STRATEGIC EMPOWERMENT OF SMES FOR GLOBAL COMPETITIVENESS GROWTH THROUGH E-BUSINESS ADOPTION INTENTION

Abstract

In the era of globalization and rapid development of information technology, companies have
to adopt the internet-based business. The internal readiness factors of Small-and Medium-Sized
Enterprises (SMEs) have a significant influence on the intention of adopting e-business in
SMEs. Further, external readiness factors of Small-and Medium-Sized Enterprises (SMEs) also
have a significant influence on the intention of adopting e-business in SMEs. The population
of the study was SMEs producing textile products, handicrafts, and Moslem clothing in Cipadu
Jaya, Larangan, Tangerang. The method of sampling was simple random sampling with 100
SMEs as samples. The study employed Structural Equation Modeling (SEM) with SmartPLS
Software 3.0 for data analysis. The findings indicate that the adoption of e-business within
SMEs was affected by technological mastery, business competition pressure, and business
partners’ readiness. The organizational readiness and customer readiness had no significant
effect on e-business adoption intentions.