Bridging the gap: Organizational readiness and the adoption of energy efficiency innovations in Indonesia’s building sector

Abstract

This paper examines the low adoption of energy efficiency and renewable energy (NRE) technologies in the Indonesian building industry, a sector with a growing energy demand and a promising potential for sustainable practices. Focusing on office buildings, hotels, and residential buildings in Jakarta, the study considers the enablers and barriers to technology adoption. The paper examines 26 UTAUT and E-Readiness factors using a combination of principal component analysis (PCA), K-means clustering, and logistic regression. The factors include behavioral intention, social influence, performance expectations, and organizational readiness. The results show three types of adopters early, pragmatic, and late characterized mainly by organizational readiness and expected performance. Early adopters demonstrate high awareness, resources, and intention to use retrofitting technologies, while late adopters are deterred by perceived complexity and unpreparedness. The findings suggest that internal and external readiness and expected performance improvements significantly accelerate adoption. The study finds that tailored policy incentives, such as targeted tax breaks or subsidies, are critical in overcoming behavioral and organizational barriers. These results enable better strategies to improve energy efficiency and renewable energy innovation in the Indonesian building sector.