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SME e-readiness in Malaysia: Implications for Planning and Implementation - page 26 / 44





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support the work of Mehrtens, Cragg and Mills (2001) who found that organizations that

have high levels of information technology are more likely to adopt the Internet.

Hypotheses not Supported

Human capital was found not influencing e-readiness of SMEs, which is consistent with

previous studies such as DeLone (1988) who found that the availability of internal technical

support as mainly for training purposes and did not result in greater IS success in SMI. One

of the possible reasons could be the effectiveness of external support. The variety of

engagements and support work done by external vendors and consultants may have given

them the exposure and experience which have not been available to many internal support

group to offer (Thong and Yap 1994). Another possible explanation may have been the lack

of financial resources. Thus, there has been no priority for SMEs to setup internal IT support

group, instead they largely rely on external expertise and resources when computerizing.

The result of study shows that confidence of SMEs in the information security does not have

significant effect on the e-readiness of SMEs in Northern Malaysia. Once the information

security feature is installed, the confidence level of the information security technology

would not play an important role on e-readiness. The study by APEC (1999) showed that the

level of relative concern with security appeared to decrease as firms become more advanced

and gain a better understanding of security issues and the appropriate technologies to address

them such as encryption.

SMEs aim to adopt e-commerce, e-business and Internet technology so that it will bring

significant change to their performance. Davenport et al. (2001) stated that over 62 percent of

managers agreed that organizational and cultural factors form the greatest barrier in achieving


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