Comprehensive Framework of E-commerce Adoption in Indonesian SMEs

The use of Internet has been growing rapidly in the last decade. One of the popular uses of Internet is e-commerce which gives changes in the market and forces companies to adapt to survive, including small-medium enterprises (SMEs). As one of developing country, e-commerce adoption among Indonesian SMEs is still low with only 8\% of SMEs has adopted e-commerce. Despite many researches regarding e-commerce adoption, the topic still needs a comprehensive study on internal and external factors affecting e-commerce adoption. This study aims to fill these gaps by developing a comprehensive framework on e-commerce adoption among Indonesian SMEs. The originality of this study resides in managerial demography and company’s knowledge management as additional factors to the model proposed by previous studies. This study concludes four external dimensions and five internal dimensions affecting e-commerce adoption. The external dimensions are institutional environment, economic environment, socio-cultural environment and technology environment. While the internal dimensions consist of managerial demography, company’s size, company’s capabilities, corporate strategy and company’s knowledge management.