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Strategic policies for small and medium businesses in marketing through e-commerce

Author

Listed:
  • Junianto Tjahjo Darsono

    (University of Merdeka Malang, Indonesia)

  • Erni Susana

    (University of Merdeka Malang, Indonesia)

  • Eko Yuni Prihantono

    (University of Merdeka Malang, Indonesia)

  • Eley Suzana Kasim

    (Universiti Teknologi MARA, Malaysia)

Abstract

Previous literature on the Theory of Planned Behavior suggests that attitudes, subjective norms and behavioral control have a significant effect on behavioural intention including the e-commerce marketing intention by small and medium businesses. More recent studies noted that behavioral control, spiritual intelligence, and intentions have a significant effect on behavior in marketing through e-commerce. In this study, a model developed by Darsono (2018) was further refined based on the results of the model trials carried out using data collected in Malang City, Indonesia. The objectives of this study are: (1) to determine the strategic policies of small and medium businesses in e-commerce marketing by using the Exponential Comparison Method (ECM), and (2) to analyze policy profiling for several types of e-commerce marketing by using correspondence analysis. The Exponential Comparison Method (ECM) is a data analysis techniques based on a decision support system that describes a complex multi-factor problem into a hierarchy where each level of the hierarchy is composed by several specific elements. By using the hierarchy, a complex and unstructured problem is broken down into groups which are then organized into a hierarchical form. Based on the results of ECM analysis, this study recommends the strategic policies of SMEs in the selection of e-commerce marketing related to attitudes towards e-commerce marketing, subjective norms, behavioral control, spiritual intelligence, and the intention to buy and sell online in the market with each attribute. The results of the correspondence analysis further explain the existence of special characteristics in each choice. In particular, (1) online buying and selling in the marketplace has been ranked as the first option based on two considerations, i.e., how to receive orders and shipping methods; (2) internet banking and SMS banking was ranked second based on place to sell products and payment methods; (3) cable TV and internet provider was chosen as the last option based on customer sevice; and finally (4) product considerations are noted in all options.

Suggested Citation

  • Junianto Tjahjo Darsono & Erni Susana & Eko Yuni Prihantono & Eley Suzana Kasim, 2019. "Strategic policies for small and medium businesses in marketing through e-commerce," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(2), pages 1230-1245, December.
    • Handle: RePEc:ssi:jouesi:v:7:y:2019:i:2:p:1230-1245
    DOI: 10.9770/jesi.2019.7.2(30)
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    References listed on IDEAS

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    1. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    2. Solomon Akpoviroro Kowo & Olusegun Adeleke Oba Adenuga & Olalekan Owotutu Sabitu, 2019. "The role of SMEs development on poverty alleviation in Nigeria," Post-Print hal-02188849, HAL.
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    Cited by:

    1. Zuzana Svobodová & Jaroslava Rajchlová, 2020. "Strategic Behavior of E-Commerce Businesses in Online Industry of Electronics from a Customer Perspective," Administrative Sciences, MDPI, vol. 10(4), pages 1-24, October.
    2. Kiran Javaria & Omar Masood & Fernando Garcia, 2020. "Strategies to manage the risks faced by consumers in developing e-commerce," Post-Print hal-03271869, HAL.
    3. Elya Kurniawati, 2020. "Indonesian MSME E-Commerce among the Covid-19 Pandemic," GATR Journals gjbssr578, Global Academy of Training and Research (GATR) Enterprise.
    4. Kiran Javaria & Omar Masood & Fernando Garcia, 2020. "Strategies to manage the risks faced by consumers in developing e-commerce," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 2(4), pages 774-783, December.

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