Online Marketing Readiness of MSMEs in Indonesia:  A Perspective of Technology Organizational Environmental Framework

Asmawati Asmawati; Imam Ahmad; Emi Suwarni; Debby Alita; Cut Delsi  Hasrina

doi:10.14414/jebav.v27i1.3399

Vol. 27 No. 1 (2024), Articles

Vol. 27 No. 1 (2024) Pages 145-155

Online Marketing Readiness of MSMEs in Indonesia: A Perspective of Technology Organizational Environmental Framework

Asmawati Asmawati⁺⁻
Imam Ahmad⁺⁻
Emi Suwarni⁺⁻
Debby Alita⁺⁻
Cut Delsi Hasrina⁺⁻

Asmawati Asmawati

Universitas Abulyatama, Aceh Besar, Aceh, Indonesia

Imam Ahmad

Universitas Teknokrat Indonesia, Bandar Lampung, Lampung, Indonesia

Emi Suwarni

Universitas Teknokrat Indonesia, Bandar Lampung, Lampung, Indonesia

Debby Alita

Universitas Teknokrat Indonesia, Bandar Lampung, Lampung, Indonesia

Cut Delsi Hasrina

Universitas Abulyatama, Aceh Besar, Aceh, Indonesia

DOI: 10.14414/jebav.v27i1.3399

Published 30-07-2024

pdf

Keywords

Technology readiness
E-commerce
Environmental support
Organizational readiness

How to Cite

Asmawati, A., Ahmad, I., Suwarni, E., Alita, D., & Hasrina, C. D. (2024). Online Marketing Readiness of MSMEs in Indonesia: A Perspective of Technology Organizational Environmental Framework. Journal of Economics, Business, & Accountancy Ventura, 27(1), 145-155. https://doi.org/10.14414/jebav.v27i1.3399

Abstract

Micro, Small, and Medium-sized Enterprises (MSMEs) play a crucial role in the economic landscape of tourism areas, offering collective services that enhance tourist experiences and convenience at destinations. One key effort to promote tourism is enhancing the technological readiness of MSMEs. This study aims to evaluate the preparedness of MSMEs to adopt e-commerce technology. Data was gathered through interviews and questionnaires distributed randomly to 184 business operators. The research utilized the Technology Organizational Environmental (TOE) framework, encompassing ten indicators identified from various sources. Data analysis was conducted using Structural Equation Modeling (SEM) with four hypotheses. The findings reveal that both organizational readiness and external environmental support have a positive impact on technology adoption readiness. Furthermore, organizational readiness significantly mediates the relationship between environmental support and technological readiness. Therefore, it is essential to develop the organizational readiness of MSMEs to facilitate the adoption of e-commerce technology.

References

Aboelmaged, M. G. (2014). Predicting e-readiness at firm-level: An analysis of technological, organizational and environmental (TOE) effects on e-maintenance readiness in manufacturing firms. International Journal of Information Management, 34(5), 639–651. https://doi.org/https://doi.org/10.1016/j.ijinfomgt.2014.05.002

Abu Muna Almaududi Ausat, Anna Widayani, Ika Rachmawati, Nunuk Latifah, S. S. (2021). The Effect of Intellectual Capital and Innovative Work Behavior on Business Performance. Journal of Economics, Business, & Accountancy Ventura, 24(3). https://doi.org/10.14414/jebav.v24i3.2809.

Adebayo I. ADIO. (2019). E-Marketing and Growth Potentials for Medium Scale Enterprises (MSEs) in a Developing Economy. International Journal of Economics, Finance and Entrepreneurship, 6(1), 37–49.

Akbar, A., Hussain, A., Shahzad, A., & Hassan, H. M. and R. (2022). Environmental and technological factor diffusion with innovation and firm performance: Empirical evidence from manufacturing SMEs. Frontier in Environmental Science. https://doi.org/https://doi.org/10.3389/fenvs.2022.960095

Angga Febrian; Dhiona Ayu Nani; Lia Febria Lina; Nurul Husna. (2022). The Role of Social Media Activities to Enhance Brand Equity. Journal of Economics, Business, & Accountancy Ventura, 25(1), 20–39. https://doi.org/10.14414/jebav.v25i1.2881.

There are 57 references. More references >>

Aboelmaged, M. G. (2014). Predicting e-readiness at firm-level: An analysis of technological, organizational and environmental (TOE) effects on e-maintenance readiness in manufacturing firms. International Journal of Information Management, 34(5), 639–651. https://doi.org/https://doi.org/10.1016/j.ijinfomgt.2014.05.002

Abu Muna Almaududi Ausat, Anna Widayani, Ika Rachmawati, Nunuk Latifah, S. S. (2021). The Effect of Intellectual Capital and Innovative Work Behavior on Business Performance. Journal of Economics, Business, & Accountancy Ventura, 24(3). https://doi.org/10.14414/jebav.v24i3.2809.

