Entrepreneurial Development in the Indonesian Economy
Spatial Heterogeneity Analysis of E-Commerce Implementation Determinants by MSMEs During the COVID-19 Pandemic
DOI:
https://doi.org/10.25120/jre.2.1.2022.3911Keywords:
e-commerce, Entrepreneur, MSME, Spatial Analysis, GWR, COVID-19, IndonesiaAbstract
Information and Communication Technology (ICT) cannot be separated from society during the current COVID-19 pandemic. Whole activities are forced to distance themselves, so they have to rely on the existence of the internet, including economic activities through e-commerce. In Indonesia, many internet users become an opportunity for small entrepreneurs, namely Micro, Small, and Medium Enterprises (MSME), to implement e-commerce. ICT development in Indonesia also still shows inequality, especially between Indonesia's West and East Region. This condition indicates the diversity of characteristics in each region to the level of e-commerce application. This study aims to identify local spatial effects and factors that influence the percentage of MSMEs implementing e-commerce in each province in Indonesia in 2020 using Geographically Weighted Regression (GWR). The result shows spatial heterogeneity in the model of MSMEs implementing e-commerce percentage. Six regional groups have similar characteristics based on independent variables that significantly affect the MSMEs implementing e-commerce percentage. In most WRI and ERI areas, the MSMEs implementing e-commerce percentage is significantly influenced by the percentage of households that make purchases via the internet. GER of tertiary education growth has a significant effect on whole of the WRI areas. In contrast, the number of confirmed cases of COVID-19 has a significant effect on most of the ERI areas. Hence, the government needs to pay attention to characteristics of each region for encouraging the development of e-commerce for MSME players in Indonesia, especially after the COVID-19 pandemic.
References
Abrar, M. (2019). Spatial Inequality and The Internet, E-Commerce and E-Banking Gap in 2017. In Seminar Nasional Official Statistics, 2019(1). 460-465. DOI: https://doi.org/10.34123/semnasoffstat.v2019i1.262
Araujo, O. J. (2021). Optimalisasi Usaha Mikro Kecil dan Menengah (UMKM) dalam Upaya Pemulihan Ekonomi Masyarakat Akibat Dampak Pandemi Covid-19 di Kota Kupang Provinsi Nusa Tenggara Timur. (Doctoral Dissertation, IPDN Jatinangor).
Avriyanti, S. (2020). The Role of E-Commerce to Increase Competitive Advantage in the Industrial Era 4.0 (Study on SMEs Registered at the Cooperatives, Small and Medium Enterprises Office of Tabalong Regency). Jurnal PubBis, 4(1), 83-99.
Awais, M., & Samin, T. (2012). Advanced SWOT Analysis of E-Commerce. International Journal of Computer Science Issues (IJCSI), 9(2), 569.
Badan Pusat Statistik (BPS - Statistics Indonesia). (2021). Profil Perdagangan Indonesia. Jakarta: Badan Pusat Statistik.
Burke, R. R. (1997). Do You See What I See? The Future of Virtual Shopping. Journal of the Academy of Marketing Science, 25(4), 352-360. DOI: https://doi.org/10.1177/0092070397254007
Caraka, R. E., & Yasin, H. (2017). Geographically Weigthed Regression (GWR): Sebuah Pendekatan Regresi Geografis. Yogyakarta: Mobius.
Chen, Q., & Zhang, N. (2015). Does E-Commerce Provide a Sustained Competitive Advantage? An Investigation of Survival and Sustainability in Growth-Oriented Enterprises. Sustainability, 7. 1411-1428. DOI: https://doi.org/10.3390/su7021411
Choshin, M., & Ghaffari, A. (2017). An Investigation of The Impact of Effective Factors on The Success of E-Commerce in Small and Medium-Sized Companies. Computers in Human Behavior, 66. 67-74. DOI: https://doi.org/10.1016/j.chb.2016.09.026
Fotheringham, A. S., Brunsdon, C., & Charlton, M. (2002). Geographically Weigthed Regression (GWR): The Analysis of Spatially Varying Relationships. West Sussex: John Wiley & Sons Ltd.
