Benefits, barriers, and levels of e-commerce adoption: study of traditional beverage SMEs
Abstract
Purpose. This study analyses the perceived benefits and barriers of e-commerce use by traditional micro, small, and medium beverage enterprises (SMEs). The research also identifies the level of e-commerce adoption by SMEs and further analyses the effect of benefits and barriers on e-commerce adoption levels in traditional beverage SMEs.
Methodology / approach. This is quantitative research. This study examines the influence of benefits and barriers on the level of e-commerce adoption using statistical procedures. The object of the study is traditional beverage SMEs in Yogyakarta Province, Indonesia. The research samples are 330 traditional beverage SMEs that have used e-commerce for at least a year. Samples are taken proportionally in five regencies and cities in Yogyakarta. Data collection using survey technique through interviews with SMEs. The indicators are measured using five Likert scales from strongly disagree to strongly agree. Analysis of perceived benefits and barriers of e-commerce use is carried out descriptively. The adoption level is measured by reference to the 6 levels of
e-commerce. Analysis of the effect of benefits and barriers on the level of e-commerce adoption is carried out using multiple linear regression tests.
Results. The results show that the benefits are highly perceived by SMEs: e-commerce facilitates interaction with consumers, facilitates data access, improves customer services, and eases online product distribution. Moderate barriers include limited mastery of knowledge and skills about e-commerce, inadequate mastery of foreign language skills, and SMEs’ tendency to depend on conventional marketing. The most e-commerce adoption level is level 4 (electronic transactions), followed by level 6 (site optimisation) and level 5 (relationship building). The study also confirms that benefits and barriers significantly affect e-commerce adoption levels.
Originality / scientific novelty. This research was conducted based on the perceived benefits and barriers of e-commerce use by traditional beverage SMEs, which had never been carried out in the study area. This study reveals the fact of positive transition and expectations for increasing the level of e-commerce adoption at the SME level whereas previous studies show rather the opposite conditions. The study categorised e-commerce adoption levels into three categories (low, moderate, and high) based on the 6 stages model of e-commerce adoption.
Practical value / implications. Efforts to provide solutions are necessary to encourage the level of e-commerce adoption through intensive socialsation, motivation, training, and mentoring to improve knowledge and skills on e-commerce and foreign language skills as well as encourage e-commerce to become a daily culture for SMEs.
References
Alotaibi, H. G., & Aloud, M. E. (2023). Investigating behavior intention toward s-commerce adoption by small businesses in Saudi Arabia. International Journal of E-Business Research, 19(1), 1–27. https://doi.org/10.4018/ijebr.322094.
Kadin Indonesia (2023). UMKM Indonesia. Available at: https://kadin.id/data-dan-statistik/umkm-indonesia.
Kemenkopumkm (2021). Peraturan Menteri Koperasi dan UMKM RI Nomor 5 Tahun 2021. Available at: https://peraturan.go.id/id/permenkop-kukm-no-5-tahun-2021.
BPS (2024). PDB Indonesia Menurut Lapangan Usaha Tahun 2024 (Triwulan 1). Badan Pusat Statistik Republik Indonesia. Available at: https://www.bps.go.id/id/query-builder.
Sunaryo, E. S. (2015). Minuman tradisional penguat kekebalan tubuh. Elex Media Komputindo.
DinkopUMKMYogyakarta (2022). Data UMKM Minuman Tradisional Provinsi. D. I. Ypgyakarta 2022. Available at: https://sibakuljogja.jogjaprov.go.id.
Farida, I., & Setiawan, D. (2022). Business strategies and competitive advantage: the role of performance and innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 163. https://doi.org/10.3390/joitmc8030163.
Kusnandar, Setyowati, N., & Riptanti, E. W. (2023). Creating an innovative culture in agribusiness of micro, small and medium-sized enterprises. Agricultural and Resource Economics, 9(2), 205–222. https://doi.org/10.51599/are.2023.09.02.09.
Butt, I., Mukerji, B., Shareef, M. A., Ahmed, J. U., & Huda, S. S. M. S. (2022). Effect of trust on e-shopping adoption – an emerging market context. Journal of Internet Commerce, 21(3), 320–340. https://doi.org/10.1080/15332861.2021.1927436.
Kusnandar, Setyowati, N., & Rahayu, W. (2023). Strategic orientations to strengthen policymaking: study of small-scale cassava-based agroindustry in Central Java, Indonesia. AGRARIS: Journal of Agribusiness and Rural Development Research, 9(1), 113–128. https://doi.org/10.18196/agraris.v9i1.183.
Mazzarol, T., & Reboud, S. (2020). Small business management: theory and practice. Singapore, Springer Nature. https://doi.org/10.1177/074171366001000205.
