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SME e-readiness in Malaysia: Implications for Planning and Implementation - page 4 / 44





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between Government and consumers; e.g. a Government website is used by a consumer to

acquire information about Government health services), and G2B (government to business)

(Example: the use of e-business between Government and businesses; e.g. a small business

s u b m i t s i t s t a x r e t u r n o n l i n e ) . ( h t t p : / / w w w . j m a . c o m . a u / e b u s _ e v o l v i n g _ d e f i n i t i o n . h t m )

One of the most important factors to sustain a company’s long-term business survival is

constantly ensuring relevance and maintaining the competitiveness within the changing

dynamics of doing business. The traditional way of doing business has been replaced by e-

commerce and e-business is the solution being pursued by many highly profitable companies

nowadays like Intel, Hewlet-Packard, Dell, General Electric and so on. Due to the impact of

technology and Internet on the overall business transaction and communication environment,

there has been considerable interest in understanding the degree of e-readiness (which

measures the capacity of nations to participate in the digital economy) of Malaysian

businesses. In addition, E-readiness of SMEs has been a topic of considerable interest due to

the obvious impact the Internet may have on the economics of their business.

Definition of SMEs in Malaysia

The most widely used definition of the Malaysian SMEs is the one by the Ministry of

International Trade and Industry (MITI) (Hashim 2000b):

  • 1.

    Small sized firms: A firm with less than 50 full-time workers OR an annual turnover of less than RM 10 million.

  • 2.

    Medium sized firms: A firm with 50-150 full-time workers OR an annual turnover in the range of RM 10 million to RM 25 million.


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