Factors Influencing Small Medium Enterprise’s Behavior in Adopting E-fulfillment Services

Abstract

Purpose: Since the SMEs were the key players in these current digital businesses in Indonesia, the purpose of this study is to analyse the benefit in adopting the e-fulfillment services by considering the variable of technology acceptance model that was related with trust. Design/Methodology/Approach: This research was used three exogenous variables, namely: perceived usefulness, perceived ease of use and perceived security and risks-free. In addition, the research considered the adoption in new e-fulfillment services platform as endogenous variable with trust as intervening variable. The data collected from the SME’s who are located in the Jakarta and its surrounding areas and further analyzed statistically using Structural Equation Model approach. Findings: The key finding of this research was trust played a significant role in influencing the customer adoption of the e-fulfillment platform. The research also showed that perceived ease of used was the main factor in creating customer trust. The maximum usage of e-fulfillment services allowed the SME’s to focus more the product development and marketing activities. Research, Practical & Social Implications: SME’s would enjoy strong business competitive positioning if they were able in adopting the e-fulfillment services. Originality/Value: Since the concept of e-fulfillment services were quite new in Indonesia, the study recommends the needs to increase the awareness and knowledge to SME’s by ensuring the benefit of this new platform.

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