Aremu, A. Y., & Arfan, S. (2023). Factors influencing the usage of e-business to improve SME performance. International Journal of E-Business Research, 19(1), 1–16. https://doi.org/10.4018/ijebr.324065.
Hong, I. B. (2019). Understanding and predicting behavioral intention to adopt mobile banking: the Korean experience. Journal of Global Information Management, 27(3), 182–202. https://doi.org/10.4018/JGIM.2019070110.
Duan, S. X., Deng, H., & Luo, F. (2019). An integrated approach for identifying the efficiency-oriented drivers of electronic markets in electronic business. Journal of Enterprise Information Management, 32(1), 60–74. https://doi.org/10.1108/JEIM-05-2018-0090.
Kabanda, S., & Brown, I. (2017). A structuration analysis of small and medium enterprise (SME) adoption of e-commerce: the case of Tanzania. Telematics and Informatics, 34(4), 118–132. https://doi.org/10.1016/j.tele.2017.01.002.
Naili, F., Naryoso, A., & Ardyan, E. (2017). Model of relationship marketing partnerships between batik SMEs and batik distributors in central Java, Indonesia. International Journal of Social Ecology and Sustainable Development, 8(4), 1–14. https://doi.org/10.4018/IJSESD.2017100101.
Singh, R., & Kota, H. B. (2017). A resource dependency framework for innovation and internationalization of family businesses: evidence from India. Journal of Entrepreneurship in Emerging Economies, 9(2), 207–231. https://doi.org/10.1108/JEEE-04-2016-0013.
Abed, S. S. (2020). Social commerce adoption using TOE framework: an empirical investigation of Saudi Arabian SMEs. International Journal of Information Management, 53, 102118. https://doi.org/10.1016/j.ijinfomgt.2020.102118.
Zeng, Y., Jia, F., Wan, L., & Guo, H. (2017). E-commerce in agri-food sector: a systematic literature review. International Food and Agribusiness Management Review, 20(4), 439–459. https://doi.org/10.22434/IFAMR2016.0156.
Kusnandar, Harisudin, M., Riptanti, E. W., Khomah, I., Setyowati, N., & Qonita, R. A. (2023). Prioritizing IoT adoption strategies in millennial farming: an analytical network process approach. Open Agriculture, 8(1), 20220179. https://doi.org/10.1515/opag-2022-0179.
Harisudin, M., Kusnandar, Riptanti, E. W., Setyowati, N., & Khomah, I. (2023). Determinants of the internet of things adoption by millennial farmers. AIMS Agriculture and Food, 8(2), 329–342. https://doi.org/10.3934/AGRFOOD.2023018.
Chong, A. Y. L. (2013). A two-staged SEM-neural network approach for understanding and predicting the determinants of m-commerce adoption. Expert Systems with Applications, 40(4), 1240–1247. https://doi.org/10.1016/j.eswa.2012.08.067.
Fathimah, V. (2019). Determinan adopsi e-commerce dan dampaknya pada kinerja usaha mikro kecil menengah (Umkm). Jurnal Riset Akuntansi Dan Keuangan, 7(3), 445–464. https://doi.org/10.17509/jrak.v7i3.18105.
Sanchez-Torres, J. A., & Juarez-Acosta, F. (2019). Modelling SME e-commerce with IMAES. Journal of Business and Industrial Marketing, 34(1), 137–149. https://doi.org/10.1108/JBIM-04-2018-0132.
Chaffey, D. (2015). Digital business and e-commerce management. Strategy, implementation and practice, 6thed. Pearson Education Limited. Available at: http://www.bel.utcluj.ro/ci/rom/edse/documente/DocuPrj3.pdf.
Rahayu, R., & Day, J. (2017). E-commerce adoption by SMEs in developing countries: evidence from Indonesia. Eurasian Business Review, 7(1), 25–41. https://doi.org/10.1007/s40821-016-0044-6.
Nazir, M. A., & Roomi, M. A. (2021). Barriers to adopting electronic commerce for small and medium-sized enterprises in emerging economies. EMAJ: Emerging Markets Journal, 10(2), 43–55. https://doi.org/10.5195/emaj.2020.203.
Rana, N. P., Barnard, D. J., Baabdullah, A. M. A., Rees, D., & Roderick, S. (2019). Exploring barriers of m-commerce adoption in SMEs in the UK: developing a framework using ISM. International Journal of Information Management, 44, 141–153. https://doi.org/10.1016/j.ijinfomgt.2018.10.009.
INDEC (2008). Utilización de Tecnologías de la Información y las Comunicaciones (TICs) en las empresas industriales argentinas. Available at: https://biblioteca.indec.gob.ar/bases/minde/144_32.pdf.
Setyowati, N., Widiyanti, E., & Ardianto, D. T. (2018). Internet adoption by young generation as an education media of agriculture in Indonesia. Advances in Social Science, Education and Humanities Research, 197, 370–374. Available at: https://www.atlantis-press.com/proceedings/bcm-18/125910957.
