Technology Adoption Segmentation of MSMEs in Border Areas using TRI and Hierarchical Clustering

Micro, Small, and Medium Enterprises (MSMEs) in border areas such as Nunukan-Sebatik often face challenges in adopting modern technologies, which hinder their growth and competitiveness. This study employs a segmentation approach using agglomerative hierarchical clustering based on the Technology Re...

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Main Authors: Muhammad Fadlan, Muhammad Muhammad, Suprianto Suprianto, Hadriansa Hadriansa, Arifai Ilyas
Format: Article
Language:English
Published: LPPM ISB Atma Luhur 2025-07-01
Series:Jurnal Sisfokom
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Online Access:https://jurnal.atmaluhur.ac.id/index.php/sisfokom/article/view/2398
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author Muhammad Fadlan
Muhammad Muhammad
Suprianto Suprianto
Hadriansa Hadriansa
Arifai Ilyas
author_facet Muhammad Fadlan
Muhammad Muhammad
Suprianto Suprianto
Hadriansa Hadriansa
Arifai Ilyas
author_sort Muhammad Fadlan
collection DOAJ
description Micro, Small, and Medium Enterprises (MSMEs) in border areas such as Nunukan-Sebatik often face challenges in adopting modern technologies, which hinder their growth and competitiveness. This study employs a segmentation approach using agglomerative hierarchical clustering based on the Technology Readiness Index (TRI) to segment MSMEs in border areas and develop targeted strategies to accelerate technology adoption. A hierarchical clustering technique is applied to segment MSMEs according to their technology readiness levels. Data on technology readiness were collected through surveys, and the clustering results were analyzed to identify distinct MSME groups. The TRI score was 3.72, indicating a high level of technology readiness, which suggests that many MSMEs are open to technological innovation into their daily operations. The results also reveal that MSMEs in Nunukan-Sebatik can be grouped into two clusters based on hierarchical clustering:  Cluster 1, which consists of MSMEs that are more prepared and optimistic about technology adoption, and Cluster 2, which faces significant challenges. These findings highlight a digital readiness gap among MSMEs, where only a tiny portion (Cluster 1) is fully prepared, while the majority (Cluster 2) still encounters barriers to adoption.
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issn 2301-7988
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spelling doaj-art-84a0642dfe8e44c1be665d80d2e73b1f2025-08-20T02:46:06ZengLPPM ISB Atma LuhurJurnal Sisfokom2301-79882581-05882025-07-0114339540010.32736/sisfokom.v14i3.23982061Technology Adoption Segmentation of MSMEs in Border Areas using TRI and Hierarchical ClusteringMuhammad Fadlan0Muhammad Muhammad1Suprianto Suprianto2Hadriansa Hadriansa3Arifai Ilyas4Department of Information System, STMIK PPKIA Tarakanita RahmawatiDepartment of Information System, STMIK PPKIA Tarakanita RahmawatiDepartment of Information System, STMIK PPKIA Tarakanita RahmawatiDepartment of Informatics Engineering, STMIK PPKIA Tarakanita RahmawatiDepartment of Management, STIE Bulungan TarakanMicro, Small, and Medium Enterprises (MSMEs) in border areas such as Nunukan-Sebatik often face challenges in adopting modern technologies, which hinder their growth and competitiveness. This study employs a segmentation approach using agglomerative hierarchical clustering based on the Technology Readiness Index (TRI) to segment MSMEs in border areas and develop targeted strategies to accelerate technology adoption. A hierarchical clustering technique is applied to segment MSMEs according to their technology readiness levels. Data on technology readiness were collected through surveys, and the clustering results were analyzed to identify distinct MSME groups. The TRI score was 3.72, indicating a high level of technology readiness, which suggests that many MSMEs are open to technological innovation into their daily operations. The results also reveal that MSMEs in Nunukan-Sebatik can be grouped into two clusters based on hierarchical clustering:  Cluster 1, which consists of MSMEs that are more prepared and optimistic about technology adoption, and Cluster 2, which faces significant challenges. These findings highlight a digital readiness gap among MSMEs, where only a tiny portion (Cluster 1) is fully prepared, while the majority (Cluster 2) still encounters barriers to adoption.https://jurnal.atmaluhur.ac.id/index.php/sisfokom/article/view/2398border areasclusteringmicro small and medium enterprises (msme)technology readiness
spellingShingle Muhammad Fadlan
Muhammad Muhammad
Suprianto Suprianto
Hadriansa Hadriansa
Arifai Ilyas
Technology Adoption Segmentation of MSMEs in Border Areas using TRI and Hierarchical Clustering
Jurnal Sisfokom
border areas
clustering
micro small and medium enterprises (msme)
technology readiness
title Technology Adoption Segmentation of MSMEs in Border Areas using TRI and Hierarchical Clustering
title_full Technology Adoption Segmentation of MSMEs in Border Areas using TRI and Hierarchical Clustering
title_fullStr Technology Adoption Segmentation of MSMEs in Border Areas using TRI and Hierarchical Clustering
title_full_unstemmed Technology Adoption Segmentation of MSMEs in Border Areas using TRI and Hierarchical Clustering
title_short Technology Adoption Segmentation of MSMEs in Border Areas using TRI and Hierarchical Clustering
title_sort technology adoption segmentation of msmes in border areas using tri and hierarchical clustering
topic border areas
clustering
micro small and medium enterprises (msme)
technology readiness
url https://jurnal.atmaluhur.ac.id/index.php/sisfokom/article/view/2398
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AT muhammadmuhammad technologyadoptionsegmentationofmsmesinborderareasusingtriandhierarchicalclustering
AT supriantosuprianto technologyadoptionsegmentationofmsmesinborderareasusingtriandhierarchicalclustering
AT hadriansahadriansa technologyadoptionsegmentationofmsmesinborderareasusingtriandhierarchicalclustering
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