EXPERIENCES OF E-COMMERCE ADOPTION AMONG INDONESIAN FAMILY-OWNED SMES: A PHENOMENOLOGICAL STUDY
Abstract
Family-owned MSMEs account for 99% of all businesses in Indonesia, yet only 30% survive into the second generation. Meanwhile, the adoption of e-commerce has become a competitive necessity, but it often clashes with the family values that form the foundation of these businesses. This study aims to uncover the lived experiences of family-owned MSME entrepreneurs in adopting e-commerce amid the pressure to preserve socioemotional wealth (SEW). Using interpretive phenomenological analysis (IPA), this study examines a case of a manufacturing SME in Central Java with five key informants. The results identified three essential themes: the founder’s existential ambivalence, the second generation’s struggle with dual legitimacy, and the renegotiation of senior employees’ loyalty. The findings yield a “Digitalized Personalized Formalization” model, which demonstrates that digitalization does not replace family values but rather reinterprets them through digital practices. The theoretical contribution lies in the modification of the SEW concept for the context of Indonesian collectivism, while the practical implications emphasize the importance of co-digital leadership training and digitalization programs that are sensitive to family dynamics.
References
Beck, C. T. (2021). Introduction to Phenomenology: Focus on Methodology. SAGE Publications, Inc. https://doi.org/10.4135/9781071909669 NV - 0
Berrone, P., Cruz, C., & Gomez-Mejia, L. (2012). Socioemotional Wealth in Family Firms. Family Business Review, 25, 258–279. https://doi.org/10.1177/0894486511435355
Bornhausen, A., & Wulf, T. (2023). Digital innovation in family firms: The roles of non-family managers and transgenerational control intentions. Small Business Economics, 62. https://doi.org/10.1007/s11187-023-00823-w
Bouncken, R., & Schmitt, F. (2022). SME Family Firms and Strategic Digital Transformation: Inverting Dualisms Related to Overconfidence and Centralization. Journal of Small Business Strategy, 32. https://doi.org/10.53703/001c.35278
Braun, V., & Clarke, V. (2019). Reflecting on reflexive thematic analysis. Qualitative Research in Sport, Exercise and Health, 11(4), 589–597. https://doi.org/10.1080/2159676X.2019.1628806
Brundin, E., & Hartel, C. (2014). Emotions in Family Firms (pp. 529–548). https://doi.org/10.4135/9781446247556.n27
Bürgel, T. R., & Hiebl, M. (2023). Conflict Management Strategies and the Digitalization of Family Firms: The Moderating Role of Generational Ownership Dispersion. IEEE Transactions on Engineering Management. https://doi.org/10.1109/TEM.2023.3293855
Ceipek, R., Hautz, J., De Massis, A., Matzler, K., & Ardito, L. (2020). Digital Transformation Through Exploratory and Exploitative Internet of Things Innovations: The Impact of Family Management and Technological Diversification*. Journal of Product Innovation Management, 38. https://doi.org/10.1111/jpim.12551
Chatterjee, S., Chaudhuri, R., Vrontis, D., & Kraus, S. (2022). Assessing the AI-CRM technology capability for sustaining family businesses in times of crisis: The moderating role of strategic intent. Journal of Family Business Management. https://doi.org/10.1108/JFBM-12-2021-0153
Chrisman, J., Madison, K., & Kim, T. (2021). A Dynamic Framework of Noneconomic Goals and Inter-Family Agency Complexities in Multi-Family Firms. Entrepreneurship Theory and Practice, 45, 104225872110057. https://doi.org/10.1177/10422587211005775
Creswell, J. W., & Poth, C. N. (2017). Qualitative Inquiry and Research Design: Choosing Among Five Approaches. SAGE Publications. https://books.google.co.id/books?id=Pz5RvgAACAAJ
Dekker, J., Lybaert, N., Steijvers, T., Depaire, B., & Mercken, R. (2013). Family Firm Types Based on the Professionalization Construct. Family Business Review, 26, 81–99. https://doi.org/10.1177/0894486512445614
Gomez-Mejia, L., Cruz, C., Berrone, P., & Castro, J. (2011). The Bind That Ties: Socioemotional Wealth Preservation in Family Firms. The Academy of Management Annals, 5, 653–707. https://doi.org/10.1080/19416520.2011.593320
Lincoln, Y. S., & Guba, E. G. (1985). Naturalistic Inquiry. SAGE Publications. https://books.google.co.id/books?id=2oA9aWlNeooC
Manafe, L., Puspitasari, F., & Fatchurrohman, M. (2025). Enhancing Online Shopping: Factors Influencing Repurchase Intentions Among University Students. International Journal of Economics, Business, and Entrepreneurship, 8, 168–187. https://doi.org/10.23960/ijebe.v8i2.366
Manen, M. van. (1997). Researching Lived Experience, Second Edition: Human Science for an Action Sensitive Pedagogy (2nd ed.). Routledge.
Purba, M. L. B., Hasibuan, R., & Sucipto, T. N. (2023). Kesejahteraan Keluarga Berbasis Pengembangan UMKM di Masa Pandemi Covid-19. Penerbit NEM. https://books.google.co.id/books?id=jQfAEAAAQBAJ
Reina, W., Barber, J., & Villar, C. (2022). Socioemotional wealth in family business research: A systematic literature review on its definition, roles and dimensions. European Management Journal, 41. https://doi.org/10.1016/j.emj.2022.10.009
Ren, T., Liu, X., & Ding, J. (2023). Intergenerational dynamics of digital transformation in family firms. Technology in Society, 74 (C). https://doi.org/10.1016/j.techsoc.2023.102261
Smith, J., Flowers, P., & Larkin, M. (2009). Interpretative Phenomenological Analysis: Theory, Method and Research. In Qualitative Research in Psychology (Vol. 6).
Soluk, J. (2022). Organisations’ Resources and External Shocks: Exploring Digital Innovation in Family Firms. Industry and Innovation, 29(6), 792–824. https://doi.org/10.1080/13662716.2022.2065971
Soluk, J., & Kammerlander, N. (2020). Digital Transformation in Family-Owned Mittelstand Firms: A Dynamic Capabilities Perspective. European Journal of Information Systems, 30. https://doi.org/10.1080/0960085X.2020.1857666
Soluk, J., Miroshnychenko, I., Kammerlander, N. H., & Massis, A. De. (2021). Family Influence and Digital Business Model Innovation: The Enabling Role of Dynamic Capabilities. Entrepreneurship Theory and Practice, 45, 867–905. https://api.semanticscholar.org/CorpusID:233636325
Swab, R., Sherlock, C., Markin, E., & Dibrell, C. (2020). “SEW” What Do We Know and Where Do We Go? A Review of Socioemotional Wealth and a Way Forward. Family Business Review, 33, 424–445. https://doi.org/10.1177/0894486520961938
Townley, B. (1997). The Institutional Logic of Performance Appraisal. Organization Studies, 18(2), 261–285. https://doi.org/10.1177/017084069701800204
Venkatesh, V., Morris, M., Davis, G., & Davis, F. (2003). User Acceptance of Information Technology: Toward A Unified View1. MIS Quarterly, 27, 425–478. https://doi.org/10.2307/30036540
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/https://doi.org/10.1016/j.jsis.2019.01.003
Wicaksono, P. (2026). Bisnis Milik Keluarga, Hanya 12 Persen Bertahan di Generasi Ketiga. Bisnis Jogja. https://www.bisnisjogja.id/bisnis-milik-keluarga-hanya-12-persen-bertahan-di-generasi-ketiga/
.jpg)










