Why is technology adoption not optimised? E-commerce business investigation in Java Island

Novi Fitriani, Doddy Setiawan


Technology adoption is essential to increase business competitiveness and performance. Technology can be adopted regarding sales media, payment, and shipping methods. Statistics Indonesia reports that as of June 30, 2021, businesses in Indonesia are still dominated by conventional types of business, only 25.92% of companies are conducting e-commerce activities. However, even businesses already doing e-commerce, they still use simple technology through instant messaging and social media. Technologies with more relevant features to sales, such as marketplaces and websites, are not used optimally. The low technology adoption  can also be seen from the payment method, which is still dominated by cash at 77%, and the delivery method by face-to-face at 85%. Therefore, this research investigates why e-commerce businesses in Java have not been optimal in adopting technology. This study uses raw data from the 2021 e-commerce survey conducted by Statistics Indonesia. The population in this study is all e-commerce businesses on the island of Java, totaling 1,774,589 units, with a sample of 5,543 units. The results of this study indicate that the variables of education, training, age, gender, capital, and labor issues tend to be related to technology adoption. The variable delivery service limitations tend not to be related to technology adoption.

JEL Classification D31; P42; P46


e-commerce business; payment method; sales media; shipping method; technology adoption;

Article Metrics

Abstract view : 54 times
PDF view : 43 times

Full Text:



Alfian, R. (2022). Bonus Demografi Dorong Akselerasi Ekonomi Digital. Retrieved from https://validnews.id/ekonomi/bonus-demografi-dorong-akselerasi-ekonomi-digital

Alturki, U., & Aldraiweesh, A. (2021). Application of Learning Management System (LMS) during the COVID-19 Pandemic: A sustainable acceptance model of the expansion technology approach. Sustainability, 13(19), 10991. https://doi.org/10.3390/su131910991

Appel, G., Grewal, L., Hadi, R., & Stephen, A. T. (2020). The future of social media in marketing. Journal of the Academy of Marketing Science, 48(1), 79–95. https://doi.org/10.1007/s11747-019-00695-1

Belletier, C., Robert, A., Moták, L., & Izaute, M. (2018). Toward explicit measures of intention to predict information system use: An exploratory study of the role of implicit attitudes. Computers in Human Behavior, 86, 61–68. https://doi.org/10.1016/j.chb.2018.04.029

BPS. (2021). Statistik E-Commerce 2021. BPS Pusat, Jakarta

Caballero-Morales, S. O. (2021). Innovation as recovery strategy for SMEs in emerging economies during the COVID-19 pandemic. Research in International Business and Finance, 57. https://doi.org/10.1016/j.ribaf.2021.101396

Caffaro, F., Micheletti Cremasco, M., Roccato, M., & Cavallo, E. (2020). Drivers of farmers’ intention to adopt technological innovations in Italy: The role of information sources, perceived usefulness, and perceived ease of use. Journal of Rural Studies, 76, 264–271. https://doi.org/10.1016/j.jrurstud.2020.04.028

Castillo, C., Viu-Roig, M., & Alvarez-Palau, E. J. (2022). COVID-19 lockdown as an opportunity to rethink urban freight distribution: Lessons from the Barcelona metropolitan area. Transportation Research Interdisciplinary Perspectives, 14(April), 100605. https://doi.org/10.1016/j.trip.2022.100605

Costa, J., & Castro, R. (2021). Smes must go online—e-commerce as an escape hatch for resilience and survivability. Journal of Theoretical and Applied Electronic Commerce Research, 16(7), 3043–3062. https://doi.org/10.3390/jtaer16070166

Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, 13(3), 319. https://doi.org/10.2307/249008

Deng, R.-X., Zhu, X.-L., Zhang, A.-B., He, Y., Fu, H.-X., Wang, F.-R., Mo, X.-D., Wang, Y., Zhao, X.-Y., Zhang, Y.-Y., Han, W., Chen, H., Chen, Y., Yan, C.-H., Wang, J.-Z., Han, T.-T., Chen, Y.-H., Chang, Y.-J., Xu, L.-P., … Zhang, X.-H. (2022). Machine learning algorithm as a prognostic tool for venous thromboembolism in allogeneic transplant patients. Transplantation and Cellular Therapy. 29(1), 57.e1-57.e10 https://doi.org/10.1016/j.jtct.2022.10.007

Doanh, N. K., Do Dinh, L., & Quynh, N. N. (2022). Tea farmers’ intention to participate in Livestream sales in Vietnam: The combination of the Technology Acceptance Model (TAM) and barrier factors. Journal of Rural Studies, 94, 408–417. https://doi.org/10.1016/j.jrurstud.2022.05.023

