Unpacking The Dynamics Of MSMES’ Adoption Of Affiliate Marketing: Insights From The AMC Framework And Development Culture

This study explores the dynamics behind the adoption of affiliate marketing strategies by Micro, Small, and Medium Enterprises (MSMEs) within Indonesia's e-commerce ecosystem, particularly on the Shopee platform. Utilizing the Awareness-Motivation-Capability (AMC) framework, the research identifies key factors influencing MSMEs' intentions, including observability, perceived usefulness, relative advantage, and compatibility. The research population consists of MSMEs in Indonesia registered with Shopee. Out of 168 complete questionnaires returned, 155 were deemed suitable for analysis after excluding incomplete responses. Using a quantitative method with a survey approach, data were analyzed using Structural Equation Modelling (SEM). The findings reveal significant positive effects of these factors on adoption intention, while social influence shows no notable impact. Contrary to expectations, development culture does not moderate the relationships between the identified factors and adoption intention. The study emphasizes the importance of measurable outcomes, strategic alignment, and resource compatibility in fostering affiliate marketing adoption. Practical insights for businesses and policymakers are provided, along with recommendations for future research to explore additional moderating variables and expand the analytical framework. The limitations of this study include a focus on industries that may not be fully familiar with affiliate marketing, the use of cross-sectional data which limits generalization and the observation of adoption intention dynamics over time, the reliance on secondary data from specific sources, and the exclusion of other significant variables such as cost structures, social media influence, or regulatory environments. For future research, it is suggested to incorporate longitudinal data, explore other moderating or antecedent variables, and expand the industry and geographical scope for higher external validity.