Information and communication technology adoption among small and medium enterprises in the northern region of Malaysia

Malaysian small and medium enterprises (SMEs) still have not fully utilized the information and communications technology (ICT) tools to their fullest potential. Hence, there is a need to determine the factors that contribute to ICT adoption among SMEs. This study was undertaken to examine the varia...

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Main Author: Mathivannan, Jaganathan
Format: Thesis
Language:eng
eng
Published: 2019
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Online Access:https://etd.uum.edu.my/8119/1/s94375_01.pdf
https://etd.uum.edu.my/8119/2/s94375_02.pdf
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institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Ishak, Khairol Anuar
topic T58.5-58.64 Information technology
spellingShingle T58.5-58.64 Information technology
Mathivannan, Jaganathan
Information and communication technology adoption among small and medium enterprises in the northern region of Malaysia
description Malaysian small and medium enterprises (SMEs) still have not fully utilized the information and communications technology (ICT) tools to their fullest potential. Hence, there is a need to determine the factors that contribute to ICT adoption among SMEs. This study was undertaken to examine the variables that contribute to the ICT adoption among the SMEs in Malaysia by examining the relationships between relative advantage, security, compatibility, complexity, cost and environmental pressure (normative, mimetic and coercive) and JCT adoption. Additionally, government support was examined as a moderator. The triangulation theory approach, which integrates technology-organization­ environment, diffusion of innovation and the institutional theory was used to explain the relationships between the variables. A total of 183 owners-managers of SMEs, representing a response rate of 47.6 percent, participated in this study. The data was collected via self­ administered questionnaires, and PLS-SEM was used to analyze them and test the hypotheses. Statistical results indicated that relative advantage and security are positively related while complexity is negatively related to ICT adoption. Conversely, compatibility, cost and environmental pressure (normative, mimetic and coercive) are not related to ICT adoption. Moreover, the moderating test result reveals that government support only moderates the relationship between security, compatibility, complexity and cost, and ICT adoption. Conversely, no empirical support is found for the moderating effect of government support on the relationship between relative advantage and environmental pressure, and ICT adoption. The major theoretical contribution of this research is that it examines environmental pressure as a multidimensional independent variable. Besides that, the study also examines the role of government support as a moderating variable. This study also provides some suggestions to SMEs, policy-makers, ICT support system developers and vendors on ways to improve existing plan and policies for encouraging ICT adoption among SMEs. Finally, recommendations for future research are discussed.
format Thesis
qualification_name Doctor of Philosophy (PhD.)
qualification_level Doctorate
author Mathivannan, Jaganathan
author_facet Mathivannan, Jaganathan
author_sort Mathivannan, Jaganathan
title Information and communication technology adoption among small and medium enterprises in the northern region of Malaysia
title_short Information and communication technology adoption among small and medium enterprises in the northern region of Malaysia
title_full Information and communication technology adoption among small and medium enterprises in the northern region of Malaysia
title_fullStr Information and communication technology adoption among small and medium enterprises in the northern region of Malaysia
title_full_unstemmed Information and communication technology adoption among small and medium enterprises in the northern region of Malaysia
title_sort information and communication technology adoption among small and medium enterprises in the northern region of malaysia
granting_institution Universiti Utara Malaysia
granting_department School of Business Management
publishDate 2019
url https://etd.uum.edu.my/8119/1/s94375_01.pdf
https://etd.uum.edu.my/8119/2/s94375_02.pdf
_version_ 1747828329873932288
spelling my-uum-etd.81192022-10-06T02:12:26Z Information and communication technology adoption among small and medium enterprises in the northern region of Malaysia 2019 Mathivannan, Jaganathan Ishak, Khairol Anuar School of Business Management School of Business Management T58.5-58.64 Information technology Malaysian small and medium enterprises (SMEs) still have not fully utilized the information and communications technology (ICT) tools to their fullest potential. Hence, there is a need to determine the factors that contribute to ICT adoption among SMEs. This study was undertaken to examine the variables that contribute to the ICT adoption among the SMEs in Malaysia by examining the relationships between relative advantage, security, compatibility, complexity, cost and environmental pressure (normative, mimetic and coercive) and JCT adoption. Additionally, government support was examined as a moderator. The triangulation theory approach, which integrates technology-organization­ environment, diffusion of innovation and the institutional theory was used to explain the relationships between the variables. A total of 183 owners-managers of SMEs, representing a response rate of 47.6 percent, participated in this study. The data was collected via self­ administered questionnaires, and PLS-SEM was used to analyze them and test the hypotheses. Statistical results indicated that relative advantage and security are positively related while complexity is negatively related to ICT adoption. Conversely, compatibility, cost and environmental pressure (normative, mimetic and coercive) are not related to ICT adoption. Moreover, the moderating test result reveals that government support only moderates the relationship between security, compatibility, complexity and cost, and ICT adoption. Conversely, no empirical support is found for the moderating effect of government support on the relationship between relative advantage and environmental pressure, and ICT adoption. The major theoretical contribution of this research is that it examines environmental pressure as a multidimensional independent variable. Besides that, the study also examines the role of government support as a moderating variable. This study also provides some suggestions to SMEs, policy-makers, ICT support system developers and vendors on ways to improve existing plan and policies for encouraging ICT adoption among SMEs. Finally, recommendations for future research are discussed. 2019 Thesis https://etd.uum.edu.my/8119/ https://etd.uum.edu.my/8119/1/s94375_01.pdf text eng public https://etd.uum.edu.my/8119/2/s94375_02.pdf text eng public phd doctoral Universiti Utara Malaysia Abdul Tawab Khalil, M., Dominic, P. D. D., Hassan, M. f., & Kazemian, H. (2012). 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