Fraccastoro, S., Gabrielsson, M., & Pullins, E. B. (2021). The integrated use of social media, digital, and traditional communication tools in the B2B sales process of international SMEs. International Business Review, 30(4), 101776. https://doi.org/10.1016/j.ibusrev.2020.101776

Ha, V. D. (2020). Enhancing the e-commerce application in SMEs. Management Science Letters, 2821–2828. https://doi.org/10.5267/j.msl.2020.4.027

Higueras-Castillo, E., Liébana-Cabanillas, F. J., & Villarejo-Ramos, Á. F. (2023). Intention to use e-commerce vs physical shopping. Difference between consumers in the post-COVID era. Journal of Business Research, 157. https://doi.org/10.1016/j.jbusres.2022.113622

Jim, E., & Esteban, V. (2022). Influence of computer knowledge and level of education on Spanish citizens’ propensity to use e-commerce. 40(6), 1376–1392. https://doi.org/10.1177/08944393211007313

Jiménez-Rodríguez, E., Vázquez-Cano, E., Cebrián-Hernández, Á., & López-Meneses, E. (2022). Influence of computer knowledge and level of education on Spanish Citizens’ Propensity to Use E-Commerce. Social Science Computer Review, 40(6), 1376–1392. https://doi.org/10.1177/08944393211007313

Kawasaki, T., Wakashima, H., & Shibasaki, R. (2022). The use of e-commerce and the COVID-19 outbreak: A panel data analysis in Japan. Transport Policy, 115, 88–100. https://doi.org/10.1016/j.tranpol.2021.10.023

Khurana, I., Dutta, D. K., & Singh Ghura, A. (2022). SMEs and digital transformation during a crisis: The emergence of resilience as a second-order dynamic capability in an entrepreneurial ecosystem. Journal of Business Research, 150, 623–641. https://doi.org/10.1016/j.jbusres.2022.06.048

Kominfo. (2022). Skor Indeks Masyarakat Digital 37,8 dari 100: Literasi Digital RI Masih Rendah Retrieved from https://kumparan.com/kumparantech/skor-indeks-masyarakat-digital-37-8-dari-100-literasi-digital-ri-masih-rendah-1zTXxrvrAHO/4

Kumar, B., & Roy, S. (2021). An Empirical Study on Usability and Security of E-Commerce Websites (pp. 735–746). https://doi.org/10.1007/978-981-15-7527-3_69

Kurnia, S., Choudrie, J., Mahbubur, R. M., & Alzougool, B. (2015a). E-commerce technology adoption: A Malaysian grocery SME retail sector study. Journal of Business Research, 68(9), 1906–1918. https://doi.org/10.1016/j.jbusres.2014.12.010

Liébana-Cabanillas, F., Singh, N., Kalinic, Z., & Carvajal-Trujillo, E. (2021). Examining the determinants of continuance intention to use and the moderating effect of the gender and age of users of NFC mobile payments: a multi-analytical approach. Information Technology and Management, 22(2), 133–161. https://doi.org/10.1007/s10799-021-00328-6

Marcucci, E., Gatta, V., le Pira, M., Chao, T., & Li, S. (2021). Bricks or clicks? Consumer channel choice and its transport and environmental implications for the grocery market in Norway. Cities, 110, 103046. https://doi.org/10.1016/j.cities.2020.103046

Nicewicz, R., & Bilska, B. (2021). Analysis of changes in shopping habits and causes of food waste among consumers before and during the COVID-19 pandemic in Poland. Environmental Protection and Natural Resources, 32(3), 8–19. https://doi.org/10.2478/oszn-2021-0010

OECD. (2013). OECD Glossary of Statistical Terms - Electronic commerce Definition. Retrieved from https://stats.oecd.org/glossary/detail.asp?ID=4721

OECD. (2019). Unpacking E-commerce. OECD. https://doi.org/10.1787/23561431-en

Ong, C.-S., & Lai, J.-Y. (2006). Gender differences in perceptions and relationships among dominants of e-learning acceptance. Computers in Human Behavior, 22(5), 816–829. https://doi.org/10.1016/j.chb.2004.03.006

Rodriguez, Michael, Peterson, R. M., & Krishnan, V. (2012). Social Media’s Influence on Business-to-Business Sales Performance. Journal of Personal Selling & Sales Management, 32(3), 365–378. https://doi.org/10.2753/PSS0885-3134320306

