Title: Analysis of Level and Barriers of E-Commerce Adoption by Indonesian Small, Medium and Micro Enterprises (SMMEs)

Author: Rajesri Govindaraju and Dissa R. Chandra

Affiliation: Institute Teknologi Bandung, Indonesia

Abstract: The contribution of Indonesian small, medium, and micro enterprises (SMMEs) to the national economy growth has been proven. Today one form of SMMEs empowerments is the adoption of e-commerce. Although e-commerce adoption by SMMEs has many advantages, a number of barriers for the adoption exist. By understanding the current level and the barriers of e-commerce adoption by SMMEs, it is expected that the empowerment of SMMEs can be improved. This paper reports a study on e-commerce adoption by Indonesian SMMEs in the non-oil-and-gas processing and the trading, hotels, and restaurants sectors by using business environment framework. This study found that most of surveyed Indonesian SMMEs have strategic plans to adopt higher level of e-commerce. Further, it is found that human resources, sources of information, and push forces factors are the significant barriers for e-commerce adoption by Indonesian SMMEs.

Keywords: Electronic commerce, information technology adoption, adoption barrier, SMMEs, business environment framework.

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