Article Sidebar

Submitted
March 9, 2020
Accepted
March 27, 2020
Published
December 31, 2019
Download
PDF
Statistic
Read Counter : 1386 Download : 1174

Main Article Content

Abstract

This study aims to examine the development of Indonesian micro and small enterprises in the manufacturing industry (called micro and small industries/MSIs) in utilizing the internet for their businesses. By nature, this is a descriptive study, which analyses secondary data. It also reviews key literature on the use of ICT by micro, small, and medium enterprises (MSMEs) in developing countries. It shows that MSMEs, dominated by micro and small enterprises (MSEs), has been the leading player in Indonesian domestic economic activities as they accounted for more than 90 percent of all firms and contributed to more than 50 percent of gross domestic product (GDP). But, only a small fraction of these enterprises in Indonesia that utilize the internet for business, and the intensity of internet usage varies by province and type of business. This is the first macro-level study
ever conducted in Indonesia on the use of the internet by MSEs across sectors based on national data from the 2016 Economic Census conducted and data on the 2016 survey on MSEs in the manufacturing industry (MSIs). Thus, the findings of this study may add new empirical evidence to the literature on the utilization of ICT by MSMEs in developing countries.

Keywords

MSMEs MSEs MSIs information and communication technology (ICT) ecommerce

Article Details

How to Cite
Tambunan, T. T. H. (2019). Micro and Small Industries and the Use of Internet: Findings from Indonesian. Jurnal Ekonomi Indonesia, 8(2), 203–224. https://doi.org/10.52813/jei.v8i2.20
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Ahmad, S. Z., Bakar, A. R. A., Faziharudean, T. M., & Zaki, K. A. M. (2015). An Empirical Study of Factors Affecting e-Commerce Adoption among Small- and Medium-Sized Enterprises in a Developing Country: Evidence from Malaysia. Information Technology for Development, 21(4), 555-572. doi: https://doi.org/10.1080/02681102.2014.899961.
  2. Akkeren, J., & Cavaye, A. (1999). Factors affecting the adoption of e-commerce technologies by small business in Australia – an empirical study. Paper presented at the 10th Australasian Conference on Information Systems, 1-3 December, Wellington.
  3. Azam, M. S., & Quadddus, M. (2009a, January). Adoption of b2b e-commerce by the SMEs in Bangladesh: an empirical analysis. In Proceedings of Asian Business Research Conference, 11-12 April, Dhaka.
  4. Azam, M. S., & Quadddus, M. (2009b). Adoption of e-commerce by the SMEs in Bangladesh: the effects of innovation characteristics and perceived risk. Paper presented at the Australian and New Zealand Marketing Academy Conference, 30 November-2 December 2009, Melbourne, Victoria.
  5. Bakos, Y., & Brynjolfsson, E. (2000). Bundling and competition on the internet. Marketing Science, 19(1), 63-82. doi: https://doi.org/10.1287/mksc.19.1.63.15182.
  6. Barry, H., & Milner, B. (2002). SMEs and electronic commerce: a departure from the traditional prioritisation of training?. Journal of European Industrial Training, 25(7),316-326. doi: https://doi.org/10.1108/03090590210432660.
  7. BI & LPPI (2015). Profil bisnis Usaha Mikro, Kecil dan Menengah (UMKM). Jakarta: Kerjasama LPPI dengan Bank Indonesia. https://www.bi.go.id/id/umkm/penelitian/nasional/kajian/Documents/Profil%20Bisnis%20UMKM.pdf.
  8. Blackburn, R., & Athayde, R. (2000). Making the connection: the effectiveness of Internet training in small businesses. Education + Training, 42(4/5), 289-299. doi: https://doi.org/10.1108/00400910010373723.
  9. BPS. (2017a). Analisis Hasil Listing Sensus Ekonomi 2016 - Analisis Ketenagakerjaan Usaha Mikro Kecil. Jakarta: Badan Pusat Statistik.
  10. BPS. (2017b). Profil Industri Mikro dan Kecil 2017. Jakarta: Badan Pusat Statistik.
  11. Chen, S. (2004). Adoption of electronic commerce by SMEs of Taiwan. Electronic Commerce Studies, 2(1), 19-34.
  12. Chong, S., & Pervan, G. (2007). Factors influencing the extent of deployment of electronic commerce for small-and medium sized enterprises. Journal of Electronic Commerce in Organizations, 5(1), 1-29. doi: 10.4018/jeco.2007010101.
