The Communication Channels and the Innovation Perception on The Adoption of E-Commerce in Micro, Small Medium Enterprises (MSMEs)

Authors

  • Maharani Imran Persada Indonesia YAI University

DOI:

https://doi.org/10.52728/ijss.v4i3.807

Keywords:

Adoption, Innovation, E-Commerce, Perception of Innovations, Communication Channels

Abstract

The number of MSMEs products sold through e-commerce in Indonesia is considered insignificant, therefore, proper strategies are needed to increase the adoption of e-commerce. The purpose of this study is to explore the communication channels and the innovation perceptions on e-commerce adoption in MSMEs. A  qualitative approach and a case study method are used. The analysis consists of four medical device retailers, with observation and in-depth interviews as the data collection, and an implementation of a thematic data analysis technique. The communication channels that influence the adoption of e-commerce innovation technology are mass media, interpersonal communication, and interaction communication using the internet network. The indicators of the perceived innovation that influence adoption are relative advantages (e-commerce has broad market access, and provides a system for sales, payment, delivery, communication, marketing, and promotion), compatibility (e-commerce supports business activities according to retailers' daily habits and norms), complexity (retailers can create and manage online stores, upload and manage product inventories, and process online transactions), trialability (retailers can learn customer profiles, requirements, policies, costs, and functions), observability (retailers can evaluate sales performance, costs, competition among retailers, reviews and ratings).

References

Abebe, G. K., Bijman, J., Pascucci, S., & Omta, O. (2013). Adoption of improved potato varieties in Ethiopia: The role of agricultural knowledge and innovation system and smallholder farmers’ quality assessment. Agricultural Systems, 122, 22–32. https://doi.org/10.1016/j.agsy.2013.07.008

Adam, I. O., Alhassan, M. D., & Afriyie, Y. (2020). What drives global B2C E-commerce? An analysis of the effect of ICT access, human resource development and regulatory environment. Technology Analysis and Strategic Management, 32(7), 835–850. https://doi.org/10.1080/09537325.2020.1714579

AlBar, A. M., & Hoque, M. R. (2017). Factors affecting the adoption of information and communication technology in small and medium enterprises: a perspective from rural Saudi Arabia. Information Technology for Development, 25(4), 715–738. https://doi.org/10.1080/02681102.2017.1390437

Alzahrani, J. (2019). The impact of e-commerce adoption on business strategy in Saudi Arabian small and medium enterprises (SMEs). Review of Economics and Political Science, 4(1), 73–88. https://doi.org/10.1108/REPS-10-2018-013

BPS. (2021). Statistik E-Commerce 2021. In Badan Pusat Statistik (Vol. 59). Badan Pusat Statistik. https://www.bps.go.id/publication/2021/12/17/667821e67421afd2c81c574b/statistik-e-commerce-2021.html

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

Danso-Abbeam, G., Bosiako, J. A., Ehiakpor, D. S., & Mabe, F. N. (2017). Adoption of improved maize variety among farm households in the northern region of Ghana. Cogent Economics and Finance, 5(1). https://doi.org/10.1080/23322039.2017.1416896

Ekong, U. O., Ifinedo, P., Ayo, C. K., & Ifinedo, A. (2012). E-commerce adoption in nigerian businesses: An analysis using the technology-organization-environmental framework. In Leveraging Developing Economies with the Use of Information Technology: Trends and Tools (Issue January, pp. 156–178). Information Science Reference. https://doi.org/10.4018/978-1-4666-1637-0.ch009

Fiantika, F. R., Wasil, M., Jumiyati, S., Honesti, L., Wahyuni, S., Mouw, E., Jonata, Mashudi, I., Hasanah, N., Maharani, A., Ambarwati, K., Noflidaputri, R., Nuryami, & Waris, L. (2022). Metodologi Penelitian Kualitatif. PT Global Eksekutif Teknologi.

Goyal, S., Sergi, B. S., & Esposito, M. (2019). Literature review of emerging trends and future directions of e-commerce in global business landscape. World Review of Entrepreneurship, Management and Sustainable Development, 15(1–2), 226–255. https://doi.org/10.1504/WREMSD.2019.098454

Gu, J. (2022). CEO Information Ability, Absorptive Capacity, and E-Commerce Adoption among Small, Medium, and Micro Enterprises in China. Sustainability (Switzerland), 14(2). https://doi.org/10.3390/su14020839

Hoque, M. R., Saif, A. N. M., AlBar, A. M., & Bao, Y. (2016). Adoption of information and communication technology for development: A case study of small and medium enterprises in Bangladesh. Information Development, 32(4), 986–1000. https://doi.org/10.1177/0266666915578202

Howley, D. (2022). Experiences of teaching and learning in K-12 physical education during COVID-19: an international comparative case study. Physical Education and Sport Pedagogy, 27(6), 608–625. https://doi.org/10.1080/17408989.2021.1922658

Lawrence, J. E., & Tar, U. A. (2018). Factors that influence teachers’ adoption and integration of ICT in teaching/learning process. Educational Media International, 55(1), 79–105. https://doi.org/10.1080/09523987.2018.1439712

Li, R., & Sun, T. (2020). Assessing factors for designing a successful B2C E-Commerce website using fuzzy AHP and TOPSIS-Grey methodology. Symmetry, 12(3). https://doi.org/10.3390/sym12030363

Manaf, A. H. A. (2019). Komunikasi Inovasi Teknologi Produksi Garam pada Petambak Garam Rakyat di Kabupaten Sumenep. Institut Pertanian Bogor.

