The Intention to Adopt Internet of Things Applications: A Case of Indonesian Urban Society

Abstract

This paper aims to investigate the interest of Indonesian urban society towards consumer IoT applications, namely Home Security, Smart Appliance, Smart Energy, Wearable Device, Connected Cars, and Smart Health. Besides, this study also seeks to provide empirical insight into why they intend to adopt the applications. Data collection was carried out by Research Center for Post and Informatics, Ministry of Communication Technology of Republic of Indonesia in 2016 through a survey. This study applies descriptive statistic to describe the profile of respondents, and cross-tabulation to illustrate intention toward IoT applications based on their socio-economic background. We also utilize binary logistic regression as a tool to examine the influence of personal innovativeness, usefulness, ease of use, social influence, and price toward the intention to adopt IoT applications. The results show that overall, the interest to use IoT applications ranged from 54.7% to 64%. Among others, home security and smart health are the least and the most desirable applications, respectively. According to socioeconomic background, respondents of male, aged between 28-42 years, graduated from university, had jobs or owned a business, and had higher expenditures have a higher rate of intention on adopting IoT applications, with more than 60% each. Empirically, the study also confirms that only one out of five factors, i.e., usefulness, influences the plan of using the applications. The impact is positive on a significant level of 1%, except for home security and smart appliance on 1.5% and 5.7%, respectively. These findings could be used as a basis for constructing a strategy to attract and encourage people to adopt IoT applications.