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SME e-readiness in Malaysia: Implications for Planning and Implementation - page 15 / 44

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Organizational Factors

Resistance to Change

One of the well-documented findings from studies of individual and organizational behavior

is that organizations and their members resist changes. (Robbins 1994). McNurry (1973) have

quoted “Industrial progress finds one of its greatest handicaps in the frequent resistance of

both management and workers to change of any sort”. Traditional management thinking

views resistance as the enemy (Waddell and Sohal 2002).

Change brought about by technology poses significant challenges to small business

management (Fink 1998). Internet can result in a fundamental and radical change in the

manner in which business is done. Therefore, resistance to change from individual and

organizational may develop. The following two examples illustrate resistance to change of e-

commerce in Europe:

  • “Fulfilling its promise won’t come easy. The region must build eCommerce networks to help overcome social fears and resistance to change.” [Torris 1999].

  • “…the biggest threat, I believe, is a cultural one. For, despite deepening pockets of technical excellence and proof of success in key areas, we remain risk-averse, not willing to embrace wholeheartedly the entrepreneurial spirit that is taken for granted across the Atlantic” [Ellis 1999].

The organizations should understand the reasons for the resistance to overcome the problem

when involved in networked economy that will facilitate e-commerce adoption.

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