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SME e-readiness in Malaysia: Implications for Planning and Implementation - page 16 / 44

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Top Management Commitment

Management commitment to technology acquisition, application and exploitation must be

seen as well as felt through the organization. Top management must be directly involved in

technology-related decision even if there are technically qualified staffs in the organization.

A "hands-off" approach must be avoided. Mechanisms to ensure integrated decision-making

must be put in place (Tengku Mohd Azzman, Karthyeni & Roslan Ahmad, 1998).

As an organizational factor, top management commitment is required to ensure successful

adoption of the Internet technology. The importance of leadership to the change management

process is highlighted by the fact that change requires creating a new system and then

institutionalizing the new approaches. Management needs to monitor employees’ response to

technological change, and institute appropriate action programs for IT acquisition,

implementation and operation (Fink 1998). For Example, the CEO has been shown to play a

significant role in the successful adoption of IT in small business (Thong and Yap 1995).

According to the 1998 e-commerce India Survey Report, senior level support and budget

allocation were given due weightage as actions taken for integration of e-commerce

technologies with existing processes. The survey also reported that IT Department and

Executive Committee are the biggest sponsors.

RESEARCH DESIGN

Research Framework

Figure 1 provides the research framework used in this study. E-readiness of SMEs is the

dependent variable, while infrastructure and technology, human capital, information security

and organizational factors are the independent variables. The organizational factors

considered in this study are resistance to change and top management commitment.

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