TOE Framework for E-Commerce Adoption by MSMEs during The COVID-19 Pandemic: Can Trust Moderate?

Currently, there are still many MSMEs in the regions that have not been connected to the digital ecosystem. This results in limited market reach, a lack of visibility, a lack of operational efficiency, and difficulty competing in the digital market. The purpose of this study is to review the adoption of e-commerce among MSMEs during the COVID-19 pandemic within the scope of the organization. Integrating the TOE framework (technology, organization, environment) with trust is carried out to explain the key parameters behind the adoption of e-commerce by MSMEs. This study collected samples using a saturated sample technique from 181 people who were members of the population. There were 153 questionnaires that were returned in full for further analysis using SEM-PLS modeling. The test results showed that technology did not have a significant influence on the adoption of e-commerce. Organizations, the environment during the pandemic, and trust have had a significant influence on the adoption of e-commerce. In addition, organizations that are moderated by trust have no significant effect on e-commerce adoption. The role of trust is as a moderation predictor. This research shows that the TOE framework is still strong enough to be used in explaining the adoption of e-commerce by MSMEs. This research also expands the TOE framework, where trust can also influence MSMEs to adopt e-commerce. Researchers and managers can use the set of variables that have been identified to strategize the adoption of e-commerce by MSMEs. This study presents a series of variables that can be used to study the adoption of e-commerce by MSMEs in the future.