A study on the effect of different factors on e-Commerce adoption among SMEs of Malaysia

Abstract

The Internet's World Wide Web has become the prime driver of modern E-commerce that can be an important source of competitive advantage for most business organizations, especially small and medium sized (SMEs) businesses. In recent years, researchers have focused on e-commerce adoption both in the United States and other countries. This study examines the factors influencing e-commerce adoption among Malaysian SMEs. There are only a few studies which have examined the adoption of e-commerce among SMEs, its development, challenges, and future prospects. The results show that the major reason behind e-commerce non-adoption is that the organization is not ready to make that change because of external pressure and cultural reasons. Furthermore, organizational readiness strongly influences e-commerce implementation, and managerial support and financial, logistical, and technological factors weigh heavily in determining if an SME in Malaysia can pursue e-commerce implementation. The study is based on 100 samples taken from Cyberjaya. 100 sets of administrated questionnaires were sent and conducted. The data analysis shows e-commerce adoption was significantly influenced by its organizational readiness, perceived ease of use, and also perceived usefulness factors.