BARRIERS AFFECTING E-COMMERCE ADOPTION ON SMALL-MEDIUM ENTERPRISES IN INDONESIA

Abstract

Purpose – The purpose of this research is to identify and determine why there are still many SMEs in Indonesia that do not want to adopt e-commerce into their business. This research also aim to find which variables that affecting e-commerce adoption by smallmedium enterprise business in Bekasi, Indonesia. Design/Methodology/Approach – A total of 242 respondents were collected from small-medium enterprise business in Bekasi, Indonesia. The data were collected through questionnaire that used five point Likert-scale. The analysis of this research is using quantitative and multiple regression analysis. Findings – The researcher found that from 5 hypothesis that has been tested, there are 3 hypothesis are accepted and 2 hypothesis are rejected. The hypothesis that accepted are Organizational Barriers to E-Commerce Adoption, Technical Barriers to ECommerce Adoption, and Behavioral Barriers to E-Commerce Adoption. Meanwhile, the hypothesis that rejected are Legal and Regulatory Barriers to E-Commerce Adoption, and Financial Barriers to E-Commerce Adoption. Originality/value – Authors believes that this is the first research that discuss about barriers affecting e-commerce adoption by small-medium enterprise business that focused in food and beverages industry in Bekasi, Indonesia.