The influencing factors for E-business capability and value : a perspective of Malayisan small and medium enterprises (SMEs) retail sector

Abstract

Adding Internet-based solutions, Electronic Business (E-business) has potentially developed firm’s adeptness and efficacy to Small and Medium-sized Enterprises (SMEs). Mentionable number of SMEs around the world has permitted E-business as a strategic business tools to promote the competitive advantage and organizational performance. Most of the SMEs have invested conspicuously in this technology to compete in the fast faced business environment. But many of them are still lacking in achieving the advantage of E-business technology. A remarkable number research has been conducted to generate the strategies for E-business success, but still many SMEs are facing difficulties in generating E-business value. The fundamental purpose of this study is to evaluate the E-business capability and value for Malaysian SMEs retail sector. This study assesses three influencing factors of E-business capability: technological factor, organizational factor and environmental factor. This study also developed a model to examine the relationships between the influencing factors and E-business capability and between E-business capability and E-business value. The data was collected through mailed survey and distributing questionnaire by hand. Total 750 questionnaires were distributed to SMEs in the retail sector based on the Malaysian definition of SMEs and 240 responses were received but only 200 questionnaires were found to be useful for analysis. The analysis was conducted using SPSS tool to perform descriptive analysis and regression analysis. The finding shows that, technological factor and environmental factor have significant influence on E-business capability of SMEs, where organizational factor found as less influencing factor and E-business capabilities have positive effect on E-business value. Understanding the E-business capabilities and E-business value of SMEs is the purpose of this study. The finding from this study shows the indication of current scenario on E-business capability and value in Malaysian SMEs retail sector. It is hoped, this research will help to encourage awareness among the SMEs towards E-business and help them to speed up their participation in E-business.