ANALYSIS ON THE FACTORS INFLUENCING THE USE OF ECOMMERCE IN THE CREATIVE INDUSTRY’S SMALL AND MEDIUM ENTERPRISES IN INDONESIA Rambat Lupiyoadi
Suharto Abdul Majid
Adi Pramudita Tjiptadi
Management Department, Faculty of Economics, University of Indonesia and Faculty of Economics and Business, PadjadjaranUniversity
Trisakti Graduate School of Transportation Management and Faculty of Economics and Business, PadjadjaranUniversity
Management Department, Faculty of Economics, University of Indonesia
[email protected]
Abstract This research is desiged to discover how organizational readiness, external pressure, perceived ease of use, and perceived benefits influence the e-commerce adoption among SME creative industry in Jabodetabek. From the analysis, it is found that there is a positive relation among organizational readiness, external presurre, perceived ease of use, and perceived benefit with the ecommerce adoption in the creative industry’s SMEs in Jabodetabek. This research also finds out that organizational readiness and perceived benefit significantly influence the ecommerce adoption in the creative industry’s SMEsin Jabodetabek. Whereas external pressure and perceived ease of use do not significantly influence the e-commerce adoption in the creative industry’s SMEs in Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek). Keyword: E-Commerce Adoption, SME, Creative Industry
Introduction The existence of SME (Small and Medium Enterprises) in Indonesia has a very vital role. The role of SME is related to several things, especially the employment absorption and its contribution to National Gross Product (GNP). In 2010, SMEs had absorbed more than 95 million employees, growing 9 million compared to 2006. Whereas big enterprises could only absorbed 500 thousand additional employees. Likewise, in its contribution to GNP, SME contributed IDR3.400 trillion, whereas big enterprises only contributed IDR 2.600 trillionin the same year (Ministry of Cooperatives,2012). However, it is necessary to remember that the 1
number of big enterprises is just about 0.01% of the total existing enterprises. Thus, with this description, SMEs need to be consistently supported in order to be able to strengthen and develop themselves. In this globalization and information era, one thing that can be done is adopting the use of E-Commerce. This is supported by Jacobs & Downsland (2000) in Shaharudin et al (2011). They explain that E-Commerce enablesSMEs to compete and obtain competitive advantages. E-Commerce itself is defined by Grandon & Pearson (2004) as a process of trading products or services using electronic media through internet and World Wide Web (WWW). The use of E-Commerce can also provide benefits in the form of increasing productivity as high as 10% (Marketers,2012). However, only a few Indonesian SMEs that have utilized E-commerce for their business. Based on the data from Central Bureau of Statistic, only 75,000 of the existing tens million of SMEs in Indonesia have usedECommerce (Marketers,2012). Indeed, by using E-Commerce there are potential transactions as much as IDR 330 trillion (Kontan.co.id,2012). The SME sector which is much related to information technology is creative industry. This creative industry sector is consistently growing and until 2008 it has contributed IDR 104.8 trillion or 5.67%. How do creative industry’sSMEs adopt E-commerce? What factors are influencing the use of E-Commerce in SMEs,especially in the creative industry?Some previous researches reveal several factorswhich have influence on the use of E-Commerce in SMEs, namely organizational readiness, external pressure, perceived ease of use,and perceived benefit. This research tries to answer the question on the question whether the factors ofOrganizational Readiness, External Pressure, Perceived Ease of Useand Perceived Benefitin the context of developing countries like Indonesia have significant influence on the use of E-Commerce in the creative industry’sSMEs? Theoretical Review Organizatioanl Readiness Organizational readinesscan be seen from several things such as internet availability, SME characteristics, ability of SME’s employees or management in using hardware or devices such as computer, electronic devices suitable with the use of E-Commerce, and the resource availability for the purpose of using E-commerce. Chong et al (2001) in Shaharudin et al explain that organizational attributes have been able to adopt E Commerce. Support from the owner/top managementis the most important factor to measure whether or not the organization have been able to adopt E-Commerce. The other important thing related to organizational readiness according to Mehrens et al (2001) is the ability non-IT professionals in using IT. In another word, all managers who are not IT experts should have ability in IT. In addition, Mehrens says that organizational readinessalso means the infrastructure ability that is owned to support the adoption of ECommerce in the SMEs as well as the ability of hardware to access internet. Beatty et al explain that organizational readiness is an infrastructurein which the technology owned will be in accordance with the innovations in the future. Organizational Readiness is also explained by Kuan & Chau (2000) in Shaharudin et al (2011) as the 2
availability of fund for various needs of using e-commerce in the SMEs and the ownership of infrastructure that supports the use of e-commerce.
