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SME e-readiness in Malaysia: Implications for Planning and Implementation - page 17 / 44

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[Insert Figure 1 about here]

Hypotheses

Infrastructure and technology is a basic tool for SMEs to be involved in networked economy.

Without the tool nothing can be done. Based on the case study from Mehrtens, Cragg and

Mills (2001) using four firms in IT industry, the evidence from the study supported the view

that organizations that have high levels of information technology are more likely to adopt

the Internet. Thus, this hypothesis predicts that infrastructure and technology are positively

related to the e-readiness of SMEs.

H1:

Infrastructure and technology will be positively related to the e-readiness of

SMEs.

People are assets to an organization. People with the knowledge of Internet, e-commerce and

e-business play a more important role in SMEs which plan to be involved in networked

economy. Kwon and Zmud (1987) asserted that successful information system (IS)

implementation occurs when sufficient organizational resources such as sufficient developer

and sufficient technical skills are available. Therefore, the human capital can have a lot of

impact on the e-readiness of SMEs and this hypothesis predicts that human capital, which is

internal staff’s expertise and skills, is positively related the e-readiness of SMEs.

H 2 :

Human capital (internal staff’s expertise and skills) is positively related to the

e-readiness of SMEs.

Most people have doubt about making monetary transaction or transfer confidential

information through the Internet. To be ready to involve in a networked economy, SMEs

must have installed some hardware or software that can enforce the information security.

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