Digital Empowerment and E-Commerce Adoption among Handicraft SMEs: A Contemporary Islamic Economic Law Study Using the TOE Framework

Nuril Aulia Munawaroh; Sudarmiatin; Erry Tri Djatmika; Agus Hermawan; Miftahul Munir

doi:10.32332/milrev.v4i2.11731

Authors

Nuril Aulia Munawaroh Universitas Negeri Malang and Universitas Islam Kadiri, Indonesia
Sudarmiatin Universitas Negeri Malang, Indonesia
Erry Tri Djatmika Universitas Negeri Malang, Indonesia
Agus Hermawan Universitas Negeri Malang, Indonesia
Miftahul Munir Universitas Islam Kadiri, Indonesia

DOI:

https://doi.org/10.32332/milrev.v4i2.11731

Keywords:

Digital Empowerment, E-Commerce Adoption, Handicraft SMEs, Islamic economic law.

Abstract

This study critically examines the integration of the Technology-Organisation-Environment (TOE) framework into digital empowerment practices among handicraft small and medium-sized enterprises (SMEs) from the perspective of contemporary Islamic economic law. The research aims to explore how technological readiness, organisational capacity, and environmental support influence the adoption of e-commerce, while aligning these dynamics with Islamic ethical and legal principles such as fairness (‘adl), transparency (shafāfiyyah), and social welfare (maṣlaḥah). Using a qualitative descriptive approach, this study synthesises empirical findings from relevant literature and case studies of handicraft SMEs that have implemented digital transformation strategies. The analysis reveals that the successful adoption of e-commerce within Islamic legal frameworks depends not only on technological and managerial factors but also on compliance with sharia-based economic values that promote justice, trust, and ethical business practices. The study concludes that integrating the TOE framework into digital empowerment provides a holistic model for sustainable SME development, bridging modern economic innovation with the moral foundations of Islamic law. The academic contribution of this study lies in its interdisciplinary integration of the TOE framework with contemporary Islamic economic jurisprudence, offering a novel analytical model that bridges digital innovation and normative Islamic law. It enriches the discourse on digital transformation in Muslim-majority economies by offering a sharia-compliant perspective on sustainable SME development and policy formulation.

Downloads

Download data is not yet available.

References

Annisa, Siti, and Mohammad Riza Sutjipto. ‘Technology, Organization, Environment, and Digital Transformation for Sustainability’. Jurnal Ilmiah Manajemen Kesatuan 13, no. 4 (July 2025): 2591–2604. https://doi.org/10.37641/jimkes.v13i4.3497.

Azizah, Adelia Rizki Nur, Aisyah Aisyah, Fildzah Nurdima, Nurlia Febrianti, and Johan Hendri Prasetyo. ‘Digital Marketing Implementation in the Handicraft Industry’. Jurnal Kewirausahaan, Akuntansi Dan Manajemen Tri Bisnis 7, no. 1a (October 2025): 325–336. https://doi.org/10.59806/jkamtb.v7i1a.545.

Bashori, Yudhi Achmad, Khairil Umami, and Soleh Hasan Wahid. ‘Maqasid Shariah-Based Digital Economy Model: Integration, Sustainability And Transformation’. Malaysian Journal of Syariah and Law 12, no. 2 (August 2024): 405–425. Indonesia. https://doi.org/10.33102/mjsl.vol12no2.647.

Choiruddin, Muhammad Nanang, Heri Pratikto, F. Danardana Murwani, and Nurika Restuningdiah. ‘Financial Literacy, FinTech, and Contemporary Innovation in Islamic Economic Law: An Analysis of MSME Performance Sustainability in Indonesia and Malaysia’. MILRev: Metro Islamic Law Review 4, no. 2 (August 2025): 976–1008. https://doi.org/10.32332/milrev.v4i2.10164.

Chong, Josephine LL, and Karin Olesen. ‘A Technology-Organization-Environment Perspective on Eco-Effectiveness: A Meta-Analysis’. Australasian Journal of Information Systems 21 (March 2017). https://doi.org/10.3127/ajis.v21i0.1441.

Ehirim, Ugochukwu Godspower. ‘Artificial Intelligence and Healthcare Delivery in Nigeria: Legal and Ethical Dimensions of Patients’ Rights to Safety’. Indonesian Journal of Sharia and Socio-Legal Studies 1, no. 1 (May 2025): 47–71. https://doi.org/10.24260/ijssls.1.1.10.

Fasluki, Risa Bella. ‘Peran Ekonomi Digital Syari’ah Dalam Usaha Mikro Kecil Dan Menengah’. Indonesian Proceedings and Annual Conference of Islamic Law And Sharia Economic (IPACILSE) 1, no. 1 (August 2023): 49–54.