ExternalPressure The use of E-Commerce in the SMEs is also influenced by the external factors out of the organization.Mehthens et al (2001) in Shaharudin et al (2011) explain that the External Pressure factor is a variety of pressures received from internet users, especially the suppliers andconsumers who expect to become internet users and want to communicate electronically. In addition, Grandon &Pearson (2004) state that SMEs are much influenced by the pressure from environment. This is because SMEs are principally dependent on the consumers to survive in the industry. Grandon & Pearson (2004) suggest the creation of relationship with the suppliers through electronicmedia to reduce the operating cost and to be more competitive in the market. Dholakia & Kshetri (2004) in Shaharudin et al (2011) state that competitive business environment also give strong influences in the technology adoption. Another statement is given by Chong et al (2009) in Shaharudin et al (2011) that the decision made by an enterprise to adopt E-Commerceis also influenced by the pressure from the existing competition and the existence of competitors who have used E-Commerce. Perceived Ease of Use Beatty et al (2001) in Shaharudin et al (2011) explain that complexity is the measurement of difficulty in understanding an innovation. While Rogers (2001) in Shaharudin et al (2011) explains that complexity is the difficulty in understanding and learning to use an innovation. With a new technology, sometimes an employee needs to develop his sklill to be able to use it. Sometimes this will be avoided when it requires a change of habit as well as new skills (Beatty et al,2001). Another study carried out by Grandon & Pearson (2004) reveals that the ease in using technology becomes an important factor in the adoption of e-commercein the SMEs. Perceived Benefits Merthens et al (2001) in Shaharudin et (2011) also say that perceived benefitscan be seen based on the relative advantagesof using internet compared with traditional methods such as telephone, facsimile, and postto communicate with consumers and others. They also have an opinion that perceived benefitscan also be in the form of saving and ways for a company to find information on its competitors,government regulation, and supplier’s products and stock. Kuan & Chau (2001) in Shaharudin et al (2011) explain the perceived benefit as a level of relatively acknowledged or perceived benefit to an organization or business that is obtained from using technology. This benefit is further broken down into direct and indirect benefit. Direct benefit is the benefit related to cost efficiency, while indirect benefit is related to tactical matters or competitive advantage that influence the business process, business relations such as the image of organization, the increase of competitiveness, the improvement of customer service, and the improvement of relation with business partners.
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The study carried out by Beatty et al (2001) in Shaharudin et al (2011) finds that the use and adoption of web-based technology is basically influenced by the obtained benefit, such as decreased transaction cost, improved cash flow, increased productivity, improved customer service, greater competitiveness, new consumers attained, better relationship with consumers, and increased operational efficiency.
E-Commerce Adoption E-Commerce adoptionin the SMEs can be used in various things. According to Bucker & Mckenzie (2001) and World Trade Organization,the use of internet can be applied in the production process, distribution/marketing and goods and services sales or delivery. While according to Kalkota & Whinston (1997) it is an activity of providing information on SME’s products and services. The use of e-commerce in the SMEs also includes customer service through internet and the process of trading products to internasional markets (Lawson et al, 2003).
