Mobile Broadband for the Farmers: A Case Study of Technology Adoption by Cocoa Farmers in Southern East Java, Indonesia
DOI:
https://doi.org/10.7160/aol.2016.080209How to Cite
Abstract
The objective of this paper is to examine the factors that affect Indonesia cocoa farmer intention to use mobile phone application. The main factors examined in this study are perceived usefulness (PU), perceived ease of use (PEOU), business factors and individual factors. The study sample consists of 191 respondents in thirteen cocoa farmer centers in southern East Java. Data were analyzed by employing Structural Equation Modeling (SEM). The findings revealed that the user intention on adopting mobile phone application especially by cocoa farmers is significantly impacted by social influence and this is in line with the massive growth the usage of social media application in Indonesia, other factors that determine the adoption are competitiveness pressure and cost perception. This research has a limitation that the generalizability of the findings is limited to the geographical scope of the sample. Based on findings, as the practical implications of this study, to get a higher rate on the adoption of mobile phone application, stakeholders need to ensure the benefit of technology adoption by providing more secure, more comfort, and more sounds like cloud ecosystem to increase the perception on ease of use and perception of usefulness. Novelty of this study is the combination of business factors and individual factors on the existing model of Technology Acceptance Model (TAM).References
Alfahl, H., Sanzogni, L. and Houghton L. (2012) “Mobile Commerce Adoption in Organization: A Literature Review and Future Research Directions”, Journal of Electronic Commerce in Organization, Vol. 10, No. 2, pp. 78. DOI: https://doi.org/10.4018/jeco.2012040104
Al Khasawneh, M. H. (2015) “An Empirical Examination of Consumer Adoption of Mobile Banking (M-Banking) in Jordan”, Journal of Internet Commerce, Vol. 14, No. 3, pp. 341-362. DOI: https://doi.org/10.1080/15332861.2015.1045288
Arthur D. Little [ADL] (2011) New study quantifies the impact of broadband speed on GDP [Online]. Available: http://www.ericsson.com/news/ 1550083 [Accessed: 19 Oct 2013].
Bigne, E., Ruiz, C. and Sans, S. (2007) “Key Drivers of Mobile Commerce Adoption. An Exploratory Study of Spanish Mobile Users”, Journal of Theoretical and Applied Electronic Commerce Research, Vol. 2, No. 2, pp. 48-60. ISSN 0718–1876.
Boston Consulting Group (2010) „Socio-economic impact of allocating 700MHz band to mobile in Asia Pacific“. [Online]. Available at http://www.gsma.com/spectrum/wp-content/ uploads/2012/03/27796700impactof70022oct10egsin.pdf [Accessed: 15 Jan 2015].
Davis, F. D., Bagozzi, R. P. and Warshaw, P. R. (1989) „User Acceptance of Computer Technology: A Comparison of Two Theoritical Models“, Journal Management Science, Vol. 35, No. 8, pp. 982-1002. DOI: https://doi.org/10.1287/mnsc.35.8.982
Chen, J. Q., Zhang, R. and Lee, J. (2013) “A Cross-Culture Empirical Study of M-commerce Privacy Concerns”, Journal of Internet Commerce, Vol. 12, No. 4, pp. 348-364. DOI: https://doi.org/10.1080/15332861.2013.865388
Food and Agricultural Organization of The United Nations [FAO] (2013) „ICT uses for inclusive agricultural value chains“. Rome (IT). [Online] Available at http://www.fao.org/docrep/017/ aq078e/aq078e.pdf [Accessed: 21 Jan 2016].
Frolick, M. N. and Chen, L-D. (2004) “Assessing M-Commerce Opportunities”, Information Systems Management, Vol. 21, No. 2, pp. 53-61. DOI: https://doi.org/10.1201/1078/44118.21.2.20040301/80422.8
International Cocoa Organization [ICCO] (2012) „The Future of the World Cocoa Economy: Boom or Bust?“ The World Cocoa Conference, 2012 November, pp. 19-23. Abidjan. Cote d’Ivoire. [Online] Available: http://www.fao.org/fileadmin/user_upload/bodies/CCP_69/ .../3a_ICCO_Presentation. pdf [Accessed: 31 Jan 2015].
Islam, M. A., Khan, M. A., Ramayah, T. and Hossain M. M. (2011) „The Adoption of Mobile Commerce Service among Employed Mobile Phone User in Bangladesh: Self-efficacy as A Moderator“, Journal International Business Research, Vol. 4, pp. 80-89. E-ISSN 1913-9012.
Khalifa, M. and Shen, K. N. (2008) „Explaining the adoption of transactional B2C mobile commerce“, Journal of Enterprise Information Management, Vol. 21, pp. 110-124. DOI: https://doi.org/10.1108/17410390810851372
Kline, R. B. (2004) „Principles and practice of structural equation modeling", 2nd ed., New York: Guildford.
