E-Commerce Technologies Adoption Strategy Selection in Indonesian SMEs Using the Decision-Makers, Technological, Organizational and Environmental (DTOE) Framework

Saffira Annisa Bening, Muhammad Dachyar (), Novandra Rhezza Pratama, Jaehyun Park and Younghoon Chang
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Saffira Annisa Bening: Department of Industrial Engineering, Universitas Indonesia, Depok 16424, Indonesia
Muhammad Dachyar: Department of Industrial Engineering, Universitas Indonesia, Depok 16424, Indonesia
Novandra Rhezza Pratama: Department of Industrial Engineering, Universitas Indonesia, Depok 16424, Indonesia
Jaehyun Park: School of Design, Hong Kong Polytechnic University, Hong Kong 999077, China
Younghoon Chang: School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China

Sustainability, 2023, vol. 15, issue 12, 1-25

Abstract: Small and Medium-sized Enterprises (SMEs) are key contributors to Indonesia’s economy. E-commerce can assist SMEs in gaining a competitive edge and is expected to be the largest contributor to the country’s digital economy by 2030. However, only 22% of SMEs in Indonesia have adopted E-commerce. Hence this study aims to investigate the criteria that influence E-commerce adoption by Indonesian retail SMEs and select the best strategy using the Decision-Makers, Technological, Organizational, and Environmental (DTOE) Framework and the Diffusion of Innovation (DOI) theory. This study aims to fill the research gap by examining the essential factors in E-commerce adoption by Indonesian SMEs in the retail industry and their key strategy to increase utilization. The influence and priorities between criteria were calculated using the Decision-Making Trial and Evaluation Laboratory (DEMATEL) based Analytic Network Process (ANP) method. Furthermore, an E-commerce adoption strategy was selected using Complex Proportional Assessment (COPRAS) method. This research showed critical criteria for adopting E-commerce technology in retail SMEs, Decision Maker’s IT Knowledge, Innovativeness, and Complexity. In addition, developing or training Information Technology (IT) and E-commerce skills were identified as the best strategy to increase E-commerce adoption. This study can help raise the understanding of policymakers, E-commerce service providers, and retail SME decision-makers on influencing criteria in adopting the best strategy to be applied to increase this technology adoption.

Keywords: E-commerce; adoption; SMEs; multi-criteria decision making (MCDM); DEMATEL-based ANP; COPRAS (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
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