Analysis of Factors That Affect E-Commerce Technology Adoption for Msmes in Indonesia

Abstract

MSMEs (Micro, Small, and Medium Enterprises) play a significant role in Indonesia's economy. E-commerce has many advantages for MSMEs which includes competitive advantage, greater market share and better customer service, among others. Indonesian users are already proficient with e-commerce but unfortunately only 19% of Indonesian MSMEs have adopted e-commerce. This research investigates the variables that influence e-commerce technology adoption in Indonesian MSMEs using Technology Acceptance Model, Technology Organization Environment (TOE) framework and Diffusion of Innovation (DOI) Theory. A survey questionnaire was conducted to collect data from 260 MSME owners in the food and beverage industry who have or have not adopted e-commerce technology for their business. The result was calculated using logistic regression and Relative Importance Index (RII) to get which variables are relevant in e-commerce adoption in Indonesia MSMEs. From the research, it is revealed that relative advantage, perceived usefulness, security, employee's IT knowledge and government's support have a crucial influence in e-commerce adoption for MSME owners. An e-commerce adoption strategy was recommended based on the study's results. It is focused on the most significant factors of e-commerce adoption for MSMEs to increase the chances of adoption.

The Effect of E-commerce Platforms, Digital Marketing, and User Experience on Market Reach and Competitiveness of Indonesian MSMEs

“…As part of the fintech business segment, the trend of digitalization has also reached the banking and financial industries, offering solutions for micro, small, and medium-sized enterprises (Wardhana, 2022). Furthermore, the variables of relative advantage, perceived usefulness, security, IT skills of employees, and government assistance are factors that impact the adoption of e-commerce technology in Indonesian MSMEs (Vanda et al, 2023). MSMEs in Indonesia can enhance their marketing strategies by adjusting to the most recent advancements in information and technology, such as making effective and efficient use of digital marketing media (Mukhlis et al, 2023).…”

“…To succeed in Indonesia's digital age, MSMEs must comprehend the connections between digital marketing strategies, user experience, and e-commerce adoption. The adoption of e-commerce by MSMEs offers numerous benefits, such as increased market share, improved customer service, and competitive advantage (Vanda et al, 2023). MSMEs can increase their dynamic capacities through digital marketing, which has been acknowledged as a potential enabler of digital transformation (Ananda et al, 2023).…”

The Impact of Trust in Platform Providers on User Participation and Economic Benefits in the Sharing Economy in Indonesia

“…Additionally, policy actors recommend making regional level regulations that technically regulate online transportation according to the area conditions to address licensing issues and other problems related to online transportation [5]. Furthermore, trust in online shopping, website security, and trust in the digital ecosystem are significant factors influencing the adoption of e-commerce technology among Indonesian MSMEs [6], [7]. Therefore, building trust among users, ensuring security, and implementing effective policies are essential for the sustainable growth and success of the sharing economy in Indonesia.…”