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SME e-readiness in Malaysia: Implications for Planning and Implementation

T. Ramayah Lim Chia Yan Mohamed Sulaiman

Abstract

This study hoped to answer 2 main objectives. The first objective was to assess the level of e-readiness of SMEs in Northern Malaysia. The second objective was to investigate the factors contributing to the e-readiness of SMEs in Northern Malaysia. Questionnaires were distributed using a simple random sampling method to 300 SMEs in Penang, Kedah and Perlis. The findings of this study show that SMEs in Northern Malaysia are ready to go for e-business, e-commerce and Internet in general. The findings also showed that in general top management commitment and infrastructure and technology have significant impact on SMEs’ e-readiness. However, human capital, resistance to change, and information security do not have significant impact or contribution on e-readiness in SMEs.

Keywords:

E-readiness, Small and Medium Enterprise, Infrastructure and technology, Human Capital, Information security concern, Resistance to change, Top management commitment, survey, Malaysia

INTRODUCTION

World economic growth depends increasingly on information and communications

technologies (ICTs) and the ability of countries and enterprises to collect, process, and use

digital information. During the last few years, companies have been able to achieve and

sustain competitive advantage for the most part by the role that Information Technology (IT)

has played in propelling and accelerating the globalization of business. Researchers and

practitioners have stressed that recent IT developments are changing and will continue to

change the business arena in the near future.

Many see the Internet as a revolutionary technology that will alter the way business,

commerce, medicine, science, communications, the law, politics, and government is

conducted. Andrew Grove, the chairman of Intel Corporation, predicts that the Internet will

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