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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
B2B EC Adoption in Indonesia3
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)
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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
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Content Introduction The study
Introduction Framework Case study and Findings Conclusion and Contributions
Questions
B2B EC Adoption in Indonesia7
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)
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B2B E-Commerce Technologies
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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
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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
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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
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Content Introduction The study
Introduction Framework Case study and Findings Conclusion and Contributions
Questions
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Theoretical framework IOS Adoption Dyadic approach (Ali, Kurnia and
Shanks 2009)
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Content Introduction The study
Introduction Framework Case study and Findings Conclusion and Contributions
Questions
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Context
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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)
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Case study participants
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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
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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)
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Driving factors
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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)
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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.
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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.
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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
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Barriers
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Content Introduction The study
Introduction Framework Case study and Findings Conclusion and Contributions
Questions
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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
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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
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Questions?
Contact: reyner.karnali@leadtec.com.aureyner.jovian@gmail.com
LinkedIn: Reyner Jovian Karnali
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IOS Adoption framework Factor approach (Kurnia and Johnston, 2002)
Weaknesses Limited unit of analysis, Organizations as
dependant variables
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IOS Adoption framework Process approach (Kurnia and Johnston, 2002)
Weaknesses Difficult in designing the study, high complexity
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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)
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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
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Future research Similar settings in other countries Different industry Longitudinal approach Quantitative method