Abstract
With a large number of Micro, Small, and Medium Enterprises (MSMEs), Indonesia has an opportunity to pioneer the development of new digital services, especially advanced mobile financial service and e-commerce. Therefore, the government recommended e-marketplaces as a channel to provide micro-financing MSME registered as an online merchant. Financial Institutions are more secure in offering credit facilities to merchants in e-marketplaces because it is easier to verify borrower status and transaction records. This paper aimed to examine the role of the marketing mix (product, price, place, and promotion) perceived in submitting microcredit’s online application. Research on the intention of online merchants in e-marketplaces used the modified Decomposed Theory of Planned Behavior (DTPB) model approach. Data were collected from Indonesian online seller associations using a convenience sampling approach, and the research hypotheses were tested by applying structural equation modeling. The results showed that besides having a significant effect on online financing intention, the marketing mix’s perception could also be developed by mediating subjective norms.
Highlights
Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the national economy
The developed questionnaire consists of 32 items of questions as indicators of 10 research constructs: perceived Validity Test ease of use (PEOU), perceived usefulness (PU), attitude toward behavior (AB), normative belief (NB), subjective
The method technique used purposive sampling measured in the study (SLF at 0,5 or greater)
Summary
Small, and Medium Enterprises (MSMEs) are the backbone of the national economy. Indonesia MSMEs are typically unable to access capital to invest in business development and increase their business potential (Capri, 2018). About 60-70% of MSMEs do not have access to bank financing because there are no assets used as collaterals (Bank Indonesia, 2015; ING Bank, 2016). Lack of access to basic funding remains a major challenge for MSMEs in Indonesia (Capri, 2018). In 2007, the Government launched a microcredit scheme named Kredit Usaha Rakyat (KUR) to open financing access to un-bankable MSMEs (Indonesian Government, 2015). To attract financial institutions to participate in financing programs, the government plans to channel KUR through e-commerce (Indonesian Government, 2017). Microcredit channel through e-commerce is considered safer for financial institutions because the borrower and his business are verified. The borrower is more flexible because the application is easy and practical
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