, this study concludes that Islamic strategic management does not have a significant impact on moderating the intention of adopting information technologies. This study recommends future research to examine the indirect effect of Islamic business ethics, information technologies governance, and intention to adopt information technologies.