  13. Crawford, J. (1998). Networked enterprise web strategy: a project to get smaller enterprises on-line. National Office for the Information Economy (NOIE), Canberra. https://www.finance.gov.au/agimo-archive/publications noie/1998.html (accessed 10 January 2017).
  14. Daniel, E. M., & Grimshaw, D. J. (2002). An exploratory comparison of electronic commerce adoption in large and small enterprises. Journal of Information Technology, 17(3), 133-147. doi: https://doi.org/10.1080%2F0268396022000018409.
  15. Daniel, E., Wilson, H., & Myers, A. (2002). Adoption of e-commerce by SMEs in the UK: towards a stage model. International Small Business Journal, 20(3), 253-270. doi: https://doi.org/10.1177%2F0266242602203002.
  16. Doherty, N., Hughes, F., & Ellis-Chadwick, F. (2001). An investigation into the factors affecting the level of e-commerce uptake amongst SMEs. In M. Roberts, M. Moulton, S. Hand, & C. Adams (eds.), Sixth Annual Conference of UKAIS, Portsmouth, April (ZeusPress, Manchester) (pp. 251-257).
  17. Doolin, B., McLeod, L., McQueen, B., & Watton, M. (2003). Internet strategies for established retailers: Four New Zealand case studies. Journal of Information Technology Case and Application Research, 5(4), 3-20. doi: https://doi.org/10.1080/15228053.2003.10856030.
  18. Fallon, M., & Moran, P. (2000, April). Information communication technology (ICT) and manufacturing SMEs. In Proceedings of the 2000 Small Business and Enterprise Development Conference (pp. 100-109), 10-11 April, University of Manchester, Manchester.
  19. Grandon, E. E., & Pearson, J. M. (2004). Electronic commerce adoption: an empirical study of small and medium US businesses. Information & management, 42(1), 197-216. doi: https://doi.org/10.1016/j.im.2003.12.010.
  20. Hunaiti, Z., Masa’deh R. (M. T.), Mansour, M., & Al-Nawafleh, A. (2009). Electronic commerce adoption barriers in small and medium-sized enterprises (SMEs) in developing countries: the case of Libya. IBIMA Business Review, 2, 37-45.
  21. Jon, K., Lai, T. L., Hui, C. K., Dennis, N. C. H., & Meng, T. S. (2001, January). Electronic commerce adoption by SMEs in Singapore. In Proceedings of the 34th Annual Hawaii International Conference on System Sciences, January 3-6, Maui, Hawaii.
  22. Jones, P., Packham, G., Beynon-Davies, P., & Pickernell, D. (2011). False promises: e-business deployment in Wales’ SME community. Journal of Systems and Information Technology, 13(2), 163-178. doi: https://doi.org/10.1108/13287261111135990.
  23. Julianto, P. A. (2016, 17 June). Pemerintah Targetkan 44 Juta UMKM Pasarkan Produk Lewat Internet. Kompas.com https://money.kompas.com/read/2016/06/17/151845426/pemerintah.targetkan.44.juta.umkm.pasarkan.produk.lewat.internet (accessed 24 November 2017).
  24. Karakaya, F., & Shea, T. (2008). Underlying motivations for establishing e-commerce business and their relationship to e-commerce success. Journal of Internet Commerce, 7(2), 153-179. doi: https://doi.org/10.1080/15332860802067649.
  25. Kaynak, E., Tatoglu, E., & Kula, V. (2005). An analysis of the factors affecting the adoption of electronic commerce by SMEs. International Marketing Review, 22(6), 623-640. doi: https://doi.org/10.1108/02651330510630258.
  26. Kompas. (2018, 9 July). Kredit murah belum optimal. Kompas.id. https://kompas.id/baca/ekonomi/2018/07/09/kredit-murah-belum-optimal/.
  27. Lai, I. K. W. (2007). The strategic changes by adopting internet-based interorganizational systems. Management Research News, 30(7), 495-509. doi: https://doi.org/10.1108/01409170710759711.
  28. Matlay, H. (2000). Training in the small business sector of the British economy. In S. Carter & D. Jones (eds.), Enterprise and Small Business: Principles, Policy and Practice, Addison Wesley Longman, London.
  29. Mehrtens, J., Cragg, P. B., & Mills, A. M. (2001). A model of Internet adoption by SMEs. Information & Management, 39(3), 165-176. doi: https://doi.org/10.1016/S0378-7206(01)00086-6.
  30. Migiro, S. O. (2006). Diffusion of ICTs and E-commerce adoption in manufacturing SMEs in Kenya. South African Journal of Libraries and Information Science, 72(1), 35-44.
  31. Miller, N. J., & Besser, T. L. (2000). The importance of community values in small business strategy formation: Evidence from rural Iowa. Journal of Small Business Management, 38(1), 68-85.
