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B2B e-Commerce adoption in Indonesia

B2B e-Commerce adoption in Indonesia. Reyner J. Karnali DIS - University of Melbourne 18 October 2011. Content. Introduction The study Introduction Framework Case study and Findings Conclusion and Contributions Questions. Reyner J. Karnali. Academic

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B2B e-Commerce adoption in Indonesia

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  1. B2B e-Commerce adoption in Indonesia Reyner J. Karnali DIS - University of Melbourne 18 October 2011

  2. Content • Introduction • The study • Introduction • Framework • Case study and Findings • Conclusion and Contributions • Questions B2B EC Adoption in Indonesia

  3. Reyner J. Karnali • Academic • Bachelor of IT in 2006 - Fontys University, Eindhoven • Master of Science in IT and Business in 2010 - Leiden University • 1 year exchange at University of Melbourne • Professional • 4 years Software Engineering background • Philips Healthcare - Worldwide leader in medical systems • Current: Test Engineer • Leadtec Systems - Australian market leader in B2B EDI (www.leadtec.com.au) B2B EC Adoption in Indonesia

  4. Leadtec Systems Australia • Leading Australian B2B EC Service Provider/Software house • Grocery • Healhtcare • Automotive • Banking • 1990 - • Products/Services • EDI • Barcode Management System (Scanner/Software) • Data synchronization (GS1 AU/NZ) • Melbourne (HQ) and Sydney B2B EC Adoption in Indonesia

  5. Leadtec Systems Australia B2B EC Adoption in Indonesia

  6. Content B2B EC Adoption in Indonesia • Introduction • The study • Introduction • Framework • Case study and Findings • Conclusion and Contributions • Questions

  7. B2B E-Commerce • Definition: The use of information and communication technologies (ICTs) to conduct business transactions electronically between organisations. • Typically is used to manage supply chain activities • B2B e-Commerce is an inter-organisational system (IOS) B2B EC Adoption in Indonesia

  8. B2B E-Commerce Technologies B2B EC Adoption in Indonesia

  9. B2B E-Commerce Initiatives • E-Procurement • EC-Enabled Business Process Reengineering (BPR) • Vendor Managed Inventories (VMI) • EC-enabled Just-in-Time • Efficient Consumer Response (ECR) • Collaborative Planning, Forecasting and Replenishment (CPFR) • Advanced Distribution Systems • Cross-docking • Flow-through B2B EC Adoption in Indonesia

  10. Research Gaps B2B EC has the potential to integrate developing countries into the global economy, BUT • Developing countries have lagged behind in IOS adoption • Advanced supply chain management cannot be achieved without participation from trading partners • Limited in-depth studies of B2B EC adoption in developing countries B2B EC Adoption in Indonesia

  11. The Study • Aim: to obtain a rich understanding of e-Commerce technology adoption, particularly B2B EC application, in Indonesia as an example of a developing country. • Research questions: • What B2B EC technologies / initiatives are currently adopted by organizations within the Indonesian grocery industry? • What are the driving factors and the barriers to adoption of these B2B EC technologies/initiatives? • How are these B2B EC technologies / initiatives adopted in Indonesia? • Multiple case study with 8 organisations within the Indonesian grocery industry B2B EC Adoption in Indonesia

  12. Content B2B EC Adoption in Indonesia • Introduction • The study • Introduction • Framework • Case study and Findings • Conclusion and Contributions • Questions

  13. Theoretical framework • IOS Adoption Dyadic approach(Ali, Kurnia and Shanks 2009) B2B EC Adoption in Indonesia

  14. Content B2B EC Adoption in Indonesia • Introduction • The study • Introduction • Framework • Case study and Findings • Conclusion and Contributions • Questions

  15. Context B2B EC Adoption in Indonesia

  16. Context: Indonesia facts • Introduction • 1990s, strong economic growth (7%/year) • Low percentage of GDP for IT investment • Grocery Industry • 1995: 200 mill. people, 350 supermarkets (1 chain) • 1998: Open for Foreign investment • 2002: Retail sector amounts one-fifth of GDP (US$ 33.1 bn), employs 17.5m (17.7%) of total labor • Traditional market and Modern market (Hypermarket and Minimarket) B2B EC Adoption in Indonesia

