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E-commerce adoption by SMEs in developing countries: evidence from Indonesia

Author

Listed:
  • Rita Rahayu

    (University of Huddersfield
    Andalas University)

  • John Day

    (University of Huddersfield)

Abstract

This study aims to provide an overview of e-commerce adoption by SMEs in developing countries and, in particular, the extent of the adoption of e-commerce by Indonesian SMEs. It identifies the e-commerce benefits realized by these SMEs and investigates the relationship between the levels of e-commerce adoption and the benefits thus realized. The study was motivated by the limited studies related to e-commerce adoption by SMEs, especially in developing countries. In addition, it seems that most e-commerce studies are focused more on upstream issues: to see the factors that facilitate, or barriers faced regarding e-commerce adoption, rather than downstream issues: to see post-adoption benefits. This certainly limits our understanding about e-commerce adoption by SMEs in developing countries, as well as the post-adoption benefits of e-commerce. Indonesia was chosen as the place in which to conduct the study. A survey of 292 SMEs shows that the majority of them are still at an early stage in their adoption of e-commerce. Their use of e-commerce is dominated by marketing and purchasing and procurement activities. “Extending market reach”, “increased sales”, “improved external communication”, “improved company image”, “improved speed of processing”, and “increased employee productivity” are reported as the top six e-commerce benefits perceived by these SMEs. This study also shows that SMEs at the higher level of e-commerce adoption experience greater e-commerce benefits than those at other levels of adoption.

Suggested Citation

  • Rita Rahayu & John Day, 2017. "E-commerce adoption by SMEs in developing countries: evidence from Indonesia," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 25-41, April.
    • Handle: RePEc:spr:eurasi:v:7:y:2017:i:1:d:10.1007_s40821-016-0044-6
    DOI: 10.1007/s40821-016-0044-6
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    References listed on IDEAS

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    Cited by:

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    11. Sunday C. Eze & Vera C. A. Chinedu-Eze & Clinton K. Okike & Adenike O. Bello, 2020. "Critical factors influencing the adoption of digital marketing devices by service-oriented micro-businesses in Nigeria: A thematic analysis approach," Palgrave Communications, Palgrave Macmillan, vol. 7(1), pages 1-14, December.
    12. Onkar Nath Mishra & Saurabh Gupta, 2020. "Antecedents and Impact of E-commerce Adoption among New Venture Firms: Evidence from Tourism and Hospitality Industry," Vision, , vol. 24(4), pages 431-440, December.
    13. Dorel Mihai Paraschiv & Adrian Cantemir Calin & Oana Cristina Popovici & Gerard Cazabat, 2019. "A Contemporaneous Statistical Note on E-Commerce Adoption in Romania – Based SMEs," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(50), pages 177-177, February.
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    16. Ali Abbas & Sahadah Hj. Abdullah* & Rosli Mohd Saad, 2018. "Affecting Factors to Intentions to Adoption of E-Commerce Technologies in SMEs of Pakistan," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 147-155:4.
    17. Martin Wynn & Olakunle Olayinka, 2021. "E-Business Strategy in Developing Countries: A Framework and Checklist for the Small Business Sector," Sustainability, MDPI, vol. 13(13), pages 1-23, June.
    18. Robert Jeyakumar Nathan & Vijay Victor & Chin Lay Gan & Sebastian Kot, 2019. "Electronic commerce for home-based businesses in emerging and developed economy," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(4), pages 463-483, December.
    19. Emmanuel Nikundiwe Abraham, 2022. "Challenges Limiting SMEs from Adopting Electronic Commerce in Tanzania: A case study of Ilala Municipality Dar es salaam," International Journal of Science and Business, IJSAB International, vol. 7(1), pages 13-23.

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    E-commerce; SMEs; Benefits;
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