Prioritizing Determinants of Internet of Things (IoT) Technology Adoption: Case Study of Agribusiness PT. XYZ

Abstract

At present, manufacturing industry has the challenge of being able to manage the production chain to be responsive and quickly. In doing so, industry has tried to meet this need by adopting the latest technology of Internet of Things (IoT). This study aims to prioritize the determinants that influence the decision to adopt the Internet of Things technology in one of the agribusiness industries in Indonesia, namely PT. XYZ. This research model was built by combining two theories of information technology adoption, namely technology-organization-environment (TOE) and human-organization-technology (HOT -fit). The research model consists of four main criteria, namely human, technological, organizational, and environmental criteria with 20 factors spread across each criterion. Data collection was done using a questionnaire given to 12 decision makers of PT. XYZ. The data was processed by using Decision-Making Trial and Evaluation and Laboratory (DEMATEL) technique. The conclusion obtained from this study is that human factor becomes the most important criteria when compared to other main criteria. According to human factor, the innovation attitude of the leaders and technical skills of IT staff are the most important factors when compared to other factors. From the technological perspective, the IS / IT infrastructure as well as data security and privacy factors are the most important factors when compared to other factors. On the other side, top management support and perceived technology adoption costs are the most important factors from the perspective of organizational criteria. Finally, the perceived mimetic pressure factor and perceived coercive pressure are the most important factors in environmental perspective.