Adebayo I. ADIO. (2019). E-Marketing and Growth Potentials for Medium Scale Enterprises (MSEs) in a Developing Economy. International Journal of Economics, Finance and Entrepreneurship, 6(1), 37–49.

Akbar, A., Hussain, A., Shahzad, A., & Hassan, H. M. and R. (2022). Environmental and technological factor diffusion with innovation and firm performance: Empirical evidence from manufacturing SMEs. Frontier in Environmental Science. https://doi.org/https://doi.org/10.3389/fenvs.2022.960095

Angga Febrian; Dhiona Ayu Nani; Lia Febria Lina; Nurul Husna. (2022). The Role of Social Media Activities to Enhance Brand Equity. Journal of Economics, Business, & Accountancy Ventura, 25(1), 20–39. https://doi.org/10.14414/jebav.v25i1.2881.

Arifin, K. (2022). Kesiapan UMKM Menghadapi Digitalisasi. Junal Ilmiah Ekonomi Manajemen, 13(01), 11–23.

Arlina, Nurbaity Lubis; Prihatin, Lumbanraja; Beby, K. H. (2018). E-Commerce Readiness to Support SMEs in Tourism Area: Case of North Sumatera. In ICEMAB.

Arsalan Hussain, Arfan, S. ; M. A., & Hassan ; Petra Poulova ; Ahsan Akbar and Rohail. (2022). E-Commerce and SME Performance: The Moderating Influence of Entrepreneurial Competencies. Administrative Science, 12. https://doi.org/https://doi.org/10.3390/admsci12010013

Awa, HO, Ojiabo, OU. dan Orokor, L. E. (2017). Taksonomi teknologi-organisasi-lingkungan (T-O-E) terintegrasi untuk adopsi teknologi. Journal of Enterprise Information Management, 30(6), 893–921. https://doi.org/https://doi.org/10.1108/JEIM-03-2016-0079

Baker, E. (2011). The Technology–Organization–Environment Framework. In Information Systems Theory (p. Chapter: 12). University of Hamburg. Retrieved from https://www.researchgate.net/publication/226145805_The_Technology-Organization-Environment_Framework

Berranger Pascale de; David Tucker; Laurie Jones. (2001). Internet Diffusion in Creative Micro-Businesses: Identifying Change Agent Characteristics As Critical Success Factors. Journal of Organizational Computing and Electronic Commerce, 11(3). https://doi.org/https://doi.org/10.1207/S15327744JOCE1103_04

Citra Yayu Palangan; Bertha Maya. (2021). Analisis Adopsi E-Commerce di Usaha Mikro Kecil dan Menengah (UMKM). In Seminar Nasional Teknik Industri Universitas Gadjah Mada (pp. 24–29).

Deyshappriya, N. P. R., & Nawarathna, A. M. D. B. (2020). Tourism and SME Development: Performance of Tourism SMEs in Coastal Tourist Destinations in Southern Sri Lanka.

Fatima Ajmal, Norizan Mohd Yasin, A. A. N. (2017). Critical success factors influencing e-commerce adoption in SMEs: A review and model. International Journal of Advanced and Applied Sciences, 4(7), 159–172. https://doi.org/https://doi.org/10.21833/ijaas.2017.07.023

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review. https://doi.org/10.1108/EBR-11-2018-0203

Hart O. Awa, Ojiabo Ukoha & Bartholomew C. Emecheta. (2016). Using T-O-E theoretical framework to study the adoption of ERP solution. Cogent Business & Management, 3. https://doi.org/DOI: 10.1080/23311975.2016.1196571

Li. Jerry C.F. (2020). Roles of Individual Perception in Technology Adoption at Organization Level: Behavioral Model versus TOE Framework. Journal of System and Management Sciences, 10(3), 90–118. https://doi.org/DOI:10.33168/JSMS.2020.0308

M. Ghobakhloo, D. Arias-Aranda, dan J. B.-A. (2011). Adoption of ecommerce applications in SMEs. Industrial Management & Data Systems International Marketing Review, 111(8). https://doi.org/https://www.emerald.com/insight/publication/issn/0263-5577

Makmur, S. F. I. (2022). Shopping Value Resonance of Household Appliance and Purchase Intentions in E-Commerce. Journal of Economics, Business, & Accountancy Ventura, 24(3), 339–349. https://doi.org/10.14414/jebav.v24i3.2894.

