The Benefits of e-Commerce before and during the Covid-19 Pandemic
for Small Enterprises in Indonesia
SUKISNO SELAMET RIADI1, ARIESTA HEKSARINI2, DIRGA LESTARI3, SITI MARIA4,
SAIDA ZAINUROSSALAMIA5, RIZKY YUDARUDDIN6
1,2,3,4,5,6Faculty of Economics and Business, Mulawarman University, Samarinda, Indonesia.
Abstract: - This study aims to analyze the benefits of e-commerce for small enterprises and its consequences
before and during the COVID-19 pandemic. Furthermore, it examines the effects on the decrease in income of
small enterprises and their response to a regulation restricting community activities. It also provides an outline
of the support needed by small businesses. Meanwhile, a descriptive analysis and a paired t-test were used to
analyze data (525 small enterprises in Indonesia) from an online questionnaire survey between May and June
2021. The results showed several significant discoveries, including the following: first, the COVID-19
pandemic resulted in a decline in revenue. Second, limits on community activities exacerbate the plight of small
enterprises. Third, small enterprises sought several forms of assistance, with working capital accounting for the
lion's share of requests. Finally, substantial variations exist in respondents' perceptions of the benefits of e-
commerce before and during the COVID-19 pandemic. Furthermore, these results contribute to the small
medium enterprises literature and have significant policy implications for developing countries.
Key-Words: - small enterprises, e-commerce, income, working capital, performance, COVID-19
Received: April 18, 2021. Revised: November 9, 2021. Accepted: December 9, 2021. Published: January 7, 2022.
1 Introduction
The COVID-19 pandemic has threatened the
existence of most businesses regardless of their size.
Small enterprises are in a much worse situation due
to their financial constraints, limited client base, and
reliance on a few key workers. They often lack
access to public financial markets, which makes
them more vulnerable to cash flow problems caused
by revenue fluctuations. Furthermore, short-term
cash withdrawals outweigh inflows, posing a threat
to existence.
Small enterprises contribute significantly to the
economies of many countries, and several studies
show the contribution to the economy in European
countries [1], Japan [2], Turkey [3] Colombia [4],
India [5],[6], Lebanon [7] and Indonesia [8], [9],
[10]. Moreover, In Indonesia, about 64 million SME
actors, SMEs provided 61 percent of GDP and 97
percent of employment [11]. Therefore, small
enterprises in Indonesia have become the focus of
an interesting study during the COVID-19
pandemic.
One of the strategies used to support the
sustainability of small enterprises and improve the
economy in the face of a serious health crisis, is the
adoption of e-commerce. The e-commerce market
has grown to become the largest in Southeast Asia,
accounting for over half of the region's entire market
considering the size and its tech-savvy customers.
Furthermore, mobile e-commerce adoption in
selected Southeast Asian countries between July and
October 2020 showed Indonesia as the country with
the greatest adoption rate during the covid19
pandemic (See Figure 1). This situation offers small
enterprises the opportunity to benefit from the
adoption of e-commerce. However, 42% of the
offline SMEs had time to shut down during the
pandemic, and 24% of MSMEs operated online [12]
Fig.1: Adoption of mobile e-commerce in Southeast
Asian countries between July and October 2020.
Source: [12]
Moreover, the empirical study on the benefits of
e-commerce adoption for small businesses has
produced inconsistent findings. Mostly, the adoption
is the key to the success of small enterprises [13]
[14], [15], [16] [17], but does not support the
performance [18], [19]. To address this gap, the
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2022.18.8
Sukisno Selamet Riadi, Ariesta Heksarini,
Dirga Lestari, Siti Maria, Saida Zainurossalamia,
Rizky Yudaruddin
E-ISSN: 2224-3496
69
Volume 18, 2022
benefits of e-commerce adoption for small
enterprises were compared to gain a better
understanding of the adoption in developing
countries such as Indonesia.
To the best of our knowledge, only [13]
identified the benefits of e-commerce for SMEs in
Indonesia, but they did not conduct a study on the
benefits of e-commerce for SMEs during a health
crisis. Therefore, this study aims to explore the
benefits of e-commerce for small enterprises before
and during the COVID-19 pandemic. Scholars have
emphasized the importance of e-commerce in
improving the productivity and performance of
SMEs. However, research regarding the use of e-
commerce to address the consequences of
catastrophic occurrences such as COVID-19 is
sparse [20] We discuss this gap by provide
empirical evidence for the benefits of e-commerce
between before and during the COVID-19
pandemic. Additionally, it analyzes the decline in
the influence of the pandemic on small enterprises'
income and the reactions to the policy of restrictions
of community activities. The result presents an
overview of the forms of aid needed in the COVID-
19 pandemic for small enterprises. Overall, the goal
of this research is to look into the advantages of e-
commerce for small businesses before and during
the COVID-19 epidemic.
2 Literature Review
Electronic commerce, or e-commerce is the practice
of purchasing and selling goods and services
through the internet. It involves actions such as the
transfer of cash and the marketing of services or
commodities. Businesses have the chance to reach
many consumers as possible through e-commerce
operations. There is no one definition, and
according to [21], e-commerce is the online contact
between a firm and its consumers or suppliers to
place orders. The internet becomes a critical
component of the business. It was also defined by
[22] as the act of trading products, services, and/or
information via computer networks, mainly the
Internet and intranets. Meanwhile, [23] noted that e-
commerce is the purchasing and selling of goods
and services utilizing the internet and browsers. [24]
argued that E-commerce is described as a business
transaction performed between people using digital
technologies. Media e-commerce also includes
utilizing the internet, the World Wide Web, and
mobile apps or browsers to do business. The mobile
platform connects mobile devices such as tablets or
smartphones and to the Internet through a wireless
network or cellular telephone service. The first
digital medium was a web browser. Currently,
mobile apps are the most frequently utilized media
[24].
