Effect of SME’s E-readiness and Online Food Delivery Apps Adoption toward Business Performance.
Date
2023Author
Ulhaq, Reyna Nadhya
Munandar, Jono Mintarto
Rifin, Amzul
Metadata
Show full item recordAbstract
SMEs played an essential role in facilitating ASEAN growth because SMEs
contributed to economic growth, total employment, export, and GDP. The role of
SMEs was not only for ASEAN but also for individual countries such as Indonesia
and Malaysia. However, in recent years the growth of SME contributions in
Indonesia and Malaysia has been fluctuating. The growth rate of SME’s
contribution to GDP did not show a significant growth rate, indicating that SME’s
performance has not optimum. The fluctuating of SME contribution growth to GDP
as an indicator of SME performance that is not yet optimum can be caused by
several problems, one of them is the low of technology adoption. The number of
SMEs in Indonesia and Malaysia has increased from 2014 until 2019. But, the
increase of SME’s numbers has not been able to increase the growth of SMEs'
contribution to DGP. On the other hand, higher number of SMEs indicates the
higher competition in the SME industry. That way, SMEs need to develop strategies
to improve their performance and survive in the competition. E-commerce is an
opportunity for SMEs to improve their performance. The large penetration's number
on e-commerce's market indicated the potential opportunities that SMEs can access
to increase their performance. One of the fast-growing e-commerce was ride-hailing.
Ride-hailing is a transportation service provider using a platform or apps to connect
drivers with consumers and is supported by GPS systems. The fastgrowing ride
hailing type is online food delivery. Previous study stated that the adoption of online
food delivery services by SMEs can increase the transaction volume of the food
retailing sector.
In order to increase SME’s performance through online food delivery
adoption as expected, this studies are needed to examine the effect of e-readiness to
e-adoption and e-adoption on business performance. However, it was still difficult
to find literature specifically discussing e-readiness in online food delivery apps
adoption from the SME's perspective. Therefore, it is necessary to discuss more
deeply e readiness from the perspective of SMEs and the use of PERM theory in
adopting e-commerce type online food-delivery apps. A comparative study was
conducted to understand the causal processes involved in the case.
The purpose of this study was to understand and compare e-readiness factors
that influence online food delivery apps adoption and to understand the effects of
online food delivery apps adoption on SME's performance between Malaysia and
Indonesia. The number of samples used in this study amounted to 70 respondents.
Research using SEM PLS as a data processing tool. The findings showed that
Indonesia has more respondents aged 20-30 years old. Otherwise,
Malaysia has more respondents aged 30 years old and over. Male respondents
dominated both Indonesian and Malaysian respondents. Most Indonesian and
Malaysian respondents have business experience from one until ten years.
Indonesian respondent excels in business experiences for less than one year, while
Malaysia in business experience for more than ten years. The number of short-lived
SMEs in Indonesia is higher than in Malaysia, the longer age in Malaysia is higher
than in Indonesia. Meanwhile, if viewed from the average sales, the number of
buyers and turnover, SME in Malaysia is higher than in Indonesia. The factors that
influence the level of e-commerce-adoption in Indonesia are commitment, market
forces, supporting industries e-readiness, and online food delivery apps adoption
while in Malaysia only market forces has a significant effect on online food delivery
apps adoption. In both countries, online food delivery apps adoption is positively
and significantly influential to SME’s performance with a relatively equal
significance value.
Collections
- MT - Economic and Management [2878]