Fuady, A. H. (2019). Digital Technology and Economic Inequality in Indonesia. Masyarakat Indonesia, 44(1), 75-88.
Gao, X., Shi, X., Guo, H., & Liu, Y. (2020). To Buy or Not Buy Food Online: The Impact of The COVID-19 Epidemic on The Adoption of E-Commerce in China. PLoS ONE, 15(8). DOI: https://doi.org/10.1371/journal.pone.0237900
Ghobakhloo, M., & Tang, S. H. (2013). The Role of Owner/Manager in Adoption of Electronic Commerce in Small Businesses: The Case of Developing Countries. Journal of Small Business and Enterprise Development, 20(4), 754-787. DOI: https://doi.org/10.1108/JSBED-12-2011-0037
Gupta, A. (2014). E-Commerce: Role of E-Commerce in Today’s Business. International Journal of Computing and Corporate Research, 4(1), 1-8.
Hamad, H., Elbeltagi, I., & El‐Gohary, H. (2018). An Empirical Investigation of Business‐To‐Business E‐Commerce Adoption and Its Impact on SMEs Competitive Advantage: The Case of Egyptian Manufacturing SMEs. Strategic Change, 27(3), 209-229. DOI: https://doi.org/10.1002/jsc.2196
Hammond, Ray. (1996). Digital Business: Surviving and Thriving in an On-line World. London: Hodder and Stoughton.
Hastuti, H., Hasnidar, H., & Bustang, B. (2021). Obstacles and Strategies for The Sustainability of Indonesian Small and Medium Enterprises During Covid-19 Pandemic: A Study Case at Reban Lestari Farm Kolaka Sulawesi Tenggara. Livestock and Animal Research, 19(3), 255-264. DOI: https://doi.org/10.20961/lar.v19i3.52162
Helaluddin. (2019). Improving Technological Literacy Capability in Efforts to Develop Educational Innovation in Higher Education. PENDAIS, 1(1). 44-55.
Indarthi, A. W., Sunarsih, A., Purwandari, T. A., & Ayu, P. P. (2021). Peranan E-Commerce di Berbagai Kalangan di Indonesia dalam Berbagai Bidang Perekonomian Akibat dari Dampak Pandemi COVID-19. Journal of Education and Technology, 1(1), 6-11.
Kurniasih, D., & Akbar, F. M. (2021). E-Commerce Pandemic Covid-19 Home Industries and SMEs. International Journal of Research and Applied Technology (INJURATECH), 1(1), 70-75. DOI: https://doi.org/10.34010/injuratech.v1i1.5640
Leonowicz, A. (2006). Two-Variable Choropleth Maps as a Useful Tool for Visualization of Geographical Relationship. Geografija, 42, 33-37.
Lestari, D., Siti, M., Wardhani, W., & Yudaruddin, R. (2021). The Impact of COVID-19 Pandemic on Performance of Small Enterprises That are E-Commerce Adopters and Non-Adopters. Problems and Perspectives in Management, 19(3), 467. DOI: https://doi.org/10.21511/ppm.19(3).2021.38
Marchidita, R., Nurabiah, & Hilendri L., B. A. (2017). Performance Rating Analysis with the Perspective of Balanced Determinants Business to Consumer (B2C) E-commerce in Mataram City. Jurnal Riset Akuntansi Aksioma, 16(2), 15-34. DOI: https://doi.org/10.29303/aksioma.v16i2.16
Mennis, J. (2006). Mapping The Results of Geographically Weighted Regression. The Cartographic Journal, 43(2), 171-179. DOI: https://doi.org/10.1179/000870406X114658
Muslim, A. (2020). The Spillover Effect of Economic Growth and E-Commerce: Spatial Patterns of Economic Development in Sumatra. ResearchGate Article.
Nemat, R. (2011). Taking a Look at Different Types of E-Commerce. World Applied Programming, 1(2), 100-104.
