The Effectiveness of E-Commerce in Supporting the Growth of MSMEs in Tangerang City
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Abstract
This study investigates the extent to which e-commerce utilization, entrepreneurial commitment, and digital literacy influence the growth of Micro, Small, and Medium Enterprises (MSMEs) in Tangerang City, with technology adoption functioning as a mediating variable. A quantitative research design was employed, using a structured survey distributed to 215 MSME actors who had been operating online for a minimum of six months and actively utilizing e-commerce platforms. Data analysis was performed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with the SmartPLS 3.0 software. The empirical results demonstrate that all three independent variables e-commerce usage, business actor commitment, and digital literacy exert a significant positive impact on technology adoption and MSME growth, both directly and indirectly. The model yields an R² value of 0.743 for the MSME growth construct, indicating robust explanatory power and model reliability. The study contributes to theoretical development by reinforcing the relevance of the Technology–Organization–Environment (TOE) framework, Diffusion of Innovations Theory, and the Dynamic Capabilities approach in understanding MSME digital transformation. These frameworks collectively illuminate how organizational readiness, technological capabilities, and environmental support interplay in driving successful e-commerce adoption. Practically, the findings underline the need for integrated policy and capacity-building interventions, such as targeted e-commerce training, strengthening of digital entrepreneurial commitment, digital literacy programs, and fostering cross-sector collaboration. Such strategies are essential for accelerating inclusive, technology-enabled MSME growth within Indonesia’s broader digital economy agenda.
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