Individual-Based Simulation for Online Marketplace Diffusion among Batik Small Medium Enterprises (SMEs) in Indonesia

Abstract

The number of Batik SMEs and internet users today in Indonesia has increased This condition prompted the government to create a program of 8 million SME program to go online in 2019. But, until 2017 only 45% of the total targeted SMEs go online. This condition raises the need to understand the behaviour of SMEs implementing internet technology. The research focuses on UKM Batik and the online marketplace (OM), where batik is a unique commodity of Semarang City and OM is the implementation of emerging internet technology. The factors of OM adoption are adopted from a comprehensive T-O-E Framework. These factors form the basis for agent-based model development. Agent-based models that describe the behaviour of SMEs individually show the results of this study. Only 6 of 20 factors are used in the simulation model. These factors are the level of SME understanding that OM can increase the number of company sales, the level of SME understanding that OM can expand the company's marketing and sales area, the cost of implementing OM, the hardware readiness of SMEs, the level of courage of SME trying new things and the experience of SMEs in using OM.