Exploring Entrepreneurial Orientation, Technological Readiness, and Institutional Support in E-Commerce Adoption by MSMEs

This study investigates the relationships between entrepreneurial orientation, technological readiness, and institutional support in driving e-commerce utilization among micro, small, and medium-sized enterprises (MSMEs) in South Sulawesi, Indonesia. Grounded in the Resource-Based View (RBV) and Technology-Organization-Environment (TOE) framework, the research provides insights into how internal capabilities and external enablers contribute to digital transformation in emerging market contexts. A total of 283 MSME respondents were surveyed from major economic hubs in the region Makassar, Gowa, Maros, Parepare, Palopo, and Bone using a structured questionnaire with indicators adapted from established studies. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that both entrepreneurial orientation and institutional support significantly affect e-commerce utilization, with technological readiness serving as a partial mediator. Furthermore, institutional support positively influences technological readiness, which in turn enhances the effective use of digital platforms. Mediation analysis confirms the presence of statistically significant indirect effects, underscoring the crucial role of institutional frameworks in accelerating MSMEs’ digital readiness. These findings offer strategic implications for policymakers, development agencies, and financial institutions seeking to foster inclusive and sustainable digital ecosystems for MSMEs in Indonesia. The study emphasizes the importance of aligning entrepreneurial capabilities with supportive technological and institutional infrastructures to boost digital adoption in the MSME sector.