TECHNOLOGICAL, ORGANIZATIONAL, AND ENVIRONMENTAL FACTORS INFLUENCING THE E-COMMERCE ADOPTION BY MANUFACTURING SMES IN WEST JAVA

• Main Author: Yen Maryeni, Yen
• Format: Dissertations
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/79252
• Institution: Institut Teknologi Bandung

The globalization of the world economy emphasizes the need for SMEs to be able to compete in the global marketplace. One way to increase their competitiveness is through the adoption of ICT (Information and Communication Technologies), including the adoption of electronic commerce or e-commerce. The use of ecommerce in small and medium enterprises (SMEs) has become an important topic of many studies. The term SMEs in this study is use to address micro, small, and medium enterprises. The aim of this study is to identify factors influencing e-commerce adoption by SMEs in West Java. In this study, we adopt the TOE (Technology, Organization, Environment) framework as a basis for the development of the model and combine it with some other models that are considered relevant. There are three groups of factors included in this model: the technological factors, organizational factors, and environmental factors. The variables in each group were identified based on literature study and the result of a preliminary investigation in three SMEs in West Java. The technological factors include: compatibility, observability, complexity, relative advantage, IT planning, infrastructure, and security. The organizational factors include: IT skills, management support, and funding capacity and the required effort. The environmental factors include: competitive pressures, government support, supplier support, and suitability with consumer need characteristics. To achieve the objectives of the study, a field survey was conducted to test the developed model. The samples are manufacturing SMEs in West Java, Indonesia. Questionnaires were distributed to a number of SMEs for approximately 2 years (2011 to 2013). A total of 621 sets of questionnaires distributed, 473 sets were returned and only 227 sets of data can be used for analysis. The sample SMEs come from 14 districts in West Java that have 26 districts. The sample is dominated by medium-sized companies with a majority of textile manufacturing companies. The other samples are food and beverage, paper, metal, chemical, and pharmaceutical companies. Descriptive analysis of variables was performed with the support of SPSS 18 (PASW Statistics 18). Data processing was done with partial least square (PLS) using SmartPLS 2.0 software. There are five variables that explain how technological factors, organizational and environment significantly proved to have a significant influence on the adoption of e-commerce by SMEs in West Java SMEs, namely: compatibility, IT planning, infrastructure, IT skill, and management support. The results showed that one of the important problems faced by SMEs in our study is IT planning. It is often forgotten in the preparation of adoption. The planning is not only meant for the initial adoption of ecommerce, but also for the continuous improvement of the implemented systems. Company that has stagnated in the lower level of e-commerce adoption did not have the awareness that system improvement or enhancement is necessary.