The Determinants Of Electronic Commerce Adoption Among Manufacturing SMEs In Indonesia

The penetration of internet and smartphone are continuously rising in Indonesia,Indonesian consumers are increasingly buying products online.Over the last few years,the process of selling and buying in Indonesia is influenced a lot by internet and electronic commerce(e-commerce).This result is consistent with the report from Statista(2017)that digital development exploding in the Asia region and with the fastest growing online retail markets are Indonesia and India,followed by Mexico and China.E-commerce makes them able to compare products,prices and obtain informa-tion without wasting much time.With this much easier process to buy products,consumers can save a lot of time to do other tasksThe manufacturing process has historically focused on producing products,sending them to stores/sellers/partners/distributors,and having consumers buy products.However,with the exis-tence of e-commerce,manufacturers not only sell goods to stores/sellers/partners/distributors but can also sell the products directly to consumers and expand their market.According to Forrester Research(2017),43%buyers prefer to buy a product directly from the brand that manufactures it,rather than the distributor that sells it,and 20%of them are willing to pay slightly more for the op-portunity to do so.However,Indonesian manufacturing SMEs(small-sized and medium-sized en-terprises)are less prepared to take the opportunities of e-commerce and what are the determinants of e-commerce adoption in Indonesian manufacturing SMEs,remain uncertainThis study first explores and compares the existing theories and models as well as literature reviews related to e-commerce adoption.The objective of this study is to examine the determinants of e-commerce adoption in Indonesian manufacturing SMEs.To accomplish this objective,the au-thor integrated existing theories and models on technology and e-commerce adoption and then de-veloped a conceptual framework for the determinants of e-commerce adoption in Indonesian manu-facturing SMEs.Technology-Organization-Environment(TOE)model and the perceived characteristics of Roger's Diffusion of Innovation theory(DOI)underpin the conceptual framework of this research A quantitative and survey research were adopted to collect data,test the hypotheses and answer re-search questions in this research.This research gathered survey data from 384 Indonesian manufac-turing SMEs.This study uses a single informant as the source of information on each firm.Data was analyzed using statistical tools,t-test,covariance,correlation analysis,and regression analysis The purpose of this research is to increase academic understanding and provide managerial implica-tions in the relation to the determinants of e-commerce adoption by Small and Medium-sized En-terprises(SMEs)in Indonesian manufacturing SMEs.Through data analysis and research,it is ex-pected this study to provide a better understanding of which key determinants are significantly af-fecting e-commerce adoption in Indonesian SMEs.