Factor Affecting E-Marketplace Adoption on MSMEs in Bandung, Indonesia

Abstract

Despite the COVID-19 pandemic increasing e-marketplace implications for sellers and buyers, only a few MSME players in Pasar Baru Bandung have adopted Etapasbar as their e-marketplace.This study seeks what the most influential factor in adopting an e-marketplace is.This study was a quantitative cross-sectional study with the Technology-Organization-Environment (TOE) model, refined with the Diffusion of Innovations (DOI) model.Technology Context will be IT Infrastructure; Organization Context will be CEO's Innovativeness; Environment Context will be Government Support and Environmental Uncertainty.DOI model consists of Relative Advantage, Compatibility, Complexity, Trialability, and Observability.A self-completion survey was conducted by 300 MSME players in Pasar Baru Bandung and analyzed by LISREL using SEM techniques.This study found that the most influential factors were Relative Advantage, Compatibility, Trialability, Government Support, and Environmental Uncertainty.Complexity, Observability, IT Infrastructure, and CEO's Innovativeness were insignificant in this study.It was because MSME players tend to follow others without knowing the essence of adopting e-marketplace itself.

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