The existing e-commerce literature has several
hypotheses on the variables that influence SMEs'
adoption of e-commerce. [25] were the first to
create TRA (Theory of Reasoned Action), and it
was stated that an individual's conduct is heavily
influenced by the desire to execute the action. This
is conducted following two factors: their attitude
toward behavior and their subjective norm.
Furthermore, [26] criticized this theory for its
inability to accommodate a person that lacks
volitional control. In response to these critiques, the
Theory of Planned Behavior (TPB) was developed
to address the limitations of TRA. [26] expanded
TPB by including additional components known as
Perceived Behavioral Control (PBC). Therefore,
three variables affect one's desire to do a certain
action: one's attitude toward the conduct, one's
subjective norm, and one's perception of behavioral
control. Furthermore, [27] created the TAM model
based on the TRA network, which is specifically
designed to account for an individual's computer
usage behavior. According to this idea, actual
conduct is strongly influenced by behavioral
intention by both 'attitude toward' and perceived
utility. Besides influencing behavioral intent,
perceived utility and simplicity of use also affect
attitude (toward). [28] created the Diffusion of
Innovation Theory (IDT) model based on extensive
psychological and sociological studies. According to
this hypothesis, variables such as relative benefits,
trialability, complexity, observability, and
compatibility affect the pace of innovation adoption.
Finally, [29] established the Technology-
Organization-Environment (TOE) paradigm to
explain the effect of contextual variables on the
adoption of innovation. According to this paradigm,
three elements of a firm's context affect the
acceptance of technology innovations. They include
technical, organizational, and external task
environmental.
SMEs are very important in the local, national,
and global economies, as well as in the generation
of employment and revenue [30]. SMEs account for
at least 90 percent of all enterprises in both
advanced and emerging countries. Meanwhile,
advanced countries account for 40–60 percent of
global GDP, 40 percent of global industrial
manufacture, and 35 percent of global exports [5],
[31], [32]. Furthermore, they account for almost
99.8% of non-financial businesses, 58.6% of total
value produced, and 68.6% of total employment in
Europe [1]. In Turkey, 2014, they accounted for
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2022.18.8
Sukisno Selamet Riadi, Ariesta Heksarini,
Dirga Lestari, Siti Maria, Saida Zainurossalamia,
Rizky Yudaruddin
E-ISSN: 2224-3496
70
Volume 18, 2022
99.8 percent of all businesses, where exports and
imports were 55.1 and 37.7 percent respectively [3].
In Japan, SMEs make up 99.7% of all companies
and employ 70% of the workforce [2]. In addition,
SMEs are critical to Colombia's economy since they
account for 80 percent of jobs, 35 percent of GDP,
and 90 percent of the productive sector [4]. In
Indonesia, about 64 million SME actors, SMEs
provided 61 percent of GDP and 97 percent of
employment [11].
Business surveys show that the COVID-19
pandemic problem has serious havoc on SMEs,
creating substantial disruptions and concerns. [33]
report 43 percent of responding companies have
already been forced to shut their doors temporarily
in the United States. Businesses laid off an average
of 40 percent of their workforce. [34] documented
similar pandemic-related effects on small
businesses. According to a study of SMEs
conducted by the International Trade Centre, 2/3 of
micro and small enterprises in 132 countries believe
that the crisis had a major effect. Meanwhile, one-
fifth of the population reported that they are at risk
of permanently closing their business within three
months. A pandemic's first four months, [35] show
that between 25 percent and 36 percent of small
companies may locked permanently following the
different studies conducted in several nations.
According to [36], the Census Bureau developed a
specialized weekly small enterprises survey in the
United States to evaluate the impact of COVID-19
on small enterprises. Late in June, the poll found
that almost 90% of small companies were
negatively affected by the pandemic, either severely
(51 percent) or moderately (38 percent); 45 percent
of enterprises faced supply chain interruptions, and
25 percent of firms lacked financial reserves of
more than 1-2 months.
The COVID-19 pandemic had a detrimental
effect on SMEs, and in West Java, Indonesia, [10]
found that external factors such as competition and
consumers had a negative impact on SME
performance. [9] focused on the kinds of challenges
encountered by SMEs during the pandemic, and it
was reported that they suffered production
difficulties. Due to a scarcity of raw materials, a
lack of financial liquidity, and a drop in demand,
this happened. Furthermore, [37] depicts the
economic and social consequences of the COVID-
19 pandemic. A significant decrease in aggregate
demand as a consequence of lower household and
business expenditure, investment, and exports
increased unemployment. Meanwhile, the
government's fast and comprehensive reaction
helped to minimize the crisis's effect on the
economy and sensitive sectors of society. The
pandemic worsened Indonesia's pre-existing basic
issues, such as de-industrialization and the inter-
regional digital gap. It was showed that the social
distance policy has a significant effect on business
players, especially SMEs. Furthermore, the inability
to function properly has a negative impact on their
operations, and this resulted in reduced demand and
revenue [38].
Social isolation or distance are barriers that
SMEs should overcome. In terms of economics,
social distance has resulted in a reduction in SMEs'
sales as a result of the prohibition of activities in
public spaces. Furthermore, COVID-19 has
impacted all facets, but there is a higher concern
about instituting social lockdowns or distancing
measures that disproportionately harm SMEs [39].