Method of Research Thisresearch uses a quantitative approach. The population in this research is SMEs in the creative industry that have used E-Commerce in the area of Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek). The data collection is done by spreading questionnaires to respondents through e-mail(private message). Sampling technique used in this research is nonprobability sampling, especially judgmental sampling (Cooper & Schindler,2006),where the researchers examine the sample first to know whether it meets the criteria of research population. The questionnaire consists of screening question, measurement scale in the form of statements with six-level likert scale, to measure each variable and multiple choice questionto know the characteristic and profile of the respondents. In the Pre-test phase, validity test is done using Pearson Correlation and Reliability method by seeing the cronbach alpha as well as classic assumption test.The technique of analysis in this research uses double regression method. Double regression analysis is done to see the influence of each independent variable on the dependent variables. Results of the Research Reliability measurement on each research variable is carried out by seeing the value of croncbach Alpha of each dimension. The results of reliability test show that all statements in the questionnaire of each variable are above 0.7 and can be said reliable to clarifythe variables in this reseach. Table 1.1 Results of Cronbach AlphaReliability Test Variable
Cronbach Alpha
Organizational Readines 0.811 External Pressure
0.780 4
Perceived Ease of Use
0.844
Perceived Benefits
0.823
E-Commerce Adoption
0.721
Source: Data Processing using SPSS 17.0 The result of validity test using Peason Correlationis that all dimensions in the research variables are valid. Table 1.2 Result of Validity Test using Pearson Correlation Dimension OR1 OR2 OR3 OR4 OR5 OR6 OR7 OR8 OR9 OR10 OR11 OR12 OR13 EP1 EP2 EP3 EP4 EP5 EP6 EP7 CO1 CO2 CO4 CO5 CO6 BE1 BE2 BE3 BE4 BE5 BE6 BE7 BE8 BE9 BE10 BE11
Calculated R Value .662 .425 .598 .450 .558 .376 .379 .718 .590 .586 .719 .736 .480 .634 .612 .456 .799 .882 .621 .635 .762 .706 .811 .778 .740 .627 .715 .651 .578 .485 .673 .571 .568 .647 .628 .519 5
R Value in Table .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361 .361
Result Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid
BE12 AE1 AE2 AE3 AE4 AE5 AE6 AE7 AE8
.570 .361 .422 .361 .751 .361 .465 .361 .499 .361 .615 .361 .691 .361 .725 .361 .705 .361 Source: Data Processing using SPSS 17.0
Valid Valid Valid Valid Valid Valid Valid Valid Valid
Classic Assumption Test Classic Assumption Test finds no problem in the Normality, Auto-correlation, Heterodesiktas and Multicollinearity. Normality Test
Source: Data Processing using SPSS 17.0 Figure 1.1. Residual Histogram Test Table 1.3 One Sample kolmogorov-smirnov – Residual One-Sample Kolmogorov-Smirnov Test Unstandardized Residual N Normal Parameters
75 a,,b
Mean
.0000000
Std. Deviation Most Extreme Differences Absolute
6
3.89843177 .106
Positive
.057
Negative
-.106
Kolmogorov-Smirnov Z
.917
Asymp. Sig. (2-tailed)
.370
a. Test distribution is Normal. b. Calculated from data.
Source: Data Processing using SPSS 17.0
Auto-correlation Test Table 1.4 Auto-correlation Test b
Model Summary Model 1
R .695
R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson a
.483
.453
4.00827
1.882
a. Predictors: (Constant), OR_Total, BE_Total, CO_Total, EP_Total b. Dependent Variable: AE_Total
Source: Data Processing using SPSS 17.0 The result of auto-correlation test of Durbin Watsonis 1.882.It is still in the range of (dU of α=5%, n=72, k=4) 1.7390 and (4-dU) 1.7366) 2.261. Then kthe auto-correlation in this data variable is found.
Heterodesiktas Test Table 1.5 Heterodesiktas Test Correlations Unstandardized Residual Spearman's rho
Unstandardized Residual
Correlation Coefficient Sig. (2-tailed) N
orTotal epTotal coTotal beTotal
1.000
-.041
-.021
-.095
.000
.
.729
.856
.416
.998
75
75
75
75
75
Source: Data Processing using SPSS 17.0 The calculated value of correlation significance is more than 0.05. Thus, it can be concluded that there is no problem of Heteroskedasitas in the regression model. 7
MulticollinearityTest Table 1.6 Multicollinearity Test Coefficients
a
Unstandardized Coefficients Standardized Coefficients Std. Error
Beta
Collinearity Statistics
Model
B
1 (Constant)
-6.772
5.729
-1.182 .241
t
Sig.
