What Makes SMEs Entrepreneurs in Central Java Adopt E-Commerce?

Abstract

The adoption of e-commerce by SMEs is inevitable given the changing disruptive era where marketplaces innovation opens opportunities for SMEs to become partners if they want to promote their products through marketplaces. This study uses an integrated framework of TAM, TPB, and TOE on food processing MSMEs in Semarang. There are 10 variables that affect the adoption of e-commerce; the largest to smallest influencing variables are competitive pressure, current situation, social influence, perceived trust, perceived ease for use, perceived usefulness, individual difference factors, trading partner readiness, perceived service quality, and consumer readiness. Competitive pressure is the variable with the biggest effect (26.1%) on the adoption of e-commerce. Furthermore, based on three major factors, technology, organization, and environment, the influencing factors are environment and organization; they give an effect of 56.2% on the adoption of e-commerce. Thus, the adoption of mobile-applications (GOJEK, Shopee, Grab, Tokopedia, Bukalapak) is needed to increase sales.