Impact of digital literacy and market orientation through e-commerce adoption on the MSME performance moderated by O2O business adoption

Umi Suryani, Sri Bramantoro Abdinagoro, Mts Arief Arief, M Hamsal

Abstract


This study aims to examine the influence of digital literacy and market orientation on MSME performance mediated by E-commerce adoption with O2O Business as a Moderating variable. The population in this study are all MSMEs that have collaborated with E-Commerce. The sample in this study was obtained using a quota sampling technique, which only limited data acquisition to 100 MSMEs of E-Commerce partners. Data is obtained by distributing questionnaires to respondents through online.  The collected data is then analysed using Path analysis assisted by the Smart PLS application.  The result shows that Digital Literacy and Market Orientation have a significant positive effect on E-Commerce Adoption, then E- Commerce Adoption, Market Orientation and Digital Literacy have a significant positive effect on Performance MSMEs, Digital Literacy, Market Orientation and E-commerce adoption has a significant positive effect on MSME Performance moderated by O2O Business Adoption. Understanding of market orientation and digital literacy in running a business can have an impact on customer satisfaction which then has an impact on improving MSME performance. Researchers who want to review the topic in this study can conduct a correlation test on a larger scale to get a more detailed picture of the impact of digital literacy and market orientation on MSMEs and other sectors.


Full Text:

PDF

References


Abbad, M., Magboul, I. H. M., & AlQeisi, K. (2021). Determinants and outcomes ofe-business adoption among manufacturing SMEs: Insights from a developing country. Journal of Science and Technology Policy Management. https://doi.org/10.1108/JSTPM-03-2021-0049

Abbasi, K., Alam, A., Du, M. (Anna), & Huynh, T. L. D. (2021). FinTech, SME efficiency and national culture: Evidence from OECD countries. Technological Forecasting and Social Change. https://doi.org/10.1016/j.techfore.2020.120454

Abreu Pederzini, G. D. (2016). Strategic management cultures: historical connections with science. Journal of Management History. https://doi.org/10.1108/JMH-12-2015-0212

Abubakari, A., Ofori, K. S., Boateng, H., N’Da, K., & Hinson, R. E. (2021). The effect of foreign market knowledge on SME export performance: a study ofnon-traditional SMEs in Ghana. Global Knowledge, Memory and Communication. https://doi.org/10.1108/GKMC-03-2021-0054

Al-Somali, S. A., Gholami, R., & Clegg, B. (2015). A stage-oriented model (SOM) for e-commerce adoption: A study of Saudi Arabian organisations. Journal of Manufacturing Technology Management. https://doi.org/10.1108/JMTM-03-2013-0019

Alharbi, R. K., Yahya, S. Bin, & Kassim, S. (2021). Impact of religiosity and branding on SMEs performance: does financial literacy play a role? Journal of Islamic Marketing. https://doi.org/10.1108/JIMA-08-2019- 0162

Anand, S., & Rao, A. B. (2016). Models for Deployment of Solar PV Lighting Applications in Rural India. Energy Procedia. https://doi.org/10.1016/j.egypro.2016.11.212

Ariansyah, K., Sirait, E. R. E., Nugroho, B. A., & Suryanegara, M. (2021). Drivers of and barriers to e-commerce adoption in Indonesia: Individuals’ perspectives and the implications. Telecommunications Policy. https://doi.org/10.1016/j.telpol.2021.102219

Bamfo, B. A., & Kraa, J. J. (2019). Market orientation and performance of small and medium enterprises in Ghana: The mediating role of innovation. Cogent Business and Management. https://doi.org/10.1080/23311975.2019.1605703

Cassia, F., & Magno, F. (2021). Cross-border e-commerce as a foreign market entry mode among SMEs: the relationship between export capabilities and performance. Review of International Business and Strategy. https://doi.org/10.1108/RIBS-02-2021-0027

Charoensukmongkol, P., & Sasatanun, P. (2017). Social media use for CRM and business performance satisfaction: The moderating roles of social skills and social media sales intensity. Asia Pacific Management Review. https://doi.org/10.1016/j.apmrv.2016.10.005

Chuang, S. H. (2018). Facilitating the chain of market orientation to value co-creation: The mediating role of e- marketing adoption. Journal of Destination Marketing and Management. https://doi.org/10.1016/j.jdmm.2016.08.007

Civelek, M. E. (2018). Essentials of Structural Equation Modeling. Zea Books. https://doi.org/10.13014/k2sj1hr5 Clauss, T., Abebe, M., Tangpong, C., & Hock, M. (2021). Strategic Agility, Business Model Innovation, and Firm Performance: An Empirical Investigation. IEEE Transactions on Engineering Management. https://doi.org/10.1109/TEM.2019.2910381

