REINFORCING BUSINESS AGILITY IN INDONESIAN MSME THROUGH E-COMMMERCE ADOPTION

• Main Author: Salsabila Tisyani, Aisha
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/74772
• Institution: Institut Teknologi Bandung

Despite having many vulnerabilities for their size, the industry in Indonesia is dominated by MSMEs with over 99% of businesses in Indonesia belong to the category. With the threat of vulnerabilities such as limited resources, fierce competition and environmental changes, many companies consider converting their business process into digital form. Among all the different approaches to digitalization, adopting e-commerce is more suitable for MSMEs due to its source and cost efficiency. However, only around 19% of the total number of MSMEs in Indonesia have adopted digital business ecosystem by using e-commerce platforms. The aim of this study is to explore the way e-commerce platforms influence various business aspects in MSMEs and whether e-commerce adoption help reinforce MSMEs’ business agility so that they can remain competitive in the market. To reach the aim of the study we used qualitative research by interviewing six MSME owners in Indonesia who already adopted e-commerce. The findings of this study show that adopting e-commerce platform has generate changes that positively impacts four business aspects including business operation, organization, marketing and product development. These changes signify the improvement of agility. By gaining this knowledge we were hoping that this study can serve as a guidance to motivate more MSMEs to venture into digital realm through e-commerce platforms.