THE IMPACT OF PERCEIVED CHARACTERISTICS ON TECHNOLOGY ADOPTION AMONG MANUFACTURING SMALL AND MEDIUM ENTERPRISES IN MALAYSIA

Authors

  • Kogilavani Shanmugam School of Business and Accounting, SEGi College Penang, Wisma Greenhall, 43, Greenhall, 10200 Pulau Pinang, Malaysia
  • Jaya Kumar Shanmugam School of Business and Accounting, SEGi College Penang, Wisma Greenhall, 43, Greenhall, 10200 Pulau Pinang, Malaysia

Keywords:

SME Performance, Relative Advantage, Compatibility, Complexity, Trialability, Observability

Abstract

Technology adoption among SMEs in Malaysia is a crucial issue, and continuous examination needs to
be conducted since SMEs play a dominant role in the nation's gross domestic products (GDP). This
study aims to examine the impact of perceived characteristics on technology adoption among
manufacturing SMEs in Malaysia. Rogers' diffusion of innovation and resource-based-view theory was
used to build the research framework and hypothesis for this study. Among the targeted population of
380 respondents from the manufacturing sector, a total of 153 questionnaires were valid to use. In this
study, the SPSS software was used to analyse the collected data. The finding shows that the five
perceived characteristics, relative advantage, compatibility, complexity, trialability, and observability,
positively impact technology adoption. Observability was the most influential element in technology
adoption among the five characteristics. The result of this study provides a greater understanding for
firms on the importance of technology adoption. At the end of this study, several recommendations and
suggestions for further research are discussed.

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