The determinant factors of technology adoption for improving firm's performance

Abstract

Although many technology adoption theories have been formulated there is still lacking any studies that show a correlation between the particular models in relation to firm's performance in dynamic circumstances. This study proposed technology adoption as a functional competence/capability which mediate relationship between dynamic capabilities with firm's performance. The four determinant factors has been identified are externalities, entrepreneurial leadership, resources readiness, and absorptive capability. There is positively significance relation among them in firm level. The study found that without dynamic capability for managing the resource, technology adoption will be less effective. Consequently manager should provide some supporting “hardware” content such as externalities, resources and leadership, and should improve firm's “software” ability such as absorptive capability in order to achieve a successful technology adoption in their organization.