Strategic Roles of Entrepreneurial Orientation and Dynamic Capabilities in Driving e-Commerce Adoption among SMEs in West Java

Abstract— This study examines the impact of Entrepreneurial Orientation (EO) and Dynamic Capabilities (DC) on E-Commerce Adoption (EA) among Micro, Small, and Medium Enterprises (MSMEs) in West Jakarta. Drawing upon the Resource-Based View (RBV) and the Technology–Organization–Environment (TOE) framework, the research analyzes survey data from 443 MSMEs using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that two EO dimensions, proactiveness and risk-taking, have a positive and significant impact on EA. However, innovativeness and DC do not exhibit significant effects, suggesting gaps in strategic resource alignment or digital readiness. These results align with the challenges faced by ASEAN-wide initiatives, such as SEADHi, which similarly struggle with capability gaps and fragmented digital ecosystems. The study highlights the importance of comprehensive digital support, targeted policy interventions, and regional collaboration in enhancing the resilience and competitiveness of MSMEs. Future research should consider moderating variables, such as digital literacy, access to infrastructure, and institutional support, to understand the pathways to sustainable digital transformation better. Keywords: Entrepreneurial Orientation, Dynamic Capability, E-Commerce Adoption, MSMEs, Resource-Based View (RBV), West Jakarta, SEADHi