Understanding the effect of sustained use of cloud-based point of sales on SMEs performance during covid-19 pandemic

Authors

DOI:

https://doi.org/10.14414/tiar.v11i1.2300

Keywords:

Cloud-Based Point of Sales, SMEs Performance, Covid-19

Abstract

This study examined the effect of sustained use of cloud-based point of sales on SMEs’ performance during COVID-19 pandemic. In this study, both quantitative and qualitative approaches were employed. The sample consists of the food and beverage industries from Small and Medium Enterprises (SMEs) located in Malang City, Indonesia. The quantitative data which succeeded to collect 91 responses was taken from the questionnaire distribution of the sample SMEs and it was analyzed by using SPSS 21 with the multiple linear regression method, which indicated there is a relationship between sustained-use of cloud-based point of sale on SMEs non-financial performance during COVID-19 pandemic. 9 SMEs representatives, the owner, or the manager, were also interviewed to gain further insights and to confirm the quantitative findings. Technology Continuance Theory (TCT) was used to explain the link between the sustained use of cloud-based point of sale on SMEs’ performance during the COVID-19 pandemic. However, the results from both approaches found that there is a positive relationship between sustained use of cloud-based point of sale on SMEs non-financial performance during COVID-19 pandemic and the relationship between sustained use of cloud-based point of sale on SMEs financial performance is negative.

References

Adane, M., & Piderit, R. (2019). Online Storage : Are Small Businesses Facing a Dilemma in Developing Economies ? 08(02).

Akerejola, W. O., Okpara, E. U., Ohikhena, P., & Emenike, P. O. (2019). Availability of Infrastructure and Adoption of Point of Sales of Selected Small and Medium Enterprises (SMEs) in Lagos State, Nigeria. International Journal of Academic Research in Business and Social Sciences, 9(1), 137–150. https://doi.org/10.6007/ijarbss/v9-i1/5370

Al-Janabi, S., Al-Shourbaji, I., Shojafar, M., & Abdelhag, M. (2018). Mobile Cloud Computing: Challenges and Future Research Directions. Proceedings - International Conference on Developments in ESystems Engineering, DeSE, 62–67. https://doi.org/10.1109/DeSE.2017.21

Al-Sharafi, M. A., Arshah, R. A., & Abu-Shanab, E. A. (2017). Factors affecting the continuous use of cloud computing services from expert’s perspective. IEEE Region 10 Annual International Conference, Proceedings/TENCON, 2017-Decem, 986–991. https://doi.org/10.1109/TENCON.2017.8228001

Al-Sharafi, M. A., Arshah, R. A., Abu-Shanab, E. A., & Alajmi, Q. (2019). The Effect of Sustained Use of Cloud-Based Business Services on Organizations’ Performance: Evidence from SMEs in Malaysia. 5th International Conference on Information Management, ICIM 2019, 285–291. https://doi.org/10.1109/INFOMAN.2019.8714699

Alshamaila, Y., Papagiannidis, S., & Li, F. (2013). Cloud computing adoption by SMEs in the north east of England: A multi-perspective framework. Journal of Enterprise Information Management, 26(3), 250–275. https://doi.org/10.1108/17410391311325225

Bartik, A. W., Bertrand, M., Cullen, Z., Glaeser, E. L., & Luca, M. (2020a). The impact of COVID-19 on small business outcomes and expectations. Proceedings of the National Academy of Sciences, 117(30), 17656-17666.

Bartik, A. W., Bertrand, M., Cullen, Z., B., Glaeser, E. L., Luca, M., & Stanton, C. T. (2020b). How are small business adjusting to Covid-19? Early evidence from a survey. National Bureau of Economic Research, April.

Bhattacherjee, A. (2011). Understanding Information Systems Continuance: An Expectation-Confirmation Model. MIS Quarterly, 25(3), 351–370.

Bhattacherjee, A., & Barfar, A. (2011). Information Technology Continuance Research: Current State and Future Directions. Asia Pacific Journal of Information Systems, 21(2), 1–18. https://doi.org/10.2307/3250921

Bhattacherjee, A., & Lin, C. P. (2015). A unified model of IT continuance: Three complementary perspectives and crossover effects. European Journal of Information Systems, 24(4), 364–373. https://doi.org/10.1057/ejis.2013.36

Bhattacherjee, A., Perols, J., & Sanford, C. (2008). Information technology continuance: A theoretic extension and empirical test. Journal of Computer Information Systems, 49(1), 17–26. https://doi.org/10.1080/08874417.2008.11645302

BPS Kota Malang. (2018). Kota Malang Dalam Angka 2018. 178.

Bruce, 2011. (2013). 済無No Title No Title. Journal of Chemical Information and Modeling, 53(9), 1689–1699. https://doi.org/10.1017/CBO9781107415324.004

Cameron, R. (2011). Mixed methods in business and management: A call to the ‘first generation.’ Journal of Management & Organization, 17(2), 245–267. https://doi.org/10.1017/s1833367200001644

Chen, J. S., Tsou, H. T., & Huang, A. Y. H. (2009). Service delivery innovation:Antecedents and impact on firm performance. Journal of Service Research, 12(1), 36–55. https://doi.org/10.1177/1094670509338619

Chen, J. S., Tsou, H. T., & Huang, A. Y. H. (2009). Service delivery innovation: Antecedents and impact on firm performance. Journal of Service Research, 12(1), 36–55. https://doi.org/10.1177/1094670509338619

Davis, F. D. (2013). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. Computer and Information Systems Graduate School of Business Administration, 13(3), 319–340.