Tolerance
VIF
orTotal
.223
.088
.252 2.531 .014
.744
1.345
epTotal
.090
.131
.071
.691 .492
.706
1.416
coTotal
.072
.100
.067
.717 .476
.851
1.176
beTotal
.409
.083
.495 4.923 .000
.731
1.368
a. Dependent Variable: aeTotal
Source: Data Processing using SPSS 17.0 The value of VIF is less than 5. Thus, it can be concluded that there is no problem of interindependent variable multicollinearity in the regression model.
Profile of Respondents The profile of respondentsdescribes the business sub-category ofthe respondentsin this research, length of business established, number of employee, and level of E-Commerce usage.
Source: Data Processed by the Authors Figure 1.2 Respondents’ Business Sub-category
8
Source: Data Processed by the Authors Figure 1.3 Length of Business Established
Source: Data Processed by the Authors Figure 1.4 Number of Employee
9
Source: Data Processed by the Authors Figure 1.5 Level of E-Commerce Usage Correlation Analysis Table 1.7 Correlation Test between Independent Variable and Dependent Variable Correlations orTotal aeTotal
Pearson Correlation
.477
Sig. (1-tailed)
epTotal **
coTotal
.425
**
beTotal
.288
**
aeTotal
.632
**
.000
.000
.006
.000
75
75
75
75
N
1
75
**. Correlation is significant at the 0.01 level (1-tailed). *. Correlation is significant at the 0.05 level (1-tailed).
Source: Data Processing using SPSS 17.0 The calculation shows that all independent variable (Organizational Readiness, External Pressure, Perceived Ease of Use, andPerceived Benefit) have a positive correlation in the use of e-commerce. Multiple Regression Analysis Rand R SquareTest Table 1.8 R and R Square Test Model Summary Model 1
R .695
Adjusted R Square
R Square a
.483
Std. Error of the Estimate
.453
a. Predictors: (Constant), beTotal, coTotal, orTotal, epTotal
Source: Data Processing using SPSS 17.0 10
4.00827
The result of this test shows that Organizational Readiness, External Pressure, Perceived Ease of Use/Complexityand Perceived Benefitsare able to explain 48.3% of the influence from those variablesin the E-Commerce Adoptionin the creative industry’s SMEs in Jabodetabek area. F – Anova Test Table 1.9 F- AnovaTest b
ANOVA Model
Sum of Squares df Mean Square
1 Regression
1049.312 4
Residual
1124.635 70
Total
2173.947 74
F
Sig.
262.328 16.328 .000
a
16.066
a. Predictors: (Constant), beTotal, coTotal, orTotal, epTotal b. Dependent Variable: aeTotal
Source: Data Processing using SPSS 17.0 The statistic value of F amounted 1,328 is higher than table famounted 2,503 and the value of significance is 0.000. With the value of significance under 0.05, thus Organizational Readiness, External Pressure, Perceived Ease of Use dan Perceived Benefitsaltogether influence the E-Commerce Adoptionin the creative industry’s SMEsin Jabodetabek area. T Test Table 1.10 T Test Coefficients
a
Unstandardized Coefficients Standardized Coefficients Std. Error
Beta
Collinearity Statistics
Model
B
1 (Constant)
-6.772
5.729
-1.182 .241
orTotal
.223
.088
.252 2.531 .014
.744
1.345
epTotal
.090
.131
.071
.691 .492
.706
1.416
coTotal
.072
.100
.067
.717 .476
.851
1.176
beTotal
.409
.083
.495 4.923 .000
.731
1.368
11
T
Sig.
Tolerance
VIF
Coefficients
a
Unstandardized Coefficients Standardized Coefficients Std. Error
Beta
Collinearity Statistics
Model
B
T
Sig.
