Abstract
The purpose of this study is to determine the effect of the Technology-Organization-Environment (TOE) on e-business adoption and the impact of e-business adoption on the value chain of Small and Medium Enterprises (SMEs). The study uses a quantitative approach where the respondents are 389 SMEs that use e-business in Indonesia. Partial Least Square - Structural Equation Modeling analysis is used in this study to analyze data and test hypotheses. The study results describe that technology, organization, and environment significantly influence the e-business adoption of SMEs. Furthermore, e-business adoption has a substantial impact on the value chain of SMEs. The study provides an overview of SMEs in Indonesia to determine the factors used as references in e-business adoption and how good e-business adoption will add value to businesses, especially in the value chain.
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