b2b e-commerce adoption in indonesia

B2B e-Commerce adoption in Indonesia

Reyner J. Karnali

DIS - University of Melbourne18 October 2011

B2B EC Adoption in Indonesia2

Content Introduction The study

Introduction Framework Case study and Findings Conclusion and Contributions

Questions


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)


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

Leadtec Systems Australia





Questions


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 E-Commerce Technologies


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


Research GapsB2B 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


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




Questions


Theoretical framework IOS Adoption Dyadic approach (Ali, Kurnia and

Shanks 2009)




Questions


Context


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)


Case study participants


Dyads Overview

Dyad Companies Roles EC-enabled SCM Initiatives

1 C – G Manufacturer - Retailer Barcode, Web Portal EDI

2 B – G Manufacturer - Retailer Barcode, XML EDI

3 E – G Distributor - Retailer Barcode, Web Portal EDI

4 B – H Manufacturer - Retailer Barcode, Text File EDI, VMI

5 A – G Manufacturer - Retailer Barcode, XML EDI, CPFR

6 A – F Manufacturer - Distributor Barcode, PDA-based EDI, VMI, x-docking

7 C – D Manufacturer - Distributor Barcode, PDA-based EDI, VMI, x-docking


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)


Driving factors


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)


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.


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.


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


Barriers




Questions


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


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


Questions?

Contact: [email protected]@gmail.com

LinkedIn: Reyner Jovian Karnali


IOS Adoption framework Factor approach (Kurnia and Johnston, 2002)

Weaknesses Limited unit of analysis, Organizations as

dependant variables


IOS Adoption framework Process approach (Kurnia and Johnston, 2002)

Weaknesses Difficult in designing the study, high complexity


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)


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


Future research Similar settings in other countries Different industry Longitudinal approach Quantitative method

b2b e-commerce adoption in indonesia

Documents

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sydneyb2b ec adoption

throughb2b ec adoption

2011b2b ec adoption

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b2b ec application

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research gapsb2b ec