Tolerance
VIF
1 (Constant)
-6.772
5.729
-1.182 .241
orTotal
.223
.088
.252 2.531 .014
.744
1.345
epTotal
.090
.131
.071
.691 .492
.706
1.416
coTotal
.072
.100
.067
.717 .476
.851
1.176
beTotal
.409
.083
.495 4.923 .000
.731
1.368
a. Dependent Variable: aeTotal
Source: Data Processing using SPSS 17.0 With the value of t 2,531 and significance 0.014 which is less than 0.05 and other variable (Perceived of Benefits) bewith t 4,923 and significance 0.000 which is also less thana 0.05, both variableshave t calculated value more than table t 1.667, so it can be stated to have significant influence on the dependent variableof e-commerceadoption. Two other variables are External Pressureand Perceived Ease of Use/Complexityhave no significantinfluence on the adoption ofe-commerce. This result is because the value of significance is more than 0.05, namely for ep 0.492 and co 0.476, and the value of calculated t which is less than1,667that is 0.691 for external pressure and 0.717 for perceived ease of useor complexity. From here, it could be stated that the variables ofexternal pressure andperceived ease of useor complexityare not significantly inluence to the dependen linier of e-commerce adoption.
Regression Equation Independent variables (Organizational readiness, External Pressure, Perceived Ease of Use, andPerceived Benefits) against dependent variable (E-Commerce Adoption). From the result of hypothesis examinationit is found that External Pressureand Perceived Ease of Usedo not influence significantly. Thus, regression model is obtained as follows: Y = -6.772+ 0.252x1 + 0.495 x2 + e Note: Y
= E-Commerce Adoption
a
= Constant
12
b
= Coefisientof regression that shows the figure of increasing or decreasing dependent variablebased on independent variable
x1
= Organizational Readiness
x2
= Perceived Benefits
e
= Error
From the regression formula, it can be explained as follows: a. Every increase of one point in the organizational readiness will increase the Ecommerce Adoption by 0.252. b. Every increase of one point in theperceived benefitswill increase the E-commerce Adoption by 0.495. From this equation, it is known that without Organizational ReadinessandPerceived Benefit,the use of e-commerceorE-commerce Adoptionwill be negative as amount as -6.772. Thus, in order to achieve the aim of using E-Commerce in the creative industry’s SMEs, the factor of readiness and perceived benefits should be improved. Discussion Organizational Readiness. Alam et al (2011) and Hong & Zhu (2006) reveal that the ability of SME in technology has a siginificant relationship. The availability of internet in SMEs, ability and knowledge internally owned by management until employee. These things are also explained by Hong & Zhu (2006) that this ability in technology is important for SMEs which are just starting to use e-commerce. From the respondents’ answer it is found that the allocation of fund incured by the respondents to develop technology and e-commerce is still minimum.This phenomenon reflects the characteristic of SME that is reluctantto incur expense for technology and information as stated by Walczuch et al (2000), Dennis(2000), MacGregor & Bunker (1996),Poon & Swatman (1997) and Abell & Limn (1996) in Macgregor & Vrazalic (2004). PerceivedBenefits. SME’s perception or expectation for various benefits that are received will surely encourage SMEs to adopt E-Commerce. Roger (2003) in Wilson (2008) reveals the information that the relative advantagesof using e-commercewill encourage management to prioritize the use of E-Commerce.Understanding the benefit that can be obtained will attract SMEs to start using e-commerce. Aligned with the previous research done by Wilson (2008),understanding and knowing the benefit from e-commerce is more important than understanding the technology itself. Perceived ease of use does not significantly influence the e-commerceadoption for SME creative industry. Some researches by Eit et al (2002), Kendal (2001), Tambini (1999), hadjimanolis (1999) in MacGregor and Vrazalic (2004)reveal the tendency of E-Commerceto be less suitable with the products and services provided, thus becoming one of the barriers for SME to adopt E-Commerce. Research by Alam et al (2011) reveals that most SMEs in the developing countries are reluctant to use E-commercein their business operation. It is because the more complex or complicated a new technology the higher barrier that hinders or discourages the interest to use it, especially for SMEs. Another reason is the characteristic of respondentsin the creative 13