  32. Neale, L., Murphy, J., & Scharl, A. (2006). Comparing the diffusion of online service recovery in small and large organizations. Journal of Marketing Communications, 12(3), 165-181. doi: https://doi.org/10.1080/13527260600719790.
  33. Nejadirani, F., Behravesh, M., & Rasouli, R. (2011). Developing countries and electronic commerce the case of SMEs. World Applied Sciences Journal, 15(5), 756-764.
  34. Poon, S., & Swatman, P. (1995, June). The Internet for small businesses: an enabling infrastructure for competitiveness. In K. Chon (ed.), Proceedings of the Fifth Internet Society Conference (pp. 221-231). Hawaii, USA.
  35. Poon, S., & Swatman, P. M. C. (1997). Small business use of the Internet: Findings from Australian case studies. International Marketing Review, 14(5), 385-402. doi: https://doi.org/10.1108/02651339710184343.
  36. Poorangi, M. M., & Khin, E. W. S. (2013). Strategic alliance of Malaysian SMEs to compete globally: endogenous and exogenous perspectives. Actual Problem of Economics, 3(141), 407-414.
  37. Poorangi, M. M., Khin, E.W., Nikoonejad, S., & Kardevani, A. (2013). E-commerce adoption in Malaysian Small and Medium Enterprises Practitioner Firms: A revisit on Rogers’ model. Anais da Academia Brasileira de Ciˆencias, 85(4), 1593-1604. doi: https://doi.org/10.1590/0001-37652013103512.
  38. Rahayu, R., & Day, J. (2015). Determinant factors of e-commerce adoption by SMEs in developing country: evidence from Indonesia. Procedia-Social and Behavioral Sciences, 195, 142-150. doi: https://doi.org/10.1016/j.sbspro.2015.06.423.
  39. Raymond, L. (2001). Determinants of web site implementation in small businesses. Internet Research, 11(5), 411-424. doi: https://doi.org/10.1108/10662240110410363.
  40. Riquelme, H. (2002). Commercial Internet adoption in China: Comparing the experience of small, medium and large businesses. Internet Research, 12(3), 276-286. doi: https://doi.org/10.1108/10662240210430946.
  41. Saffu, K., Walker, J. H., & Hinson, R. (2008). Strategic value and electronic commerce adoption among small and medium-sized enterprises in a transitional economy. Journal of Business & Industrial Marketing, 23(6): 395-404. doi: https://doi.org/10.1108/08858620810894445.
  42. Savrul, M., Incekara, A., & Sener, S. (2014). The potential of e-commerce for SMEs in a globalizing business environment. Procedia-Social and Behavioral Sciences, 150, 35-45. doi: https://doi.org/10.1016/j.sbspro.2014.09.005.
  43. Sawhney, M., & Zabin, J. (2002). Managing and measuring relational equity in the network economy. Journal of the Academy of Marketing Science, 30(4), 313-332. doi: https://doi.org/10.1177%2F009207002236908.
  44. Seyal, A. H. (2003). An Investigation of E-Commerce Adoption in Micro Business Enterprises: Bruneian Evidence. In Proceedings of 4th International Conference on Working with e-Business (We-B 03), Perth, Western Australia, 24-25 November.
  45. Shih, H. Y. (2008). Contagion effects of electronic commerce diffusion: Perspective from network analysis of industrial structure. Technological Forecasting and Social Change, 75(1), 78-90. doi: https://doi.org/10.1016/j.techfore.2006.10.002.
  46. Standing, S., Standing, C., & Love, P. E. (2010). A review of research on e-marketplaces 1997–2008. Decision Support Systems, 49(1), 41-51. doi: https://doi.org/10.1016/j.dss.2009.12.008.
  47. Street, C. T., & Meister, D. B. (2004). Small business growth and internal transparency: The role of information systems. MIS Quarterly, 28(3), 473-506. doi: 10.2307/25148647.
  48. Tambunan, T. (2017). Usaha mikro, kecil dan menengah. Jakarta: Ghalia Indonesia.
  49. Tetteh, E., & Burn, J. (2001). Global strategies for SMe-business: applying the SMALL framework. Logistics Information Management, 14(1/2), 171-180. doi: https://doi.org/10.1108/09576050110363202.
  50. Yuhua, B. Z. (2013, 3 December ). SMEs in the APEC Region. APEC Policy Brief, 8. APEC Secretariat, APEC Policy Support Unit. http://publications.apec.org/Publications/2013/12/SMEs-in-the-APEC-Region.
  51. Zaied, A. N. H. (2012). Barriers to e-commerce adoption in Egyptian SMEs. International Journal of Information Engineering and Electronic Business, 4(3), 9-18. doi: 10.5815/ijieeb.2012.03.02.

Similar Articles

1 2 > >> 

You may also start an advanced similarity search for this article.