Factors Influencing E-Commerce Adoption by SMES Indonesia: A Conceptual Model

Evi Triandini, Arif Djunaidy, Daniel Siahaan

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Abstract

E-commerce present different prospect to Small and Medium Sized Enterprises (SMEs) and provides benefits to SMEs. At this stage, there are a number of studies focused on SMEs in developed countries. For developing countries, the situation is quite different. Furthermore, there is still limited number of researches on e-commerce adoption by SMEs in Indonesia. SMEs play a vital role in reducing the rate of poverty and unemployment in Indonesian economy. In 2009, micro, small and medium enterprises in Indonesia consist of 52.7 million units or 99.99% of the total business enterprises, and employ 96.21 million people or 97% of the total labor forces. SMEs in Indonesia faced internal and external problems. This study explores various factors influencing e-commerce adoption by SMEs in several countries and projecting it to Indonesia. Results shows that there are a number of perceived opportunities presented by e-commerce adoption in Indonesia, i.e. extending market-reach and even global, increasing customer personalize services, and improving its competitiveness. Furthermore, this study also proposes six potential factors influenced the adoption of e-commerce by SMEs in Indonesia, i.e. perceived usefulness, perceived ease of use, relative advantage, perceived risk, perceived trust, and compatibility.