The results showed that the social distance policy
has a substantial impact on business actors,
particularly SMEs. In Indonesia, the operations are
affected by their inability to function properly,
resulting in decreased demand and income [38]. Due
to this, various policies have been implemented to
mitigate the impact of the health crisis on SMEs.
For instance, [40] demonstrated that suspending
interest payments has a negligible influence on
company failures. [41] showed the importance of
liquidity assistance for SMEs, however, the problem
faced by small companies differs significantly
among regions and cities in the United States. In
Indonesia, liquidity is important for business
support [56] [57] [58]. Furthermore, this study aims
to determine the cash value and the liquidity SMEs
required as well as to analyze the capacity of the
business to take additional loans [42].
The advantages of e-commerce have been
expanded in recent years due to advancements in
information technology and communications.
Furthermore, there is a greater understanding of
online business to create market structure, decrease
operational expenses, and connect consumers more
effectively. Numerous studies have shown that the
usage of digital technology, especially E-commerce,
may have a role in determining the success of
SMEs. Several studies have shown that e-commerce
may help SMEs enhance their performance. [43]
stated that it helps in the development of companies
in underdeveloped countries to reduce transaction
costs by bypassing certain intermediaries and
enabling connections to global supply chains.
Furthermore, e-commerce offers a plethora of
benefits, ranging from minor benefits such as
decreased communication and administrative
expenses and increased accuracy to transformational
ones such as allowing business process
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2022.18.8
Sukisno Selamet Riadi, Ariesta Heksarini,
Dirga Lestari, Siti Maria, Saida Zainurossalamia,
Rizky Yudaruddin
E-ISSN: 2224-3496
71
Volume 18, 2022
reengineering and facilitating industry value chain
integration efforts [44]. [45] discovered that the
growth of high-tech innovative SMEs is important
to Ukraine's economic development. [13] showed
that SMEs with a greater level of e-commerce
adoption profit more than those with a lower level.
E-commerce assist SMEs financially and in
terms of market expansion. Meanwhile, SME access
to many major markets is often challenging due to
entry criteria such as money, product variety, brand,
or shares. They may get better access to these
markets by using information technology. Also,
online and digital businesses can help small
businesses decrease their operating expenses [46]
and the beneficial effects may also be felt through
consumers and services [47]. Furthermore, the
integration of information technology helps South
African SMEs to operate better [48]. [49]
demonstrated that e-commerce adoption affects the
strategy of Saudi Arabian SMEs. In addition,
restaurants may use the online ordering system to
connect with their target audience in the United
States [15]. In the Czech Republic, online
technology allows the development and marketing
of goods [14]. Technological advancement improves
the performance of SMEs in the UK [17].
Additionally, [16] stated that marketing through
social media had a positive impact on the
performance of SMEs in Indonesia.
However, another study indicates that the
performance of SMEs does not substantially
improve e-commerce. [50] stated that the impact of
technology adoption on operation costs varies by
circumstance. Certain transaction costs may be
decreased as a consequence of new technology
adoption. Because of the extensive usage of the
internet across all industries, it cannot be considered
a source of competitive advantage due to the
widespread use of the internet across all sectors
[51]. According to [19], there is no compelling
evidence to promote e-commerce benefits in South
African businesses. [18] demonstrated that despite
the advice to SMEs to participate in e-commerce
applications, the strategic position of SMEs and
their e-business skills do not seem to be linked. [52]
observed that the relationship between e-commerce
and the competitive advantage, which is the crucial
component of the Strategic plan, is difficult for
Egyptian manufacturing companies to comprehend.
Overall, to the best of our knowledge, only [13]
found the benefits of e-commerce for SMEs in
Indonesia, but they did not do a study on the
benefits of e-commerce for SMEs during the
COVID-19 pandemic. As a result, this study adds to
the body of knowledge by demonstrating the
importance of e-commerce to small enterprises.
3 Methodology
Quantitative and qualitative techniques were
employed to examine the conceptual framework for
studies and the challenges. The data was collected
from 525 small enterprises. The information is
drawn from an online questionnaire survey
conducted from May 2021 – June 2021 among small
culinary businesses. Furthermore, the online
questionnaire survey has numerous advantages over
traditional procedures, such as being less expensive,
having a greater response rate, and being faster and
easier to administer [13]. The five parts of this study
questionnaire are as follows: The first and second
parts are concerned with the respondent's profile and
the reaction to the impact of the COVID-19
pandemic on the income of small enterprises
respectively. The third part examines the impact of
Restrictions on Community Activities, namely
whether or not the economic conditions of small
companies are worsening. The fourth part discusses
the forms of assistance that small businesses will
receive during the COVID-19 pandemic. Finally,
the change in respondents' responses to the benefits
of e-commerce between before and during the
COVID-19 pandemic.
The majority of data pertaining to SMEs is
gathered and retained by parties with an interest in
the SME. For example, the government, through the
Indonesian Ministry of Cooperatives and Small
Medium Enterprises, published data on small
enterprise activities in specific areas. On the
following website: https://kemenkopukm.go.id/, the
data for this ministry can be obtained. The Republic
of Indonesia's Law No. 20 of 2008 on micro, small,
and medium-sized enterprises defined small
enterprises as those with assets between 50 million
and 500 million rupiahs, as well as revenue between
300 million and 2.5 billion rupiahs in a calendar
year. Furthermore, owners of small enterprises or a
group of employees are in charge of running them.
The descriptive analysis was conducted to
explain the fundamental characteristics of the data:
for example, frequency and other descriptive
statistics were calculated. Following [38],
descriptive statistics were employed to analyze the
data, which was accomplished through the use of
the SPSS program. Meanwhile, a description
statistics dataset provides a legitimate and
appropriate explanation of the study sample in
numerical form, and the information is presented in
the most straightforward manner possible.
