Ecommerce and related factors on the performance of small and medium scale industries

This study aims to analyze: 1) the development of demand for craft SMIs products through the use of ecommerce, 2) the effect of ecommerce utilization, macroeconomic conditions, prices, and the intensity of promotion on product demand, 3) the effect of ecommerce utilization, macroeconomic conditions, prices, promotion intensity, and product demand for performance; and 4) the role of product demand in mediating the effect of ecommerce utilization, macroeconomic conditions, prices, and the intensity of promotion on performance. The results of the study show that the product demand variable gives a value of 0.371 while influence of the business performance variable gives a value of 0.486. The results of the study show that the development of demand for handicraft products in Denpasar through low ecommerce utilization, craft SMIs that utilize ecommerce demand more products than those who do not utilize, macroeconomic conditions have a positive and significant effect on product demand, the price has a negative effect and significant to product demand, while promotion intensity has a positive but not significant effect on product demand. Crafting SMIs that utilize ecommerce have better performance than those that do not use, macroeconomic conditions, prices, and product demand have a positive and significant effect on performance. Promotion intensity has a positive but not significant effect on performance.Product demand variables mediate the effect of ecommerce utilization variables, perceptions of macroeconomic conditions, and price variables on the performance variables of small and medium scale industries