Factors Affecting Digitalization Acceptance Among Micro, Small and Medium Enterprises in Malaysia

Abstract

Despite the increasing trend of digitalization in today’s organization and business environment, the acceptance of business digitalization by micro-, small-, and medium-sized enterprises (MSMEs) remains uncertain. This study intends to investigate factors influencing digitalization acceptance focusing on e-commerce by utilizing the technology-organizational-environment (TOE) framework. This study employed a quantitative method where data was collected via a questionnaire survey among a sample of MSMEs in Kelantan, Malaysia, using the snowball sampling method. The results of this study show that all the variables in the TOE model have significant relationships with e-commerce acceptance. This study suggests that digitalization is very important for MSMEs to ensure the sustainability of a business in a predictable business environment. The findings offer valuable information for improving digitalization adoption among business communities, particularly in the context of MSMEs in developing countries.