E-commerce and related factors on the performance of small and medium scale industries

This study aims to analyze: 1) the development of demand for craft SMIs products through the use of e-commerce, 2) the effect of e-commerce utilization, macroeconomic conditions, prices, and the intensity of promotion on product demand, 3) the effect of e-commerce utilization, macroeconomic conditions, prices, promotion intensity, and product demand for performance; and 4) the role of product demand in mediating the effect of e-commerce utilization, macroeconomic conditions, prices, and the intensity of promotion on performance. The results of the study show that the product demand variable gives a value of 0.371 while influence of the business performance variable gives a value of 0.486. The results of the study show that the development of demand for handicraft products in Denpasar through low e-commerce utilization, craft SMIs that utilize e-commerce demand more products than those who do not utilize, macroeconomic conditions have a positive and significant effect on product demand, the price has a negative effect and significant to product demand, while promotion intensity has a positive but not significant effect on product demand. Crafting SMIs that utilize e-commerce have better performance than those that do not use, macroeconomic conditions, prices, and product demand have a positive and significant effect on performance. Promotion intensity has a positive but not significant effect on performance.Product demand variables mediate the effect of e-commerce utilization variables, perceptions of macroeconomic conditions, and price variables on the performance variables of small and medium scale industries