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Determinants of Technology Adoption Among Malaysian SMEs: An EDT Perspective

Ramayah, Thurasamy, Mohamad, Osman, Omar, Azizah, Marimuthu, Malliga and Leen, Jasmine Yeap Ai (2013). Determinants of Technology Adoption Among Malaysian SMEs: An EDT Perspective. Journal of Information and Communication Technology (JICT),12:103-119.

Document type: Journal Article
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Title Determinants of Technology Adoption Among Malaysian SMEs: An EDT Perspective
Author Ramayah, Thurasamy
Mohamad, Osman
Omar, Azizah
Marimuthu, Malliga
Leen, Jasmine Yeap Ai
Journal Name Journal of Information and Communication Technology (JICT)
Publication Date 2013
Volume Number 12
ISSN 1675-414X   (check CDU catalogue open catalogue search in new window)
eISSN 2180-3862
Start Page 103
End Page 119
Total Pages 17
Place of Publication Malaysia
Publisher Universiti Utara Malaysia Press
Abstract 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.
Keywords Small and medium enterprises
Technology adoption
Innovation diffusion theory
partial least squares
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Created: Wed, 28 Jun 2017, 10:15:01 CST by Marion Farram