Determinants influencing SMEs in E-commerce adoption through local government facilities in Indonesia: Mixed methods approach

Abstract

The entry of SMEs into the E-Commerce network is influenced by various variables that can affect success in the business world. This study examines the determinant factors contributing to SMEs competing in the world of E-Commerce. In addition, this study also examines several factors that can influence SMEs in entering digital market networks. This research uses a mixed method with an explanatory design approach. For the first stage, this study was analyzed using a quantitative approach by surveying 56 SMEs members of the Banyuwangi-mall.com E-Commerce in Banyuwangi City, East Java Province, Indonesia. Quantitative data analysis was carried out by utilizing the Smart PLS 4 application. Furthermore, to carry out a more in-depth analysis, a qualitative stage was carried out by conducting semi-structured interviews with 13 SMEs owners who are members of Banyuwangi-mall.com E-Commerce marketing. The study results show that the factors influencing SMEs to enter e-commerce networks are regulatory support, competitor pressure, and the stability of information technology infrastructure. In contrast, the characteristics of the supporters/leaders and budget variables negatively influence the characteristics. The negative relationship between leader characteristics is caused by two things: the dominance of the role of creative houses and the lack of orders received by SMEs on the Banyuwangi-mall.com website. As for the budget aspect, the absence of a particular budget for SME activities in Banyuwangi-mall.com online marketing is the reason for needing a positive influence.