Intention to Adopt and Willingness to Pay: Mass Rapid Transport System in Greater Jakarta, Indonesia

18 Pages Posted: 1 Jan 2016 Last revised: 10 Mar 2016

See all articles by Rosiwarna Anwar

Rosiwarna Anwar

Universitas Indonesia - Department of Management

Imam Salehudin

University of Indonesia (UI) - Department of Management; University of Queensland, Business School, Students; University of Indonesia (UI) - Faculty of Economics and Business

Basuki Muhammad Mukhlish

Universitas Indonesia, Graduate School of Management

Kirana Ririh

University of Indonesia (UI) - Department of Management

Date Written: October 1, 2015

Abstract

Purpose: The objective of this study is to explore and to examine supportive factors of Mass Rapid Transport (MRT) implementation in Jakarta, Indonesia. At this stage of development, resistance to the implementation of MRT is the main barrier factor to MRT’s development. Therefore, successful implementation requires proper understanding of which factor is strongly influential to the acceptance of this technology.

Design/methodology/approach: The population of this study is commuters along the North to South route of Jakarta MRT development site. The survey was conducted in thirteen location along the route based on the Station Development Plan. We collected 400 responses using purposive sampling method, half are private transportation users (cars and motorcycles) and the other half is public transportation users (bus and train). We obtained only 392 valid data after the validation and verification process. This study used Factor Analysis (FA) to test the construct validity of the measurement instrument and Path Analysis (PA) to identify significant structural paths between variables.

Findings: We found that only Attitude and Perceived Usefulness significantly predict Intention to Adopt MRT for private vehicle users, while only Attitude and Subjective Norms significantly predict Intention to Adopt MRT for public transportation users. We found that both Overall Monthly Transport Expenditure and Intention to Adopt have significant influence to the Willingness to Pay of current users of private transportation. While for current users of public transportations, no predictor is significant for their Willingness to Pay.

Research limitations/implications: This research used non-probabilistic sampling method; therefore generalization to population is strictly limited. Nevertheless, our findings may be applied to groups with similar context and characteristics with our sample group. Another limitation is the cross sectional nature of this study restricts our findings to specific economic assumption. One such assumption is the fuel price in Jakarta, Indonesia which has fluctuated considerably since the study was conducted in late 2014.

Practical implications: Our finding is useful to be considered as additional information for the future pricing decision of MRT Jakarta. Additionally, the study may be used to improve MRT service based on the priorities mentioned in the data. For example, “Saving Time” is considered a most important trait of consumers’ perception on the Usefulness of MRT.

Originality/value: This study applies Technology Acceptance Model to the “Intention to Adopt” and “Willingness to Pay” future MRT program in Jakarta, Indonesia.

Keywords: Intention to Adopt, Willingness to Pay, Technology Acceptance Model, Mass Rapid Transport System, Indonesia

JEL Classification: R49, L92, L98, O38

Suggested Citation

Anwar, Rosiwarna and Salehudin, Imam and Mukhlish, Basuki Muhammad and Ririh, Kirana, Intention to Adopt and Willingness to Pay: Mass Rapid Transport System in Greater Jakarta, Indonesia (October 1, 2015). Available at SSRN: https://ssrn.com/abstract=2709901 or http://dx.doi.org/10.2139/ssrn.2709901

Rosiwarna Anwar

Universitas Indonesia - Department of Management ( email )

Campus UI Depok
Depok, West Java 16424
Indonesia

Imam Salehudin (Contact Author)

University of Indonesia (UI) - Department of Management ( email )

Campus UI Depok
Depok, West Java 16424
Indonesia

University of Queensland, Business School, Students ( email )

St Lucia
Australia

University of Indonesia (UI) - Faculty of Economics and Business ( email )

Kampus Baru
Depok, West Java 16424
Indonesia

Basuki Muhammad Mukhlish

Universitas Indonesia, Graduate School of Management ( email )

Depok, West Java 16424
Indonesia

Kirana Ririh

University of Indonesia (UI) - Department of Management ( email )

Campus UI Depok
Depok, West Java 16424
Indonesia

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