Vital Strengthening of SMES in Tangerang Through E-Commerce Adoption Purposeful

Abstract

In the era of globalization and rapid development of information technology, companies have to adopt the internet-based business. The internal readiness factors of Small-and Medium-Sized Enterprises (SMEs) have a significant influence on the intention of adopting e-business in SMEs. Further, external readiness factors of Small-and Medium-Sized Enterprises (SMEs) also have a significant influence on the intention of adopting e-business in SMEs. The population of the study was SMEs producing textile products, handicrafts, and Moslem clothing in Cipadu Jaya, Larangan, Tangerang. The method of sampling was simple random sampling with 183 SMEs as samples. The study employed Structural Equation Modeling (SEM) with WarpPLS Software 6.0 for data analysis. The findings indicate that the adoption of e-commerce within SMEs was affected by Relative advantage, Compatibility, Cost, Firm size, Organizational readiness, Information intensity and product characteristics, Industry pressure, Government pressure, Consumer readiness, Support from technology vendors, CEO innovativeness, and CEOs involvement.

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