Perceived Benefits and Barriers of ICT Adoption among SMEs

Abstract

Small and Medium Enterprises (SMEs) are a key economic sector in Malaysia. In 2005, there were 99.2 per cent or 518,996 SMEs in the country. They contributed to 65.1 percent of employment and 47.3 percent of labor productivity. Due to the importance of SMEs, the Malaysian government formed National SME Development Council (NSDC) in 2004 to oversee the development of SMEs in the country. On the other hand, in order to leverage the power of ICT, particularly the Internet, Malaysian government formed National Information Technology Council (NITC) in 1994 to provide information and communication technology (ICT) assistance to Malaysian companies. This chapter examines perceived benefits and barriers of Internet-based ICT adoption among SMEs in Malaysia. Questionnaire was used to collect data from 406 managers/owners of SMEs in Malaysia. Analysis reveals the composite ICT benefits and barriers to ICT adoption. The chapter ends with a discussion and interpretation of the findings including key implications for research, practice and policy.