industry, namely the creative industry players’ low usage and understanding of technology.This is in accordance with the characteristic revealed by the government in “Book of Indonesian Creative Industry Development Planning 2009” (Buku Perencanaan Pengembangan Ekonomi Kreatif Indonesia 2009)that other than IT-based industry, the characteristics of Creative Industry are not of the industry that has a Hightech level of technology. Thus, it tends to have a low ability in using E-Commerceor other kinds of technology. Another study by Husnayati et al (2008) in Shaharudin et al finds the same results in which Perceived ease of useis not significantly influential. This study reveals that being accustomed and expert in using e-commercemakes easier to work with various computer systems. In another word, being accustomed in using e-commercewill make them skilled and will omit the opinion on the difficulty in using other computer applications. Thus, SMEs will be able to use a new technology since they have been accustomed in using that technology. Another study by Hang & Zhu (2006) reveals that the difficulty and ease in implementing technology or e-commerce are not significantly influential because there is an involvement of the third party or outsourcingto manage and do that. Some respondentstake advantage of the third party when they start using e-commerce. The aim is to help them due to their unfamiliarity with the technical matters of e-commerce. Involving the third party in e-commerce is done by some respondents since their early or start-up phase,the maintenance,up to the training to use it. External Pressurein this research is also found not significantly influential for ecommerceadoption in SME creative industry. This happens because of SME’s tendency to be product-oriented especially to the consumer as one of the external factors in this variable as stated by MacGregor (2004) et al in Macgregor and Vrazalic (2004). MacGregor and Vrazalic state that it is the characteristic of SME. The characteristic related to the insignificance of external pressurein this research is the low control over the surrounding environment (Westhead & Storey,1996 and Hill & Stewart, 2000) in MacGregor and Vrazalic (2004). The study done by Abdurrohman (2011) also finds out that the consumer’s readiness to start making transactions by E-Commerceespecially in Indonesia is still low. One of the reasons is the low confidence or trustof consumers to make transactions by E-Commerce. The same statement is given by the Ministry of Trade, the Republic of Indonesia,in the “Book of Updated Indonesian Creative Industry 2009” (Buku Pemuktahiran Industri Kreatif Indonesia 2009),where the consumers in Indonesia are accustomed to see directly when making transactions while it can not be done in E-Commerce. In addition, the tendency of creative industry to grow first in communities makes them have an orientation to exist in that community. The low readiness of consumers to make transactions by e-commerce happens not only in the developing countries. The studycarried out by Ada Sculopa (2009) in Australia shows that consumer’s readiness is one of the barriers to use e-commerce for business. Managerial Implication The influence of external pressure and perceived ease of use factors in this case, in fact, is not supported by data.It is necessary to increase the awareness related to External Pressure.The low control from organizations or enterprises over the environment should be avoidable. By improving the control, the business ability or competitiveness will surely 14
increase. Observing the surroundings will make the business more flexible and dynamicin looking for opportunities and seeing the existing threats.Meanwhile, in the ease of using ECommerceit needs training and counseling in order to improve the ability is using ECommerce. It is similar with the opinion of MacGregor and Vrazalic (2004) saying the minimum ability and training in technology held by SMEs becomes one of the barriers to use E-Commerce. Involving the third party in using e-commerce becomes a solution for the difficulty faced in starting e-commerce usage. In terms of organizational readiness, it is still necessary to pay much attention to it, especially in allocating fund for the development much related to the ability and the ease of using E-Commerceby the internal enterprise. Respondents’ answers for the variable oforganizational readinessstill show the low allocation of fund made by the respondentsfor developing e-commerce.Beside that, some respondents who use internet complain about the obstacles and problems that may appear due to troubled internet. From another variable with significant influence, namely perceived benefit, it is found that the use of e-commerce to seek information by respondents is still low. It seems that communication with suppliers or business partners through internet or E-Commercehas been established yet. From the use of E-Commerce itself, the thing to be paid attention is the use of E-Commercein international trade and in production and distribution activities. This minumum international trade is not related to the minimum allocation of fund for development as stated in the descriptive discussion. Developing E-Commerce will surely support especially the method of payment if SMEs carry out trade in the international market. The existence of E-Commerceitself can become an aid to support production and distribution activities of a business. With E-commerce, of course, the exchange of information concerning business activities will be wider, including information on production need, equipment, or even intangible product distribution. Conclusion This research reveals that the use of E-Commerceor E-commerce Adoptionin the Creative Industry’s SMEs especially in Jabotabek (Indonesia) is significantly influenced by Perceived Benefit andOrganizational readiness. 