TOE Framework for E-Commerce Adoption by MSMEs during The COVID-19 Pandemic: Can Trust Moderate?

Yoga Religia, Muhamad Ekhsan, Miftakul Huda, Anton Dwi Fitriyanto

Abstract


Currently, there are still many MSMEs in the regions that have not been connected to the digital ecosystem. This results in limited market reach, a lack of visibility, a lack of operational efficiency, and difficulty competing in the digital market. The purpose of this study is to review the adoption of e-commerce among MSMEs during the COVID-19 pandemic within the scope of the organization. Integrating the TOE framework (technology, organization, environment) with trust is carried out to explain the key parameters behind the adoption of e-commerce by MSMEs. This study collected samples using a saturated sample technique from 181 people who were members of the population. There were 153 questionnaires that were returned in full for further analysis using SEM-PLS modeling. The test results showed that technology did not have a significant influence on the adoption of e-commerce. Organizations, the environment during the pandemic, and trust have had a significant influence on the adoption of e-commerce. In addition, organizations that are moderated by trust have no significant effect on e-commerce adoption. The role of trust is as a moderation predictor. This research shows that the TOE framework is still strong enough to be used in explaining the adoption of e-commerce by MSMEs. This research also expands the TOE framework, where trust can also influence MSMEs to adopt e-commerce. Researchers and managers can use the set of variables that have been identified to strategize the adoption of e-commerce by MSMEs. This study presents a series of variables that can be used to study the adoption of e-commerce by MSMEs in the future.


Keywords


Technology, organization, environment during the pandemic, e-commerce adoption, MSMEs

Full Text:

PDF

References


D. H. Jayani. (2021, September). MSMEs Indonesia bertambah 1,98% pada 2019. Available: https://databoks.katadata.co.id/datapublish/2021/08/12/umkm-indonesia-bertambah-198-pada-2019

F. Redjeki and A. Affandi, “Utilization of digital marketing for MSME players as value creation for customers during the Covid-19 pandemic,” International Journal of Science and Society, vol. 3, no. 1, pp. 40-55, 2021.

M. Buheji et al., “The extent of covid-19 pandemic socio-economic impact on global poverty. A global integrative multidisciplinary review,” American Journal of Economics, vol. 10, no. 4, pp. 213-224, 2020.

B. Lal and C. R. Chavan, “A road map: e-commerce to world wide web growth of business world,” Global Journal of Management and Business Research, vol. 19, no. 11, pp. 32-36, 2019.

J. L. Martínez, J. N. Marco, and B. R. Moya, “Analysis of the adoption of customer facing InStore technologies in retail SMEs,” Journal of Retailing and Consumer Services, vol. 57, no. 1, p. 102225, 2020.

A. Cakti and F. Yunianto. (2020, September). Ini sejumlah kendala pemasaran produk yang dihadapi MSMEs. Available: https://www.antaranews.com/berita/1522732/ini-sejumlah-kendala-pemasaran-produk-yang-dihadapi-umkm

H. Kemenkopukm. (2022, September). MenKopUKM kolaborasi dengan Jagoan Internet Marketer bantu MSMEs go digital. Available: https://kemenkopukm.go.id/read/menkopukm-kolaborasi-dengan-jagoan-internet-marketer-bantu-umkm-go-digital

C. E. Ocloo, H. Xuhua, S. Akaba, J. Shi, and D. K. Worwui-Brown, “The Determinant Factors of Business to Business (B2B) E-Commerce Adoption in Small- and Medium-Sized Manufacturing Enterprises,” Journal of Global Information Technology Management, vol. 23, no. 3, pp. 1-26, 2020.

T. Yang, J. Xun, and W. K. Chong, “Complementary resources and SME firm performance: the role of external readiness and E-commerce functionality,” Industrial Management & Data Systems, vol. 122, no. 4, pp. 1128-1151, 2022.

S. Chandra and K. N. Kumar, “Exploring factors influencing organizational adoption of augmented reality in e-commerce: empirical analysis using technology–organization–environment model,” Journal of Electronic Commerce Research, vol. 19, no. 3, pp. 237-265, 2018.

