Saffira Annisa Bening

Small and Medium-sized Enterprises (SMEs) are key contributors to Indonesia’s economy. E-commerce can assist SMEs in gaining a competitive edge and is expected to be the largest contributor to the country’s digital economy by 2030. However, only 22% of SMEs in Indonesia have adopted E-commerce. Hence this study aims to investigate the criteria that influence E-commerce adoption by Indonesian retail SMEs and select the best strategy using the Decision-Makers, Technological, Organizational, and Environmental (DTOE) Framework and the Diffusion of Innovation (DOI) theory. This study aims to fill the research gap by examining the essential factors in E-commerce adoption by Indonesian SMEs in the retail industry and their key strategy to increase utilization. The influence and priorities between criteria were calculated using the Decision-Making Trial and Evaluation Laboratory (DEMATEL) based Analytic Network Process (ANP) method. Furthermore, an E-commerce adoption strategy was selected using Complex Proportional Assessment (COPRAS) method. This research showed critical criteria for adopting E-commerce technology in retail SMEs, Decision Maker’s IT Knowledge, Innovativeness, and Complexity. In addition, developing or training Information Technology (IT) and E-commerce skills were identified as the best strategy to increase E-commerce adoption. This study can help raise the understanding of policymakers, E-commerce service providers, and retail SME decision-makers on influencing criteria in adopting the best strategy to be applied to increase this technology adoption.