Pasaribu, E., Irawan, P. B., Siagian, T. H., Wulansari, I. Y., & Kurniawan, R. (2021). Spillover Effects of Social and Economic Interactions on COVID-19 Pandemic Vulnerability Across Indonesia’s Regions. ERIA Discussion Paper. DP-2021-42. 1-43.
Rahayu, R., & Day, J. (2015). Determinant Factors of E-Commerce Adoption by SMEs in Developing Country: Evidence from Indonesia. Procedia – Social and Behavioral Sciences, 195. 142-150. DOI: https://doi.org/10.1016/j.sbspro.2015.06.423
Sardjono, W., Selviyanti, E., Mukhlis, M., & Tohir, M. (2021). Global Issues: Utilization of E-Commerce and Increased Use of Mobile Commerce Application as a Result of The COVID-19 Pandemic. In Journal of Physics: Conference Series, 1832(1). 12-24. DOI: https://doi.org/10.1088/1742-6596/1832/1/012024
Shemi, A. P. (2013). Factors Affecting E-Commerce Adoption in Small and Medium Enterprises: An Interpretive Study of Botswana. (Doctoral Dissertation, University of Salford).
Simanjuntak, E. P. (2020). Dampak Penggunaan E-Commerce terhadap Peningkatan Hasil Penjualan Usaha Mikro Kecil Menengah di Provinsi DKI Jakarta. (Undergraduate Thesis, Universitas Pertamina).
Suardana, K. A., & Musmini, L. S. (2020). Effect of Financial Literacy, Access to Capital and Interest in Using E-Commerce on MSME Performance in Buleleng District. Jurnal Ilmiah Mahasiswa Akuntansi Universitas Pendidikan Ganesha, 11(2). 191-202.
Susanty, A., Handoko, A., & Puspitasari, N. B. (2020). Push-Pull-Mooring Framework for E-Commerce Adoption in Small and Medium Enterprises. Journal of Enterprise Information Management. DOI: https://doi.org/10.1108/JEIM-08-2019-0227
Suwarni, E., Sedyastuti, K., & Mirza, A. H. (2019). Peluang dan Hambatan Pengembangan Usaha Mikro pada Era Ekonomi Digital. Ikraith Ekonomika, 2(2). 29-34.
Tedjasuksmana, B. (2020). Building The MSMEs Business Environment in Utilizing Digital Financial Technology. In Prosiding Seminar Teknologi Kebumian dan Kelautan (SEMITAN II), 2(1). 387-390.
Todaro, M. P. & Smith, S. C. (2012). Economic Development 11th Ed. Boston: Pearson Education, Inc.
Tornatzky, L. G., Fleischer, M., & Chakrabarti, A. K. (1990). The Processes of Technological Innovation. Lexington, Mass: Lexington Books.
Yuwana, S. I. P. (2020). Coronanomics: Strategi Revitalisasi UMKM Menggunakan Teknologi Digital di Tengah Pandemi COVID-19. Journal of Technopreneurship on Economics and Business Review, 2(1). 47-59. DOI: https://doi.org/10.37195/jtebr.v2i1.58
Zhang, Y., Chen, J., & Zhang, S. (2017). Analysis of Spatial Pattern and Influencing Factors of E-Commerce. International Archives of the Photogrammetry, Remote Sensing & Spatial Information Sciences, 42(2). 1461-1467. DOI: https://doi.org/10.5194/isprs-archives-XLII-2-W7-1461-2017
Zubaidah, E., Pratiwi, P. H., Hamidah, S., & Mustadi, A. (2016). Migration of Students and Arrival Students in the City of Education. In Prosiding Seminar Nasional UNY, 3(18). 597-608.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Qonita Iman, Ernawati Pasaribu
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially
Anyone using the work must attribute the work to the original creator. The licence allows copying and distribution of the original work but no adaptations or modified versions of the work may be distributed.
- Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- NoDerivatives — If you remix, transform, or build upon the material, you may not distribute the modified material.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
