The interests of small- and medium-sized enterprises (SMEs) actor in using mobile commerce in effort to expand business network

Abstract

PurposeThis paper aims to know the interest of leading small- and medium-sized enterprises (SMEs) of Y generation in Surabaya City using mobile commerce, identify the effort that has been done by the leading SMEs actors of Y generation in Surabaya City to expand its business network by using mobile commerce, and analyze the success rate of the use of mobile commerce to expand the business network of leading SMEs of Y generation in Surabaya City.Design/methodology/approachThis research is designed using qualitative method. The research is directed more toward a research with phenomenological approach because the research also gives the description related to the phenomena in the field to the actor of SMEs and Disperdagin of Surabaya City. The researcher picks Surabaya City as the location by considering the following: the number of SMEs in the Surabaya city is greater than any other cities in East Java considering that Surabaya is the capital of East Java. The number of SMEs is 37,906 units; it means that Surabaya is a city with high economic activity and this place is also the largest trading city after Jakarta. Based on the number of SMEs mentioned above, in this research, only leading SMEs are taken amounted to 161 leading SMEs in the Surabaya City. Information or technological exchange and development are faster compared to other cities because most of the community living in this city uses information technology in running their business.FindingsSME actors in Surabaya city have high interest in using m-commerce. In expanding the network, the SME actors use online media. The SME actors in Surabaya have successfully expanded the business network through online marketing by using m-commerce to overseas including Germany, France, South Korea and the UK. Effective model is needed for the policy in Surabaya city is Disperdagin has its own website to overshadow all SMEs in Surabaya City, and identify the role of Disperdagin to SME or vice versa, and clustering SMEs in Surabaya such as cluster of handicraft and Food and Beverage (MAMIN). Factors that are the advantages of using m-commerce are wider business network; increasing sales; adding resellers and buyers; smooth business transaction; development of product innovation, process and marketing; the facilities provided by the government; and easy to use m-commerce application.Originality/valueThis is one of few papers that study the interest of SMEs actor in using mobile commerce in effort to expand business network. The use of m-commerce will grow the business capability of SMEs, thus increasing the role of SMEs as the counterweight to the structure of the national economy. Therefore, the government policy related to the use of e-commerce and m-commerce is very important to be socialized to business actors, especially the SMEs.