Factors Affecting E-Commerce Adoption and Their Impact on SMEs' Performance: A Case Study of Jabodetabek Region

Abstract

The development of information technology (IT) has disrupted the world business. E-commerce significantly increases effectiveness and efficiency in trade. This research analyzed organizational support, technology competence, and external environment as factors affecting e-commerce adoption by the Small Medium Enterprises. This study was conducted with the aim of identifying the impact of factors that influence e-commerce adoption on the performance of Small and Medium Enterprises in the Jabodetabek region. Quantitative approach with multiple regression analysis was applied as a tool to determine the impact of internal and external factors regarding e-commerce adoption to the SMEs performance. The results showed that the variables of organizational support, technology competence, and external environment, simultaneously affect the performance improvement on eCommerce adoption by SMEs in Jabodetabek region. Keywords—organizational support, technology competence, external environment, e-commerce, performance improvement, SMEs