The Utilization of E-commerce as a Strategy to Increase the Competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in Semarang City

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a vital role in strengthening Indonesia’s economy through job creation and business growth. This study explores how MSMEs in Semarang City perceive and utilize e-commerce, using a mixed methods approach that combines quantitative and qualitative techniques. The results show that MSME actors have varied perceptions of e-commerce, generally understanding it as a digital platform for buying and selling. Most recognize its benefits in expanding market reach, facilitating easier transactions, and offering flexibility in time and location. E-commerce also provides efficient promotional and marketing tools, enabling MSMEs to adapt to modern trends. However, several challenges hinder adoption, such as intense market competition, limited technical skills, complex operational systems, minimal guidance or training, low digital trust between sellers and buyers, and limited supporting facilities and infrastructure. The study finds that e-commerce significantly impacts the competitiveness of MSMEs with a value of determination on r-square (r2) of 0.75. Overall, e-commerce serves as a crucial tool for MSMEs to enhance their market presence and sustainability in a digital economy.