B. Purwandari, B. Otmen, and L. Kumaralalita, “Adoption factors of e-marketplace and instagram for micro, small, and medium enterprises (MSMEs) in Indonesia,” in Proceedings of 2019 2nd International Conference on Data Science and Information Technology, Seoul, Republic of Korea, 2019: DSIT'19.

O. Ali, A. Shrestha, V. Osmanaj, and S. Muhammed, “Cloud computing technology adoption: an evaluation of key factors in local governments,” Information Technology & People, vol. 34, no. 2, pp. 666-703, 2020.

A. M. N. A. Kandil, M. A. Ragheb, A. A. Ragab, and M. Farouk, “Examining the effect of TOE model on cloud computing adoption in Egypt,” The Business and Management Review, vol. 9, no. 4, pp. 113-123, 2018.

L. G. Tornatzky and M. Fleischer, The processes of technological innovation. Lexington, MA: Lexington Books, 1990.

M. I. Effendi, D. Sugandini, and Y. Istanto, “Social media adoption in SMEs impacted by COVID-19: the TOE model,” Journal of Asian Finance, Economics and Business, vol. 7, no. 11, pp. 915–925, 2020.

P. O. H. Putra and H. B. Santoso, “Contextual factors and performance impact of e-business use in Indonesian small and medium enterprises (SMEs),” Heliyon, vol. 6, no. 1, pp. 1-10, 2020.

S. A. Qalati, W. Li, N. Ahmed, M. A. Mirani, and A. Khan, “Examining the factors affecting SME performance: the mediating role of social media adoption,” Sustainability, vol. 13, no. 75, pp. 1-24, 2021.

Y. Religia, Surachman, F. Rohman, and N. K. Indrawati, “E-commerce adoption in SMEs: a literature review,” presented at the Incess 2020, Bekasi, Indonesia, 2020.

S. K. Yeng, A. Osman, O. Y. Haji, and M. Safizal, “E-Commerce adoption among Small and Medium Enterprises (SMEs) in Northern State of Malaysia,” Mediterranean Journal of Social Sciences, vol. 6, no. 5, pp. 37-43, 2015.

H. Hamad, I. Elbeltagi, and H. El‐Gohary, “An empirical investigation of business‐to‐business e‐commerce adoption and its impact on SMEs competitive advantage: The case of Egyptian manufacturing SMEs,” Strategic Change, vol. 27, no. 3, pp. 209–229, 2018.

A. Khayer, M. S. Talukder, Y. Bao, and M. N. Hossain, “Cloud computing adoption and its impact on SMEs’ performance for cloud supported operations: A dual-stage analytical approach,” Technology in Society, vol. 60, no. 1, pp. 1-15, 2020.

Y. Religia, Surachman, F. Rohman, and N. K. Indrawati, “The antecendence of e-commerce adoption by micro, small, and medium sized enterprise (MSME) with e-commerce training as moderation,” Solid State Technology, vol. 63, no. 2, pp. 335-346, 2020.

S. Tripopsakul, “Social media adoption as a business platform: an integrated TAM-TOE framework,” vol. 18, no. 2, pp. 350-362, 2018.

R. Bravo, M. G. Segura, O. Temowo, and S. Samaddar, “How does a pandemic disrupt the benefits of ecommerce? a case study of small and medium enterprises in the US,” Journal of Theoretical and Applied Electronic Commerce Research, vol. 17, no. 2, pp. 522–557, 2022.

T. D. L. Hoang, H. K. Nguyen, and N. H. Thu, “Towards an economic recovery after the COVID-19 pandemic: empirical study on electronic commerce adoption of small and medium enterprises in Vietnam,” Management & Marketing, vol. 16, no. 1, pp. 47-68, 2021.

P. A. Pavlou, “Consumer acceptance of electronic commerce: integrating trust and risk with the technology acceptance model,” International Journal of Electronic Commerce, vol. 7, no. 3, pp. 101–134, 2003.

M. Soleimani, “Buyers' trust and mistrust in e-commerce platforms: a synthesizing literature review,” Information Systems and e-Business Management, vol. 20, no. 1, pp. 57–78, 2022.

