The digitalization of micro, small, and medium-sized enterprises (MSMEs): An institutional theory perspective

The primary objective of this research is to identify the driving factors for micro, small, and medium-sized enterprises (MSMEs) in adopting online food delivery service in the ride-sharing application as a part of the sharing economy through an institutional theory perspective. The study uses data from MSMEs that are using the application in East Java Province, Indonesia. The outcomes of this study indicate that the three dimensions of institutional theory proved significant in shaping the behavior intention of MSMEs in the food sector in utilizing the application. These three dimensions explain that changes in consumer consumption patterns (coercive), business competition (mimetic), and business environment (normative) can encourage MSMEs to adopt the application.