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2022.18.8
Sukisno Selamet Riadi, Ariesta Heksarini,
Dirga Lestari, Siti Maria, Saida Zainurossalamia,
Rizky Yudaruddin
E-ISSN: 2224-3496
72
Volume 18, 2022
Furthermore, cross-tabulation is employed with data
that can be categorized into mutually exclusive
groups. This cross-tabulation is the most often used
method of analysis [53]. In addition, a paired t-test
was used to identify differences in the benefits
obtained by small enterprises from the use of e-
commerce. According to [54], [55], the paired t-test
is used to test the null hypothesis that the average of
the differences between pairs observations is zero.
When observations are made on the same samples
or subjects, they are paired. Furthermore,
measurements were taken at two different times
(before and during the COVID19 Pandemic), and
the Paired Samples t-test compared the means for
two units on a normally distributed continuous
outcome. Null Hypothesis (Ho) means there is no
difference in the average respondents' responses to
the benefits of e-commerce between before and
during the COVID-19 pandemic. Alternative
Hypothesis (H1) means there is a difference in the
average respondents' responses to the benefits of e-
commerce between before and during the COVID-
19 pandemic.
4 Results and Discussion
There were 525 small enterprises as shown in Table
1. The majority of the gender were women
consisting of 322 respondents or 61.3 percent, the
remaining 203 were men. The age of the
respondents is dominated by 20 to 30 years.
Furthermore, about 257 (49 percent) and 228 (43.4
percent) had an education level of senior high
school and Diploma/undergraduate respectively.
Table 1. Profile of respondents
Frequen
cy
Percentag
e (%)
Respondent’s gender
Male
203
38.7
Female
322
61.3
Respondent’s age
<20
35
6.7
20 -30
321
61.1
31-40
120
22.9
41-50
36
6.9
>50
13
2.5
Respondent’s education
Primary school
15
2.9
Junior high school
16
3.0
Senior high school
257
49
Diploma/Undergraduate
228
43.4
Master/ Doctoral
9
1.7
The COVID-19 pandemic, as demonstrated in
Table 2 showed a detrimental effect on small
enterprises, particularly on income. This is
demonstrated by the overwhelming majority that
responded "yes." When asked, Is the COVID-19
pandemic reducing income? There is 84.6 percent of
respondents answered "yes" while the remaining
15.4 percent answered "no". Small enterprises saw a
loss in income of less than 10%, accounting for 187
respondents. Meanwhile, small enterprises had a
decrease in income of 10% to less than 25% for 170
respondents. These results are consistent with
various surveys of SME businesses in various
countries that have been negatively impacted by the
COVID-19 pandemic [33], [34], [35], [36] and
several studies on SMEs [9], [10], [37], [38].
Table 2. The Impact of the COVID-19 pandemic on Decreased Income
Percentage of Income Decrease
None
<10%
10%-<25%
25%-<50
>50%
Total
0
(0.0%)
187
(35.6)
170
(32.4%)
74
(14.1%)
13
(2.5%)
444
(84.6%)
81
(15.4%)
0
(0.0%)
0
(0.0%)
0
(0.0%)
0
(0.0%)
81
(15.4%)
The pandemic has impacted all aspects, but there
is a larger concern about imposing restrictions to
community activities measures that
disproportionately harm SMEs [38], [39]. Table 3
showed respondents' reactions regarding the
influence of community activity restrictions on the
performance of small enterprises. Similarly,
limitations on community activities impede the
regular operation of small enterprises, resulting in a
decline in demand and income. Restriction of
community activities degrades the performance of
small enterprises. This restriction aims to inhibit the
spread of Covid-19, so that all non-essential
businesses such as culinary businesses are "forced"
to close their businesses. Strongly agree, slightly
agree, and agree, dominated respondents' responses
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2022.18.8
Sukisno Selamet Riadi, Ariesta Heksarini,
Dirga Lestari, Siti Maria, Saida Zainurossalamia,
Rizky Yudaruddin
E-ISSN: 2224-3496
73
Volume 18, 2022
following the distribution of the percentage of the
income decrease. This indicates that the Restrictions
to Community Activities further worsen the
performance of small enterprises.
Table 3. Impact of Restrictions to Community Activities based on Percentage of Income Decrease
Percentage of
Income Decrease
Restrictions to Community Activities worsen small enterprise performance
Strongly
Disagree/ Disagree /Slightly
Disagree
Neither
Agree nor
Disagree
Slightly
Agree/Agree/Strongly
Agree
<10%
41
(9.30%)
44
(9.9%)
102
(23%)
10%-<25%
11
(1.8%)
21
(4.7%)
138
(20.3%)
25%-<50
4
(1.00%)
8
(1.8%)
62
(13.9%)
>50%
1
(0.20%)
0
(0.0%)
12
(2.7%)
Total
57
(12.9%)
73
(16.4%)
314
(70.7%)
Table 4 described the support required by small
enterprises due to the COVID-19 pandemic.
Working capital support accounts for the vast
majority of the forms of assistance required. There
were 238 respondents or 53.6 percent that chose
working capital assistance. This result is consistent
with the findings of [41], where the importance of
liquidity assistance for SMEs was analyzed.
