Understanding POS ABC Adoption in Indonesia: A Quantitative Analysis Using Modified UTAUT

Micro, Small, and Medium Enterprises (MSMEs) are vital to Indonesia’s economy. However, they face challenges in technology adoption, particularly Point of Sale (POS) systems, which remains relatively low despite their potential benefits. The research addresses the significant gap between the projected and actual adoption of POS ABC, a leading cloud-based POS system in Indonesia, by identifying key determinants that may act as barriers or enablers in the adoption process. By analyzing these factors, the researchers offer theoretical explanations for the suboptimal adoption rate and suggests strategic directions for increasing technology uptake among MSMEs. Utilizing a modified Unified Theory of Acceptance and Use of Technology (UTAUT) framework, the research uniquely integrates system quality as an additional construct to address recurring technical complaints highlighted in user reviews, offering a novel perspective on technology adoption in this context. A quantitative approach is employed, collecting data from 400 MSMEs across Indonesia via online surveys. Structural Equation Modeling (SEM) with SmartPLS 4.1.0.9 is used for analysis, yielding an R² of 49.4% for behavioral intention and 52.5% for use behavior. The findings reveal that performance expectancy, social influence, and habit significantly impact behavioral intention, while facilitating conditions, habit, system quality, and behavioral intention significantly influence use behavior. Effort expectancy, facilitating conditions, and price value show no significant effect on behavioral intention. The findings offer essential insights for developers of POS systems and policymakers, guiding strategies to enhance the adoption of digital solutions and address technical challenges faced by Indonesian MSMEs.