Factors Influencing E-Commerce Adoption on Sustainability of MSME; A Multiple Holistic Approach

Abstract

In recent years, there has been a surge in the adoption of e-commerce among (MSMEs) worldwide. However, despite the growing popularity of e-commerce adoption in the MSME sector, there remains a gap in understanding its implications for sustainability. The sustainability of MSMEs is a multifaceted concept encompassing economic, social, and environmental dimensions. While e-commerce adoption has the potential to enhance the economic performance of MSMEs by facilitating access to new markets and reducing transaction costs, its impact on social and environmental sustainability remains unclear. Questions arise regarding the social implications of e-commerce adoption, such as its effect on employment patterns, local communities, and traditional business practices. Additionally, concerns exist regarding the environmental footprint of e-commerce activities, including energy consumption, carbon emissions, and waste generation. The literature on e-commerce adoption in MSMEs primarily focuses on its technological and economic aspects, neglecting the broader implications for sustainability. There is a lack of comprehensive studies that systematically examine the relationship between e-commerce adoption and sustainability outcomes in the MSME context. As MSMEs play a significant role in driving economic growth and employment generation, understanding the sustainability implications of e-commerce adoption is crucial for informing policy decisions, business strategies, and sustainability initiatives.