Decision-making Model for Determinant Factors of Business Digital Platform Adoption by SMEs

Debrina Andriani, Wisnu Putro, Sylvie Sari, Azizah Nur Aini, Agustinus Anwar
2020 Proceedings of the Proceedings of the 13th International Interdisciplinary Studies Seminar, IISS 2019, 30-31 October 2019, Malang, Indonesia   unpublished
Small and medium enterprise (SMEs) is one of the industries that are currently growing rapidly. Its existence is not only a main pillar of the national economy, but also a pillar of family resilience. Most SMEs are family businesses that are driven, managed, and often employed their own families. The family presence had significant impact on the sustainability of SME businesses. However, empirical studies revealed contrary relationship between family ownership with the internationalization
more » ... ationalization strategy of business, such as the strategy to adopt business digital platform or e-commerce for competing in the digital era. Therefore, this study aimed to assess and classify the determinant factors in business digital platform adoption that affect the SME businesses expansion. The decision making model is built in a decision tree using C4.5 algorithm. The results disclosed that organizational factor was the most significant factor in adopting a digital business platform. The organizational factors comprised enterprise resources, firm size, and management commitment. This study could support the business owners in making optimal and efficient decisions to minimize risk in order to create business and family sustainability and resilience.
doi:10.4108/eai.23-10-2019.2293048 fatcat:o3tw6n4gwzgoldiuoazztlbj5q