Digital Business, Innovativeness, and Family-Firm Performance: The Moderating Effect of Family Commitment in Small- and Medium-sized Enterprises (SMEs)

Abstract

Reports from Small and Medium-sized Enterprises (SMEs) already using the internet in Indonesia show that e-commerce use is still between 9-15% in the Indonesian small and mediumsized sector. Indonesians spend approximately four hours on the Internet every day; Indonesia has the largest online economy and Southeast Asia's fastest-growing online economic climate. The Price Waterhouse Coopers survey found that 95% of businesses in Indonesia are owned or managed by the family. The objective of this review is to establish a theoretical model which combines digital business, innovation and family commitment to family-SME performance. The method used for the essential review is a systematic literature review (SLR). The findings of this review are used as the basis for the development of the concept. More than 1.022.213 publications released between 2014 and 2019 were screened using the keywords: digital business adoption, e-business adoption, e-commerce adoption, family commitment, family firms, SME innovation, and SME performance. Eventually, for this study, 21 journals were selected based on this analysis, the conceptual model has four possible connections: (1) the good relationship between digital business adoption and SME achievements; (2) the positive relationship between the adoption of digital business and innovativeness; (3) the positive direct impacts of innovativeness on family-firm performance; and (4) a good relationship between SME performance and family commitment and innovativeness. This research refers to a conceptual framework that could play a major part in the success of SMEs through digital business, family commitment, and innovativeness.