Unlocking e-commerce potential in SMEs: an integrative framework for adoption in emerging markets

Although e-commerce is growing rapidly among consumers, its technological space is still primarily dominated by large enterprises, with small and medium-sized enterprises (SMEs) in emerging markets struggling to keep pace. In Indonesia and Malaysia, e-commerce adoption among SMEs remains limited, highlighting the critical need to understand factors that facilitate or hinder digital transformation. This study addresses this gap by developing and testing an integrative model that combines the technology-organization-environment (TOE) framework, innovation resistance theory (IRT), and the unified theory of acceptance and use of technology (UTAUT). Survey data collected from 357 SMEs were analyzed using partial least squares structural equation modeling. The results show that performance expectancy, facilitating conditions, and organizational readiness significantly enhance adoption intention, while effort expectancy, social factors, and technological context do not exert a meaningful effect. Among the barriers, value, usage, risk, and image concerns negatively impact adoption, whereas traditional barriers were not statistically supported. Notably, value barriers emerged as the most substantial deterrent, while facilitating conditions and organizational readiness were the most influential enablers. The integrated model explains 89.9% of the variance in e-commerce adoption intention, indicating a strong explanatory power. These findings suggest that improving digital infrastructure, building organizational capabilities, and addressing perceived value and usability concerns are critical for boosting SME participation in e-commerce. Policy and managerial implications include the importance of customized government initiatives, ecosystem support from platform providers, and targeted awareness programs to reduce perceived risks and increase digital engagement among SMEs. This study contributes to the e-commerce literature by offering a comprehensive framework for understanding adoption behavior and providing evidence-based recommendations for accelerating SME digital transformation in emerging markets.