i DRIVERS OF DIGITAL MARKETING ADOPTION BY SMALL AND MEDIUM ENTERPRISES IN WEST JAVA, INDONESIA

Abstract

With the increase of sales by internet in Indonesia, it is important for the SMEs to aware of the business opportunity by internet selling. Ironically, there are still not many SMEs who adopted the digital marketing system as one of their marketing strategy. The same problem is not only happened in Indonesia. The same situation even occurred in Canada, Kenya, and Bangladesh. That is why in order to find what can drive the SMEs to adopt digital marketing, the researcher focus on several variables like Perceived Ease of Use, External Pressure and Mission, Job Performance, Resource Availability and Perceived Usefulness to predict whether those variables can drive SMEs into adopting the digital marketing system. Technology Acceptance Model also is being used to predict the drivers of digital marketing adoption. This study focuses on to find out what variables that have a statistically significant effect to predict the adoption of digital marketing adoption. The data in this study were collected via email and direct spreading in Cikarang area which is still in the West Java province. A total of 200 respondents were taken from 3112 SMEs in West Java Area. The data then process through inferential analysis tools which is multiple regression using the SPSS software. The findings of this analysis were Job performance and Perceived usefulness statistically significant towards the adoption of digital marketing adoption. From the results of the analysis, several recommendations have been made for SMSs if they wanted to adopt digital marketing system. The first one is the SMEs must be sure that by adopting digital marketing system could increase the job performance of marketing division. The second is, the SMEs could also make an example of those SMEs who have already adopted the system. If their business improved by adopting the system, maybe it is better for other SMEs to adopt the system. In order to improve the knowledge of digital marketing for SMEs, the government could provide training for SMEs to understand further about digital marketing and its benefit.