Intergenerational technology adoption barriers in Indonesian family-owned MSME: A multi-level structural equation modeling analysis

Enina Putri; Sabar Aritonang Rajaguguk

doi:10.55942/pssj.v5i6.426

Authors

Enina Putri Bina Nusantara University https://orcid.org/0009-0002-9500-2297
Sabar Aritonang Rajaguguk Bina Nusantara University https://orcid.org/0000-0001-7397-0751

DOI:

https://doi.org/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.

Author Biographies

Enina Putri, Bina Nusantara University

Enina Putri is a project manager at TRAC Astra and a lecturer at Bina Nusantara University, Jakarta, Indonesia, where she teaches Financial Technology and Digital Marketing to graduate-level professionals. She earned her master’s degree in Information Systems from Bina Nusantara University. Her professional and academic pursuits converge on the digital transformation of business, with a research focus on digital adoption and its implementation across organizational contexts. Enina is passionate about bridging strategic project execution with innovation in digital ecosystems.

Sabar Aritonang Rajaguguk, Bina Nusantara University

Sabar Aritonang Rajagukguk is an Associate Lecturer Specialist at Bina Nusantara University, Jakarta, Indonesia. He holds three master’s degrees—in Management from Universitas Katolik Indonesia Atma Jaya, in Data Science from Universitas Islam Indonesia, and in Philosophy from Universitas Indonesia—as well as a Ph.D. in Management from Bina Nusantara University. His interdisciplinary academic background informs his research interests, which lie at the intersection of digital business management and practical data science. He is particularly focused on leveraging data-driven strategies to drive innovation and efficiency in digital enterprises.

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