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SME e-readiness in Malaysia: Implications for Planning and Implementation - page 9 / 44

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Akkeren and Cavaye (1999) have identified the factors influencing IT adoption are similar to

the factors influencing e-business and e-commerce adoption (particularly in small business),

thus, some of the factors of successful adoption of IT in SMEs from a study by Fink (1998)

will be used as the independent variables for this research. The factors include in house IT

expertise (human capital), availability of IT (infrastructure and technology), IT

implementation (top management commitment) and organizational culture (resistance to

change).

E-readiness

APEC defines e-readiness as the degree to which an economy or community is prepared to

participate in the digital economy (APEC 1999). A definition by McConnell on e-readiness is

the capacity to participate in the global digital economy (McConnell 2000). McConnell’s

definition of e-readiness lacks descriptive details, but the basic meaning points to the capacity

to participate in digital way of doing business.

In the study of Hartman, Sifonis and Kador (2000), net readiness is measured as a company’s

preparedness to exploit the enormous opportunities in the e-economy landscape. Grant (1999)

mentioned in his maturity model where a business is “ready” to implement e-business and e-

commerce strategy, with the business plans and expectations clear, with no insurmountable

obstacles impeding progress, and have identified any needed partners or professional support.

Another report by Parker (2000) described e-readiness as “preparedness” to operate in an e-

business and e-commerce marketplace.

The success of the Internet initiatives of a firm or enterprise depends not only on its own

effort to digitize its value chain, but also on the readiness of its customers, supplier and

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