M. Aref and N. B. AlShahri, “The effect of introjected perceived locus of control and trust on intention to use ecommerce applications,” International Journal of Advanced Computer Systems and Software Engineering, vol. 1, no. 2, pp. 16-21, 2021.

C. Tam, A. Loureiro, and T. Oliveira, “The individual performance outcome behind e-commerce Integrating information systems success and overall trust,” Internet Research, vol. 30, no. 2, pp. 439-462, 2019.

B. Chae, H. R. Yen, and C. Sheu, “Information technology and supply chain collaboration: moderating effects of existing relationships between partners,” IEEE Transactions on Engineering Management, vol. 52, no. 4, pp. 440-448, 2005.

K. Francisco and D. Swanson, “The supply chain has no clothes: technology adoption of blockchain for supply chain transparency,” Logistics vol. 2, no. 2, pp. 1-13, 2018.

M. Aparicio, C. J. Costa, and R. Moises, “Gamification and reputation: key determinants of e-commerce usage and repurchase intention,” Heliyon, vol. 7, no. 1, pp. 1-14, 2021.

G. Saridakis, Y. Lai, A. M. Mohammed, and J. M. Hansen, “Industry characteristics, stages of E-commerce communications, and entrepreneurs and SMEs revenue growth,” Technological Forecasting and Social Change, vol. 128, no. 1, pp. 56–66, 2018.

A. I. Al-Alawi and F. M. Al-Ali, “Factors affecting e-commerce adoption in SMEs in the GCC: An empirical study of Kuwait,” Research Journal of Information Technology, vol. 7, no. 1, pp. 1-21, 2015.

A. T. G. Lian, J. Lily, and C. T. Cheng, “The Study of SMEs' E-Commerce Adoption in Sabah and Sarawak,” International Journal of Academic Research in Business and Social Sciences, vol. 12, no. 7, pp. 314-326, 2022.

D. O. Amofah and J. Chai, “Sustaining consumer e-commerce adoption in Sub-Saharan Africa: do trust and payment method matter?,” Sustainability, vol. 14, no. 14, pp. 1-20, 2022.

S. S. Abed, “Social commerce adoption using TOE framework: An empirical investigation of Saudi Arabian SMEs,” International Journal of Information Management, vol. 53, no. 1, pp. 1-11, 2020.

N. T. Chau and H. Deng, “Critical determinants for mobile commerce adoption in Vietnamese SMEs: a conceptual framework,” Procedia Computer Science, vol. 138, no. 1, pp. 433-440, 2018.

F. D. Davis, “Perceived usefulness, perceived ease of use, and user acceptance of information technology,” MIS Quarterly, vol. 13, no. 3, pp. 319-340, 1986.

A. Khwaji, Y. Alsahafi, and F. K. Hussain, “Conceptual Framework of Blockchain Technology Adoption in Saudi Public Hospitals Using TOE Framework,” in International Conference on Network-Based Information Systems, Kwansei Gakuin University, Japan, 2022, pp. 78–89: Springer, Cham.

P. Chwelos, I. Benbasat, and A. S. Dexter, “Empirical test of an electronic data interchange adoption model,” Information Systems Research, vol. 12, no. 3, pp. 304–321, 2001.

P. Maroufkhani, M. Iranmanesh, and M. Ghobakhloo, “Determinants of big data analytics adoption in small and mediumsized enterprises (SMEs),” Industrial Management & Data Systems, vol. 122, no. 9, pp. 1-24, 2022.

L. Li and X. Wang, “M-Commerce adoption in smes of china: the effect of institutional pressures and the mediating role of top management,” Journal of Electronic Commerce in Organizations, vol. 16, no. 2, pp. 48-63, 2018.

A. Alsaad, R. Mohamad, and N. A. Ismail, “The moderating role of trust in business to business electronic commerce (B2B EC) adoption,”Computers in Human Behavior, vol. 68, no. 1, pp. 157-169, 2017.

Y. W. Sullivana and D. J. Kim, “Assessing the effects of consumers’ product evaluations and trust on repurchase intention in e-commerce environments,” International Journal of Information Management, vol. 39, no. 1, pp. 199-219, 2018.

