E-commerce adoption by Indonesian small, medium, and micro enterprises (SMMEs): Analysis of goals and barriers

Abstract

Indonesia, one of developing countries, recognizes the contribution of small, medium, and micro enterprises (SMMEs) to the growth of national economy. Today one form of SMMEs empowerments is the adoption of e-commerce. Although there are many advantages from e-commerce adoption by SMMEs, several barriers for the adoption exist. By understanding the main goal and the barriers of e-commerce adoption by SMMEs, it is expected that the empowerment of SMMEs can be implemented. This paper reports a study on goals and barriers of e-commerce adoption by Indonesian SMMEs in the non-oil-and-gas processing and the trading, hotels, and restaurants sectors by using business environment framework. This study found that most of surveyed Indonesian SMMEs have strategic plans to adopt higher level of e-commerce usage, which current majority is at low-level of usage. Further, it is found that human resources and source of information factors are the most significant barriers for e-commerce adoption by Indonesian SMMEs.