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.