In order to gain competitive advantages and compete in the global market, SMEs are pushed to adopt the internet based ICT in their business process. Despite of numerous benefit provided by the internet adoption, the internet adoption in developing countries’ SMEs are still low. Thus this study is aimed to examine the factors influencing internet based ICT adoption in developing countries’ SMEs. This study was conducted in Indonesia with Batik Trusmi, Cirebon, West Java as the case study. Partial least square-structural equation model (PLS-SEM) was used as the analytical tool. The findings showed six factors that significantly influencing the internet based ICT adoption in Batik Trusmi: CEO’s knowledge, firm size, competitor, pressure from buyer/supplier, perceived benefit, and cost.
Keywords: ICT adoption; internet adoption; SME; Indonesia; Batik Trusmi; PLS-SEM.