Aidah, M., Rasmita Ngemba, H., & Hendra, S. (2017). A study of barriers to e-commerce adoption among small medium enterprises in Indonesia. ACM International Conference Proceeding Series. Part F1, 306(1), 75–80. https://doi.org/10.1145/3124116.3124124.
Amornkitvikai, Y., & Lee, C. (2020). Determinants of e-commerce adoption and utilisation by SMEs in Thailand. Economic Working Paper No. 2020–01. Available at: https://www.iseas.edu.sg/wp-content/uploads/pdfs/ISEASEWP2020-1AmornkitvikaiLee.pdf.
Creswell, J. W. (2009). Research design: qualitative, quantitative, and mixed methods approaches, 3rd ed. SAGE Publications, Inc.
Samsu (2017). Metode penelitian: teori dan aplikasi penelitian kualitatif, kuantitatif, mixed methods, serta research & development. S. Ag. Rusmini (Ed.). Pusaka Jambi. Available at: https://online.fliphtml5.com/sobgc/elnu/#p=3.
Malhotra, N. K., Nunan, D., & Birks, D. F. (2017). Marketing research: an applied approach, 7th ed. London, Routledge. https://doi.org/10.4324/9781315890005.
Sarmah, B., Sharma, S., & Gupta, S. (2017). Antecedents of e-business adoption intention: an empirical study. International Journal of Innovation Science, 9(4), 417–434. https://doi.org/10.1108/IJIS-05-2017-0048.
Shalabh, & Dhar, S. S. (2021). Goodness of fit in nonparametric regression modelling. Journal of Statistical Theory and Practice, 15, 18. https://doi.org/10.1007/s42519-020-00148-x.
Uyanık, G. K., & Güler, N. (2013). A study on multiple linear regression analysis. Procedia – Social and Behavioral Sciences, 106, 234–240. https://doi.org/10.1016/j.sbspro.2013.12.027.
Shemi, A. P., & Procter, C. (2018). E-commerce and entrepreneurship in SMEs: case of myBot. Journal of Small Business and Enterprise Development, 25(3), 501–520. https://doi.org/10.1108/JSBED-03-2017-0088.
Ibrahim, I., Ismail, M., Amer, A., Baharuddin, F., & Sarkun, M. (2020). E-business development and the factors affecting of its application in hospitality operations sustainability. Proceedings of the 1st International Conference on Islamic Civilization (ICIC 2020), 27th August 2020, Semarang, Indonesia. Available at: https://eudl.eu/pdf/10.4108/eai.27-8-2020.2303289.
Rahman, N. M. N. A., Sulaiman, Z., Hamid, A. B. A., & Khalifah, Z. (2013). The implementation of e-commerce application in bumiputera small and medium enterprises (SMEs ) in Malaysia. International Journal of Advances in Management and Economics, 2(2), 101–110. Available at: https://www.managementjournal.info/index.php/IJAME/article/view/262.
Abou-Shouk, M., Megicks, P., & Lim, W. M. (2013). Perceived benefits and e-commerce adoption by SME travel agents in developing countries: evidence from Egypt. Journal of Hospitality and Tourism Research, 37(4), 490–515. https://doi.org/10.1177/1096348012442544.
Abu Abid, A., Rahim, M. M., & Scheepers, H. (2011). Experienced benefits and barriers of e-business technology adoption by SME suppliers. Communications of the IBIMA, 2011, 791778. https://doi.org/10.5171/2011.791778.
Bolongkikit, J., Obit, J. H., Asing, J. G., & Tanakinjal, G. H. (2006). An exploratory research of the usage level of e-commerce among SMEs in the West Coast of Sabah, Malaysia. Journal of Internet Banking and Commerce, 11(2). Available at: https://www.icommercecentral.com/open-access/an-exploratory-research-of-the-usage-level-of-ecommerce-among-smes-in-the-west-coast-of-sabah-malaysia-1-12.pdf.
Hashim, N. A., & Abdullah, N. L. (2014). Catastrophe of e-commerce among Malaysian SMEs – between its perceived and proven benefits. Jurnal Pengurusan, 42(2014), 145–157. Available at: https://www.researchgate.net/publication/285140640.
OECD (2017). Enhancing the contributions of SMEs in a global and digitalised economy. Meeting of the OECD Council at Ministerial Level (pp. 1–24). Available at: https://www.oecd.org/mcm/documents/C-MIN-2017-8-EN.pdf.
Musawa, M. S., & Wahab, E. (2012). The adoption of electronic data interchange (EDI) technology by Nigerian SMEs: a conceptual framework. Journal of Business Management and Economics, 3(2), 55–68. Available at: https://www.researchgate.net/publication/254413055.
