Benefits, barriers, and levels of e-commerce adoption: study of traditional beverage SMEs

Purpose. This study analyses the perceived benefits and barriers of e-commerce use by traditional micro, small, and medium beverage enterprises (SMEs). The research also identifies the level of e-commerce adoption by SMEs and further analyses the effect of benefits and barriers on e-commerce adoption levels in traditional beverage SMEs. Methodology / approach. This is quantitative research. This study examines the influence of benefits and barriers on the level of e-commerce adoption using statistical procedures. The object of the study is traditional beverage SMEs in Yogyakarta Province, Indonesia. The research samples are 330 traditional beverage SMEs that have used e-commerce for at least a year. Samples are taken proportionally in five regencies and cities in Yogyakarta. Data collection using survey technique through interviews with SMEs. The indicators are measured using five Likert scales from strongly disagree to strongly agree. Analysis of perceived benefits and barriers of e-commerce use is carried out descriptively. The adoption level is measured by reference to the 6 levels of e-commerce. Analysis of the effect of benefits and barriers on the level of e-commerce adoption is carried out using multiple linear regression tests. Results. The results show that the benefits are highly perceived by SMEs: e-commerce facilitates interaction with consumers, facilitates data access, improves customer services, and eases online product distribution. Moderate barriers include limited mastery of knowledge and skills about e-commerce, inadequate mastery of foreign language skills, and SMEs’ tendency to depend on conventional marketing. The most e-commerce adoption level is level 4 (electronic transactions), followed by level 6 (site optimisation) and level 5 (relationship building). The study also confirms that benefits and barriers significantly affect e-commerce adoption levels. Originality / scientific novelty. This research was conducted based on the perceived benefits and barriers of e-commerce use by traditional beverage SMEs, which had never been carried out in the study area. This study reveals the fact of positive transition and expectations for increasing the level of e-commerce adoption at the SME level whereas previous studies show rather the opposite conditions. The study categorised e-commerce adoption levels into three categories (low, moderate, and high) based on the 6 stages model of e-commerce adoption. Practical value / implications. Efforts to provide solutions are necessary to encourage the level of e-commerce adoption through intensive socialsation, motivation, training, and mentoring to improve knowledge and skills on e-commerce and foreign language skills as well as encourage e-commerce to become a daily culture for SMEs.