Determinants of digital marketing adoption among agroindustry SMEs: the case of the rendang sector

Yelfiarita Yelfiarita, Dwidjono Hadi Darwanto, Lestari Rahayu Waluyati and Masyhuri Masyhuri

Agricultural and Resource Economics: International Scientific E-Journal, 2025, vol. 11, issue 3

Abstract: Purpose. This study assesses the determinants of digital marketing adoption among traditional agroindustry small and medium-sized enterprises (SMEs), focusing on rendang producers in Indonesia. In the context of global digitalisation, traditional manufacturing-based SMEs face obstacles such as limited digital literacy, financial constraints, and organisational readiness. This study evaluates internal, external, and technological factors influencing digital marketing adoption. Methodology / approach. The Digital Marketing Adoption (DMA) model was applied, integrating constructs from the Technology Acceptance Model (TAM) and Innovation Diffusion Theory (IDT). Quantitative research was conducted using data from 113 rendang-producing SMEs across West Sumatra, Indonesia. Data were collected via a structured questionnaire with a five-point Likert scale and analysed through PLS-SEM to evaluate relationships among 14 hypothesised variables. Results. Findings indicated that competitive pressure, ICT (information and communication technologies) experience, market scope, product and service types, and trialability significantly influenced adoption intention, while government support, customer pressure, organisational readiness, firm size, and perceived compatibility were not significant. Notably, perceived ease of use and observability negatively affected adoption, suggesting that overly simple or highly visible digital tools may have been viewed as less strategically valuable. The model explained 64.9% of the variance in adoption intention (R² = 0.649) and demonstrated strong predictive relevance (Q² = 0.495), confirming its robustness in explaining adoption behaviour in traditional agroindustry SMEs. Originality / scientific novelty. This study advances the literature by applying the DMA model to traditional agroindustry SMEs in Indonesia, integrating internal, external, and technological factors. Unlike previous research focusing on cultural aspects or the general adoption of technology in SMEs, this study specifically addresses the determinants of digital marketing adoption, bridging traditional business practices with modern technology. The model, incorporating TAM and IDT, is particularly suited to resource-limited SMEs. The case of rendang, a traditional dish from West Sumatra, is significant due to its global recognition and export potential, making it ideal for digital marketing strategies to improve branding and global competitiveness. Practical value / implications. The findings highlight the need for ongoing digital literacy programmes, sustainable government support, and tailored interventions to help SMEs overcome digital barriers. Traditional ethnic product SMEs focused on export markets should improve ICT competencies and strategically use digital tools to expand their market reach. Policymakers must develop targeted, practical, scalable, and sustainable support initiatives aligned with SMEs’ needs.

Keywords: Agribusiness; Marketing (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ags:areint:387550

DOI: 10.22004/ag.econ.387550

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