Determinants of E-commerce Adoption and Performance of SMEs: Empirical Evidence from Majene Regency

Abstract

This study investigates the determinants of e-commerce adoption and its impact on the performance of small and medium enterprises (SMEs) in Majene Regency. Using a structured questionnaire, data were collected from SMEs in the culinary and sales sectors and analyzed through empirical methods. The findings reveal that integrated information systems significantly enhance the business performance of SMEs by facilitating the use of e-commerce platforms for sales transactions and product promotion. Contrary to expectations, technological innovation does not show a significant effect on e-commerce adoption, highlighting the importance of organizational readiness and management support over the mere introduction of new technologies. Ease of use is positively correlated with improved SME performance, emphasizing that user-friendly e-commerce platforms significantly boost business operations. The study concludes that e-commerce adoption directly enhances SME productivity and revenue, proving crucial for accessing broader markets and achieving competitive advantage. These insights provide practical implications for SME owners and practitioners to develop strategies that foster e-commerce adoption and improve SME performance in the digital era.