Enhancing SME Competitiveness through E-Commerce Adoption: A Framework for Malang City

Abstract

Small and Medium-Sized Enterprises (SMEs) play a crucial role in economic development; however, enhancing their competitiveness in the digital era remains challenging, particularly in effectively leveraging e-commerce as a digital transformation strategy. Although prior studies have explored determinants and outcomes of e-commerce adoption, the findings remain fragmented and insufficient in explaining how e-commerce contributes to sustainable SME competitiveness. This study aims to identify internal and external factors influencing e-commerce adoption, examine its impact on SME competitiveness, and develop an integrated conceptual framework relevant to SMEs in Malang City. A Systematic Literature Review (SLR) was conducted following PRISMA guidelines, analyzing 33 empirical studies published between 2015 and 2025 from Scopus, ScienceDirect, Emerald, SpringerLink, Wiley, Taylor & Francis, and Google Scholar. The data were analyzed using thematic and content analysis to identify patterns and relationships across studies. The findings reveal that e-commerce adoption is driven by internal factors such as managerial capability, digital capability, innovation capability, and entrepreneurial orientation, as well as external factors including competitive pressure, customer demand, government support, and the digital ecosystem. Furthermore, e-commerce adoption enhances SME competitiveness through sales growth, profitability improvement, market expansion, operational efficiency, and sustainable competitive advantage. The study’s novelty lies in integrating the Resource-Based View (RBV), Dynamic Capability Theory (DCT), and Technology–Organization–Environment (TOE) framework into a unified model explaining how e-commerce translates into competitive advantage. The study provides both theoretical contributions to digital transformation literature and practical implications for strengthening SME competitiveness in Malang City through strategic e-commerce adoption.