How does e-commerce adoption impact micro, small, and medium enterprises’ performance and financial inclusion? Evidence from Indonesia

Wirdiyanti, Rosnita; Yusgiantoro, Inka; Sugiarto, Agus; Harjanti, Aprillia Dwi; Mambea, Indra Yudha; Soekarno, Subiakto; Damayanti, Sylviana Maya

doi:10.1007/s10660-022-09547-7

Cited by 17 publications

(18 citation statements)

References 85 publications

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“…By doing so, we add new insights to the ICT4D literature on the formal-informal and macro-micro dynamics that underpin technology-mediated change (Coleman, 1990;Ramadani et al, 2022;Rao & Kelleher, 2005). We also show that, as for formal small businesses (Koomson et al, 2022;Wirdiyanti et al, 2022), mobile money can lead to benefits for informal businesses. Thus in addressing our research question (and reflected in Figure 4) we show the influence of the logics at three levels: (1) at the macro level through regulatory changes which have allowed new opportunities for non-financial organisations (MNOs and FinTech firms) to participate in the financial industry;…”

Section: Discussionmentioning

confidence: 63%

“…Koomson et al (2022) found that users of mobile money were more likely to engage in entrepreneurial activities. Studies have found links between the uptake of e‐commerce and the financial inclusion of micro firms (Wirdiyanti et al, 2022), while other studies suggest that small firms that rely on FinTech may miss out on credit because they have not established adequate relationships and information exchanges with banks (Fasano & Cappa, 2022). At the individual level, Senyo and Osabutey (2020) found that performance and effort expectancy significantly affect mobile money use while price value, hedonic motivation, social influence, and perceived risk do not have any influence.…”

Section: Related Work and Theoretical Backgroundmentioning

confidence: 99%

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Moving away from trading on the margins: Economic empowerment of informal businesses through FinTech

Senyo

Gozman

Karanasios

et al. 2022

Information Systems Journal

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While there have been increasing studies on the impact of financial technology (FinTech), limited research has explored how FinTech supports economic empowerment for informal businesses.Drawing on institutional logics and a case study of mobile money-a FinTech innovation-this study develops a model of mobile money-driven economic empowerment. We argue that this model is important to explain how those at the bottom of the economic pyramid, who are often neglected, use FinTech innovations to create and run informal businesses. Our findings and model explain the dynamics between logics, actors, and mobile money at three levels: regulatory, payments infrastructure, and informal economy. We identify three corresponding effects as outcomes of economic empowerment for informal businesses: greater access to start-up capital, new employment opportunities, and improved financial management. By illustrating these effects, our study contributes to a better understanding of how FinTech innovations offer a possible pathway to economic empowerment for informal businesses.

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Section: Discussionmentioning

confidence: 63%

Section: Related Work and Theoretical Backgroundmentioning

confidence: 99%

Moving away from trading on the margins: Economic empowerment of informal businesses through FinTech

Senyo

Gozman

Karanasios

et al. 2022

Information Systems Journal

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“…Along with capital, they need entrepreneurial skills, human resources, exposure to markets, and other interpersonal skills for sustainable enterprise development. For instance Wirdiyanti et al (2022) explore the role of novel marketing strategies, such as adopting e-commerce, increases financial inclusion without being connected to the credit constraints argument.…”

Section: Discussionmentioning

confidence: 99%

Financial inclusion and business practices of microbusiness in Colombia

2023

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Financial inclusion is known to be relevant for improving the growth perspectives of microbusinesses. This research has three aims. First, to explore how adopting business practices can impact the usage of financial products and services of these firms. Second, to determine if higher levels of microbusinesses’ formalization mediate the impact. Third, to establish if there are differences according to gender and education level. A structural equation model was estimated to test these hypotheses while considering the potential endogeneity of the main variables of interest. The model includes latent variables modeled in the form of confirmatory factor analysis. Estimates are based on self-reported information collected through a survey of 1542 microentrepreneurs in 10 Colombian cities in 2019. The results show that microentrepreneurs who adopt (more) business practices have more financial inclusion. No specific category of business practices drives the results. The effect is larger for men than women and is not present for microentrepreneurs of low education levels. Furthermore, personal initiative, a psychological construct, indirectly relates to being more financially included by increasing the adoption of business practices. Finally, there is no evidence that this is driven by higher levels of formalization regardless of the specific set of requirements that are considered. Our findings support efforts to improve business skills in microentrepreneurs and call for more comprehensive public policy strategies. These findings open the door to using soft skill-based training programs that enhance business practices, to improve microbusinesses’ financial inclusion.

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“…The research indicates that the decision to adopt innovation is situational [4], [14]. The study shows that there is a rational calculation process in the decisionmaking process for innovation.…”

Section: Introductionmentioning

confidence: 91%

“…Based on its innovative nature, EDC will not be complicated and burdensome for business actors to use Jurnal Infotel Vol. 14 No.1 February 2022 https://doi.org/10.20895/infotel.v14i1.729 it and facilitate their business. However, business actors, especially mainly SME entrepreneurs, have not been widely used this tool.…”

Section: Introductionmentioning

confidence: 99%

Using field experiments to analyze changes in electronic data capture adoption decisions

Susanto¹

2022

J.INFOTEL

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Lacovou presented research results in a framework that describes the role of the determinants of technology, organization, and environment simultaneously influencing the innovation adoption decision-making process. The Lacovou framework is an extension study of the Tornatzky framework. Tornatzky's framework addresses three determinants that influence innovation adoption. Unfortunately, Lacovou did not present how the decision process took place. Decisions can be rational or irrational. Ajzen and several other studies defined rational decisions as decisions based on considered information or for a reason as. Previous research had not revealed empirically the rational calculation process in making innovation adoption decisions. Innovation adoption is someone's choice when he/she perceive the benefit and feel appropriate the innovation and will use or intend to use it. This study intends to reveal how the process of rational calculation in the decision-making adoption of innovations through the field experiment method. This study also reveals whether the decision of Small Medium Enterprises (SMEs) to adopt Electronic Data Capture (EDC) is rational. Research analysis using descriptive analysis method. The results show that the rational calculation process can be observed through the field experiment method. The shift in decisions represented by changes in the data on the number of subjects who make adoption decisions illustrate the rational calculation process. The results show that the decision of SMEs in adopting EDC is mostly rational. The yields of this field experiment- research was confirming Lacovou framework. The research illustrates the simulation of the effect of a combination of perceived benefits, organizational readiness, and environmental factors simultaneously

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How does e-commerce adoption impact micro, small, and medium enterprises’ performance and financial inclusion? Evidence from Indonesia

Cited by 17 publications

References 85 publications

Moving away from trading on the margins: Economic empowerment of informal businesses through FinTech

Moving away from trading on the margins: Economic empowerment of informal businesses through FinTech

Financial inclusion and business practices of microbusiness in Colombia

Using field experiments to analyze changes in electronic data capture adoption decisions

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