The Role of Government Policy Toward Technology Continuance Intention on Digital Industry in Indonesia

Mohammad Fahmi Arkanuddin; Susanti; Mani Festati Broto

doi:10.30997/ijsr.v5i3.342

Mohammad Fahmi Arkanuddin Law, Social and Political Science Department, Universitas Terbuka, Indonesia
Susanti Law, Social and Political Science Department, Universitas Terbuka, Indonesia
Mani Festati Broto Law, Social and Political Science Department, Universitas Terbuka, Indonesia

DOI: https://doi.org/10.30997/ijsr.v5i3.342

Keywords: digital industry, government policy, technology continuance intention

Abstract

The purpose of this study was to analyze the relationship of government policy to the variables of perceived convenience, perceived usefulness, and confirmation and to analyze the effect of government policy on technology continuance intention. The research approach uses quantitative and research instruments by distributing 120 questionnaires to users of digital applications (e-commerce and fintech). Data processing using the SEM-Amos analysis tool. The results indicate that government policy exhibits strong correlations with a perceived ease of use estimate of 0.648, a perceived usefulness estimate of 0.261, and a confirmation estimate of 0.640. Moreover, the study reveals that government policy significantly influences technology continuance intention estimate: 0.349, (p-value estimate: 0.027 < cut-off p-value of 0.050, critical ratio value: 2.204 > cut-off critical ratio value of 1.690). These findings underscore the crucial role of government policy in fostering the growth of the digital industry in Indonesia. The study demonstrates that government involvement in the digital industry is of utmost importance and significantly impacts technology continuance intention in the future.

References

Ahmad, N., Omar, A., & Ramayah, T. (2010). Consumer lifestyles and online shopping continuance intention. Business Strategy Series, 11(4), 227–243. https://doi.org/10.1108/17515631011063767

Ambarwati, O. C., Nugroho, R. A., & Suharto, D. G. (2019). The Role of the Government Regulation in Online Transportation: A Model Validation. BISNIS & BIROKRASI: Jurnal Ilmu Administrasi Dan Organisasi, 26(1). https://doi.org/10.20476/jbb.v26i1.10115

Aribawa, D. (2016). E-commerce strategic business environment analysis in Indonesia. International Journal of Economics and Financial Issues, 6(6), 130-134.

Asriana, A., & Susanti, S. (2022). Collaborative Government in Implementing the SALUR Application Program in Indonesia During the Covid-19 Pandemic. KnE Social Sciences, 176–189. https://doi.org/10.18502/kss.v7i9.10936

Bank Indonesia Regulation No. 19/12/PBI/2017. https://www.bi.go.id/id/publikasi/peraturan/Documents/PBI_191217.pdf

Dash, G., & Paul, J. (2021). CB-SEM vs PLS-SEM methods for research in social sciences and technology forecasting. Technological Forecasting and Social Change, 173, 121092.

Drath, R., & Horch, A. (2014). Industrie 4.0: Hit or hype?[industry forum]. IEEE Industrial Electronics Magazine, 8(2), 56–58. https://doi.org/10.1109/mie.2014.2312079

Economic policy package XIV (November 10, 2016). https://www.ekon.go.id/info-sektoral/18/295/paket-kebijakan-ekonomi-xiv.

Financial Services Authority Regulation No. 77/POJK01/2016. https://www.ojk.go.id/id/regulasi/otoritas-jasa-keuangan/peraturan-ojk/Documents/Pages/POJK-Nomor-77-POJK.01-2016/SAL%20-%20POJK%20Fintech.pdf Fiscal policy Agency. (2023, August 22). Government Supports Collaboration between MSMEs and Fintech to Strengthen Financial Inclusion. https://fiskal.kemenkeu.go.id/baca/2023/08/22/4443-pemerintah-dukung-kolaborasi-umkm-dan-fintech-untuk-perkuat-inklusi-keuangan

Ghozali, I. (2016). Desain penelitian kuantitatif dan kualitatif untuk akuntansi, bisnis, dan ilmu sosial lainnya. Semarang: Yoga Pratama.