Dvorkina, T., Bzikadze, A. V., & Pevzner, P. A. (2020). The string decomposition problem and its applications to centromere analysis and assembly. Bioinformatics. https://doi.org/10.1093/BIOINFORMATICS/BTAA454 Elhajjar, S., & Ouaida, F. (2020). An analysis of factors affecting mobile banking adoption. International Journal of Bank Marketing. https://doi.org/10.1108/IJBM-02-2019-0055

Gilster, M. E., Kleinschmit, J. L., Cummings, S. P., & Ronnenberg, M. M. (2020). Teaching Note—Pick Your Platform: Social Media Advocacy Skill Building. Journal of Social Work Education. https://doi.org/10.1080/10437797.2019.1593903

Gregory, K., Sean, T., Wang, J., Zhang, X. X., Cao, Q., Tjosvold, D., … ZHOU, J. (2016). Rethinking “Top- Down” and “Bottom-Up” Roles of Top and Middle Managers in Organizaional Chagne. Leadership Quarterly.

Gunawan, M., Asyahira, R., & M Sidjabat, F. (2020). Environmental Management System Implementation in MSMEs: A Literature Review. Jurnal Serambi Engineering. https://doi.org/10.32672/jse.v5i2.1958

Herman, H., Hady, H., & Arafah, W. (2018). The Influence of Market Orientation and Product Innovation on the Competitive Advantage and Its Implication toward Small and Medium Enterprises (Ukm) Performance.International Journal of Science and Engineering Invention. https://doi.org/10.23958/ijsei/vol04-i08/02

Herrero, A., San Martín, H., & Collado, J. (2018). Market orientation and SNS adoption for marketing purposes in hospitality microenterprises. Journal of Hospitality and Tourism Management. https://doi.org/10.1016/j.jhtm.2017.11.005

Hill, H. (2018). Asia’s Third Giant: A Survey of the Indonesian Economy. Economic Record. https://doi.org/10.1111/1475-4932.12439

Iborra, M., Safón, V., & Dolz, C. (2020). What explains the resilience of SMEs? Ambidexterity capability and strategic consistency. Long Range Planning. https://doi.org/10.1016/j.lrp.2019.101947

Kang, M. J., Wu, Z., & Hwang, H. J. (2021). A Study on the Mediating Effect of Customer Orientation between O2O Service Quality and Customers’ Perceived Service Satisfaction. Journal of Distribution Science. https://doi.org/10.15722/jds.19.2.202102.37

Kitchot, S., Siengthai, S., & Sukhotu, V. (2021). The mediating effects of HRM practices on the relationship between SCM and SMEs firm performance in Thailand. Supply Chain Management. https://doi.org/10.1108/SCM-05-2019-0177

Latorre, F., Guest, D., Ramos, J., Gracia, F. J., Nishanthi, H. M., Kailasapathy, P., … Benson, J. (2013). 済無No

Title No Title. Strategic Management Journal.

Leal-Rodríguez, A. L., & Albort-Morant, G. (2016). Linking market orientation, innovation and performance: An empirical study on small industrial enterprises in Spain. Journal of Small Business Strategy.

Lin, O. C. C. (2018). Innovation and entrepreneurship: Choice and challenge. In Innovation and Entrepreneurship: Choice and Challenge. https://doi.org/10.1142/10195

Macchion, L., Moretto, A. M., Caniato, F., Caridi, M., Danese, P., & Vinelli, A. (2017). International e-commerce for fashion products: what is the relationship with performance? International Journal of Retail and Distribution Management. https://doi.org/10.1108/IJRDM-11-2015-0171

Mahmoud, M. A., Blankson, C., Owusu-Frimpong, N., Nwankwo, S., & Trang, T. P. (2016). Market orientation, learning orientation and business performance: The mediating role of innovation. International Journal of Bank Marketing. https://doi.org/10.1108/IJBM-04-2015-0057

Masa’deh, R., Al-Henzab, J., Tarhini, A., & Obeidat, B. Y. (2018). The associations among market orientation, technology orientation, entrepreneurial orientation and organizational performance. Benchmarking. https://doi.org/10.1108/BIJ-02-2017-0024

Mihailidis, P. (2015). Digital curation and digital literacy: Evaluating the role of curation in developing critical literacies for participation in digital culture. E-Learning and Digital Media. https://doi.org/10.1177/2042753016631868

Mohammadyari, S., & Singh, H. (2015). Understanding the effect of e-learning on individual performance: The role of digital literacy. Computers and Education. https://doi.org/10.1016/j.compedu.2014.10.025

