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An Empirical Study of Factors Affecting Electronic Commerce Adoption among SMEs in Malaysia

Author

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  • Syed Shah Alam
  • Md. Yunus Ali
  • Mohd. Fauzi Mohd. Jani

Abstract

This study empirically examines determinants of E-commerce adoption by Malaysian Small and Medium-sized Enterprises. Research model for this study was drawn on the literature on information and communication technology, Information system, and electronic data interchange. This study tested seven hypotheses on factors that influence e-commerce adoption with empirical data from a sample of 200 SMEs in Malaysia. The findings show that relative advantage, compatibility, organizational readiness, manager's characteristics, and security have significant impact on e-commerce adoption. The study provides a clear understanding of manager's perception about e-commerce adoption in their businesses. This study is important in a global context, as SMEs in Malaysia are going for exporting their product in the global marketplace.

Suggested Citation

  • Syed Shah Alam & Md. Yunus Ali & Mohd. Fauzi Mohd. Jani, 2011. "An Empirical Study of Factors Affecting Electronic Commerce Adoption among SMEs in Malaysia," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 12(2), pages 375-399, January.
    • Handle: RePEc:taf:jbemgt:v:12:y:2011:i:2:p:375-399
    DOI: 10.3846/16111699.2011.576749
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    1. repec:thr:techub:10030:y:2022:i:1:p:466-483 is not listed on IDEAS
    2. Thamir Hamad Alaskar & Amin K. Alsadi, 2023. "Drivers of mobile commerce adoption intention by Saudi SMEs during the COVID-19 pandemic," Future Business Journal, Springer, vol. 9(1), pages 1-13, December.
    3. Alam, Syed Shah & Nik Hashim, Nik Hazrul & Rashid, Mamunur & Omar, Nor Asiah & Ahsan, Nilufar & Ismail, Md Daud, 2014. "Small-scale households renewable energy usage intention: Theoretical development and empirical settings," Renewable Energy, Elsevier, vol. 68(C), pages 255-263.
    4. Nafisa Bello Issa & Angela Siew Hoong Lee, 2020. "An Investigation on the Adoption of Electronic Commerce Systems for the Operators of Construction Companies," Journal of Business Administration Research, Journal of Business Administration Research, Sciedu Press, vol. 9(1), pages 9-20, April.
    5. Maduku, Daniel K. & Mpinganjira, Mercy & Duh, Helen, 2016. "Understanding mobile marketing adoption intention by South African SMEs: A multi-perspective framework," International Journal of Information Management, Elsevier, vol. 36(5), pages 711-723.
    6. Moha Asri Abdullah & MD Fardous Alom & Nurita Juhd & Noorihsan Mohammad & Muhammad-Bashir Owolabi Yusuf & S. M. Ferdous Azam, 2015. "How Comfortable are Malaysian Users in Utilizing Webpages of Small Businesses?," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 1(3), pages 235-248, July.
    7. Kurnia, Sherah & Choudrie, Jyoti & Mahbubur, Rahim Md & Alzougool, Basil, 2015. "E-commerce technology adoption: A Malaysian grocery SME retail sector study," Journal of Business Research, Elsevier, vol. 68(9), pages 1906-1918.
    8. Khoirul Aswar & Ermawati, 2021. "E-Commerce Adoption by Small Medium Enterprises: An Extensive Literature Review," Information Management and Business Review, AMH International, vol. 12(4), pages 12-18.
    9. Rita Rahayu & John Day, 2017. "E-commerce adoption by SMEs in developing countries: evidence from Indonesia," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 25-41, April.
    10. Hart O. Awa & Ojiabo Ukoha & Bartholomew C. Emecheta, 2016. "Using T-O-E theoretical framework to study the adoption of ERP solution," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1196571-119, December.
    11. Hsin-Pin Fu & Tien-Hsiang Chang & Ling-Jing Kao & Chih-Chou Chiu & Cheng-Chin Lu, 2015. "Combining Multicriteria Decision-Making Tools to Identify Critical Success Factors that Affect the Performance of Training Course Projects," Systems Research and Behavioral Science, Wiley Blackwell, vol. 32(3), pages 388-401, May.
    12. Djamila TOUMI AMARA & Seif Eddine BIBIMOUNE & Chemseddine KARA, 2022. "Exploring Factors Influencing Generation Y Employees’ Turnover Intention in Indonesia: The Roles of Co-worker Support, Supervisor Support and Career Development," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 7(3), pages 258-265, October.
    13. Abou-Shouk, Mohamed A. & Lim, Wai Mun & Megicks, Phil, 2016. "Using competing models to evaluate the role of environmental pressures in ecommerce adoption by small and medium sized travel agents in a developing country," Tourism Management, Elsevier, vol. 52(C), pages 327-339.
    14. Nadiah Abd Hamid & Nur Ain Ibrahim & Nur Aini Ibrahim & Noratikah Ariffin & Raudah Taharin & Fatin Amira Jelani, 2019. "Factors Affecting Tax Compliance among Malaysian SMEs in E-Commerce Business," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 9(1), pages 74-85, January.
    15. Rezaei, Rohollah & Ghofranfarid, Marjan, 2018. "Rural households' renewable energy usage intention in Iran: Extending the unified theory of acceptance and use of technology," Renewable Energy, Elsevier, vol. 122(C), pages 382-391.
    16. Dalinee Sastararuji & Danupol Hoonsopon & Pongsakorn Pitchayadol & Pimsiri Chiwamit, 2022. "Cloud accounting adoption in Thai SMEs amid the COVID-19 pandemic: an explanatory case study," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-25, December.
    17. Miftahurrohman Miftahurrohman & Eko Sediyono & Albert Kriestian Novi Adhi Nugraha, 2022. "The Model of the Sustainability of E-commerce Adoption: A Study on Carved Furniture SMEs in Indonesia," Technium Social Sciences Journal, Technium Science, vol. 30(1), pages 466-483, April.
    18. Ashraf Mishrif & Asharul Khan, 2023. "Technology adoption as survival strategy for small and medium enterprises during COVID-19," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-23, December.
    19. Chieh-Yu Lin & Syed Shah Alam & Yi-Hui Ho & Mohammed Emad Al-Shaikh & Parves Sultan, 2020. "Adoption of Green Supply Chain Management among SMEs in Malaysia," Sustainability, MDPI, vol. 12(16), pages 1-15, August.
    20. Md Golam Rabiul Alam & Abdul Kadar Muhammad Masum & Loo-See Beh & Choong Seon Hong, 2016. "Critical Factors Influencing Decision to Adopt Human Resource Information System (HRIS) in Hospitals," PLOS ONE, Public Library of Science, vol. 11(8), pages 1-22, August.

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