Digital inequalities among MSE entrepreneurs in Indonesia: Exploring differences in internet access between internet-users and non internet-users MSE entrepreneurs

Lia Yuldinawati

Research output: ThesisPhD Thesis - Research UT, graduation UT

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Abstract

Internet use has been growing rapidly in the last decade. The massive use of the internet has shifted the market and raised a new marketing era. To ensure their survival, companies are forced to adopt the internet including micro and small enterprises (MSEs). Unfortunately, the use of the internet for business purposes among Indonesian MSEs is very low and there are still gaps related to internet access in Indonesia. The data from the Indonesian Ministry of Communication and Informatics shows that only 13,5% of Indonesian MSEs have used online tools. MSMEs are the backbone of economic growth and innovation in Indonesia by contributing to 58% of Indonesia’s National Gross Domestic Products and absorbing millions of employees in the country. Therefore, it is important to support and ensure the survival of MSEs in this digital era.

This dissertation aims to acquire a better understanding of internet access among Indonesian MSEs. The model used is based on Van Dijk’s (2005) Resources and Appropriation Theory, which explains the digital divide as a succession of motivation, material, skills, and internet usage access. Three related studies were carried out, which are preliminary studies, internet access among internet user MSEs, and internet access among non-internet user MSEs. This dissertation contributes to measuring the impacts of internet access on business outcomes, determining socio-demographic determinants associated with internet access, and developing strategic policy on internet access for Indonesian MSEs.

The results prove sequential effects among internet access from motivational access, material access, internet skill access, and internet usage access and its effects on business outcomes both in internet user and non-internet user MSEs. Besides that, socio-demographic and geographic factors such as gender, age, education level, business location, etc. are proven to have effects on internet access among both user and non-user MSE entrepreneurs.
Original languageEnglish
QualificationDoctor of Philosophy
Awarding Institution
  • University of Twente
Supervisors/Advisors
  • van Deursen, Alexander J.A.M., Supervisor
  • van Dijk, Jan A.G.M., Supervisor
Award date23 Jun 2022
Place of PublicationEnschede
Publisher
Print ISBNs978-90-365-5396-4
DOIs
Publication statusPublished - 23 Jun 2022

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