Key success factors facilitating SME ecommerce in developing countries : evidence from Indonesia

This research is mix method research (qualitative and quantitative) which have two main objectives observing the evidence from Indonesia. Firstly, to identify the key success factors facilitating SME ecommerce in developing countries especially in post-adoption stage of ecommerce practice. Secondly, to examine the relationship among the logistics capabilities (internal, external and country logistics capabilities) and the SME ecommerce transaction. Besides, the research also attempted to identify the major logistics problems faced by logistics sector and also to clarify the country logistics performance index, both investigations are related to the SME ecommerce practice.The SLR has identified seven potential key success factors facilitating SME ecommerce in developing countries which has been categorized into three factors including internal, external and interconnected factors. Internal factors included human resources and marketing/marketplace decision. External factors comprised customer demand, law and regulation, and secure payment system. Meanwhile the interconnected factors involved information and communication technology (ICT) and logistics capabilities. Firming these findings, the interview study accomplished towards seven SMEs ecommerce in Indonesia which indicated the similar factors based on their experiences and practices. Moreover, the second phase of the research has administered the collection of questionnaires toward 372 respondents involving the industries, governments, academicians, logistics associations, logistics service providers (LSPs), and SMEs ecommerce. The weight analysis of the research has identified the five major problems of logistics sectors in Indonesia related to the SME ecommerce which included the problems of infrastructures, road traffic jam level, government law and regulations, human resources and also dwelling time in port. Besides, the research also observed the Indonesia Logistics Capability Index (ILCI) concerning the SME ecommerce practice which clarified the index slightly above the average level (score: 2.79 out of 5). Furthermore, the last phase of the research has accomplished through the operation exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and covariance-based structural equation modelling (CB-SEM). It has examined that internal logistics capabilities showed a respectable relationship to SME ecommerce transaction, while external logistics capabilities indicated a modest relationship to SME ecommerce transaction, yet it is still tolerable. In the other hand, even though the country logistics capabilities indicated a poor relationship to SME ecommerce transaction, but it has a very supported effect toward external logistics capabilities and external logistics capabilities.The findings of the research effectively contribute to both theory and practice and the research propositions provide potential and applicable guidance for the stakeholders in academia, companies and government to facilitate SME ecommerce development in developing countries especially in Indonesia related to the entire logistics capabilities