Overview

Original Research

THE EFFECT OF E-COMMERCE ADOPTION ON THE PERFORMANCE OF MICRO, SMALL, AND MEDIUM ENTERPRISES MSMEs

RIRIN WULANDARI 1, and WEI-LOON KOE 2.

Vol 17, No 10 ( 2022 )   |  DOI: 10.5281/zenodo.7225116   |   Author Affiliation: Department of Master of Management, Faculty of Economics and Business, Universitas Mercu Buana, Jakarta, Indonesia 1; Department of Business and Management, Universiti Teknologi MARA, Cawangan, Melaka, Malaysia 2.   |   Licensing: CC 4.0   |   Pg no: 729-741   |   To cite: RIRIN WULANDARI, and WEI-LOON KOE. (2022). THE EFFECT OF E-COMMERCE ADOPTION ON THE PERFORMANCE OF MICRO, SMALL, AND MEDIUM ENTERPRISES MSMEs. 17(10), 729–741. https://doi.org/10.5281/zenodo.7225116   |   Published on: 19-10-2022

Abstract

The purpose of this study is to examine and analyze the effect of e-commerce adoption on the performance of micro, small and medium enterprises (MSMEs) in Jakarta and Melaka, as well as to determine the factors that influence e-commerce adoption. The exact population size is unknown. 141 MSME owners from Jakarta and 111 from Melaka have answered the online questionnaire. Furthermore, the data were analyzed through partial least square-structural equation modelling (PLS-SEM). The results showed that organizational readiness (Jakarta) and management character (Melaka) has an effect on e-commerce adoption. The adoption of e-commerce has a positive and significant effect on the performance of MSMEs. These results are useful for MSMEs in formulating strategies for e-commerce practices, as well as for policymakers in designing strategies to develop and adopt e-commerce in the country. In addition, the findings of this study are the development of the theory of TOE for MSMEs.

Keywords

Adoption, E-commerce, Performance, Micro_Small_Medium_Enterprises