Influence Factors Of Electronic Commerce (EC) Adoption And Innovation On Development Of Small And Medium Enterprises (Smes) In Melaka

• Main Author: Juan Rizal, Sa'ari
• Format: Thesis
• Language: English; English
• Published: 2008
• Subjects: HF Commerce; H Social Sciences (General)
• Online Access: http://eprints.utem.edu.my/id/eprint/13939/1/Influence_factors_of_electronic_commerce_%28EC%29_adoption_and_innovation_on.pdf24_pages.pdf; http://eprints.utem.edu.my/id/eprint/13939/2/Influence_factors_of_electronic_commerce_%28EC%29_adoption_and_innovation_on.pdf; http://eprints.utem.edu.my/id/eprint/13939/; http://library.utem.edu.my:8000/elmu/index.jsp?module=webopac-d&action=fullDisplayRetriever.jsp&szMaterialNo=0000063138
• Institution: Universiti Teknikal Malaysia Melaka

The purpose of this study is to measure the influence factors of Electronic Commerce (EC) adoption and innovation on development of small and medium enterprises (SMEs) in Melaka. A survey was carried out through a set of questionnaires. Pilot test was conducted to obtain the reliability of the instruments. The Cronbach alpha reported no ambiguos items were found and the overall reliability for the Leader Innovativeness Factors Scale, Technological Factors Scale, Environmental Factors Scale and Adoption and Innovation of EC Scale were .80, .95, .92 and .91 respectively. The sample selected comprised 135 CEOs and workers in nine selected companies, three companies representing three districts in Melaka, which are Melaka Tengah, Alor Gajah and Jasin. The data collected were coded and analyzed using both descriptive and inferential statistics. Based on the findings, it can be found that Organizational Factors which consists of number of workers, yearly sales, location and the availability of website services is one of the factors that will affect the adoption and innovation of EC on development of SMEs in Melaka. Apart from that, the overall results also revealed, majority of the respondents agreed that Leader Innovativeness Factors (53%), Technological Factor (53%) and Environmental Factor (57%) have great influence in EC adoption and innovation on development of SMEs. The result also indicated there was a strong, positive correlation between leader innovativeness (.569), technological factors (.502) and the adoption and innovation of EC on development of SMEs in Melaka. In fact, result also showed there was a small, positive correlation between environmental factors (.28) and the adoption and innovation of EC. However, by using Spearman's rho correlation, the result indicated there was a medium, negative correlation between organizational factors (-.303) and the adoption of EC. In conclusion, to face the rapid development in adopting and innovating EC in SMEs, CEOs ought to equip themselves with the skills, through training courses to gain positive attitudes and capitalize on the changes brought by the adoption and innovation of EC in Small and Medium Enterprises (SMEs).