Small and Medium Enterprises (SMES) Perceptions of Drivers and Barriers to E-Commerce Adoption

Abstract

The research aims to analyze the intention of SMEs in adopting e-commerce, the driving and inhibiting factors. The study used survey data on 344 SMEs who were collected using the convenience sampling method. Furthermore, the data were analyzed using a quantitative descriptive analysis method. The study shows that SMEs are interested in adopting e-commerce. They also agree that they face strong competitive pressures in their business operations, but they have a high level of entrepreneurial mindset. Regarding the adoption of e- commerce, respondents are aware of the benefits of adopting e-commerce in their businesses and are willing to share knowledge with fellow SMEs regarding e-commerce adoption. In terms of barrier factors for e- commerce adoption, respondents agree that factors such as cultural environment, laws and regulations related to e-commerce, consumer readiness, trust, infrastructure, technology, human resources, and financial aspects are obstacles for them in adopting e-commerce, while political and organizational factors are not seen as barriers factors.The results of this study enrich empirical studies on e-commerce adoption, the driver and the barrier factors in the context of Indonesian.