Gap between Regions in the Use of E-Commerce by MSEs Macro-level Research Using Provincial Data from Indonesia
Main Article Content
Keywords
MSE, e-commerce, ICT, external factors, Indonesia
Abstract
The availability of information and communication technology (ICT) has assisted companies to effectively produce and market their products and services in the global market. However, the majority of micro and small enterprises (MSEs) in Indonesia have not adopted such technology or e-commerce to support their business activities. Based on province data (cross-section data), this study aims to examine the adoption of e-commerce by MSEs in different provinces in Indonesia. It addresses two research questions. First, how many MSEs have adopted such technology? Second, what factors influence e-commerce adoption by MSEs? The study used multiple regression to estimate empirically the impact of selected factors as independent variables on the number of MSEs that use e-commerce. It shows at least three important facts: (i) the degree of e-commerce adoption by MSEs in Indonesia is still very low; (ii) there is a positive relationship between market size in a province and the number of MSEs in the province adopting e-commerce; and (iii) in a region where all residents or households have a computer or access to the Internet, it is not always that all business actors, especially MSEs, in that region adopt e-commerce.
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References
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Dec 1, 2020
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Busnetti, I., & Tambunan, T. (2020). Gap between Regions in the Use of E-Commerce by MSEs: Macro-level Research Using Provincial Data from Indonesia. Journal of Telecommunications and the Digital Economy, 8(4), 37–63. https://doi.org/10.18080/jtde.v8n4.303
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Author Biographies
Ida Busnetti, Center for Industry, SME and Business Competition Studies, University of Trisakti
Ida Busnetty received her Ph.D in Syariah economics at Trisakti University. She is currently a lecturer in the Master Program in economics at the same university. In addition, currently she is also the Secretary of the Center for Industry, SME and Business Competition Studies and Business, and the head of the Regional Development Center, Community Service Institute, at the same university. In recent years she has conducted research on micro, small and medium enterprises in collaboration with several government agencies such as the Financial Services Authority (OJK), and the Ministry of Communication and Information as well as several regional governments across Indonesia. She is also actively doing research on issues related to the halal Industry.
Tulus Tambunan, Center for Industry, SME and Business Competition Studies, University of Trisakti
TULUS T.H. TAMBUNAN is professor of Economics, Trisakti University, Indonesia. Currently he is also the director of the Center for Industry, Small and Medium Enterprises, and Business Competition Studies in the same university. He holds a PhD in economics from the Erasmus University in Rotterdam, the Netherlands. Since 1995 he has been the country researcher representing Indonesia for the World Economic Forum (WEF) in Geneva, which publishes, annually, The Global Competitiveness Report. He has done many studies on various issues related to micro, small and medium enterprises, economic crises, regional trade, and inclusive development. Some of his publications are The Readiness of MSMEs in Facing ASEAN Economic Community 2015 (New York: Nova Science Publisher, Inc, 2014); Economic Crisis and Vulnerability: The Story from Southeast Asia (New York: Nova Science Publishers, Inc, 2011), Global Economic Crisis and ASEAN Economy. Theory and Empirical Findings (Lambert Academic Publishing (LAP), Saarbrȕcken, 2010), Trade Liberalization and SMEs in ASEAN (New York: Nova Science Publishers, Inc., 2010), and SME in Asian Developing Countries (London: Palgrave Macmillan Publisher, 2009). Other than that, he is also the editor of a new published book in 2019 on Development of MSMEs in Developing Countries Stories from Asia, Africa and Latin America (New Delhi: AkiNik Publications), and the chief editor of new online International Journal on SME and Business Sustainability.
