MSMES IN TIME OF COVID-19 PANDEMIC. STRATEGY AND CHALLENGES OF E-COMMERCE ADOPTION: EVIDENCE FROM INDONESIA

• Main Author: Gunawan, Teddy
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/54852
• Institution: Institut Teknologi Bandung

Micro, Small and Medium Enterprises (MSME) in both developing and developed countries play an important role in industrialization and economic growth by contributing significantly to increasing the workforce, increasing income and catalyzing growth in both cities and villages. In developing country an increase in MSMEs will create more job opportunities as more workers will be needed for production activities. Moreover, the development of MSME causes more demand for input from production such as raw materials, labor and others. E-commerce technology is now widely recognized; the adoption of e-commerce technology offers many possible benefit for businesses especially MSME. Some of primary advantages offered by applying e-commerce are decreased cost, increased sales, increased productivity, less time processing, broadened market reach and increased customer loyalty. However, the growth of e-commerce use by businesses is mostly leverage by large companies. The adoption of e-commerce by MSME compared to larger companies is relatively lags behind. Moreover, MSME in developing country still facing difficulty to apply e-commerce technology to their business. Difficulties such as lack of human resource, internal resistance, unready customer and business partners, lack of support, security issues and high cost still preventing MSME to adopt e-commerce technology. In order to formulate strategies for MSME, Comprehensive strategyformulation framework is chosen. According to analysis, the priority order of strategies for MSME to adopt e-commerce technology are government intervention followed by partnership, training school and communication leadership.