Monteiro, A., & Leite, C. (2021). Digital literacies in higher education: Skills, uses, opportunities and obstacles to digital transformation. Revista de Educación a Distancia (RED). https://doi.org/10.6018/red.438721 Ollerenshaw, A., Corbett, J., & Thompson, H. (2021). Increasing the digital literacy skills of regional SMEs through high-speed broadband access. Small Enterprise Research. https://doi.org/10.1080/13215906.2021.1919913

Oyewobi, L. O., Adedayo, O. F., Olorunyomi, S. O., & Jimoh, R. (2021). Social media adoption and business performance: the mediating role of organizational learning capability (OLC). Journal of Facilities Management. https://doi.org/10.1108/JFM-12-2020-0099

Sam Liu, C. H., & Huang, C. E. (2020). Discovering differences in the relationship among social entrepreneurial orientation, extensions to market orientation and value co-creation – The moderating role of social entrepreneurial self-efficacy. Journal of Hospitality and Tourism Management. https://doi.org/10.1016/j.jhtm.2019.12.002

Saridakis, G., Lai, Y., Mohammed, A. M., & Hansen, J. M. (2018). Industry characteristics, stages of E-commerce communications, and entrepreneurs and SMEs revenue growth. Technological Forecasting and Social Change. https://doi.org/10.1016/j.techfore.2017.10.017

Sarkar, A. (2008). E-Commerce Adoption and Implementation in SMEs: An Analysis of Factors. 21 St Annual Conference of the National Advisory Committee on Computing Qualifications (NACCQ 2008).

Shen, C. wen, Min Chen, & Wang, C. chen. (2019). Analyzing the trend of O2O commerce by bilingual text mining on social media. Computers in Human Behavior. https://doi.org/10.1016/j.chb.2018.09.031

Soejachmoen, M. P. (2016). Financial Inclusion in Indonesia: Moving Towards a Digital Payment System. In

Financial Inclusion in Asia. https://doi.org/10.1057/978-1-137-58337-6_5

Soni, G., Mangla, S. K., Singh, P., Dey, B. L., & Dora, M. (2021). Technological interventions in social business: Mapping current research and establishing future research agenda. Technological Forecasting and Social Change. https://doi.org/10.1016/j.techfore.2021.120818

Srhoj, S., Lapinski, M., & Walde, J. (2020). Impact evaluation of business development grants on SME performance. Small Business Economics. https://doi.org/10.1007/s11187-020-00348-6

Tayibnapis, A. Z., Wuryaningsih, L. E., & Gora, R. (2021). Medium, Small and Medium Enterprises and Digital Platforms. South Asian Journal of Social Studies and Economics. https://doi.org/10.9734/sajsse/2021/v10i230258

Tian, L., Vakharia, A. J., Tan, Y. (Ricky), & Xu, Y. (2018). Marketplace, Reseller, or Hybrid: Strategic Analysis of an Emerging E-Commerce Model. Production and Operations Management. https://doi.org/10.1111/poms.12885

Tjahjadi, B., Soewarno, N., Nadyaningrum, V., & Aminy, A. (2020). Human capital readiness and global market orientation in Indonesian Micro-, Small- and-Medium-sized Enterprises business performance. International Journal of Productivity and Performance Management. https://doi.org/10.1108/IJPPM-04-2020-0181

Tsai, T. M., Wang, W. N., Lin, Y. T., & Choub, S. C. (2015). An O2O Commerce Service Framework and its Effectiveness Analysis with Application to Proximity Commerce. Procedia Manufacturing. https://doi.org/10.1016/j.promfg.2015.07.668

TUC &&childer ENgland. (2016). An introduction to child protection legislation in the UK. In Journal of Human Development and Capabilities.

Wan, X., & Chen, J. (2019). The relationship between platform choice and supplier’s efficiency- evidence from China’s online to offline (O2O)e-commerce platforms. Electronic Markets, 29(2), 153–166. https://doi.org/10.1007/s12525-017-0280-3

Wang, O., Somogyi, S., & Charlebois, S. (2020). Food choice in the e-commerce era : A comparison between business-to-consumer (B2C), online-to-offline (O2O) and new retail. British Food Journal. https://doi.org/10.1108/BFJ-09-201




DOI: http://dx.doi.org/10.33021/icfbe.v2i1.3544

Refbacks

  • There are currently no refbacks.


Editorial Office:

Faculty of Business President University 
Jalan Ki Hajar Dewantara Mekarmukti
Cikarang Utara, Bekasi, Jawa Barat

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.