S. Singh, I. A. Zolkepli, and C. W. Kit, “New wave in mobile commerce adoption via mobile applications in malaysian market: investigating the relationship between consumer acceptance, trust, and self-efficacy,” International Journal of Interactive Mobile Technologies, vol. 12, no. 7, pp. 112–128, 2018.

J. Curran and R. Blackburn, Researching the Small Enterise. London: Sage Publications, 2001.

N. K. Malhotra, Riset Pemasaran Pendekatan Terapan. PT. Indeks Kelompok Gramedia, 2009.

L. Kaufmann and J. Gaeckler, “A Structured Review of Partial Least Squares in Supply Chain Management Research,” Journal of Purchasing & Supply Management, vol. 21, no. 4, pp. 259-272, 2015.

P. Suryono and A. J. Pitoyo, “ Kesesuaian Tingkat Pendidikan dan Jenis Pekerjaan Pekerja di Pulau Jawa: Analisis Data Sakernas Tahun 2010,” Jurnal Bumi Indonesia, vol. 2, no. 1, pp. 59-68, 2013.

B. J. Hartmann, C. Wiertz, and E. J. Arnould, “Exploring consumptive moments of value-creating practice in online community,” Psychology and Marketing, vol. 32, no. 3, pp. 319-340, 2015.

J. F. Hair, G. T. M. Hult, C. M. Ringle, and M. Sarstedt, A primer on partial least squares structural equation modeling (PLS-SEM). Thousand Oaks, California: SAGE Publications, 2021.

T. Oliveira, M. Faria, M. A. Thomas, and A. s. Popoviˇ, “Extending the understanding of mobile banking adoption: WhenUTAUT meets TTF and ITM,” International Journal of Information Management, vol. 34, no. 5, pp. 689-703, 2014.

C. Fornell and D. F. Larcker, “Evaluating Structural Equation Models with Unobservable Variables and Measurement Error,” Journal of Marketing Research, vol. 18, no. 1, pp. 39-50, 1981.

M. S. Azam, “Diffusion of ICT and SME Performance,” in E-Services Adoption: Processes by Firms in Developing Nations, M. Quaddus and A. G. Woodside, Eds., 2015, pp. 7-290.

L. S. Chee, B. A. Suhaimi, and L. R. Quan, “Understanding the Determinants of e-Commerce Adoption: Evidence from Manufacture Sector in West Malaysia,” Indian Journal of Science and Technology, vol. 9, no. 10, pp. 1-8, 2016.

G. Ramadhan, A. Susanto and R. Hesti K., “Analisis Pengaruh Biaya Terhadap Loyalitas Pengguna Mobile Banking Jenius Menggunakan Model Neural Networks,” Applied Information Systems and Management (AISM), vol. 2, no. 2, pp. 61-70, 2019.

S. Hidayatuloh, R. H. Kusumaningtyas and Y. Aziati, “Analisis Pengaruh User Experience Terhadap Kepuasan Pengguna Mobile Application E-Commerce Shopee Menggunakan Model Delone & Mclean, Applied Information Systems and Management (AISM), vol. 2, no. 2, pp. 77-80, 2019.




DOI: https://doi.org/10.15408/aism.v6i1.30954 Abstract - 0 PDF - 0

Refbacks

  • There are currently no refbacks.


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

EDITORIAL ADDRESS:

Department of Information Systems, Faculty of Science and Technology,
Universitas Islam Negeri (UIN) Syarif Hidayatullah Jakarta
Faculty of Science and Technology Building, 3rd Floor, 1st Campus, Universitas Islam Negeri (UIN) Syarif Hidayatullah Jakarta
Jl. Ir. H. Juanda No. 95, Ciputat Timur, Kota Tangerang Selatan, Banten 15412, Indonesia.
Tlp/Fax: +622174019 25/+62217493315.
E-mail: aism.journal@apps.uinjkt.ac.id, Website: https://journal.uinjkt.ac.id/index.php/aism


Creative Commons Licence
Applied Information System and Management (AISM) by the Department of Information Systems, Faculty of Science and Technology, Universitas Islam Negeri (UIN) Syarif Hidayatullah Jakarta, Indonesia is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at https://journal.uinjkt.ac.id/index.php/aism.