Li, Y., Fu, Z. T. and Li, H. (2007) “Evaluating factors affecting the adoption of mobile commerce in agriculture: An empirical study”, New Zealand Journal of Agricultural Research, Vol. 50, No. 5, pp. 1213-1218. DOI: https://doi.org/10.1080/00288230709510404
Pousttchi, K., Tilson D., Lyytinen, K. and Hufenbach, Y. (2015) “Introduction to the Special Issue on Mobile Commerce: Mobile Commerce Research Yesterday, Today, Tomorrow-What Remains to Be Done?”, International Journal of Electronic Commerce, Vol. 19, No. 4, pp. 1-20. DOI: https://doi.org/10.1080/10864415.2015.1029351
Nabhani, I., Daryanto, A., Machfud, Y. and Rifin, A. (2015A) „Can Indonesia Cocoa Farmers Get Benefit on Global Value Chain Inclusion? A Literature Review“, Journal of Asian Social Science, Vol. 11, No. 18, pp. 1-7. DOI: https://doi.org/10.5539/ass.v11n18p288
Nabhani, I., Daryanto, A., Machfud, Y. and Rifin A. (2015B) „M-Commerce Adoption and Performance Improvement: Proposing a Conceptual Framework“, International Journal of Economics, Commerce and Management, Vol. 3, No. 4. ISSN 2348 0386.
Panlibuton, H. and Meyer, M. (2004) Value Chain Assessment: Indonesia Cocoa. Accelerated Microenterprise Advancement Project. Report#2 [Online] Available: http://pdf.usaid.gov/pdf_docs/ Pnadh789.pdf [Accessed: 21 Jan 2016].
Porter, M. E. (1979) „How Competitive Forces Shape Strategy“, Harvard Business Review, March-April, pp. 137-145. ISSN · 0017-8012
Sadia, S. (2011) „User Acceptance Decision towards Mobile Commerce Technology: A Study of User Decision about Accepatance of Mobile Commerce Technology“, Interdisciplinary Journal of Contemporary Research in Business, Vol. 2, pp. 535-547. ISSN 2073-7122.
Sharma, S. K. and Gupta, J. N. D. (2003) “Socio-Economic Influences of E-Commerce Adoption”, Journal of Global Information Technology Management, Vol. 6, No. 3, pp. 3-21. DOI: https://doi.org/10.1080/1097198X.2003.10856353
Stoica, M., Miller, D. W. and Stotlar, D. (2005) “New Technology Adoption, Business Strategy and Government Involvement: The Case of Mobile Commerce”, Journal of Nonprofit & Public Sector Marketing, Vol. 13, No. 1, pp. 213-232. DOI: https://doi.org/10.1300/J054v13n01_12
Swilley, E. (2007) „An Empirical Examination of the Intent of Firms to Adopt Mobile Commerce as a Marketing Strategy“ [dissertation]. Florida State University. UMI Number: 3301599.
Theingi, T. and Purchase, S. (2011) “How exporters' and intermediaries' resources influence export performance”, Australasian Marketing Journal, Vol. 19, No. 2, pp. 100-107. DOI: https://doi.org/10.1016/j.ausmj.2011.03.002
United Nations Development Programme (2012) „Promoting ICT based agricultural knowledge management“. No. 03/2012 [Online] Available at: http://www.undp.org/content/dam/ethiopia/docs/. uralknowledgemanagementtoincreaseproductionandproductivityof0smallholderfarmersinEthiopia. pdf [Accessed: 11 Jan 2016].
United States Agency for International Development (2013) „Using ICT to Enhance Marketing for Small Agricultural Producers“, Briefing Paper May 2013. [Online] Available at: https://agrilinks. org/sites/default/files/resource/files/Using_ICT_to_ Enhance _Marketing_for_Small_Agricultural_ Producers.pdf [Accessed: 31 Mar 2016].
Wei, T. T., Marthandan, G., Chong, A.Y. L., Ooi, K.,B. and Arumugam, S. (2009) „What drives Malaysian m-commerce adoption? An empirical analysis“, Industrial Management & Data System, Vol. 109, No. 3, pp. 370-388. DOI: https://doi.org/10.1108/02635570910939399
Wymer, S. A. and Regan, E. A. (2005) “Factors Influencing e-commerce Adoption and Use by Small and Medium Businesses”, Electronic Markets, Vol. 15, No. 4, pp. 438-453. DOI: https://doi.org/10.1080/10196780500303151
Yu, Y. W. (2013) „Exploring Factors Influencing Consumer Adoption on Mobile Commerce Services“, The Business Review Cambridge. Vol. 21, pp. 258-265. ISSN 1553 - 5827.
Zhang J. (2009) “Exploring Drivers in the Adoption of Mobile Commerce in China”, Journal of American Academy of Busines, Vol. 15, No. 1, pp.64-69. ISSN 1540 – 7780.
Zhang, J. J., Yuan, Y. and Archer, N. (2002) “Driving Forces for M-Commerce Success”, Journal of Internet Commerce, Vol. 1, No. 3, pp. 81-104. DOI: https://doi.org/10.1007/0-306-47548-0_4