1. The organizational readiness of respondentsfrom SME creative industry significantly influences the use of e-commerce. Organizational Readinessbecomes another factor that significantly influences the use of E-Commerce in the Creative Industry’sSMEsin Jabodetabek area. From the descriptive analysis it is found that the availability of internet, long term business orientation, and management and employees who are able to operate hardwareplay a role in SME’s readiness to use e-commerce. 2. The external pressure of respondents from SMEsdoes not significantly influence the use of e-commerce. External pressurebecomes insignificant because Indonesian consumers tendto be unaccustomed to make transactions using e-commerce. In addition, SMEs tend have orientation more to product rather than consumers. Likewise, the influence of consumers on respondents from SMEs to use e-commerce is low. This tendency has relationship with the consumer’s readiness and habit to use e-commerce. Indonesian people have a habit of making transactions traditionallyand the consumers do not trust the transactions through onlinemedia. This low trust is caused by the cases of deceptive sales happening among the people. 15
3. The perceived ease of useis the factor that is not significantly influential.Although people find difficulty in using e-commerce, SMEs can involve the third party, in this case an IT or technology consultant.From the descriptive analysis it is found that the need of time for respondents to understand the innovation in technology becomes the reason why perceived ease of use is not significantly influential. 4. The perceived benefithas the greatest influence in the use of E-Commerce in the creative industry’s SMEsin Jabodetabek area.From the descriptiveanalysis it is found that respondentstend to use e-commerceto look for information on products, ways to compete with the competitors, to be more competitive, to be cost-efficient and to build good relationship with business partners. These benefits encourage the management and owner to prioritize the use of e-commercein their business. Understanding this thing makes SMEs willing to neglect the obstacles to face when using e-commerce.
Suggestions The suggestions in this research is aimed at the players in SME creative industry, especially the Ministry of Trade, the Ministry of Tourism and Creative Economy, and the Ministry of Cooperatives and Small-Medium Enterprises. The govermental institutions related to SME Creative Industry had better to consistently give support and encouragement for the sake of Creative Industry’sSMEadvancement, especially concerning the understanding and training for SMEs to use E-Commerce. By this, it is expected that the interest of other SMEs in the creative industry to use e-commerce will increase. Providing trainings and technical assistance concerning the use and utilization of ecommercein the SMEs can be one of the ways to improve the understanding and utilization of e-commerce. Trainings and appeals need to be accompanied with providing information on the benefits that can be obtained so that SMEs become aware of the benefits of using ecommerce in their business. Support in the form of infrastructureincludes faster access to internet and it can be accessed any time. This can be made in a synergy with the programs held by PT Telkom. The researchers suggest some aids in the form of fund or subsidy for the infrastructurerelated to the supporting devices and others to increase the use of e-commercein SMEs.This fund can be used for developing the e-commerce itself. It seems that the minimum international trade has a realation with the development of e-commerce carried out by SMEs.In the development phase, international trade can be done using the method of payment through the supporting e-commerce. For SME players, they should continuously try to develop and make creations for developing their business. It seems that the use of E-Commercewith its various benefits become the right choice for Creative Industry’sSMEsto develop their business. Allocation of fund, energy, and attention will be equal with the potential results that can be obtained from using E-Commerce.Allocation of fund for development is expected to make benefits from using e-commerce. The appropriate development such as facility of payment for international market is expected to be the beginning step for the product of creative industry’sSMEsto Go Internasional. In addition to the huge potential of international market, the existence of this creative industry can also make Indonesia known as a country having the biggest creative industry like European countries. 16
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