JSBE subscribers and CCSBE-CCPME members can view and download full articles (PDF format) in the online Article Library or use the link at the bottom of the abstract to view the specific article (must be logged in).  Subscription Options.

Mohra Asri Abdullah, Nagoya University, Nagoya, Japan

Abstract

The qualities of management personnel are the determinants of the overall management style of enterprises. It is widely acknowledge that in small and medium (SMEs), entrepreneurs are the most essential ones. They are highly noted as the key figures who determine the overall styles of management and play the crucial roles in decision-making, risk taking and, more importantly, allocating organisational and financial resources to expedite the adoption of information technology (IT). However the influence of entrepreneurs’ knowledge and characteristics on the level of IT adoption in SMEs, particularly in Malaysia is still unclear. The purpose of this paper is therefore to evaluate the influence of such significant aspects on the IT adoption of SMEs. In order to find answers, a survey was conducted on 414 entrepreneurs in small and medium enterprises in the manufacturing firms in the Eastern and Northern Parts of Peninsular Malaysia. The study reveals that knowledge of IT among entrepreneurs, level of education of entrepreneurs, age of entrepreneurs, budget allocated for IT adoption and plan for IT expansion in the enterprises have significant relationships with IT adoption in SMEs. The Multiple Regression Analysis indicates that IT knowledge among entrepreneurs, their level of education and age are highly correlated with IT adoption with 99 percent confidence level. The findings indeed stimulate some discussion and significant implications with respect to reviewing policy programmes towards creating of a knowledge-based society and prospects for e-commerce.

 Entrepreneurs and their Influence on the Usage of Information Technology in SMEs: Evidence from Malaysia