Determinants influencing SMEs in E‐commerce adoption through local government facilities in Indonesia: Mixed methods approach

Abstract

The entry of SMEs into the E‐Commerce network is influenced by various variables that can affect success in the business world. This study examines the determinant factors contributing to SMEs competing in the world of E‐Commerce. In addition, this study also examines several factors that can influence SMEs in entering digital market networks. This research uses a mixed method with an explanatory design approach. For the first stage, this study was analyzed using a quantitative approach by surveying 56 SMEs members of the Banyuwangi-mall.com E‐Commerce in Banyuwangi City, East Java Province, Indonesia. Quantitative data analysis was carried out by utilizing the Smart PLS 4 application. Furthermore, to carry out a more in‐depth analysis, a qualitative stage was carried out by conducting semi‐structured interviews with 13 SMEs owners who are members of Banyuwangi-mall.com E‐Commerce marketing. The study results show that the factors influencing SMEs to enter e‐commerce networks are regulatory support, competitor pressure, and the stability of information technology infrastructure. In contrast, the characteristics of the supporters/leaders and budget variables negatively influence the characteristics. The negative relationship between leader characteristics is caused by two things: the dominance of the role of creative houses and the lack of orders received by SMEs on the Banyuwangi-mall.com website. As for the budget aspect, the absence of a particular budget for SME activities in Banyuwangi-mall.com online marketing is the reason for needing a positive influence.

Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in Indonesia

“…MSMEs are still in the stage of taking the initial steps to determine the best strategy to prepare for digitalization. Meanwhile, the results of a study conducted by Harmawan (2022) show that MSMEs in Banyuwangi who have utilized digital marketing through Banyuwangi-mall.com have a higher level of readiness for technology adoption in terms of strategy and management.…”