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SME e-readiness in Malaysia: Implications for Planning and Implementation - page 27 / 44





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significant return upon their data-to-knowledge related investment. However, the rejection of

the hypothesis that resistance to change negatively influences the e-readiness of SMEs, is not

consistent with general studies done before. In the SMEs business environment since owner

or manager is the best person who understands the critical success factors and payoffs of

investment, he or she plays important role in ensuring IS success (Jantan, Ramayah and Chin

2001). Therefore, once the owner makes the decision to embark towards the e-economy, the

employees’ resistance to change is no more an issue.


The findings suggest several general implications. This study enlightens us about e-readiness

of SMEs in Northern Malaysia. As indicated by Chee (1986), the technology used by small

firms is often outdated. According to Chee (1986), some small firms do not trust new

technology while others are not able to afford it. He further concluded that many small firms

rely on traditional technology which, in many cases is inefficient. The study by Jan,

Jamaluddin and Shaari (1990) also indicated that small businesses are unable to upgrade their

technology and become innovative because they employed traditionally low level technology

and have limited accessibility to new technology. The researcher pointed the other factors

include lack of information, inadequate in-house expertise, and financial constraints.

However, from the findings from this study showed that SMEs are ready to go for e-business,

even though inadequate infrastructure and limited application of new technology have been

identified as weakness for SMEs (Hashim and Wafa 2002). In order for the entrepreneur of

SMEs to compete successfully in the dynamic environment, they should be more involved in

the networked economy based on their readiness to adopt e-business. In summary, SMEs are

more ready to adopt e-business, while the readiness for digital technology and e-commerce

can be improved.


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