Anxiety and attitudes in Micro, Small and Medium Enterprises adoption of digital technology

Introduction: The economic development of numerous countries, such as Indonesia, is significantly influenced by Micro, Small, and Medium Enterprises (MSMEs). However, the adoption of digital technology among MSMEs remains low, limiting their ability to compete in an increasingly digital economy. The success of using technology depends on the acceptance and use of each individual user. Objectives: This study investigates the factors influencing the attitude toward the adoption of digital technology, focusing on performance expectancy, effort expectancy, social influence, facilitating conditions, and the moderating role of anxiety. Using the Unified Theory of Acceptance and Use of Technology (UTAUT) model, this research extends the framework by incorporating anxiety as a moderating variable and attitudes toward digitalization as a mediating factor. Methods: The data were collected from 150 MSMEs entrepreneurs in Central Java and Special Region of Yogyakarta Indonesia and analyzed using Structural Equation Modelling-Partial Least Squares (SEM-PLS), which is suitable for exploratory research and complex models with multiple mediators and moderators. The analysis involved assessing the measurement model for reliability and validity and testing the structural model to evaluate the hypothesized relationships. Results: The result indicates that social influence and facilitating conditions significantly affect attitudes toward digital technology adoption, while performance expectancy and effort expectancy do not. Anxiety did not exhibit a moderating effect on the relationship between the predictors and attitudes toward digitalization. Conclusions: The study provides practical insights for policymakers and practitioners aiming to enhance digital adoption among MSMEs, emphasizing the importance of social influence and facilitating conditions over perceived performance and effort expectancy.