Government Regulation no. 80/2019. https://www.kemendag.go.id/berita/siaran-pers/pp-nomor-80-tahun-2019-pemerintah-lahirkan-peraturan-pemerintah-tentang-perdagangan-melalui-sistem-elektronik#:~:text=00%20WIB%202976-,Pemerintah%20menerbitkan%20Peraturan%20Pemerintah%20Nomor%2080%20Tahun%202019%20tentang%20Perdagangan,yang%20berkelanjutan%20di%20tanah%20air.

Government Regulation No. 44 of 2013. https://peraturan.bpk.go.id/Details/5376/pp-no-44-tahun-2013

Hoogerwerf, A. (2009). Ilmu Pemerintahan. Erlangga, Jakarta.

Imerman, M. B., & Fabozzi, F. J. (2020). Cashing in on innovation: A taxonomy of FinTech. Journal of Asset Management, 21, 167–177. https://doi.org/10.1057/s41260-020-00163-4

Jahanmir, S. F., Silva, G. M., Gomes, P. J., & Gonçalves, H. M. (2020). Determinants of users’ continuance intention toward digital innovations: Are late adopters different? Journal of Business Research, 115, 225–233. https://doi.org/10.1016/j.jbusres.2019.11.010

Kagermann, H., Helbig, J., Hellinger, A., & Wahlster, W. (2013). Recommendations for implementing the strategic initiative INDUSTRIE 4.0: Securing the future of German manufacturing industry; final report of the Industrie 4.0 Working Group. Forschungsunion.

Kasilingam, D. L. (2020). Understanding the attitude and intention to use smartphone chatbots for shopping. Technology in Society, 62, 101280. https://doi.org/10.1016/j.techsoc.2020.101280

Kearney, A.T. (2017, September 20). Positive About Indonesia's StartupMarket. Startups Indonesi,Digital Economy,E-commerce Industry, E-commerce. Indonesia Investment. https://www.indonesia-investments.com/news/todays-headlines/google-at-kearney-positive-about-indonesia-s-startup-market/item8219

Kearney, (2019, January 26). Unleasing Indonesia’s Digital Potential. Kearney. https://www.kearney.com/service/digital/article/-/insights/unleashing-indonesia-s-digital-potential

Kusumasondjaja, S. (2017). Commitment to online community and continuance intention: Issue involvement, interactivity, and social interaction. Jurnal Bisnis Dan Manajemen, 18(2), 90–103. https://doi.org/10.24198/jbm.v18i2.64

Lasi, H., Fettke, P., Kemper, H.-G., Feld, T., & Hoffmann, M. (2014). Industry 4.0. Business & Information Systems Engineering, 6, 239–242. https://doi.org/10.1007/s12599-014-0334-4

Law No. 11 of 2008. https://peraturan.bpk.go.id/Details/37589/uu-no-11-tahun-2008

Law No. 7 of 2014. https://peraturan.bpk.go.id/Details/38584/uu-no-7-tahun-2014

Law No. 19 of 2016. https://peraturan.bpk.go.id/Details/37582/uu-no-19-tahun-2016

Li, K., Kim, D. J., Lang, K. R., Kauffman, R. J., & Naldi, M. (2020). How should we understand the digital economy in Asia? Critical assessment and research agenda. Electronic commerce research and applications, 44, 101004. https://doi.org/10.1016/j.elerap.2020.101004

Malhotra Naresh, K., & Dash, S. (2015). Marketing Research, an Applied Orientation, 7e. Pearson India.