Febriantika, Aditya, Rianita Puspa Sari, and Aulia Fashanah Hadining. ‘Analisis Pengaruh Aspek Technology-Organization-Environment Dalam Financial Technology Terhadap Financial Inclusion UMKM Karawang’. Jurnal Teknik Industri 10, no. 2 (2020): 170–180. https://doi.org/10.25105/jti.v10i2.8401.

Firmasari, Puja, Putri Arpilliya, and Mey Shara Kurnia. ‘Peran Technology-Organization-Environment (Toe) Dan Digital Finance Terhadap Kinerja Bisnis Umkm Provinsi Jambi Melalui Green Innovation’. Jurnal Manajemen Terapan Dan Keuangan 14, no. 03 (September 2025): 1259–1276. https://doi.org/10.22437/jmk.v14i03.47619.

Hakim, Sofian Al, Mohamad Sar’an, Ah Fathonih, and Agi Attaubah Hidayat. ‘Contextualising Sharīʿah Economic Law: The Role of Pesantren in Indonesia’s Socio-Legal Landscape’. Jurnal Ilmiah Mizani: Wacana Hukum, Ekonomi Dan Keagamaan 12, no. 2 (September 2025): 479–496. https://doi.org/10.29300/mzn.v12i2.7926.

———. ‘Contextualising Sharīʿah Economic Law: The Role of Pesantren in Indonesia’s Socio-Legal Landscape’. Jurnal Ilmiah Mizani: Wacana Hukum, Ekonomi Dan Keagamaan 12, no. 2 (September 2025): 479–496. https://doi.org/10.29300/mzn.v12i2.7926.

Hardianti, Adisty Riska, Anisah Nabilah, Nuril Hikmah, Ahmad Yahya Hamiduddin, and Muhammad Bagus Ramadhan. ‘The Influence of Digitalization of MSMEs as an Effort to Develop the Local Economy in Kanigoro District, Blitar Regency’. Indonesian Journal of Digital Business 5, no. 1 (April 2025): 191–199. https://doi.org/10.17509/ijdb.v5i1.83924.

Hendrawan, Satya Arisena, Afdhal Chatra, Nurul Iman, Soemarno Hidayatullah, and Degdo Suprayitno. ‘Digital Transformation in MSMEs: Challenges and Opportunities in Technology Management’. Jurnal Informasi Dan Teknologi, 20 June 2024, 141–149. https://doi.org/10.60083/jidt.v6i2.551.

Indriastuti, Maya, and Indri Kartika. ‘The Impact of Digitalization on MSMEs’ Financial Performance: The Mediating Role of Dynamic Capability’. Jurnal Economia 18, no. 2 (October 2022): 240–255. https://doi.org/10.21831/economia.v18i2.42790.

Irwan, Irwansyah. ‘Development of Display Space Design for UKM Kerajinan Bunga in Serdang Bedagai: Pengembangan Desain Ruang Display Pada UKM Kerajinan Bunga Di Serdang Bedagai’. Jurnal Abdimas Universitas Insan Pembangunan Indonesia 2, no. 1 (February 2024). https://doi.org/10.58217/jabdimasunipem.v2i1.42.

Lombo, Juliandre Lombo, and Rungarun Boonsayan. ‘Contemporary Reflections on Abuse of Authority in the Coastal Wall Project within the Framework of Sharia Economic Law’. NUSANTARA: Journal Of Law Studies 4, no. 01 (July 2025): 12–22. https://doi.org/10.5281/zenodo.17349677.

Miles, Matthew B, and A. Michael Huberman. Analisis Data Kualitatif : Buku Sumber Tentang Metode-Metode Baru. Jakarta: Universitas Indonesia Press, 2014.

Mulyono, Edi, and Mahmoud Mohamed Ali Mahmoud Edris. ‘From Jurisprudence to Algorithms: The Role of Artificial Intelligence in Contemporary Sharia Financial Decision-Making’. NUSANTARA: Journal Of Law Studies 4, no. 2 (October 2025): 129–142. https://doi.org/10.5281/zenodo.17341980.

Nikmah, Farika, Cipto Wardoyo, Agus Hermawan, and Budi Eko Soetjipto. ‘The Role of SMEs ’ Market Orientation in Developing Countries: A General Investigation in Four Countries’. Innovative Marketing 16, no. 4 (2020): 1.

Nora, Elfia, Ery Tri Djatmika, Sopiah, and Heri Pratikto. ‘Workplace Spirituality and Its Influence on Innovative Work Behaviour in Micro, Small, and Medium Size Enterprises (MSMEs): The Role of Islamic Spiritual Values in the Contemporary Workplace.’ Manchester Journal of Transnational Islamic Law & Practice 20, no. 4 (October 2024): 65.

