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This study aims to proposes a theoretical model to understand the intention of Indonesian traditional micro businesses (MB) to continue using an e-marketplace.

This research involved the utilization and combination of habit formation and social impact theories to develop the model. A total of 162 responses were retrieved from the owners of traditional MB and used to validate the proposed model.

The results showed subjective norms to be the most substantial direct predictor of continuous usage, followed by usefulness, satisfaction and promotion proneness. Meanwhile, compatibility was found to have only an indirect effect through usefulness as a mediator. Moreover, moderating effect analysis also showed that the impact of herd behaviour was only significant for male and younger traditional MB owners.

The emphasis on the seller perspective using habit formation as well as the social impact theory to explain continuance behaviour is an alternative approach observed not to have been widely explored, especially for traditional businesses such as indigenous industry rather than organizations.