Deloitte Access Economic. (2015). SMEs Powering Indonesia’s success: The Connected Archipelago’s Growth Engine. Deloitte Access Economic, 3. https://doi.org/10.3389/fpsyg.2017.01262

Fabeil, N. F., Pazim, K. H., & Langgat, J. (2020). The Impact of Covid-19 Pandemic Crisis on Micro-Enterprises: Entrepreneurs’ Perspective on Business Continuity and Recovery Strategy. Journal of Economics and Business, 3(2). https://doi.org/10.31014/aior.1992.03.02.241

Fairlie, R. W. (2020). The Impact of Covid-19 on Small Business Owners: Evidence of Early-Stage Losses From the April 2020 Current Population Survey. NBER Working Paper Series, (June).

Retrieved from http://www.nber.org/papers/w27309

Hajar, M. A., Ibrahim, D. N., Darun, M. R., and Al-Sharafi, M. (2020). Improving mobile value-added services (MVAS) in Yemen mobile companies. International Journal of Information Technology, 4(2), 1-11.

Hassan, T., Hollander, S., van Lent, L., & Tahoun, T. (2020). Firm-Level Exposure to Epidemic Diseases: Covid-19, SARS, and H1N1. Institute for New Economic Thinking Working Paper Series, 1–46.

https://doi.org/10.36687/inetwp119

Heale, R., & Twycross, A. (2015). Validity and reliability in quantitative studies. Evidence-Based Nursing, 18(3), 66–67.

https://doi.org/10.1136/eb-2015-102129

Hendrik, Vitra Paputungan, I., Budi Susilo, T., & Setiaji, H. (2018). Designing a Cloud-Based System for Small and Medium Enterprises with Multiple Branches. 2018 3rd International Conference on

Computer and Communication Systems, ICCCS 2018, 268–272. https://doi.org/10.1109/CCOMS.2018.8463343

Indarti, N., & Langenberg, M. (2004). Factors affecting business success among SMEs: empirical evidences from Indonesia. Second Bi-Annual European Summer …, (August), 1–15. Retrieved

from http://www.utwente.nl/mb/nikos/archief/esu2004/papers/

indartilangenberg.pdf

Lancaster, G. A., Dodd, S., & Williamson, P. R. (2004). Design and analysis of pilot studies: Recommendations for good practice. Journal of Evaluation in Clinical Practice, 10(2), 307–312.https://doi.org/10.1111/j..2002.384.doc.x

Liao, C., Palvia, P., & Chen, J. L. (2009). Information technology adoption behavior life cycle: Toward a Technology Continuance Theory (TCT). International Journal of Information Management, 29(4),309–320. https://doi.org/10.1016/j.ijinfomgt.2009.03.004

Mangula, I. S., Van De Weerd, I., &Brinkkemper, S. (2012). Adoption of the cloud business model in Indonesia: Triggers, benefits, and challenges. ACM International Conference Proceeding Series, 54–63. https://doi.org/10.1145/2428736.2428749

March, J. G., & Sutton, R. I. (1997). Organizational Performance as a Dependent Variable. Organization Science, 8(6). https://doi.

org/10.1287/orsc.8.6.698

May-Chiun, L., Mohamad, A. A., Ramayah, T., & Chai, W. Y. (2015). Examining the effects of leadership, market orientation and leader member exchange (LMX) on organisational performance. Engineering Economics, 26(4), 409–421. https://doi.org/10.5755/j01.ee.26.4.7656

Obrenovic, B., Du, J., Godinic, D., & Tsoy, D. (2020). Sustaining enterprise operations and productivity during the Covid-19 pandemic: “Enterprise effectiveness and sustainability

modelâ€, Sustainability, 12(15), 1-27.

OECD Secretary General. (2020). Covid-19: SME Policy Responses. (March), 1–55. Retrieved from https://oecd.dam-broadcast.com/pm_7379_119_119680-di6h3qgi4x.pdf

Pakpahan, A. K. (2020). Covid-19 Dan Implikasi Bagi Usaha Mikro, Kecil, Dan Menengah. JIHI: Jurnal Ilmu Hubungan Internasional, 20(April), 2–6. https://doi.org/https://doi.org/10.26593/jihi.v0i0.3870.59-64

Paramita, A. S. (2019). Cloud Computing-Based Point-of-Sales Readiness for Surabaya’s Small Medium Enterprises. 8, 1–12. https://doi.org/https://doi.org/10.30534/ijatcse/2019/5581.52019

Part, R. C. (2010). Inventory Management in Small and Medium Enterprises: A Study of Machine Tool Enterprises in Bangalore. (Unit 07), 1–5.

Pérez-Méndez, J. A., & Machado-Cabezas, Ã. (2015). Relationship between management information systems and corporate performance. Revista de Contabilidad-Spanish Accounting Review, 18(1), 32–43. https://doi.org/10.1016/j.rcsar.2014.02.001

Tambunan, T. (2008). SME Development in Indonesia with Reference to Networking, Innovativeness, Market Expansion and Government Policy. ERIA Research Project Report, (March), 99–131. Retrieved from http://www.eria.org/publications/research_project_reports/smes-in-asia-and-globalization.html

Tariq, U., Mumtaz, R., Ahmad, H. M., & Waheed, A. (2014). Impact-of-Leader-Member-Exchange-on-Organizational-Performance2014IJSciEngRes. 5(12), 92–100.

Venkatraman, N., & Ramanujam, V. (1986). Measurement of Business Performance in Strategy Research: A Comparison of Approaches. Academy of Management Review, 11(4), 801–814. https://doi.org/10.5465/amr.1986.4283976

Downloads

Published

2021-03-14

How to Cite

Prihatiningtias, Y. W., & Wardhani, M. R. (2021). Understanding the effect of sustained use of cloud-based point of sales on SMEs performance during covid-19 pandemic. The Indonesian Accounting Review, 11(1), 33–46. https://doi.org/10.14414/tiar.v11i1.2300