From clicks to success: The mediating role of electronic commerce adoption in Malaysian service micro, small, and medium-sized enterprises

Abstract

The adoption of e-commerce is crucial for enhancing the performance of micro, small, and medium-sized enterprises (MSMEs), yet research on its impact in developing economies, particularly within the service sector, remains limited. This study investigates the influence of e-commerce adoption on the organizational performance of Malaysian service MSMEs, utilizing an integrated Technology-Organization-Environment (TOE) and Resource-Based View (RBV) framework. The findings reveal that organizational factors (top management support, organizational culture) and competitive pressures significantly drive e-commerce adoption, which in turn mediates their impact on performance. The study contributes to theory by integrating RBV and TOE, and to practice by highlighting the need for support from technology vendors and policymakers to facilitate e-commerce adoption and enhance MSME competitiveness.