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AI Adoption Barriers in SMEs Analyzing Through the Technology Organization Environment TOE Framework

APTISI Transactions on Management (ATM) · Vol. 9 No. 3 (2025) · pp. 278–289

DOI
10.33050/atm.v9i3.2537
ISSN
2622-6804, 2622-6812
Published
2025-10-22
Publisher
Pandawan
Language
en
License
creativecommons.org/licenses/by-sa/4.0

Abstract

Artificial Intelligence (AI) has become a key driver of innovation, improving efficiency, decision-making, and competitiveness in businesses worldwide. However, the adoption of AI tools among Small and Medium Enterprises (SMEs), especially in developing countries like Indonesia, remains limited. This study aims to explore the barriers hindering AI adoption in SMEs in Indonesia using the Technology Organization Environment (TOE) framework. A survey was conducted among Indonesian SMEs across various sectors to capture their perceptions regarding AI implementation. The survey focused on technological, organizational, and environmental factors that influence AI adoption. The findings reveal that technological barriers, such as high implementation costs and system complexity, are significant challenges for SMEs. Organizational barriers, including limited digital literacy, a lack of skilled workforce, and resistance to change, also hinder AI adoption. Furthermore, environmental barriers like insufficient government support, regulatory uncertainty, and low market pressure constrain SMEs' adoption readiness. This study extends the TOE framework to the context of AI adoption in SMEs in developing economies. Addressing the identified barriers is essential for accelerating digital transformation and enabling SMEs to leverage AI for sustainable growth in the digital economy.

Keywords

Collaboration network of the authors

22 authors · 60 co-authorship links

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  • Universitas Raharja
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Marviola HardiniAffiliation unknown2
Dominicus Savio PriyarsonoAffiliation unknown2
Anggraini SukmawatiAffiliation unknown2
Popong NurhayatiAffiliation unknown2
Hilda HildaAffiliation unknown1
Aan KaniviaAffiliation unknown1
Muhammad Faizal FazriAffiliation unknown1
Sabda MaulanaAffiliation unknown1
Fitra Putri OgandaUniversitas Raharja1
Aoliyah FirasatiAffiliation unknown1
Fadhila AzzahraAffiliation unknown1
Sausan Raihana Putri JunaediAffiliation unknown1
Amelia EvansAffiliation unknown1
Maulana Arif KomaraAffiliation unknown1
Yusuf TojiriAffiliation unknown1
Nasrul HidayatAffiliation unknown1
Cristiano Gatot WagnerAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://ijc.ilearning.co/ATM/oai, first harvested 6 Nov 2026, last seen 8 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en">AI Adoption Barriers in SMEs Analyzing Through the Technology Organization Environment TOE Framework</dc:title>
	<dc:creator xml:lang="en">Syahidun</dc:creator>
	<dc:creator xml:lang="en">Susetyono, Eko</dc:creator>
	<dc:creator xml:lang="en">Adiwijaya, Alfri</dc:creator>
	<dc:creator xml:lang="en">Madani, Muchlisina</dc:creator>
	<dc:creator xml:lang="en">Mustafa Kareem, Yasir</dc:creator>
	<dc:subject xml:lang="en">Artificial Intelligence (AI)</dc:subject>
	<dc:subject xml:lang="en">TOE Framework</dc:subject>
	<dc:subject xml:lang="en">SMEs</dc:subject>
	<dc:subject xml:lang="en">Innovation</dc:subject>
	<dc:subject xml:lang="en">Digital Transformation</dc:subject>
	<dc:description xml:lang="en">Artificial Intelligence (AI) has become a key driver of innovation, improving efficiency, decision-making, and competitiveness in businesses worldwide. However, the adoption of AI tools among Small and Medium Enterprises (SMEs), especially in developing countries like Indonesia, remains limited. This study aims to explore the barriers hindering AI adoption in SMEs in Indonesia using the Technology Organization Environment (TOE) framework. A survey was conducted among Indonesian SMEs across various sectors to capture their perceptions regarding AI implementation. The survey focused on technological, organizational, and environmental factors that influence AI adoption. The findings reveal that technological barriers, such as high implementation costs and system complexity, are significant challenges for SMEs. Organizational barriers, including limited digital literacy, a lack of skilled workforce, and resistance to change, also hinder AI adoption. Furthermore, environmental barriers like insufficient government support, regulatory uncertainty, and low market pressure constrain SMEs' adoption readiness. This study extends the TOE framework to the context of AI adoption in SMEs in developing economies. Addressing the identified barriers is essential for accelerating digital transformation and enabling SMEs to leverage AI for sustainable growth in the digital economy.</dc:description>
	<dc:publisher xml:lang="en">Pandawan</dc:publisher>
	<dc:date>2025-10-22</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://ijc.ilearning.co/ATM/article/view/2537</dc:identifier>
	<dc:identifier>10.33050/atm.v9i3.2537</dc:identifier>
	<dc:source xml:lang="en">APTISI Transactions on Management (ATM); Vol. 9 No. 3 (2025): September; 278-289</dc:source>
	<dc:source xml:lang="id">APTISI Transactions on Management (ATM); Vol 9 No 3 (2025): September; 278-289</dc:source>
	<dc:source>2622-6804</dc:source>
	<dc:source>2622-6812</dc:source>
	<dc:source>10.33050/atm.v10i3</dc:source>
	<dc:language>en</dc:language>
	<dc:relation>https://ijc.ilearning.co/ATM/article/view/2537/915</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2025 Syahidun, Eko Susetyono, Alfri Adiwijaya, Muchlisina Madani, Yasir Mustafa Kareem (Authors)</dc:rights>
	<dc:rights xml:lang="en">http://creativecommons.org/licenses/by-sa/4.0</dc:rights>
</oai_dc:dc>