The impact of e-commerce on small and medium-sized enterprises (SMEs) in Malaysia

Authors

  • Ding Song MAHSA University
  • Kharmeyni Jumbulingam MAHSA University
  • Hossam Fadel MAHSA University
  • Ni Made Sumarningsih Universitas Pendidikan Ganesha

DOI:

https://doi.org/10.38043/revenue.v3i2.4820

Keywords:

e-commerce, Small and Medium-sized Enterprises (SMEs)

Abstract

This research set out to determine how e-commerce affects Malaysian SMEs and what reasons prevent more SMEs from adopting this business model. The conceptual framework and research hypotheses were developed after an extensive literature review. Two hundred and fifty Malaysian SME owners and managers were surveyed using a questionnaire, and the collected data was analyzed using descriptive and inferential statistics. The main results showed that the adoption of e-commerce among Malaysian SMEs is highly influenced by personal, technological, organizational, and environmental variables. Researchers concluded that personal characteristics were the most influential, followed by those related to the workplace and the surrounding environment. Together, these characteristics accounted for 56.5% of the variance in e-commerce adoption among Malaysian SMEs. Important implications for policymakers, researchers, and practitioners in Malaysia who want to encourage e-commerce acceptance and growth among SMEs were drawn from the results, which add to the current literature on e-commerce adoption in SMEs. The report concluded with suggestions for targeted interventions and support programs to increase the competitiveness and growth of small and medium-sized enterprises (SMEs) in Malaysia through e-commerce. The study's findings helped advance Malaysia's economy as a whole and ensure the digital sector continues to thrive.

References

Articles

Chong, H. G. (2008). Measuring performance of small-and-medium sized enterprises: The grounded theory approach. Journal of Business and Public Affairs, 2(1).

Gibbs, M., K. A. Merchant, W. A. Van der Stede, and M. E. Vargus. (2004). Determinants and effects of subjectivity in incentives. The Accounting Review, 79(2), 409–436.

Hassan, H., Razzaq, A., & Ramayah, T. (2018). Challenges in adopting e-commerce among SMEs in Malaysia. In Global entrepreneurship and new venture creation in the sharing economy, 1-16.

Ibrahim, A. H., Omar, M. K., & Ainin, S. (2016). Adoption of e-commerce among SMEs in Malaysia: a path analysis model. Journal of Emerging Economies and Islamic Research, 4(4), 10-16.

Kapoor, K. K., Dwivedi, Y. K., & Williams, M. D. (2014). Innovation adoption attributes: A review and synthesis of research findings. European Journal of Innovation Management, 17(1), 12-47.

Krejcie and Morgan. (1970). Determining Sample Size for Research Activities. The NEA Research Bulletin, 38, 99.

Ksbetri. N. (2007). Barriers to e-commerce and competitive business models in developing countries: A case study. Electronic Commerce Research and Applications, 6(4), 443-452.

Kuria, S., Kamali. R. J., & Rahim, M. M. (2015). A qualitative study of business-to-business electronic commerce adoption within the Indonesian grocery industry: A multi-theory perspective. Information & Management, 52(4), 518-536.

Kurolia, S., Kacall, R. J., & Rahim, M. M. (2015). A qualitative study of business-to-business electronic commerce adoption within the Indonesian grocery industry: A multi-theory perspective. Information & Management, 52(4), 518-536.

Molla, A. and Licker, P.S. (2005). eCommerce adoption in developing countries: a model and instrument. Information & Management, 42(6), 877-899.

Pavic, 5. (2018). SMIEs' e-commerce adoption. Journal of Small Business and Enterprise Development, 25(4), 588-604.

Pavic, I., (2018). E-commerce adoption in small and medium-sized enterprises: empirical evidence from Romania. Management & Marketing, 13(2), 365-378.

Pavic, S. (2018). SMEs' e-commerce adoption. Journal of Small Business and Enterprise Development, 25(4), 588-604.

Yunos, R., Gereffi, G., & Malaysia, U. (2016). E-commerce in Malaysia: Development, implementation, and challenges. Institute of Diplomacy and Foreign Relations, 1-24.

Books

Chaffey, D. (2015), Digital business and e-commerce management. Pearson UK.

Dwivedi, Y. K, Rana, N. P., & Alryala, M. A. A. (2016). E-commerce adoption: A literature analysis of the factors affecting SME e-commerce adoption. In Handbook of research on global business opportunities IG. Global.

Laudon, K. C., & Traver, C. G. (2016). E-commerce 2016: business, technology, society. Pearson Education.

Rogers, Everett M. (1995). Diffusion of Innovations (Fourth Edition). The Free Press.

Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach (7th Ed). Wiley.

Tornatzky, L. G., & Fleischer, M. (1990). The process of technological innovation. Lexington Books.

Turban, E., Outland, J., King, D., Lee, J. K., Liang, T. P., & Turban, D. C. (2017). Electronic commerce: a managerial and social networks perspective. Springer International Publishing.

Websites

Department of Statistics Malaysia. (2020). Small and Medium Enterprises (SMEs) Satellite Account 2018. https://www.dosm.gov.my

MDEC (Malaysia Digital Economy Corporation). (2021). Malaysia Digital Economy Blueprint: MyDIGITAL https://www.mdec.my

Statista. (2021). E-commerce in Malaysia – Statistics & Facts. https://www.statista.com

Downloads

Published

2022-12-31

How to Cite

1.
Song D, Jumbulingam K, Fadel H, Sumarningsih NM. The impact of e-commerce on small and medium-sized enterprises (SMEs) in Malaysia. REVENUE [Internet]. 2022Dec.31 [cited 2024Apr.27];3(2):101-1. Available from: https://journal.undiknas.ac.id/index.php/REVENUE/article/view/4820

Issue

Section

Articles