Push-pull-mooring framework for e-commerce adoption in small and medium enterprises

Abstract

Purpose

The purpose of this paper is twofold: first, to develop a conceptual model using the push-pull-mooring (PPM) framework to understand the switching behavior of small- and medium-size enterprises (SMEs) of batik from adopting traditional marketing to e-commerce; and, second, to test whether the PPM variables prevent or lead to the switching behavior of SMEs of batik to adopt e-commerce.

Design/methodology/approach

This study uses a hypothesis which is drawn from related literature, quantifiable measures variables with a 1–5 Likert scale, hypothesis testing and draws the inference about a phenomenon of switching the behavior of SMEs from traditional marketing to e-commerce from the sample of 100 owners of batik SMEs, which are located in Yogyakarta, Solo and Pekalongan. The study used partial least square with the aid of the SmartPLS software program to test the hypothesis.

Findings

The result of hypothesis testing indicates that two factors significantly influence the switching behavior of batik SMEs from physical store retailing to e-commerce. The first factor is the desire of SMEs to support the information searching behavior of their customers, and the second factor is the perception that adopting e-commerce can provide value for the SMEs. However, this study fails to prove that the attractiveness of e-commerce can significantly pull the switching behavior of batik SMEs from physical store retailing to e-commerce. Moreover, related to mooring factors, the results show that the computer self-efficacy of the SME owners as a moderating effect is not supported.

Research limitations/implications

This study has several limitations. First, the samples were restricted to the SMEs of batik in three cities (Yogyakarta, Solo and Pekalongan). It is significant to conduct cross-sector, cross countries, cross-region or even cross-cultural investigations on this subject for better explanations of the results from a global perspective. Studies on cultural differences in switching behavior are supposed to accommodate to different individuals from the SME owner. Second, the study does not differentiate the sizes of enterprises; that is, no test was conducted for small-, medium- and large-size enterprises. The study only focuses on SMEs. Different empirical results may be obtained for different sizes because each enterprise size can have a different condition in e-commerce adoption. Second, this study pays more attention to the product categories of stamped batik and hand-drawn batik. Consumers can have dissimilar favorite channels to purchase other types of batik. Future research should also consider this issue.

Practical implications

Within all the opportunities available through e-commerce (support the information searching behavior, save the travel time and travel cost, better service quality to their customer, a lower price to their customer as well, and increase their sales), the SMEs need to enhance e-commerce activities and put it in their strategy for moving forward. On the other side, the government should have a strong interest in helping and supporting the SME through several activities.

Social implications

The research confirms that e-commerce adoption may benefit SMEs. It may encourage more SMEs to move from the traditional physical store retailing to e-commerce.

Originality/value

Although this study uses the conceptual model from the study of Chang et al. (2017), significant differences exist between the two studies. This study uses the PPM framework in the context of the seller migratory decision, whereas in most studies, the PPM framework is used in the context of the consumer migratory decision. Moreover, most studies about the adoption of e-commerce by owners of SMEs use the theory of reasoned action, theory of planned behavior, technology acceptance model, technology, organization and environment, and unified theory of acceptance and use of technology as the framework.

Citation

Susanty, A., Handoko, A. and Puspitasari, N.B. (2020), "Push-pull-mooring framework for e-commerce adoption in small and medium enterprises", Journal of Enterprise Information Management, Vol. 33 No. 2, pp. 381-406. https://doi.org/10.1108/JEIM-08-2019-0227