Najib, Mukhamad; Aminah, Mimin; Jauhari, A. (2022). Adopsi E-commerce Paguyuban Usaha Mikro Kecil Menengah (UMKM) Makanan dan Minuman Kota Bogor di masa Pandemi COVID-19. Retrieved from http://repository.ipb.ac.id/handle/123456789/111200

Niken Larasati, Widyawan, and P. I. S. (2017). Technology Readiness and Technology Acceptance Model in New Technology Implementation Process in Low Technology SMEs. International Journal of Innovation, Management and Technology, 8(2). https://doi.org/doi: 10.18178/ijimt.2017.8.2.713

Oliveira.T and Martins.M. (2011). Literature Review of Information Technology Adoption Models at Firm Level. Electronic Journal Information Systems Evaluation, 14(110–121).

Religia, Y., Surachma, Rohman, F., & Indrawati, N. K. (2020). E-Commerce Adoption in SMEs: A Literature Review. In INCEESS.

Sugihartati, R. (2023). UMKM 2023: Kendala Memasuki Pasar Digital Sumber: https://mediaindonesia.com/opini/548450/umkm-2023-kendala-memasuki-pasar-digital.

Ton˜ ita Perea y Monsuwe, B. G. C. D. and, & Ruyter, K. de. (2004). What drives consumers to shop online? A literature review. International Journal of Service Industry Management, 15(1). https://doi.org/DOI 10.1108/09564230410523358

Tornatzky L and Fleischer M. (1990). The processes of technological innovation. Lexington Book. Retrieved from https://openlibrary.org/books/OL2207473M/The_processes_of_technological_innovation

Tran Hung. Nguyen, Xuan Cu Le and Thi .Hai Ly Vu. (2022). An Extended Technology-Organization-Environment (TOE) Framework for Online Retailing Utilization in Digital Transformation: Empirical Evidence from Vietnam. Journal of Open Innovation: Technologi, Market, and Complexity, 8. https://doi.org/https://doi.org/10.3390/joitmc8040200

Tze. Luen Teo, Caroline. chan, C. P. (2004). Factors Affecting e-Commerce Adoption by SMEs: A Meta-Analysis. In Association for Information Systems.

Villalva A., J. E. (2021). Structural equation models - PLS in engineering sciences: a brief guide for researchers through a case applied to the industry. Athenea. https://doi.org/10.47460/athenea.v2i4.17

Wagner, B. I. F. U. J. (2003). E‐business and e‐supply strategy in small and medium sized businesses (SMEs). Supply Chain Management;, 8(4), 343–354. https://doi.org/https://doi.org/10.1108/13598540310490107

Zhang, Q. C. and N. (2015). Does E-Commerce Provide a Sustained Competitive Advantage? An Investigation of Survival and Sustainability in Growth-Oriented Enterprises. Sustainability, 7, 1411–1428. https://doi.org/doi:10.3390/su7021411

Zhu, K., Kraemer, K. L., & Xu, S. (2006). The Process of Innovation Assimilation by Firms in Different Countries: A Technology Diffusion Perspective on E-Business. Management Science2, 52(10). https://doi.org/https://doi.org/10.1287/mnsc.1050.0487

Newlands, G., Lutz, C., Tamo-Larrieux, A., Villaronga, E.F., Harasgama, R., & Scheitlin, G. (2020). Innovation under pressure: Implications for data privacy during the Covid-19 pandemic. Big Data & Society, 7(2), 2053951720976680. https://doi.org/10.1177/2053951720976680

Nickels, W.G., McHugh, J., & McHugh, S. (2018). Understanding business, 12th Edition. McGraw Hill.

Nuseir, M. T. (2018). Digital media impact on SMEs performance in the UAE. Academy of Entrepreneurship Journal, 24(2), 1-13.

Pakpahan, A. K. (2020). Covid-19 dan implikasi bagi usaha mikro, kecil, dan menengah. Jurnal Ilmu Hubungan Internasional, 20(April), 2-6. https://doi.org/10.26593/jihi.v0i0.3870.59-64

Peñarroya-Farell, M., & Miralles, F. (2022). Business model adaptation to the COVID-19 crisis: strategic response of the Spanish cultural and creative firms. Journal of Open Innovation: Technology, Market, and Complexity, 8(1), 39. https://doi.org/10.3390/joitmc8010039

Park, S., & Park, S. (2019). Employee adaptive performance and its antecedents: Review and synthesis. Human Resource Development Review, 18(3), 294-324. https://doi.org/10.1177/1534484319836315

