TY - JOUR
T1 - Determinants of technology adoption among Malaysian SMES
T2 - An IDT perspective
AU - Ramayah, Thurasamy
AU - Mohamad, Osman
AU - Omar, Azizah
AU - Marimuthu, Malliga
AU - Ai Leen, Jasmine Yeap
PY - 2013
Y1 - 2013
N2 - Traditional competitive advantages such as raw material availability, inexpensive labour and proximity to local markets are fast losing their importance to other factors such as technology adoption. In order to survive, it is imperative that organizations incorporate technology into their daily operations. Still, technological adoption and information and communications technology penetration among the Malaysian SME industry is yet to reach a much desired level. Hence, this paper aims to reveal the factors that drive technology adoption among SMEs in Malaysia using the perceived innovation characteristics outlined in the Innovation Diffusion Theory (IDT). Data was gathered from manufacturing and manufacturing-related services; SMEs scattered throughout the country and analyzed using the partial least squares technique. The analysis revealed that innovation characteristics such as perceived relative advantage, observability and image are positively-related to the adoption of a technology while compatibility and ease of use do not influence adoption. Interestingly, though trialability was found to have a significant impact on adoption, its effect turned out to be a negative one instead of a positive hypothesized relationship. The findings are further discussed and elaborated.
AB - Traditional competitive advantages such as raw material availability, inexpensive labour and proximity to local markets are fast losing their importance to other factors such as technology adoption. In order to survive, it is imperative that organizations incorporate technology into their daily operations. Still, technological adoption and information and communications technology penetration among the Malaysian SME industry is yet to reach a much desired level. Hence, this paper aims to reveal the factors that drive technology adoption among SMEs in Malaysia using the perceived innovation characteristics outlined in the Innovation Diffusion Theory (IDT). Data was gathered from manufacturing and manufacturing-related services; SMEs scattered throughout the country and analyzed using the partial least squares technique. The analysis revealed that innovation characteristics such as perceived relative advantage, observability and image are positively-related to the adoption of a technology while compatibility and ease of use do not influence adoption. Interestingly, though trialability was found to have a significant impact on adoption, its effect turned out to be a negative one instead of a positive hypothesized relationship. The findings are further discussed and elaborated.
KW - Innovation diffusion theory
KW - Partial least squares
KW - Small and medium enterprises
KW - SMEs
KW - Technology adoption
UR - http://www.scopus.com/inward/record.url?scp=84892989127&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:84892989127
VL - 12
SP - 103
EP - 119
JO - Journal of Information and Communication Technology
JF - Journal of Information and Communication Technology
SN - 1675-414X
IS - 1
ER -