E-Commerce

E-Commerce Adoption in Developing Countries: an Indonesian Study

Sherah Kurnia

Department of Information Systems

The University of Melbourne
111 Barry St, Carlton, VIC 3010, Australia
Ph: 61-3-8344 1534
Email: [e-mail]

Abstract

ELECTRONIC COMMERCE (EC) HAS THE POTENTIAL TO IMPROVE EFFICIENCY AND PRODUCTIVITY IN MANY AREAS AND, THEREFORE, HAS RECEIVED SIGNIFICANT ATTENTION IN MANY COUNTRIES. HOWEVER, THERE HAS BEEN SOME DOUBT ABOUT THE RELEVANCE OF E-COMMERCE FOR DEVELOPING COUNTRIES. CURRENTLY, THERE ARE STILL A LIMITED NUMBER OF STUDIES ON E-COMMERCE ADOPTION BY DEVELOPING COUNTRIES. TO ADDRESS THE GAP IN THE LITERATURE, THIS STUDY AIMS TO ASSESS THE ADOPTION OF E-COMMERCE IN INDONESIA, AS AN EXAMPLE OF A DEVELOPING COUNTRY, AND ITS RELEVANCE BY ASSESSING THE ADOPTION LEVEL, BENEFITS EXPERIENCED, NEGATIVE CONSEQUENCES AND PROBLEMS ENCOUNTERED DUE TO E-COMMERCE ADOPTION. THIS IS A RESEARCH-IN-PROGRESS PAPER. SOME FACTORS AFFECTING THE ADOPTION OF EC AND THE CONDITION OF INDONESIA IN RELATION TO EC ADOPTION ARE DISCUSSED IN THIS PAPER. THE FINDINGS OF THE RESEARCH CONDUCTED SO FAR INDICATE A POSITIVE GROWTH OF E-COMMERCE ADOPTION IN INDONESIA.

Keywords

Technology adoption, e-commerce, developing country, Indonesia

Introduction

ELECTRONIC COMMERCE OR SIMPLY E-COMMERCE, WHICH RELIES ON VARIOUS INFORMATION AND COMMUNICATION TECHNOLOGIES (ICT), HAS THE POTENTIAL TO IMPROVE TRADE EFFICIENCY AROUND THE GLOBE AND TO INTEGRATE DEVELOPING COUNTRIES INTO THE GLOBAL ECONOMY (UNCTAD 1999). AS A RESULT, THERE HAS BEEN A SIGNIFICANT GROWTH OF E-COMMERCE IN DEVELOPED COUNTRIES IN THE LAST TWO DECADES AND MORE RECENTLY IN DEVELOPING COUNTRIES (CHOWDHURY 2003). Most technologies, including e-commerce were developed in Western countries that have very different backgrounds to those of developing countries. The success of technology adoption is heavily dependant on how it is used by the adopters and this in turn is

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