Scope of E-Commerce use, innovation capability, and performance: Food sector MSMEs in Indonesia

This study aims to identify and evaluate the main factors that influence the performance of MSMEs in the food sector, focusing on two main variables: the scope of e-commerce use and the capacity for innovation. This research also uses Structural Equation Modeling (SEM) analysis techniques using smar...

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Main Authors: Liliana Inggrit Wijaya, Zunairoh Zunairoh, Muhammad Izharuddin, Andri Rianawati
Format: Article
Language:English
Published: Elsevier 2025-03-01
Series:Journal of Open Innovation: Technology, Market and Complexity
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2199853124002531
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author Liliana Inggrit Wijaya
Zunairoh Zunairoh
Muhammad Izharuddin
Andri Rianawati
author_facet Liliana Inggrit Wijaya
Zunairoh Zunairoh
Muhammad Izharuddin
Andri Rianawati
author_sort Liliana Inggrit Wijaya
collection DOAJ
description This study aims to identify and evaluate the main factors that influence the performance of MSMEs in the food sector, focusing on two main variables: the scope of e-commerce use and the capacity for innovation. This research also uses Structural Equation Modeling (SEM) analysis techniques using smart-PLS software. The results show that technological readiness and adoption costs influence the extent to which MSMEs can utilize e-commerce, while government support plays a role in facilitating a conducive environment for the adoption of this technology. On the other hand, the factors of autonomy, proactivity, and risk-taking courage increase the innovation capacity of MSMEs, allowing them to adapt, experiment, and create unique added value in the competitive market. An in-depth understanding of the interaction between these variables is expected to provide strategic insights to improve the competitiveness and performance of food MSMEs in the digital era. The managerial implications of this study, MSMEs in the food industry in Indonesia can improve their performance through effective utilization of e-commerce, development of innovation capabilities, and government support, which can help strengthen the competitiveness of MSMEs in the increasingly competitive global market.
format Article
id doaj-art-5e726ff9d25348f6acfb0b5f975e6d2e
institution Kabale University
issn 2199-8531
language English
publishDate 2025-03-01
publisher Elsevier
record_format Article
series Journal of Open Innovation: Technology, Market and Complexity
spelling doaj-art-5e726ff9d25348f6acfb0b5f975e6d2e2025-01-11T06:41:12ZengElsevierJournal of Open Innovation: Technology, Market and Complexity2199-85312025-03-01111100459Scope of E-Commerce use, innovation capability, and performance: Food sector MSMEs in IndonesiaLiliana Inggrit Wijaya0Zunairoh Zunairoh1Muhammad Izharuddin2Andri Rianawati3Faculty of Business and Economics, University of Surabaya, Surabaya, IndonesiaCorresponding author.; Faculty of Business and Economics, University of Surabaya, Surabaya, IndonesiaFaculty of Business and Economics, University of Surabaya, Surabaya, IndonesiaFaculty of Business and Economics, University of Surabaya, Surabaya, IndonesiaThis study aims to identify and evaluate the main factors that influence the performance of MSMEs in the food sector, focusing on two main variables: the scope of e-commerce use and the capacity for innovation. This research also uses Structural Equation Modeling (SEM) analysis techniques using smart-PLS software. The results show that technological readiness and adoption costs influence the extent to which MSMEs can utilize e-commerce, while government support plays a role in facilitating a conducive environment for the adoption of this technology. On the other hand, the factors of autonomy, proactivity, and risk-taking courage increase the innovation capacity of MSMEs, allowing them to adapt, experiment, and create unique added value in the competitive market. An in-depth understanding of the interaction between these variables is expected to provide strategic insights to improve the competitiveness and performance of food MSMEs in the digital era. The managerial implications of this study, MSMEs in the food industry in Indonesia can improve their performance through effective utilization of e-commerce, development of innovation capabilities, and government support, which can help strengthen the competitiveness of MSMEs in the increasingly competitive global market.http://www.sciencedirect.com/science/article/pii/S2199853124002531e-commerce useinnovation capabilityTechnological, Organizational, & Environmental (TOE) FrameworksMSMEs
spellingShingle Liliana Inggrit Wijaya
Zunairoh Zunairoh
Muhammad Izharuddin
Andri Rianawati
Scope of E-Commerce use, innovation capability, and performance: Food sector MSMEs in Indonesia
Journal of Open Innovation: Technology, Market and Complexity
e-commerce use
innovation capability
Technological, Organizational, & Environmental (TOE) Frameworks
MSMEs
title Scope of E-Commerce use, innovation capability, and performance: Food sector MSMEs in Indonesia
title_full Scope of E-Commerce use, innovation capability, and performance: Food sector MSMEs in Indonesia
title_fullStr Scope of E-Commerce use, innovation capability, and performance: Food sector MSMEs in Indonesia
title_full_unstemmed Scope of E-Commerce use, innovation capability, and performance: Food sector MSMEs in Indonesia
title_short Scope of E-Commerce use, innovation capability, and performance: Food sector MSMEs in Indonesia
title_sort scope of e commerce use innovation capability and performance food sector msmes in indonesia
topic e-commerce use
innovation capability
Technological, Organizational, & Environmental (TOE) Frameworks
MSMEs
url http://www.sciencedirect.com/science/article/pii/S2199853124002531
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AT zunairohzunairoh scopeofecommerceuseinnovationcapabilityandperformancefoodsectormsmesinindonesia
AT muhammadizharuddin scopeofecommerceuseinnovationcapabilityandperformancefoodsectormsmesinindonesia
AT andririanawati scopeofecommerceuseinnovationcapabilityandperformancefoodsectormsmesinindonesia