International Journal of Human Capital in Urban Management
Quarterly Publication

E-commerce and related factors on the performance of small and medium scale industries

https://doi.org/10.22034/IJHCUM.2019.01.07
Volume 4, Issue 1 - Serial Number 13
Winter 2019
Pages 61-68
International Journal of Human Capital in Urban Management

Document Type : CASE STUDY

Authors

T.M. Kusuma
A.A.I.N. Marhaeni

Department of Economics and Business, Udayana University, Denpasar, Indonesia

Abstract
This study aims to analyze: 1) the development of demand for craft SMIs products through the use of e-commerce, 2) the effect of e-commerce utilization, macroeconomic conditions, prices, and the intensity of promotion on product demand, 3) the effect of e-commerce utilization, macroeconomic conditions, prices, promotion intensity, and product demand for performance; and 4) the role of product demand in mediating the effect of e-commerce utilization, macroeconomic conditions, prices, and the intensity of promotion on performance. The results of the study show that the product demand variable gives a value of 0.371 while influence of the business performance variable gives a value of 0.486. The results of the study show that the development of demand for handicraft products in Denpasar through low e-commerce utilization, craft SMIs that utilize e-commerce demand more products than those who do not utilize, macroeconomic conditions have a positive and significant effect on product demand, the price has a negative effect and significant to product demand, while promotion intensity has a positive but not significant effect on product demand. Crafting SMIs that utilize e-commerce have better performance than those that do not use, macroeconomic conditions, prices, and product demand have a positive and significant effect on performance. Promotion intensity has a positive but not significant effect on performance.Product demand variables mediate the effect of e-commerce utilization variables, perceptions of macroeconomic conditions, and price variables on the performance variables of small and medium scale industries

Keywords

E-commerce
Performance
Product demand
Small and medium scale industries
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  • Receive Date 21 July 2018
  • Revise Date 13 October 2018
  • Accept Date 06 November 2018

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