E-Commerce Platform Adoption and MSME Income Growth: Evidence from Indonesia

Abstract

Purpose: This study examines the effect of e-commerce platform adoption on the income of ornamental plant Micro, Small, and Medium Enterprises (MSMEs) in Pekalongan District, East Lampung Regency, Indonesia, in response to the rapid expansion of digital commerce in rural enterprise settings.

Methodology: A quantitative associative design was used with a census of 20 ornamental plant MSME operators in Pekalongan District. Data were collected using a validated and reliable Likert-scale questionnaire measuring e-commerce adoption and MSME income.

Results: The findings indicate that e-commerce adoption has a significant and positive effect on MSME income (t=4.619, p < 0.05; β=0.838; βstandardized=0.737). The model explains 54.2% of the variation in MSME income (R²=0.542), with access convenience and transaction security identified as the most influential indicators of adoption.

Conclusions: E-commerce adoption is a key determinant of income improvement among ornamental plant MSMEs in rural Indonesia, highlighting its strategic role in enhancing business performance.

Limitations: The study is limited by its small sample size (n=20) and its focus on a single rural district, which may restrict the generalizability of the findings.

Contribution: This study contributes empirical evidence on the role of e-commerce adoption in improving MSME income in rural agricultural-adjacent sectors, providing insights for policymakers to strengthen digital infrastructure and support MSME digital transformation.