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SME e-readiness in Malaysia: Implications for Planning and Implementation - page 22 / 44

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The descriptive statistics of the composite variable are shown in Table 7.

[Insert Table 7 about here]

Pearson Correlation Analyses

As shown in Table 8, there appears to be some degree of correlation between the dependent

variable (with 3 factors) and independent variables. However, there were no correlations

exceeding 0.70. If the correlation is 0.75 and above, for the independent variables then there

might be a possibility of multicollinearity when the regression analysis is employed. Thus we

can conclude that there is no problem of multicollinearity.

[Insert Table 8 about here]

Hypotheses Testing

Table 9 presents the result of the regression analysis. Infrastructure and technology (β=

0.206, p< 0.05) and top management commitment (β= 0.473, p< 0.01) were found to be

positively related to digital technology readiness. As for e-commerce readiness it was the

same case as infrastructure and technology (β= 0.115, p< 0.05) and top management

commitment (β= 0.557, p< 0.01). For the digital technology readiness and e-commerce

readiness, top management commitment was the most influential driver indicating the role of

top management in gearing the company towards network readiness.

For e-business readiness, top management commitment did not seem to contribute whereas

infrastructure and technology (β= 0.311, p< 0.05) was the only significant driver. This goes

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