The Effect of Communication Behavior of MSMEs on Internet Utilization in Big and Medium Cities

ABSTRACT: The advancement of information technology, especially the internet, provides an opportunity to micro, small, and medium enterprises (MSMEs) to maintain and develop their business. This study uses a survey method conducted in two locations, which are West Jakarta a big city) and Tangerang (a medium city)by using a cluster random sampling technique. Total sample of this study is 200 persons and it is conducted according to the condition of Structural Equation Modeling (SEM). This study aims to (a) analyze the utilization of the internet by MSMEs for their business, (b) analyze the effect of MSME’s behavior toward internet utilization. The results of this study show that (1) The utilization of internet by MSMEs is high, (2) high internet utilization is affected by the high communication behavior of MSMEs.
KEYWORDS: internet, micro, small, and medium enterprises, internet utilization, communication behavior