Tongora, E. F. (2022). Factors intricate the adoption of e-commerce by small-medium sized enterprises (SMEs) in Tanzania. European Journal of Technology, 6(3), 49–60. https://doi.org/10.47672/ejt.1271.
Alita, D., Putra, A. D., & Darwis, D. (2021). Analysis of classic assumption test and multiple linear regression coefficient test for employee structural office recommendation. Indonesian Journal of Computing and Cybernetics Systems, 15(3), 295–306. https://doi.org/10.22146/ijccs.65586.
Ghozali, I. (2011). Aplikasi analisis multivariate dengan program SPSS versi 19. Semarang Universitas Diponegoro. Available at: https://www.academia.edu/86315138.
Nawawi, M. (2020). Influence on service quality, product quality, product design, price and trust to XL Axiata Customer loyalty on students of PGRI Karang Sari Belitang III OKU Timur vocational high school. International Journal of Economics, Business and Accounting Research, 4(3), 1–13. Available at: https://jurnal.stie-aas.ac.id/index.php/IJEBAR/article/view/1251.
Theofani, G., & Sediyono, E. (2022). Multiple Linear regression analysis on factors that influence employees work motivation. Sinkron: Jurnal dan Penelitian Teknik Informatika, 7(3), 791–798. https://doi.org/10.33395/sinkron.v7i3.11453.
Gujarati, D. N. (2003). Basic Econometrics, 4th ed. McGraw-Hill.
Direktorat Jenderal Perkebunan Kementerian Pertanian Republik Indonesia (2023). Statistical of national non leading estate crops commodity 2020–2022. Dirjen Perkebunan Kementan RI. Available at: https://ditjenbun.pertanian.go.id/template/uploads/2022/11/buku-statisik-non-unggulan-2020-2022.pdf.
Badan Pusat Statistik Indonesia (2023). Statistik Indonesia 2023. Available at: https://www.bps.go.id/publication/2020/04/29/e9011b3155d45d70823c141f/statistik-indonesia-2020.html.
Kementerian Pertanian (2023). Buku Statistik Perkebunan Non Unggulan Nasional 2021–2023. Direktorat Jendral Perkebunan. Available at: https://ditjenbun.pertanian.go.id/?publikasi=buku-statistik-non-unggulan-2021-2023.
Ahunjonov, U., Shuhua, H., Jayathilake, B., & Renyan, M. (2014). Characteristics of small and medium enterprise innovativeness: cases of Uzbekistan and China. The International Journal of Management Science and Business Administration, 1(1), 12–27. https://doi.org/10.18775/ijmsba.1849-5664-5419.2014.11.1002.
Setyowati, N., Masyhuri, Mulyo, J. H., Irham, & Yudhistira, B. (2023). The hidden treasure of wedang uwuh, an ethnic traditional drink from Java, Indonesia: its benefits and innovations. International Journal of Gastronomy and Food Science, 31, 100688. https://doi.org/10.1016/j.ijgfs.2023.100688.
Agwu, E. M., & Murray, P. J. (2015). Empirical study of barriers to electronic commerce uptake by SMEs in developing economies. International Journal of Innovation in the Digital Economy, 6(2), 1–19. https://doi.org/10.4018/ijide.2015040101.
Ndyali, L. (2013). Adaptation and barriers of e-commerce in Tanzania small and medium enterprises. Developing Country Studies, 3(4), 100–106. Available at: https://www.iiste.org/Journals/index.php/DCS/article/view/5082/5175.
Dahbi, S., & Benmoussa, C. (2019). What hinder SMEs from adopting e-commerce? A multiple case analysis. Procedia Computer Science, 158, 811–818. https://doi.org/10.1016/j.procs.2019.09.118.
Wagner Mainardes, E., de Almeida, C. M., & de-Oliveira, M. (2019). E-commerce: an analysis of the factors that antecede purchase intentions in an emerging market. Journal of International Consumer Marketing, 31(5), 447–468. https://doi.org/10.1080/08961530.2019.1605643.
Tyrväinen, O., & Karjaluoto, H. (2019). A systematic literature review and analysis of mobile retailing adoption. Journal of Internet Commerce, 18(2), 221–247. https://doi.org/10.1080/15332861.2019.1595364.
Chau, N. T., Deng, H., & Tay, R. (2021). A perception-based model for mobile commerce adoption in Vietnamese small and medium-sized enterprises. Journal of Global Information Management, 29(1), 44–67. https://doi.org/10.4018/JGIM.2021010103.
Abdullah, A., Thomas, B., Murphy, L., & Plant, E. (2018). An investigation of the benefits and barriers of e-business adoption activities in Yemeni SMEs. Strategic Change, 27(3), 195–208. https://doi.org/10.1002/jsc.2195.
