Technology Adoption and E-commerce Integration: A Study of Malaysian Micro, Small, and Medium Enterprises (MSMEs)

This study explored the factors influencing e-commerce adoption among Micro, Small and Medium Enterprises (MSMEs) in Malaysia, leveraging the Technology Acceptance Model (TAM). The research aimed to investigate how perceived usefulness (PU) and perceived ease of use (PEOU) affect SMEs’ intention to adopt e-commerce technologies. A quantitative methodology was employed, utilizing self-administered questionnaires to collect data from Malaysian MSMEs. The study employed a quantitative approach. The data were analyzed using Statistical Package for the Social Sciences (SPSS) and analysis of correlation. Based on data findings indicated that, competitive pressure had significant influences on e-commerce adoption among MSMEs. Besides that, the analysis revealed that both PU and PEOU significantly impact adoption intention, providing valuable insights for enhancing e-commerce adoption rates. Besides, we also found that highest percentage the level of e-commerce adoption among MSMEs in Malaysia were at level 3 which is Transaction integrator. On this level MSMEs use websites for two-way communication with customers and suppliers. The findings offer practical recommendations for MSMEs to leverage e-commerce effectively, thereby contributing to the expansion and advancement of the digital economy in Malaysia.