E-Commerce Adoption by Small and Medium Sized Enterprises in Indonesia: An Investigation of Influencing Factors and Benefits

In the past few years, the number of e-commerce users in the world has increased dramatically; however, this increase is mostly being driven by large companies. The adoption of e-commerce by SMEs, especially in developing countries, is relatively slow. This condition raises the question: what factors affect SMEs in developing countries in their adoption of e- commerce? Whilst there has been a great deal research it concerns mainly SMEs in developed countries. Research that focuses on SMEs in developing countries is scarce. Therefore, in order to answer the question and to fill the research gap, this study investigates the factors that influence the adoption of e- commerce by SMEs but in developing countries. In this study, Indonesian SMEs have been chosen. The research instrument used in this study was a survey, and 75 SMEs participated. Ten factors are found to be the most considered factors. Besides investigating these influence factors, this study also aimed to identify the benefits gathered by Indonesian SMEs in adopting of e-commerce. This study found ten such benefits that were potentially achievable when the SMEs adopted e-commerce.