Do Mobile Applications Give Competitive Advantage to Small and Medium Enterprises?

Abstract This study explores how using mobile applications for everyday business processes can help small and medium enterprises (SMEs) in Indonesia become more competitive. We combined two well-known theories—one on human behavior and one on consumer values—to understand better what influences SMEs to adopt mobile apps. We collected survey data from 69 SMEs and analyzed it using a structured modeling approach. The findings show that SMEs are more likely to use mobile apps when they have a positive attitude toward them and feel in control of their use. However, we also found something unexpected: Consumer choice behavior, such as valuing uniqueness or emotion in products, actually weakens effect on app use. This suggests that while mobile apps can help SMEs grow, simply offering more features or variety may not always lead to greater use. The study offers useful lessons for policymakers, app designers, and SME support programs aiming to promote digital tools for business growth.