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SME e-readiness in Malaysia: Implications for Planning and Implementation - page 18 / 44

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Studies done by Sulaiman and Jani (2001) have shown that security issues are among the

main barriers to the implementation of e-commerce and e-business. The organizations were

reluctant to use e-commerce as they felt that the transactions conducted electronically were

open to hackers and viruses, which are beyond their control as well as security measures that

were implemented to safeguard on-line payment transactions. Therefore, we hypothesize that

information security will be negatively related to the e-readiness of SMEs.

H3:

Information security concerns will be negatively related to the e-readiness of

SMEs.

Participating in the networked economy will bring a lot of changes to an organization. The

changes might be the change in business process or business model that requires careful

attention from top management. Sandkull (1980) suggests that resistance to change may yield

an incomplete implementation of the technology and may limit the benefit associated with

introducing the technology. SMEs that are likely to adopt IT will most often have a CEO who

has a positive attitude towards IT adoption, who is innovative and who is knowledgeable

about IT (Brancheau and Buckland 1996). Resistance to change will have negative

relationship with e-readiness of SMEs.

H4:

Resistance to change will be negatively related to the e-readiness of SMEs.

Research indicates that top management support is a good predictor of success of new IT

such as Internet (Ives and Olson 1984). For Internet adoption if the SMEs manager is not

convinced of the technology and does not provide support and resource, it is unlikely to be

adopted (Dandridge and Levenburg 2000). Thus, top management commitment is

hypothesized to be positively related to the e-readiness of SMEs.

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