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An Empirical Study of Factors Affecting e-Commerce Adoption among Small- and Medium-Sized Enterprises in a Developing Country: Evidence from Malaysia

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  • Syed Zamberi Ahmad
  • Abdul Rahim Abu Bakar
  • Tengku Mohamed Faziharudean
  • Khairul Anwar Mohamad Zaki

Abstract

The purpose of this paper is to empirically examine determinants of e-commerce adoption among Malaysian small- and medium-sized enterprises (SMEs). This study tested eight hypotheses on determinants affecting e-commerce adoption with empirical data from several survey instruments: an online questionnaire-based survey, mailed survey and questionnaire collected in-person from a sample of 307 SMEs in Malaysia. The findings show that e-commerce adoption within Malaysian SMEs is affected by perceived relative advantage, perceived compatibility, managers/owner's knowledge and expertise, management characteristics and external change agents. This study contributes to enhancing the understanding of the determinants of adopting e-commerce in SMEs and provides some interesting perspective from Malaysia. Those parties interested in promoting their business online may find these results helpful in guiding their efforts.

Suggested Citation

  • Syed Zamberi Ahmad & Abdul Rahim Abu Bakar & Tengku Mohamed Faziharudean & Khairul Anwar Mohamad Zaki, 2015. "An Empirical Study of Factors Affecting e-Commerce Adoption among Small- and Medium-Sized Enterprises in a Developing Country: Evidence from Malaysia," Information Technology for Development, Taylor & Francis Journals, vol. 21(4), pages 555-572, October.
    • Handle: RePEc:taf:titdxx:v:21:y:2015:i:4:p:555-572
    DOI: 10.1080/02681102.2014.899961
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    Cited by:

    1. Misganaw Assegid Ayele & Singh Apar, 2020. "The Diffusion of E-marketing in Tourism Businesses of Ethiopia: An Empirical Investigation of Organisational E-readiness Perspectives," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 10(1), pages 1-13, May.
    2. repec:aud:audfin:v:21:y:2019:i:50:p:177 is not listed on IDEAS
    3. Wanzu Ibrahim & Peter Turyakira & Proscovia M. Katumba, 2021. "E-Commerce Adoption and Growth of SMEs in Uganda," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(1), pages 1-46, July.
    4. Rosa Maria Fanelli, 2023. "Barriers and Drivers Underpinning Newcomers in Agriculture: Evidence from Italian Census Data," Sustainability, MDPI, vol. 15(14), pages 1-17, July.
    5. Sanjay Lama & Sojen Pradhan & Anup Shrestha, 2020. "Exploration and implication of factors affecting e-tourism adoption in developing countries: a case of Nepal," Information Technology & Tourism, Springer, vol. 22(1), pages 5-32, March.
    6. Vivian Khoo & Aidi Ahmi* & Ram Al-Jaffri Saad, 2018. "E-Commerce Adoption Research: A Review of Literature," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 90-99:6.
    7. Ali Abbas & Sahadah Hj. Abdullah* & Rosli Mohd Saad, 2018. "Affecting Factors to Intentions to Adoption of E-Commerce Technologies in SMEs of Pakistan," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 147-155:4.
    8. Yot Amornkitvikai & Siew Yean Tham & Charles Harvie & Wonlop Writthym Buachoom, 2022. "Barriers and Factors Affecting the E-Commerce Sustainability of Thai Micro-, Small- and Medium-Sized Enterprises (MSMEs)," Sustainability, MDPI, vol. 14(14), pages 1-28, July.
    9. 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.
    10. Emmanuel H. Yindi & Immaculate Maumoh & Prisillah L. Mahavile, 2021. "Exploring the role of Awareness, Government Policy, and Infrastructure in adapting B2C E-Commerce to East African Countries," Papers 2102.11729, arXiv.org.
    11. Ann Ogbo & Chinelo Constance Ugwu & Joy Enemuo & Wilfred Isioma Ukpere, 2019. "E-Commerce as a Strategy for Sustainable Value Creation among Selected Traditional Open Market Retailers in Enugu State, Nigeria," Sustainability, MDPI, vol. 11(16), pages 1-18, August.
    12. Mira Kartiwi & Husnayati Hussin & Mohd Adam Suhaimi & Mohamed Razi Mohamed Jalaldeen & Mohammad Ruhul Amin, 2018. "Impact of external factors on determining E-commerce benefits among SMEs in Malaysia," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-12, December.
    13. Abdalwali Lutfi & Akif Lutfi Al-Khasawneh & Mohammed Amin Almaiah & Adi Alsyouf & Mahmaod Alrawad, 2022. "Business Sustainability of Small and Medium Enterprises during the COVID-19 Pandemic: The Role of AIS Implementation," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    14. ming, Luo & GuoHua, Zhou & Wei, Wei, 2021. "Study of the Game Model of E-Commerce Information Sharing in an Agricultural Product Supply Chain based on fuzzy big data and LSGDM," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    15. Baharudin, Siti `Aisyah & Waked, Hayyan Nassar & Paimen, Mohd Shah, 2021. "MCO in Malaysia: Consumer Confidence and Households’ Responses," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(1), pages 99-112.
    16. 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.
    17. Willard Munyoka, 2022. "Inclusive Digital Innovation in South Africa: Perspectives from Disadvantaged and Marginalized Communities," Sustainability, MDPI, vol. 14(9), pages 1-23, April.
    18. Dorel Mihai Paraschiv & Adrian Cantemir Calin & Oana Cristina Popovici & Gerard Cazabat, 2019. "A Contemporaneous Statistical Note on E-Commerce Adoption in Romania – Based SMEs," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 21(50), pages 177-177, February.
    19. Wajeeha Aslam & Annas Hussain & Kashif Farhat & Imtiaz Arif, 2020. "Underlying Factors Influencing Consumers’ Trust and Loyalty in E-commerce," Business Perspectives and Research, , vol. 8(2), pages 186-204, July.

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