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SME e-readiness in Malaysia: Implications for Planning and Implementation - page 14 / 44





14 / 44

"The Internet was built for availability, and not so much for security," observed Angu Selvan,

Head of Internet Technology, Nokia Internet Communications. To most consumers, the issue

of security and privacy over the Internet is the most overwhelming barrier facing the adoption

of e-commerce (Norazah 2001). Widely published security issues on the Internet, where

hackers have accessed personal financial information being sent electronically, have done

little to boost consumer confidence in the Internet as a conduit for commerce (Goodwin

1991). There is also a great concern, among the Internet users, regarding the security of

financial information transmitted over the Internet (Gupta 1995). In general, consumers tend

to be more comfortable providing sensitive information in a realm where they can see with

whom they are dealing, revisit the physical location of the business if necessary, and exert a

perceived amount of control over the situation (Janes et al. 1997). Yulihasri (2004) studied

the potential of Internet shopping among students of a university in Penang, Malaysia and

found that users were not convinced with the method and security of payment through the

Internet. Tan and Teo (1998) found e-commerce to be a very convenient way to do business.

However, many had nagging doubts about the security of transactions (Dr Sankaran 1999).

Comparison between the factors influencing the adoption decision of e-commerce amongst

individuals and organizations demonstrated that the difference is only the focus of decision

makers (Pin, Jantan and Nasirin 2000). Besides, three factors which have been cited by many

(Ainin and Rohana 2000) of a great concern in the implementation of e-commerce are

security, privacy and property protection. The findings of the research conducted on SMEs in

Australia (Lawrence et al. 1998) illustrated that electronic security is the single major barrier

to e-commerce. Therefore, information security that always concerned by Internet user

should be a fundamental factor for a SMEs organization to be e-ready.


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