Roy, R., Lampert, C. M., & Stoyneva, I. (2018). When dinosaurs fly: The role of firm capabilities in the ‘avianization’ of incumbents during disruptive technological change. Strategic Entrepreneurship Journal, 12(2), 261–284. https://doi.org/10.1002/sej.1278

Saridakis, G., Idris, B., Hansen, J. M., & Dana, L. P. (2019). SMEs’ internationalisation: When does innovation matter? Journal of Business Research, 96, 250–263. https://doi.org/10.1016/j.jbusres.2018.11.001

Selvi Dass, M., & Gapar Md Johar, M. (2022). Leveraging the use of online marketplace for SMEs in Malaysia: A review. Journal of Management & Science, 20(1), 11. https://doi.org/10.57002/jms.v20i1.212

Sharma, A., Sharma, S., & Chaudhary, M. (2020). Are small travel agencies ready for digital marketing? Views of travel agency managers. Tourism Management, 79. https://doi.org/10.1016/j.tourman.2020.104078

Skare, M., de las Mercedes de Obesso, M., & Ribeiro-Navarrete, S. (2023). Digital transformation and European small and medium enterprises (SMEs): A comparative study using digital economy and society index data. International Journal of Information Management, 68. https://doi.org/10.1016/j.ijinfomgt.2022.102594

Stuebs, M., Bryant, S. M., Edison, C., & Stanley, C. (2022). Brittney’s boutique: Tailoring financial statements for function as well as fashion. Journal of Accounting Education, 58, 100768. https://doi.org/10.1016/j.jaccedu.2022.100768

Susanty, A., Handoko, A., & Puspitasari, N. B. (2020). Push-pull-mooring framework for e-commerce adoption in small and medium enterprises. Journal of Enterprise Information Management, 33(2), 381–406. https://doi.org/10.1108/JEIM-08-2019-0227

Tan, Y., & Li, X. (2022). The impact of internet on entrepreneurship. International Review of Economics and Finance, 77, 135–142. https://doi.org/10.1016/j.iref.2021.09.016

Trinugroho, I., Pamungkas, P., Wiwoho, J., Damayanti, S. M., & Pramono, T. (2022). Adoption of digital technologies for micro and small business in Indonesia. Finance Research Letters, 45. https://doi.org/10.1016/j.frl.2021.102156

Tut, D. (2023). FinTech and the COVID-19 pandemic: Evidence from electronic payment systems. Emerging Markets Review, 54, 100999. https://doi.org/10.1016/j.ememar.2023.100999

Ünver, Ş., & Alkan, Ö. (2022). Examining the Factors Affecting the Problem of Experiencing Difficulties while Online Shopping in Turkey with Categorical Data Analysis. Toros Üniversitesi İİSBF Sosyal Bilimler Dergisi. https://doi.org/10.54709/iisbf.1152952

Venkatesh, V., & Morris, M. G. (2000). Why don’t men ever stop to ask for directions? gender, social influence, and their role in technology acceptance and usage behavior. MIS Quarterly, 24(1), 115. https://doi.org/10.2307/3250981

Wang, X. (Cara), Kim, W., Holguín-Veras, J., & Schmid, J. (2021). Adoption of delivery services in light of the COVID pandemic: Who and how long? Transportation Research Part A: Policy and Practice, 154, 270–286. https://doi.org/10.1016/j.tra.2021.10.012

Wirdiyanti, R., Yusgiantoro, I., Sugiarto, A., Harjanti, A. D., Mambea, I. Y., Soekarno, S., & Damayanti, S. M. (2022). How does e-commerce adoption impact micro, small, and medium enterprises’ performance and financial inclusion? Evidence from Indonesia. Electronic Commerce Research. https://doi.org/10.1007/s10660-022-09547-7

Wu, R., & Qiu, C. (2023). When Karma strikes back: A model of seller manipulation of consumer reviews in an online marketplace. Journal of Business Research, 155, 113316. https://doi.org/10.1016/j.jbusres.2022.113316

Xie, X., & Zhu, X. (2022). FinTech and capital allocation efficiency: Another equity-efficiency dilemma? Global Finance Journal, 53(May), 100741. https://doi.org/10.1016/j.gfj.2022.100741

Zulfikar, F. (2023). 10 Negara dengan Pengguna Internet Tertinggi di Dunia, Indonesia Nomor Berapa? https://www.detik.com/edu/detikpedia/d-6502474/10-negara-dengan-pengguna-internet-tertinggi-di-dunia-indonesia-nomor-berapa


  • There are currently no refbacks.