Table 4. Types of Assistance Required based on Percentage of Income Decrease Due to the COVID-19
pandemic
Percentage of
Income
Decrease
Types of Assistance Required
Working
Capital
Assistance
Ease of loan
application
administration
Electricity
Bill
Reduction
Tax Rate
Reduction
Loan
Restructuring
Other
<10%
105
(23.6%)
15
(3.4%)
36
(8.1%)
10
(2.3%)
6
(1.4%)
15
(3.4%)
10%-<25%
92
(20.7%)
11
(2.5%)
36
(8.1%)
12
(2.7%)
10
(2.3%)
9
(2.0%)
25%-<50
35
(7.9%)
10
(2.3%)
10
(2.3%)
7
(1.6%)
8
(1.8%)
4
(0.9%)
>50%
6
(1.4%)
3
(0.7%)
0
(0.0%)
1
(0.2%)
3
(0.7%)
0
(0.0%)
Total
238
(53.6%)
39
(8.8%)
82
(18.5%)
30
(6.8%)
27
(6.1%)
28
(6.3%)
Table 5 provided an overview of whether there
are significant differences in the responses to the
benefits of e-commerce. Generally, all respondents
slightly agree, agree, and strongly agree about the
benefits (extending market reach (EMR), reduced
promotion cost (RPC), improved competitive
position (ICP), payment transactions made simple
(PTMS), increased customer loyalty and retention
(ICLR), improved speed of processing (ISP),
reduced complaints from the client (RCC), and
reduced operation cost (ROC) for small enterprises.
Furthermore, there is a shift in respondents'
responses to the benefits of e-commerce for small
enterprises during the COVID-19 pandemic to
choose slightly agree, agree, and strongly agree.
Before the COVID-19 pandemic, the majority of
responses to the benefits of e-commerce also chose
slightly agree, agree, and strongly agree. However,
during the pandemic, there was a shift to slightly
agree, agree, and strongly agree. More respondents
voted slightly agree, agree, and strongly agree with
the benefits of e-commerce for small enterprises.
There are significant differences in respondents'
responses to the benefits of e-commerce through
reduced promotion cost, improved competitive
position, payment transactions made simple,
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2022.18.8
Sukisno Selamet Riadi, Ariesta Heksarini,
Dirga Lestari, Siti Maria, Saida Zainurossalamia,
Rizky Yudaruddin
E-ISSN: 2224-3496
74
Volume 18, 2022
increased customer loyalty and retention, improved
speed of processing, reduced complaints from
clients. This demonstrates that small firms who use
e-commerce benefit both before and after the
COVID-19 outbreak. Indeed, during the epidemic,
restriction of community activities degrades social
activities and increase in the percentage of persons
who eat at home, so that operational activities such
as promotions, payments and customer service are
maximized through e-commerce.
The benefits in the form of extending the market
reduced operation costs and showed no significant
difference between before and during the COVID-
19 pandemic. The extending market reach and
reduced operating costs are not significant because
the scope of small enterprises of Indonesia is not too
broad and the adoption for marketing activities is
not to support production. These results are
consistent with previous studies 13], [16], [17], [43],
[44], [45], [ [46], [47], [48], [49], which showed the
important role of e-commerce adoption in
supporting small business performance. Generally,
responses of respondents to slightly agree, agree,
strongly agree increased. This showed the important
role of e-commerce in providing benefits to small
enterprises during the COVID-19 pandemic.
Table 5. Differences in respondents' responses to the benefits of e-commerce between before and during the
COVID-19 pandemic
Benefits of E-
Commerce
Responses of Respondents
Paired Samples
Statistics
Paired Differences
STD/D/SL
D
NAD
SLA/A/S
LA
Mean
Std.
Dev.
Mean
t
Sig.
EMR
BP
12
29
484
6.18
1.01
-0.02
-0.745
0.457
(2.3%)
(5.5%)
(92%)
DP
7
26
492
6.20
0.98
(1.4%)
(5.0%)
(93.7%)
RPC
BP
27
53
445
5.75
1.24
-0.07
-1.905
0.057
(5.20%)
(10.1%)
(84.8%)
DP
20
48
456
5.82
1.19
(3.8%)
(9.1%)
(86.8%)
IPC
BP
30
67
427
5.62
1.22
-0.11
-2.762
0.006
(5.8%)
(12.8%)
(81.3%)
DP
11
59
455
5.73
1.11
(2.2%)
(11.2%)
(86.7%)
PTMS
BP
17
37
471
5.94
1.11
-0.10
-2.747
0.006
(3.3%)
(7.0%)
(89.7%)
DP
11
33
481
6.05
1.07
(2.2%)
(6.3%)
(91.6%)
ICLR
BP
5
45
465
5.77
1.07
-0.08
-2.425
0.016
(1.0%)
(8.6%)
(88.6%)
DP
10
36
479
5.86
1.03
(1.9%)
(6.90%)
(91.2%)
ISP
BP
17
57
449
5.71
1.13
-0.32
-7.447
0.000
(3.3%)
(10.9%)
(85.5%)
DP
7
33
484
6.03
0.98
(1.4%)
(6.3%)
(92.2%)
RCC
BP
8
41
476
5.88
1.02
-0.08
-2.151
0.032
(1.60%)
(7.8%)
(90.7%)
DP
8
33
483
5.96
1.01
(1.6%)
(6.30%)
(92%)
ROC
BP
43
79
401
5.40
1.36
-0.03
-0.988
0.324
(8.2%)
(15%)
(76.4%)
DP
38
81
404
5.44
1.36
(7.2%)
(15.4%)
(76.9%)
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2022.18.8
Sukisno Selamet Riadi, Ariesta Heksarini,
Dirga Lestari, Siti Maria, Saida Zainurossalamia,
Rizky Yudaruddin
E-ISSN: 2224-3496
75
Volume 18, 2022
Note: BP = Before the COVID-19 pandemic; DP = During the COVID-19 pandemic; STD = Strongly Disagree; D = Disagree; SLD =
Slightly Disagree; NAD = Neither Agree nor Disagree; STA = Strongly Agree; A = Agree; SLA = Slightly Agree.
