IT IMPLEMENTATION ON INDONESIAN SMEs: CHALLENGE OR BARRIERS?

The purpose of this research is to test the effect of both internal (owners knowledge) and external (infrastructure) factors on the success of IT implementation and SMEs performance. Data is collected from 110 SMEs owners with a mail questionnaire. A regression model is used to test the hypothesis and to examine the effect of each variable. The result of this research shows that both internal and external factors have a significant impact on IT implementation. The IT implementation has significant effect on both financial and non-financial performance. This research examined the SMEs with the whole business type without considering the IT implementation, therefore a deeper test can be conducted. This research has not been studied by other researchers. This research gives an implication to the SMEs owners and government to implement a good IT implementation strategy to enhance the performance