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SME e-readiness in Malaysia: Implications for Planning and Implementation - page 13 / 44





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Organizations with more IT experience or greater IT already in use are more likely to adopt

IT (Fink 1998). Staff involvement in IT development and IT training carried out had a

positive effect on IT adoption (Doukidis, Smithson and Lybereas 1994). The lack of

sufficient online procurement experts within the company is one of the biggest hurdles many

companies face in implementing online procurement systems (Attaran 2001). However,

National Computer Board assessed the state of e-commerce in all of the country’s eight

industry sectors, Malaysia like in Singapore, very few SMEs have trained IT personnel and

this function is often undertaken by an accountant or the owners, who may not welcome a

“diversion” from their core activities. Thus, SMEs are usually regarded ‘poor’ in human,

financial and material resources. This caused them to rely more extensively than larger

organization on external help (Yap, Soh and Raman 1992). However, the finding from the

studies on the factors important to SMEs when adopting IT appears to contradict previous

studies which indicated that small businesses largely rely on external expertise and resources

when computerizing because of lack of internal IT management and skill (Fink 1998).

Therefore, human capital of an organization is one of the important factors contributing to

SMEs e-readiness.

Information Security Concern

Security threats are growing both in scope and sophistication; therefore, organizations of all

types and sizes will continue to strengthen their defenses against these threats. While some

will rely on internal systems and resources, others may lack the training, skills and resources

to secure their IT infrastructure. In most cases, it is the MNCs that have the expertise and

resources to secure their infrastructure while the SMEs, most often depend on vendors for

advice and assistance. Even SMEs realize the importance of security, but they are often

deterred by the cost associated with it.


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