Small and medium enterprise (SME), including small food processing firm (SFF), based on its unit numbers and the number
of involved labors, has the potentials to play an important role in the Indonesia’s economy. However, its contribution to the national economy (i.e., GDP) has been minimal as to compare with its unit numbers and number involved labor. This indicates that improvement of SME’s productivity is required. Information technology, especially internet technology, application within SMEs is regarded to have significant impact on their business performance. This study is intended to investigate factors that affect internet adoption and the impact of internet adoption on business performance within small food processing firm operators. Modified Supply Process Model, 100 SFF operators—from which primary data were collected, and path analysis were used in this study. It was found that internet adoption was significantly affected by perceived usefulness, perceived ease of use, internet self efficacy, and internet anxiety. Firms’ business performance, however, was not significantly affected by internet adoption