Electronic commerce adoption barriers in Indonesian small medium-sized enterprises (SMEs): An exploratory study

This research seeks to explore and detect underlying relationships between identifiable barriers of electronic commerce (ecommerce) adoption in Indonesian small medium-sized enterprises (SMEs). A quantitative pilot study was conducted through a mail survey to collect the relevant data from several cities in three provinces in Indonesia, namely West Java, Bali and DKI Jakarta. The inter-correlations among the barriers influential to the e-commerce adoption decision demanded the application of principal component analysis to determine the factors perceived to dictate e-commerce adoption decision outcomes. The results of the analysis indicate that correlations between the barriers do exist and that the barriers can be grouped according to four distinct factors: the difficulty of implementing e-commerce, the unsuitability of e-commerce to the business, the uncomfortability in communicating and choosing standards in business online, as well as the inapplicability to the current business needs.