Spatial Pattern of the Association of E-commerce Adoption and Socio-digital Setting

Abstract

This study applies the multiscale geographically weighted regression to investigate the spatial behaviour of e-commerce and the relationship with digital know-how level across provinces in Indonesia. The model was developed using e-commerce data from the Indonesian National Statistics Board and the Ministry of Information and Communication of 2022. The result shows that only two variables had a significant impact on e-commerce adoption, namely access to the Internet and Generation X population. Furthermore, each variable has a different direction of a strong effect on e-commerce adoption levels. These results show that the covariates comprise a spatial barrier to adopting e-commerce and enrich the current understanding of e-commerce at the local level. Based on the result, policymakers can develop strategies to increase e-commerce adoption through promotion and campaign initiatives and target these at geographically strategic locations.