Pu, G., Qamruzzaman, M. D., Mehta, A. M., Naqvi, F. N., & Karim, S. (2021). Innovative finance, technological adaptation and SMEs sustainability: the mediating role of government support during COVID-19 pandemic. Sustainability, 13(16), 9218. https://doi.org/10.3390/su13169218

Rofiaty, R., Chong, D., Nusron, A., Yulianti, N. A., & Sunaryo, S. (2022). Entrepreneurship orientation and performance of green economy SMEs during COVID-19 pandemic: The mediating of strategic agility. Journal of Economics, Business, & Accountancy Ventura, 25(1), 48-60. https://doi.org/10.14414/jebav.v25i1.3001

Sabuhari, R., Jabid, A. W., Rajak, A., & Soleman, M. M. (2021). The role of organizational culture adaptation and job satisfaction in mediating effects of human resource flexibility on employee performance. Jurnal Dinamika Manajemen, 12(85), 132-145. https://doi.org/10.15294/jdm.v10i1.17359

Sarstedt, M., Ringle, C. M., & Hair, J. F. (2021). Partial least squares structural equation modeling. In Handbook of market research (pp. 587-632). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-319-57413-4_15

Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach, 7th edition. New Jersey: Wiley.

Shevyakova, A., Munsh, E., Arystan, M., & Petrenko, Y. (2021). Competence development for Industry 4.0: Qualification requirements and solutions. Insights into Regional Development, 3(1), 124-135. https://doi.org/10.9770/IRD.2021.3.1(7)

Stoll, J. D. (2020). The crisis has jump-started America’s innovation engine: What took so long? Wall Street Journal, April 10.

Swasta, B., & Irawan. (2013). Manajemen pemasaran modern. Liberty Yogyakarta

Teece, D., & Leih, S. (2016). Uncertainty, innovation, and dynamic capabilities: An introduction. California Management Review, 58(4), 5-12. https://doi.org/10.1525/cmr.2016.58.4.5

Tidd, J., & Bessant, J. (2009). Managing innovation: Integrating technological, market and organizational change, 4th Edition. John Wiley & Sons, Ltd.

Tromble, R. & McGregor, S.C. (2019). You break it, you buy it: The naivete of social engineering in tech-and how to fix it. Political Communication, 36(2): 324-332. https://doi.org/10.1080/10584609.2019.1609860

Wahdiniwaty, R., Firmansyah, D., Suryana, A., Dede, & Rifa'i, A. A. (2022). Mystery in marketing management products post COVID-19 as a model of survival strategy towards the awakening of micro small and medium enterprises (MSMEs) in the digital economy era. KhazanahSosial, 4(1), 187-210. https://doi.org/10.15575/ks.v4i1.17397

Wahyuni, N. M. & Sara, I. M. (2020). Market orientation and innovation performance: Mediating effects of customer engagement in SMEs. Journal of Economics, Business, & Accountancy Ventura, 23(1), 28-38. https://doi.org/10.14414/jebav.v23i1.2040

Wajcman, J. (2018). How Silicon Valley sets time. New Media & Society, 21(6), 1272-1289. https://doi.org/10.1177/1461444818820073

Wang, Z., Sharma, P. N., & Cao, J. (2016). From knowledge sharing to firm performance: a predictive model comparison. Journal of Business Research, 69(10), 4650-4658. https://doi.org/10.1016/j.jbusres.2016.03.055

Were, J. N. (2021). Innovation capability strategy and firm performance in the furniture manufacturing sector in Kenya. Journal of Economics, Business, & Accountancy Ventura, 24(2), 233-245. https://doi.org/10.14414/jebav.v24i2.2735

Wijayanto, A., & Sanaji. (2021). The role of marketing innovation mediation on the influence of organizational creativity on marketing performance during the COVID-19 pandemic study on MSMEs incorporated in Bojonegoro APMMIK. Ilomata International Journal of Management, 2(3), 142-153. https://doi.org/10.52728/ijjm.v2i3.255

Yu, W., Xu, W., & Zhu, L. (2017). A modified Hosmer-Lemeshow test for large data sets. Communications in Statistics-Theory and Methods, 46(23), 11813-11825. https://doi.org/10.1080/03610926.2017.1285922

Yudhaputri, E. A., & Daihan, D. U. (2020). Strategy development of MSMEs in order to face industrial Revolution 4.0. International Conference on Inclusive Business in the Changing World (ICIB 2019), 254-262. https://doi.org/10.5220/0008430002540262

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Online Marketing Readiness of MSMEs in Indonesia: A Perspective of Technology Organizational Environmental Framework

Keywords

How to Cite

Download Citation

Abstract

References