Factors Influencing E-Commerce Adoption in Indonesian Micro-Enterprises: An Integrated TOE–TAM Framework Analysis in Central Java

Abstract

Background: The Indonesian government’s 30 Million MSMEs Go Digital by 2024 initiative aims to foster digitalisation and enhance the performance of micro, small, and medium enterprises. Despite these efforts, adoption rates remain inconsistent, as many micro-enterprises continue to face barriers in transitioning to digital technology.

Objective: This study explores the factors influencing e-commerce adoption among micro-enterprises in Central Java, Indonesia. It employs an integrated theoretical framework combining the Technology–Organisation–Environment (TOE) theory and the Technology Acceptance Model (TAM).

Methodology: A quantitative survey was conducted among 150 respondents from five regencies in Central Java with high concentrations of micro-enterprise internet users: Jepara, Pemalang, Semarang City, Klaten, and Tegal. Partial Least Squares (PLS) path modelling was utilised to test the relationships between environmental factors, technological readiness, organisational readiness, and adoption intentions.

Results: The findings indicate that external environmental factors significantly and positively influence perceived ease of use and perceived usefulness. Technological readiness was found to influence perceived ease of use, whereas organisational readiness showed no significant effect due to the limited resources and simple structural characteristics inherent in micro-enterprises. The results confirm that TAM remains highly relevant in explaining adoption intentions, with perceived ease of use and usefulness acting as critical mediators.

Conclusion: The study validates the continued relevance of TAM in the context of modern digital adoption. It demonstrates that micro-enterprises' attitudes and intentions towards e-commerce are primarily shaped by their initial perceptions of technological utility and simplicity, which are further influenced by environmental factors.

Unique Contribution: This research strengthens empirical evidence for the combined TOE–TAM model in an emerging economy. It specifically highlights how the unique limitations of micro-enterprises—such as minimal organisational complexity—alter the traditional drivers of technology adoption compared to larger firms.

Key Recommendation: To improve e-commerce adoption rates, the study underscores the need for targeted external support, including digital literacy training and robust technological infrastructure. Policymakers should focus on initiatives that enhance the perceived ease of use of digital tools for small-scale entrepreneurs.