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

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.

Factors affecting small and medium enterprises (SMEs) continuance intention to adopt e-commerce in Jordan

“…Relative advantage is the most significant factor that affects e-commerce continuance intention. This similar to the previous studies such as Alam et al (2011) and Ahmed et al (2015) suggested when e-commerce as perceived relative advantage as being better than the idea it supersedes, and beneficial to SMEs, its adoption is more likely.…”

“…TOE framework is consistent with Rogers' (2003) diffusion of innovation theory as it focuses on both internal and external characteristics of the organization, as well as technological characteristics in the study of drivers for new technology diffusion as shown by Ahmed et al (2015). TOE framework can be combined with DOI theory.…”

CSFs for SMEs in Measuring e-Commerce Success

“…Over the past decade, various factors have been proposed and tested by researchers to determine what factors afect the adoption of e-commerce [7]. According to most current research, however, it is considered that businesses successful in adopting e-commerce are strongly dependent on the local business culture.…”

“…According to most current research, however, it is considered that businesses successful in adopting e-commerce are strongly dependent on the local business culture. While these studies atempted to investigate the factors that inluence e-commerce adoption to be carried out mainly in developed nations [7], these factors have not always been consistent across studies [8].…”

Effect of E-Marketing Adoption Strategy on Export Performance of SMEs

“…Indeed, using internet and communication technologies for conducting business and creating a competitive edge has emerged as one of the most important development trend in last decade (Ahmad, Abu Bakar, Faziharudean, & Mohamad Zaki, 2015) [1] . International trade is taking a new form with the spread of internet and e-marketing activities (Eid, 2005[16]; Ivanauskiene, Auruskeviciene, Ramoniene, & Skudiene, 2015) [25].…”