McKinsey (2014, November 14). Bracing for Seven Critical Changes as Fintech Matures. Financial Service. https://www.mckinsey.com/industries/financial-services/our-insights/bracing-for-seven-critical-changes-as-fintech-matures

Ministry of Communication and Information Technology. (2021). https://www.kominfo.go.id/content/detail/31626/menkominfo-kebijakan-transformatif-untuk-ciptakan-ekosistem-digital-mumpuni/0/sorotan_media#:~:text=Guna%20merealisasikan%20visi%20besar%20tersebut,legislasi%20serta%20penguatan%20hubungan%20internasional.

Ministry of Investment. (2019). https://www.bkpm.go.id/id/info/agenda/regional-investment-forum-2019

Natarajan, T., Balasubramanian, S. A., & Kasilingam, D. L. (2017). Understanding the intention to use mobile shopping applications and its influence on price sensitivity. Journal of Retailing and Consumer Services, 37, 8–22. https://doi.org/10.1016/j.jretconser.2017.02.010

Neugebauer, R., Hippmann, S., Leis, M., & Landherr, M. (2016). Industrie 4.0-From the perspective of applied research. Procedia CIRP, 57, 2–7. https://doi.org/10.1016/j.procir.2016.11.002

Philip, K., Kevin, L. K., & Chernev, A. (2021). Marketing Management (-Global Edition).

Praveena, K., & Thomas, S. (2014). Continuance intention to use Facebook: A study of perceived enjoyment and TAM. Bonfring International Journal of Industrial Engineering and Management Science, 4(1), 24. https://doi.org/10.9756/bijiems.4794

Presidential Regulation No. 74 of 2017. https://peraturan.bpk.go.id/Details/73107/perpres-no-74-tahun-2017

Qin, J., Liu, Y., & Grosvenor, R. (2016). A categorical framework of manufacturing for industry 4.0 and beyond. Procedia Cirp, 52, 173–178. https://doi.org/10.1016/j.procir.2016.08.005

Rüßmann, M., Lorenz, M., Gerbert, P., Waldner, M., Justus, J., Engel, P., & Harnisch, M. (2015). Industry 4.0: The future of productivity and growth in manufacturing industries. Boston Consulting Group, 9(1), 54–89.

Samara, A., & Susanti, M. (2023). The Influence of Ease of Use, User Experience and Customer Satisfaction on Customer Loyalty in the Use of Digital Wallet Applications (E-Wallet) among Buddhi Dharma University Students. Journal of Accounting Research, 1(2), 249-260.

Schmidt, R., Möhring, M., Härting, R.-C., Reichstein, C., Neumaier, P., & Jozinović, P. (2015). Industry 4.0-potentials for creating smart products: Empirical research results. 16–27. https://doi.org/10.1007/978-3-319-19027-3_2

Sugiarti, E. C. (2019). Human Resources (HR) Development Towards a Superior Indonesia. Ministry of State Secretariat Republic of Indonesia. https://www.setneg.go.id/baca/index/pembangunan_sumber_daya_manusia_sdm_menuju_indonesia_unggul

Tapscott, D. (2014). The Digital Economy Anniversary Edition: Rethinking Promise and Peril In the Age of Networked Intelligence, McGraw-Hill.

Thiruselvi, S., Yusliza, M., Ramayah, T., & Nur Zahitah, O. (2013). Continuance intention usage towards e-HRM. Proceedings Book of ICEFMO, Handbook on the Economic, Finance and Management Outlooks, 674–687.

Widyastuti, Y. (2022). Agile Government Action in Health Sector: Implementation and Leadership. 198–202. https://doi.org/10.2991/978-2-494069-77-0_27

Yan, M., Filieri, R., & Gorton, M. (2021). Continuance intention of online technologies: A systematic literature review. International Journal of Information Management, 58, 102315. https://doi.org/10.1016/j.ijinfomgt.2021.102315

Zhou, K., Liu, T., & Zhou, L. (2015). Industry 4.0: Towards future industrial opportunities and challenges. 2147–2152. https://doi.org/10.1109/fskd.2015.7382284