Mazzarol, T. (2015). SMEs engagement with e-commerce, e-business and e-marketing. Small Enterprise Research, 22(1), 79–90. https://doi.org/10.1080/13215906.2015.1018400

Mbuyisa, B., & Leonard, A. (2017). The Role of ICT Use in SMEs Towards Poverty Reduction: A Systematic Literature Review. Journal of International Development, 29(2), 159–197. https://doi.org/10.1002/jid.3258

Miler, R. K., Kuriata, A., Brzozowska, A., Akoel, A., & Kalinichenko, A. (2021). The algorithm of a game-based system in the relation between an operator and a technical object in management of e-commerce logistics processes with the use of machine learning. Sensors, 21(15). https://doi.org/10.3390/s21155244

Miles, M. B., Huberman, A. M., & Saldana, J. (2018). Qualitative Data Analysis: A Methods Sourcebook. In Zeitschrift fur Personalforschung (4th ed.). SAGE Publications.

Ramdani, B., Chevers, D., & Williams, D. A. (2013). SMEs’ adoption of enterprise applications: A technology-organisation-environment model. Journal of Small Business and Enterprise Development, 20(4), 735–753. https://doi.org/10.1108/JSBED-12-2011-0035

Rashid, Y., Rashid, A., Warraich, M. A., Sabir, S. S., & Waseem, A. (2019). Case Study Method: A Step-by-Step Guide for Business Researchers. International Journal of Qualitative Methods, 18. https://doi.org/10.1177/1609406919862424

Ridlo, U. (2023). Metode Penelitian Studi Kasus: Teori dan Praktik. Publica Indonesia Utama.

Rogers, E. M. (2003). Diffusion of Innovations. Free Press. https://doi.org/10.1377/hlthaff.2017.1482

Rushendi, Sarwoprasdjo, S., & Mulyandari, R. S. H. (2016). Pengaruh Saluran Komunikasi Interpersonal Terhadap Keputusan Adopsi Inovasi Pertanian Bioindustri Integrasi Seraiwangi-Ternak di Provinsi Jawa Barat. Jurnal Agro Ekonomi, 34(2), 135–144. https://doi.org/10.21082/jae.v34n2.2016.135-144

Samsudeen, S. N., Thelijjagoda, S., & Sanjeetha, M. B. F. (2021). Social Media Adoption: Small and Medium-sized Enterprises’ Perspective in Sri Lanka. Journal of Asian Finance, Economics and Business, 8(1), 759–766. https://doi.org/10.13106/jafeb.2021.vol8.no1.759

Setyawan, S. (2017). Pola Proses Penyebaran Dan Penerimaan Informasi Teknologi Kamera DSLR. Jurnal Komuniti, 9(2), 146–156.

Silviani, I. (2020). Komunikasi Organisasi. Scopindo Media Pustaka.

Smith, K. T., Jones, A., Johnson, L., & Smith, L. M. (2019). Examination of cybercrime and its effects on corporate stock value. Journal of Information, Communication and Ethics in Society, 17(1), 42–60. https://doi.org/10.1108/JICES-02-2018-0010

Suhaeti, R. N. (2016). Komunikasi Inovasi Padi Toleran Rendaman untuk Adaptasi Terhadap Perubahan Iklim dan Ketahanan Pangan Keluarga Petani [Institut Pertanian Bogor]. https://repository.ipb.ac.id/

Tran, H. T. T., & Corner, J. (2016). The impact of communication channels on mobile banking adoption. International Journal of Bank Marketing, 34(1), 78–109. https://doi.org/10.1108/IJBM-06-2014-0073

Ulas, D. (2019). Digital Transformation Process and SMEs. Procedia Computer Science, 158, 662–671. https://doi.org/10.1016/j.procs.2019.09.101

United Nations Department of Economic and Social Affairs. (2019). Micro-, small and sedium-sized enterprises (MSMEs) and their role in achieving the Sustainable Development Goals. In United Nations Department of Economic and Social Affairs Division for Sustainable Development Goals.

Verma, S., & Bhattacharyya, S. S. (2017). Perceived strategic value-based adoption of Big Data Analytics in emerging economy: A qualitative approach for Indian firms. Journal of Enterprise Information Management, 30(3), 354–382. https://doi.org/10.1108/JEIM-10-2015-0099

Villa, E., Ruiz, L., Valencia, A., & Picón, E. (2018). Electronic commerce: factors involved in its adoption from a bibliometric analysis. Journal of Theoretical and Applied Electronic Commerce Research, 13(1), 39–70. https://doi.org/10.4067/S0718-18762018000100104

Xing, Z. (2018). The impacts of Information and Communications Technology (ICT) and E-commerce on bilateral trade flows. International Economics and Economic Policy, 15(3), 565–586. https://doi.org/10.1007/s10368-017-0375-5

Downloads

Published

2023-08-17

How to Cite

Imran, M. (2023). The Communication Channels and the Innovation Perception on The Adoption of E-Commerce in Micro, Small Medium Enterprises (MSMEs). Ilomata International Journal of Social Science, 4(3), 441–454. https://doi.org/10.52728/ijss.v4i3.807

Issue

Section

Articles