Electronic Commerce Adoption Barriers in Indonesian Small Medium-sized Enterprises (SMEs): An Exploratory Study

This research seeks to explore and detect underlying relationships between identifiable barriers of electronic commerce (ecommerce) adoption in Indonesian small medium-sized enterprises (SMEs). A quantitative pilot study was conducted through a mail survey to collect the relevant data from several cities in three provinces in Indonesia, namely West Java, Bali and DKI Jakarta. The inter-correlations among the barriers influential to the e-commerce adoption decision demanded the application of principal component analysis to determine the factors perceived to dictate e-commerce adoption decision outcomes. The results of the analysis indicate that correlations between the barriers do exist and that the barriers can be grouped according to four distinct factors: the difficulty of implementing e-commerce, the unsuitability of e-commerce to the business, the uncomfortability in communicating and choosing standards in business online, as well as the inapplicability to the current business needs. Disciplines Physical Sciences and Mathematics Publication Details Kartiwi, M., Macgregor, R. C. & Bunker, D. (2006). Electronic commerce adoption barriers in Indonesian small medium-sized enterprises (SMEs): An exploratory study. Americas Conference on Information Systems (pp. 1830-1837). Atlanta, GA, USA: AMCIS. This conference paper is available at Research Online: http://ro.uow.edu.au/infopapers/2912 Kartiwi et al. Electronic Commerce Adoption Barriers in Indonesian SMEs Proceedings of the Twelfth Americas Conference on Information Systems, Acapulco, Mexico August 04-06 2006 Electronic Commerce Adoption Barriers in Indonesian Small Medium-sized Enterprises (SMEs): An Exploratory Study Mira Kartiwi School of Economics and Information Systems University of Wollongong [email protected] Robert C. MacGregor School of Information Technology and Computer Science University of Wollongong [email protected] Deborah Bunker School of Information Systems, Technology and Management University of New South Wales, Australia [email protected] ABSTRACT This research seeks to explore and detect underlying relationships between identifiable barriers of electronic commerce (ecommerce) adoption in Indonesian small medium-sized enterprises (SMEs). A quantitative pilot study was conducted through a mail survey to collect the relevant data from several cities in three provinces in Indonesia, namely West Java, Bali and DKI Jakarta. The inter-correlations among the barriers influential to the e-commerce adoption decision demanded the application of principal component analysis to determine the factors perceived to dictate e-commerce adoption decision outcomes. The results of the analysis indicate that correlations between the barriers do exist and that the barriers can be grouped according to four distinct factors: the difficulty of implementing e-commerce, the unsuitability of e-commerce to the business, the uncomfortability in communicating and choosing standards in business online, as well as the inapplicability to the current business needs.This research seeks to explore and detect underlying relationships between identifiable barriers of electronic commerce (ecommerce) adoption in Indonesian small medium-sized enterprises (SMEs). A quantitative pilot study was conducted through a mail survey to collect the relevant data from several cities in three provinces in Indonesia, namely West Java, Bali and DKI Jakarta. The inter-correlations among the barriers influential to the e-commerce adoption decision demanded the application of principal component analysis to determine the factors perceived to dictate e-commerce adoption decision outcomes. The results of the analysis indicate that correlations between the barriers do exist and that the barriers can be grouped according to four distinct factors: the difficulty of implementing e-commerce, the unsuitability of e-commerce to the business, the uncomfortability in communicating and choosing standards in business online, as well as the inapplicability to the current business needs.