Small and Medium Enterprises’ Adoption for E-Commerce in Malaysia Tourism State

Abstract

E-commerce has been extensively capitalized by big companies. However, little is known about the adoption of e-commerce by small and medium enterprises (SMEs). Many might do so to reap the efficiency of the internet to benefit their businesses. Thus, the study aims to investigate factors affecting adoption of e-commerce by SMEs in Melaka. Five dimensions, namely, Perceived Ease of Use, Security, Relative Advantage, Perceived Compatibility, and Top Management Support were drawn from Technology acceptance model and UTAUT. This research had adopted a quantitative research method that utilized questionnaires to collect data from SMEs in Melaka. About ninety-two percent of 219 questionnaires were collected. Results indicated that these dimensions were significant to influence the adoption of e-commerce among SMEs in Melaka. This finding is useful for SMEs and other organizations to understand what factors are important in making decision about adopting e-commerce. We recommend future researches to study on the behavioral aspect of ecommerce decisions and implementations.

E-Commerce Drivers and Barriers and Their Impact on E-Customer Loyalty in Small and Medium-Sized Enterprises (Smes)

“…In agreement with them, the current study found that organizational factors, like the organizational culture, and environmental factors, such as partner readiness, are significant predictors of e-commerce adoption. The factors found in the current study echoed those of previous studies, including e-commerce perceived value (Ghobakhloo et al, 2011), employee knowledge of ecommerce (Van Huy et al, 2012), perceived ease of use of e-commerce applications, e-commerce relative advantage, e-commerce perceived compatibility, e-commerce security, top management support (Arshad et al, 2018), internet access (Ekanem & Abiade, 2018), and perceived usefulness of e-commerce (Hussein et al, 2019). On the other hand, some scholars have found, in contrast to our results, that some factors, such as technology cost, have no influence on e-commerce adoption (Ghobakhloo et al, 2011).…”

“…Al-Tit and Nakhleh (2014) explained the role of e-marketing in the development of Internet user attitudes. Arshad et al (2018) argued that an enterprise that achieves an interactive status of e-commerce can be regarded as successful in e-commerce adoption. E-commerce adoption has been explored by numerous researchers.…”

“…Furthermore, nine factors that support the adoption of e-commerce by SMEs in Vietnam were identified by Van Huy et al (2012): government support, industry support, enterprise resources, enterprise size, managers' attitudes towards innovation, competition intensity, employees' knowledge of e-commerce, customer and supplier attitudes, and innovation compatibility. Arshad et al (2018), in their study on the adoption of e-commerce by SMEs in Malaysia, found that perceived ease of use of ecommerce applications, e-commerce relative advantage, ecommerce perceived compatibility, e-commerce security, and top management support had significant effects on the adoption of e-commerce. On the basis of responses collected from supply chain managers from Jordan, Alsaad, Mohamad, and Ismail (2018) tested an e-commerce adoption model consisting of four factors, which were perceived as desirability, top management support, organizational readiness, and competitive pressure, and found that all these factors except organizational readiness had significant effects on the intention to adopt business-tobusiness e-commerce.…”

“…The findings reported in the related works have included a number of factors, such as entrepreneurs' achievement orientation, locus of control, and electronic service quality (Sebora et al, 2009). To encourage e-commerce success, authors (e.g., Agag, 2019;Arshad et al, 2018;Awa, Ojiabo, & Emecheta, 2015a;Awa, Awara, & Lebari, 2015b;Rahayu & Day, 2015;Chuang et al, 2007;Corbitt, Thanasankit, & Yi, 2003;Eid, 2011;Hussein et al, 2019) have underlined many factors that improve e-commerce adoption and application. Examples of these factors include the availability of financial resources, top management support, involvement in global production networks, technical expertise, and e-commerce's perceived value and compatibility as well as the organizational culture.…”

The Effect of Motivating and Inhibitory Factors on Using the Electronic Commerce by Adopting UTAUT2 and SQB Models

“…The three primary groups into which these four perspectives on the acceptability of e-commerce services for the recipient fall are the merits of these services, the potential drawbacks, and the benefits. There is evidence in the literature to suggest that users of e-commerce platforms have concluded that doing so would be beneficial to their businesses [9,10]. On the other hand, users were suspicious of electronic commerce services, and the degree of risks inherent in new technologies, such as financial, psychological, physical, or social risks.…”