  17. Case study participants B2B EC Adoption in Indonesia

  18. Dyads Overview B2B EC Adoption in Indonesia

  19. Research Methodology • Data collection • Oct 08 - Feb 09 (5 interviews) - Fellow assistant • Dec 09 - Jan 10 (7 interviews) • Feb 10 - July 10 (Follow up emails, phone interviews, documentation) • Audio, Indonesian transcript, English summary • Data analysis • 3 Coding level (Neuman, 2006) B2B EC Adoption in Indonesia

  20. Driving factors B2B EC Adoption in Indonesia

  21. How B2B EC is Adopted • Appropriation of simple technology which fits with the local business needs and culture • “Salesmen with the PDA visit our retailers, calculate and estimate their needs with the help of the software and discuss with the retailers. Then they come up with a mutual agreement regarding the final orders.” Managing Director, Manufacturer (Company C, Dyad 7) B2B EC Adoption in Indonesia

  22. How B2B EC is Adopted • B2B EC technologies and infrastructure are provided by larger organizations • Larger retailers (Companies G and H) help smaller suppliers print barcode labels. • Company G provides its suppliers (Manufacturers) with a customized B2B web portal for PO exchange and monitoring (EDI) • Large manufacturers (Companies A and C) provide distributors (Companies D and F) with PDA systems. B2B EC Adoption in Indonesia

  23. How B2B EC is Adopted • Collaboration leading to smooth adoption • EDI Adoption (Web portal and XML) • Dyads 1, 2, and 3, the Retailer (Company G) and Manufacturers(Company C, B, and E) have good relationship and trust). • Regular discussions about the EDI systems between Retailers and Manufacturers • Company G offers introduction training and seminars on the usage of the EDI systems. B2B EC Adoption in Indonesia

  24. How B2B EC is Adopted • Collaboration leading to smooth adoption (cont’) • PDA-Based EDI Systems • Dyads 6 and 7: the Manufacturers and Distributors have strong commitment and collaboration • A joint human-resource strategic agenda – covers work protocol, employee training and development program, and Key Performance Indicator (KPI) indicators • The manufacturers offer constant support and help B2B EC Adoption in Indonesia

  25. Barriers B2B EC Adoption in Indonesia

  26. Content B2B EC Adoption in Indonesia • Introduction • The study • Introduction • Framework • Case study and Findings • Conclusion and Contributions • Questions

  27. Conclusion • Benefits of B2B EC are still appealing for organisations in Indonesia • The Indonesian grocery industry is catching up with B2B EC adoption despite various barriers • The socio-cultural conditions in developing countries do not necessarily prohibit the adoption of B2B EC initiatives B2B EC Adoption in Indonesia

  28. Contribution • Offers valuable insights for local players into the current practice of IT-enabled SCM initiatives within the Indonesian grocery industry • Offers guidance for organizations in developed countries in devising appropriate strategies to best deal with organizations within the Indonesian grocery industry • Complements the findings of other previous studies in the areas of B2B EC adoption B2B EC Adoption in Indonesia

  29. Questions? Contact: reyner.karnali@leadtec.com.au reyner.jovian@gmail.com LinkedIn: Reyner Jovian Karnali B2B EC Adoption in Indonesia

  30. IOS Adoption framework • Factor approach (Kurnia and Johnston, 2002) Weaknesses • Limited unit of analysis, Organizations as dependant variables B2B EC Adoption in Indonesia

  31. IOS Adoption framework • Process approach (Kurnia and Johnston, 2002) • Weaknesses • Difficult in designing the study, high complexity B2B EC Adoption in Indonesia

  32. Research Methodology • Nature • Exploratory (How question, Explore new areas) • Explanatory (Driving forces and Barriers to adoption process) • Theory-building phase (Shanks et al., 1994) • Multiple case study • Multiple units of analysis (Yin, 2003) • Organization-level: What question (2nd & 3rd) • Dyad-level: How question (1st) B2B EC Adoption in Indonesia

  33. Data Analysis • Open Coding • 1st iteration • Post-It notes to identify themes • Per Company Summary • Axial Coding • Dyads coupling • B2B EC technology overview • Categories (Grouping of themes) • Selective Coding • Cross-case analysis (Similarities/Differences) • 2nd iteration • Remove irrelevant themes/categories B2B EC Adoption in Indonesia

  34. Future research • Similar settings in other countries • Different industry • Longitudinal approach • Quantitative method B2B EC Adoption in Indonesia

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