Motivational factors and the impact of e-commerce adoption on business performance: Evidence from traditional drink SMEs in Indonesia

Abstract

This study scrutinizes the motivational factors of e-commerce adoption using the Integrated Model of E-commerce Adoption in SMEs (IMAES) and analyzes its impact on business performance. This is quantitative research. Survey technique used to collect data. The Special Region of Yogyakarta, Indonesia, was chosen purposively as the center of traditional drinks, and 330 SMEs of traditional drinks in all districts/cities were proportionally taken as samples. Structural Equation Modeling was used as the data analysis method with PLS tools. This study shows that buyer, competitor behavior, relative advantage, organizational readiness, perceived ease, benefit observability, compatibility, ICT organizational, and innovativeness level significantly and positively influence e-commerce adoption. Risk perception and complexity have a significant and negative effect on e-commerce adoption. E-commerce adoption has a significant and positive impact on business performance, operational performance, financial performance, and marketing performance. Stakeholder collaboration is required to increase e-commerce adoption.