5 Conclusion
This study offers an understanding of the benefits of
e-commerce by small enterprises in developing
countries, such as Indonesia, and its implications
before and during the COVID-19 pandemic.
Furthermore, it explores the effects on the decline of
small enterprises' income and the response to the
policy of restrictions for community activities. This
study provides an overview of the types of
assistance required through an online questionnaire
survey conducted from May 2021 – June 2021
among small culinary businesses in Indonesia.
Meanwhile, a descriptive analysis was conducted to
explain the fundamental characteristics of the data.
A paired t-test was also conducted to test for
differences in respondents' responses to the benefits
of e-commerce.
The results highlight important findings, such as
the decrease in income due to the COVID-19
pandemic (35.6 percent of respondents experienced
a decrease of less than 10 percent and 32.4 percent
experienced a decrease in income of 10 to less than
25 percent). The restrictions on community
activities further worsen the performance of small
enterprises. Furthermore, 70.7 percent of
respondents agreed that restrictions to community
activities further worsen the performance. In
response to the COVID-19 pandemic, small
companies have relied on a variety of different types
of help, with working capital support accounting for
the great bulk of those requests. Finally, there are
significant differences to the benefits of e-commerce
between before and during the COVID-19 pandemic
(reduced promotion cost, improved competitive
position, payment transactions made simple,
increased customer loyalty and retention, improved
speed of processing, reduced complaints from the
client).
The study has several significant policy
implications, and the results provide empirical
evidence for the benefits of e-commerce. This
condition undoubtedly has implications for the
government's ability to be more effective in
encouraging small businesses to adopt e-commerce,
particularly during time of health crisis. This is due
to the low adoption of e-commerce by small
enterprises and the uneven distribution of supporting
infrastructure such as connectivity and internet
access in Indonesia.
Moreover, since the study area is limited to a
single country, a future survey should be conducted
to expand the sample on a global scale. Since the
study is focused on small culinary businesses,
additional studies are therefore recommended.
References:
[1] Briozzo, A., & Cardone-Riportella, C.
Evaluating the impact of public programs of
financial aid to SMEs during times of crisis:
The Spanish experience. Working Papers
12.04. Seville, Spain: Department of Financial
Economics and Accounting, Universidad Pablo
de Olavide, 2012.
[2] Yoshino, N., & Taghizadeh-Hesary, F., The
role of SMEs in Asia and their difficulties in
accessing finance. Asian Development Bank
Institute. ADBI Working Papers, 2018.
[3] Kaya, H.P., & Uzay. S. 2017. The risks that
will threaten going concern and control
recommendations: Case study on SMEs. The
Journal of Accounting and Finance, 2017,
Special Issue: 46–64.
[4] Garcia, L. M. V., Jacanamejoy, J. D. P.,
Cordoba, M. A. H., & Lopez, J. M.G., Factors
that influence the competitiveness of SMEs in
the commerce and services sector in the
Municipality of Palmira, Colombia. Problems
and Perspectives in Management, Vol 17, No
4, 2019, pp. 480-492.
[5] Sharma, M.K., & Bhagwat, R., Practice of
information systems: Evidence from select
Indian SMEs. Journal of Manufacturing
Technology Management, Vol 17, No 2, 2006,
pp.199–223.
[6] Meher, B. K., Hawaldar, I. T., Mohapatra, L.,
Spulbar, C., Birau, R., & Rebegea, C., The
impact of digital banking on the growth of
Micro, Small and Medium Enterprises MSMEs
in India: a case study. Business: Theory and
Practice, Vol 22, No 1, 2021, pp. 18-28.
[7] Moussa, F., Impact of microfinance loans on
the performance of SMEs: the case of Lebanon.
Business: Theory and Practice, Vol 21, No 2,
2020, pp. 769-779.
[8] Yudaruddin, R. Determinants of micro-, small-
and medium-sized enterprise loans by
commercial banks in Indonesia. Journal of
Asian Finance, Economics and Business, Vol
7, No 9, 2020, pp. 19–30.
[9] Tairas, D. R. Covid-19 pandemic and
MSMEs: Impact and mitigation. Jurnal
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2022.18.8
Sukisno Selamet Riadi, Ariesta Heksarini,
Dirga Lestari, Siti Maria, Saida Zainurossalamia,
Rizky Yudaruddin
E-ISSN: 2224-3496
76
Volume 18, 2022
Ekonomi Indonesia, Vol 9, No 1, 2020. pp.
67–80.
[10] Hermina, N., Syahvianto, T. M., & Yansa, B.,
Second Order Model Structural Equation
Modeling for Analyzing External
Environmental and Capability on Company
Performance of Small and Medium Enterprise
SME in Indonesia, PalArch's Journal of
Archaeology of Egypt / Egyptology, Vol 17, No
5, 2020, pp. 3718-3731.
[11] BPS, Analisis Hasil SE2016 Lanjutan Potensi
Peningkatan Kinerja Usaha Mikro Kecil.
Badan Pusat Statistik. Indonesia, 2019.
[12] Deloitte, Realising the potential of Indonesia’s
digital economy. Deloitte Indonesia
Perspectives. Second Edition, February 2021.
2021.
