Exploratory Factor Analysis of Technology-Organization-Environment and E-Commerce Adoption among Urban Women Entrepreneurs

Abstract

Research on Technology-Organizational-Environment (TOE) has been extensively conducted in various fields. However, research on TOE is still lacking in the context of e-commerce adoption, specifically in the context of urban women entrepreneurs. This study aims to develop an e-commerce adoption and TOE-related instrument that suits the context of Malaysian urban women entrepreneurs. The TOE instrument was adopted and adapted from previous researchers, and Exploratory Factor Analysis (EFA) was used to validate the construct. Using a simple random sampling technique, cross-sectional research of 110 urban women entrepreneurs in Selangor, Malaysia, was carried out. The required data was gathered via a structured survey. The final analysis found that five items were omitted. Based on EFA, this study finalized the instrument to twenty-six (26) items yielding only six dimensions, i.e., e-commerce adoption (3 items), relative advantage (3 items), compatibility (5 items), management readiness (4 items), competition intensity (6 items), and government support (5 items). The suggested instrument is reliable and appropriate for assessing e-commerce adoption and TOE, as evidenced by the high reliability standards shown in Cronbach's alpha for each component. The results have statistically proven that these items have a high level of validity and reliability and can be considered for future research to measure TOE in the context of urban women entrepreneurs in Malaysia.