Osijo, Immanuel Ustradi, Fulgentius Danardana Murwani, Ery Tri Djatmika, Sopiah, and Rungarun Boonsayan. ‘The Legal Politics of Halal Tourism in Thailand: The Impact of Digital Advertising Interventions on Consumer Intent, Recommendations, and Engagement in the Contemporary Era’. MILRev: Metro Islamic Law Review 3, no. 2 (December 2024): 320–342. https://doi.org/10.32332/milrev.v3i2.9992.

Panduwinata, Lifa Farida, Waspodo Tjipto Subroto, and Norida Canda Sakti. ‘Digitalisation on Micro, Small, and Medium Enterprises (MSMEs) : A Systematic Literature Review’. International Journal of Economics, Commerce, and Management 2, no. 1 (January 2025): 397–409. https://doi.org/10.62951/ijecm.v2i1.435.

Primadhany, Erry Fitrya, Tekun Suttikornpadee, Maimunah, Muhammad Amin, and Rabiatul Adawiyah. ‘Sharia-Based Digital Economic Policies: A Maqasid Shariah Approach to Achieving Sustainable Development’. Tribakti: Jurnal Pemikiran Keislaman 36, no. 1 (January 2025): 25–42. https://doi.org/10.33367/tribakti.v36i1.5485.

Qurrata, Vika Annisa, Budi Eko Soetjipto, Dwi Nikmah Puspitasari, Ermita Yusida, and Jumadil Saputra. ‘Perception of SMEs in East Java on Digitalization Transformation in Business’. KnE Social Sciences, 31 July 2024, 1–19. https://doi.org/10.18502/kss.v9i21.16653.

Rahadjeng, Erna Retna, Sudarmiatin Sudarmiatin, and Agus Hermawan. ‘The Influence of Financial Technology on the Financial Performance of MSMEs in Malang’. International Journal of Economics, Business and Accounting Research (IJEBAR) 5, no. 4 (2021): 1346–1356.

Setiyani, Lila, and Yeny Rostiani. ‘Analysis of E-Commerce Adoption by SMEs Using the Technology - Organisation - Environment (TOE) Model: A Case Study in Karawang, Indonesia’. International Journal of Science, Technology & Management 2, no. 4 (July 2021): 1113–1132. https://doi.org/10.46729/ijstm.v2i4.246.

Sipayung, Tri Dharma. ‘The Impact of Financing Digitalization on MSME Operational Effectiveness: The Mediating Role of Innovation, Digital Infrastructure, and Fintech’. Jurnal Ilmiah Manajemen Kesatuan 13, no. 3 (May 2025): 1621–1634. https://doi.org/10.37641/jimkes.v13i3.3258.

Sultoni, M., S. Sudarmiatin, A. Hermawan, and S. Sopiah. ‘Digital Marketing, Digital Orientation, Marketing Capability, and Information Technology Capability on Marketing Performance of Indonesian SMEs’. International Journal of Data and Network Science 6, no. 4 (2022): 1381–1388.

Syaputri, Della, Fatimah Ratu Azzahra, Shantika Vidia A.z, M. Raihan, Vipta Adji Prestianto, Zahra Rahmah Fadilah, and Mustaqim Mustaqim. ‘Pengaruh Digitalisasi Dalam Pembangunan Hukum Ekonomi Di Indonesia’. Jurnal Pendidikan Tambusai 7, no. 3 (December 2023): 31414–31421. https://doi.org/10.31004/jptam.v7i3.12127.

Telagawathi, Ni Luh Wayan Sayang, Ni Made Suci, and Komang Krisna Heryanda. ‘Digital Transformation Strategy for Handicraft SMEs during the Covid-19 Pandemic in Gianyar Regency, Bali’. International Journal of Social Science and Business 6, no. 1 (February 2022): 47–52. https://doi.org/10.23887/ijssb.v6i1.36190.

Yaskun, Mohammad, Sudarmiatin Sudarmiatin, Agus Hermawan, and Wening Patmi Rahayu. ‘The Effect of Market Orientation, Entrepreneurial Orientation, Innovation and Competitive Advantage on Business Performance of Indonesian MSMEs’. International Journal of Professional Business Review: Int. J. Prof.Bus. Rev. International Journal of Professional Business Review: Int. J. Prof.Bus. Rev. 8, no. 4 (2023): 39.

Yusrijal, Yusrijal, Lisana Aliyan, and Rina Rina. ‘The Impact of Digitalization on Traditional Handicraft Markets Among the Toraja Community’. Journal Social Civilecial 3 (February 2025): 48–58. https://doi.org/10.71435/610846.