[13] Rahayu, R., & Day, J., E-commerce adoption
by SMEs in developing countries: evidence
from Indonesia. Eurasian Business Review, Vol
7, No 1, 2017, pp. 25–41.
[14] Breckova, P., & Karas, M., Online technology
and promotion tools in SMEs. Innovative
Marketing, Vol 16, No 3, 2020, pp. 85-97.
[15] Brewera, P., & Sebby, A. G., The effect of
online restaurant menus on consumers’
purchase intentions during the COVID-19
pandemic. International Journal of Hospitality
Management, Vol 94, 2020, 102777.
[16] Syaifullah, J., Syaifudin, M., Sukendar, M. U.,
& Junaedi, J., Social Media Marketing and
Business Performance of MSMEs During the
COVID-19 Pandemic. Journal of Asian
Finance, Economics and Business, Vol 8, No 2,
2021, pp. 523–531.
[17] Alheet, A. F., Hamdan, Y., AL-Bazaiah, S. A.,
The Impact of Technology, Entrepreneurship
and Consumer Attitudes on Firm Performance.
Polish Journal of Management Studies, Vol 23,
No 1, 2021, pp. 23-44.
[18] Ho, L. 2011. Meditation, learning,
organizational innovation and performance,
Industrial Management & Data Systems, Vol
111, No 1, 2011, pp. 113-131.
[19] Molla, A., & Heeks, R., Exploring E-
Commerce Benefits for Businesses in a
Developing Country. The Information Society,
Vol 23, No 2, 2007, pp. 95–108.
[20] Papadopoulos, T., Baltas, K. N., Balta, M. E.
The use of digital technologies by small and
medium enterprises during COVID-19:
implications for theory and practice.
International Journal of Information
Management, Vol 55, 2020, 102192.
[21] Botha, J.A.R., Bothma, C.H., Geldenhuys, P.,
Singh, A.M., Van Der Merwe, D., Booysen, H.
& Fourie, I. Managing E-commerce. Paarl: Juta
& Co, 2004.
[22] Turban, E., Electronic commerce 2010: a
managerial perspective. Upper Saddle River:
Pearson Education. 2010.
[23] Li, P., & Xie, W., A strategic framework for
determining e‐commerce adoption. Journal of
Technology Management in China, Vol 7, No
1, 2012, pp. 22–35.
[24] Laudon, K. C., & Traver, C. G., E-Comerse
2016 business, tecnology, sociey 12th ed.
England: Britis Library Cataloguint-in. 2017.
[25] Fishbein, M., & Ajzen, I. Belief, Attitude,
Intention, and Behavior: An Introduction to
Theory and Research. Reading, MA: Addison-
Wesley, 1975.
[26] Ajzen, I. The theory of planned behavior.
Organizational Behavior and Human Decision
Processes, Vol 50, 1991, pp. 179-211.
[27] Davis, F. D. Perceived Usefulness, Perceived
Ease of Use, and User Acceptance of
Information Technology. MIS Quarterly, Vol
13, No 5, 1989, pp. 319-339.
[28] Rogers, E. Diffusion of innovations, New York:
The Free Press. 1983.
[29] Tornatzky, L.G., Fleischer, M. and Chakrabarti,
A.K., Processes of Technological Innovation.
Lexington Books, Lexington. 1990.
[30] Chatterjee, R., K. Shiwaku, R.D. Gupta, G.
Nakano, & Shaw. R., Bangkok to Sendai and
beyond: Implications for disaster risk reduction
in Asia. International Journal of Disaster Risk
Science, Vol 6, No 2, 2015. pp. 177–188.
[31] Igwe, P.A., Amaugo, A.N., Ogundana, O.M.,
Egere, O.M. & Anigbo, J.M., Factors affecting
the investment climate, SMEs productivity and
entrepreneurship in Nigeria. European Journal
of Sustainable Development, Vol 71, No 1,
2018, pp. 182–200.
[32] Mbuyisa, B., & Leonard, A., The role of ICT
use in SMEs towards poverty reduction: A
systematic literature review. Journal of
International Development, Vol 29, No 2,
2017, pp.159–19.
[33] Bartik, A. W., Bertrand, M., Cullen, Z. B.,
Glaeser, E. L., Luca, M., & T. Stanton, C. T.
How Are Small Businesses Adjusting to Covid-
19? Early Evidence from A Survey, NBER
Working Paper Series, No. 26989, 2020.
[34] Humphries, J. E, Neilson, C. and Ulyssea, G.,
The Evolving Impacts of COVID-19 on Small
Businesses Since the CARES Act. Cowles
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2022.18.8
Sukisno Selamet Riadi, Ariesta Heksarini,
Dirga Lestari, Siti Maria, Saida Zainurossalamia,
Rizky Yudaruddin
E-ISSN: 2224-3496
77
Volume 18, 2022
Foundation Discussion Paper, No. 2230,
Cowles Foundation. 2020.
[35] McKinsey, Which small businesses are most
vulnerable to COVID-19--and when, 2020.
[36] Buffington, C., Dennis, C., Dinlersoz, E.,
Foster, L. and Klimek, S., Measuring the Effect
of COVID-19 on U.S. Small Businesses: The
Small Business Pulse Survey. No. CES-20-16,
US Census Bureau. 2020.
[37] Ssenyonga, M., Imperatives for post COVID-
19 recovery of Indonesia’s education, labor,
and SME sectors. Cogent Economics &
Finance, Vol 9, 2021, 1911439.
[38] Lutfi, M., Buntuang, P. C. D., Kornelius, Y.,
Erdiyansyah & Hasanuddin, B., The impact of
social distancing policy on small and medium-
sized enterprises SMEs in Indonesia. Problems
and Perspectives in Management, Vol 18, No
3, 2020, pp. 492-503.
