The relationship between enterprise internationalization and E-business adoption: A perspective of Indonesian SMEs

Panca O. Hadi Putra, Zainal Arifin Hasibuan

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

4 Citations (Scopus)

Abstract

Small and medium enterprises' (SMEs) contribution to the economic growth of a country is widely acknowledged. The shift of consumer's consumption habits from offline to online demands SMEs to adopt e-business. SMEs, on the other hand, despite all the benefits that e-business could offer, have been slow to adopt it. Adding to adoption pressure is the trade liberalization around the world that necessitates some use of e-business to trade internationally. Conducted in the context of an emerging economy, this preliminary study explores the relationship between international orientation of SMEs and e-business adoption. In addition, as implementation cost has been cited to be one of the top barriers of e-business adoption in emerging economies, this study investigates the relationship between financial support received by SMEs and their adoption. A sample of 90 SMEs in manufacturing sector was selected as the unit of our analysis. The resulting analysis reveals that SMEs with international orientation show tendency to adopt e-business whereas those that receive financial support, contrary to much of the existing literature, indicate no inclination to adopt. The result implies that internationalization of SMEs in the emerging economy may have more influence on their readiness to adopt e-business than financial assistance.

Original languageEnglish
Title of host publicationInternational Conference on Information Society, i-Society 2015
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages122-126
Number of pages5
ISBN (Electronic)9781908320483
DOIs
Publication statusPublished - 28 Dec 2015
EventInternational Conference on Information Society, i-Society 2015 - London, United Kingdom
Duration: 9 Nov 201511 Nov 2015

Publication series

NameInternational Conference on Information Society, i-Society 2015

Conference

ConferenceInternational Conference on Information Society, i-Society 2015
Country/TerritoryUnited Kingdom
CityLondon
Period9/11/1511/11/15

Keywords

  • adoption
  • e-business
  • emerging economy
  • internationalization
  • Small and medium enterprises
  • SMEs

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