[39] Thorgren, S. Williams, T. A., Staying alive
during an unfolding crisis: How SMEs ward off
impending disaster, Vol 14, 2020, e00187.
[40] Gourinchas P., Kalemli-zcan, S., Penciakova,
V., Sander, N., COVID-19 and SME Failures,
NBER Working Papers 27877, National
Bureau of Economic Research, Inc. 2020.
[41] Liu, S., Parilla, J. Businesses owned by women
and minorities have grown. Will COVID-19
undo that? Brookings. 2020.
[42] Bircan, Ç., De Haas, R., Schweiger, H.,
Stepanov, A., Coronavirus credit support:
Don’t let liquidity lifelines become a golden
noose. Voxeu, 2020.
[43] Hempel, P.S. and Kwong, Y.K. B2B e-
Commerce in emerging economies: i-metal.
com’s non-ferrous metals exchange in China,
The Journal of Strategic Information Systems,
Vol 10, No 4, 2001, pp. 335-55.
[44] Chwelos, P., Benbasat, I. and Dexter, A.S.,
Research report: empirical test of an EDI
adoption model. Information Systems Research,
Vol 12, No 3, 2001, pp. 304-21.
[45] Antoniuk, L., Gernego, I., Dyba, V.,
Polishchuk, Y., & Sybirianska, Y., Barriers and
opportunities for hi-tech innovative small and
medium enterprises development in the 4th
industrial revolution era. Problems and
Perspectives in Management, Vol 15, No 4,
2017, pp. 100-113.
[46] Fatta, D. D., Patton, D, & Viglia, G., The
determinants of conversion rates in SME e-
commerce websites. Journal of Retailing and
Consumer Services, Vol 4, No 1, 2018, pp.
161-168.
[47] Waseem, A., Rashid, Y., Warraich, M. A.,
Sadiq, I. & Shaukat, Z., Factors affecting E-
commerce potential of any country using
multiple regression analysis. Journal of
Internet Banking and Commerce, Vol 24, No 2,
2019, pp. 1 – 28.
[48] Ajibade, P., Ondari-Okemwa, E. M. &
Matlhako, M. M., Information technology
integration for accelerated knowledge sharing
practices: challenges and prospects for small
and medium enterprises. Problems and
Perspectives in Management, Vol 17, No 4,
2019, pp. 131-140.
[49] Alzahrani, J., The impact of e-commerce
adoption on business strategy in Saudi Arabian
small and medium enterprises SMEs. Review of
Economics and Political Science, Vol 4, No 1,
2019, pp. 73-88.
[50] Nooteboom, B., Transaction Costs, Innovation
and Learning. CentER Discussion Paper; Vol.
2006-36. Tilburg: Organization. 2006.
[51] Tapscott, D. Rethinking strategy in a
networked world or why Michael Porter is
wrong about the internet. Strategy and
Business, 2001, 34-41.
[52] Hamad, H., Elbeltagi, I. and El-Gohary, H., An
empirical investigation of business-to business
e-commerce adoption and its impact on SMEs
competitive advantage: the case of Egyptian
manufacturing SMEs. Strategic Change, Vol
27, No 3, 2018, pp. 209-229.
[53] Yudaruddin, R. Statistik Ekonomi: Aplikasi
Dengan Program SPSS Versi 20. Interpena
Yogyakarta. 2014.
[54] David, I., Adubisi, O., Farouk, B., & Adehi,
M., Assessing MSMEs Growth Through Rosca
Involvement Using Paired t-Test and One
Sample Proportion Test. Journal of Social and
Economic Statistics, Vol 9, No 2, 2020, pp. 30-
42.
[55] Diepa, B. H. & Anh, T. T., Synergies in merger
& acquisition: A case study of SMEs in
Vietnam. Journal of Project Management, Vol
5, 2020, pp.189–200.
[56] Yudaruddin, R. Determinants of corporate cash
holdings: Evidence of the mining sector in
Indonesia. International Journal of Scientific &
Technology Research, Vol 8, No, 10, 2019, pp.
1523–1526.
[57] Kusumawardani, A., Yudaruddin, R., &
Yudaruddin, Y. A. Corporate Governance's
Policy on the Impact of Cash Holding in
Indonesia. Universal Journal of Accounting
and Finance, Vol 9, No 4, 2021, pp. 594 – 603.
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2022.18.8
Sukisno Selamet Riadi, Ariesta Heksarini,
Dirga Lestari, Siti Maria, Saida Zainurossalamia,
Rizky Yudaruddin
E-ISSN: 2224-3496
78
Volume 18, 2022
[58] Hadjaat, M., Yudaruddin, R., & Riadi, S. S.
The Impact of Financial Distress on Cash
Holdings in Indonesia: Does Business Group
Affiliation Matter? Journal of Asian Finance,
Economics and Business, Vol 8, No 3, 2021,
pp. 373–381.
Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
Sukisno Selamet Riadi is tasked with oversight.
Ariesta Heksarini conceptualized the work.
Dirga Lestari is in charge of data curation.
Siti Maria is responsible for methodology.
Saida Zainurossalamia is in charge of writing the
initial draft.
Rizky Yudaruddin is in charge of editing and
proofreading tasks.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en
_US
WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT
DOI: 10.37394/232015.2022.18.8
Sukisno Selamet Riadi, Ariesta Heksarini,
Dirga Lestari, Siti Maria, Saida Zainurossalamia,
Rizky Yudaruddin
E-ISSN: 2224-3496
79
Volume 18, 2022