Factors affecting e‐commerce adoption in the electronic manufacturing companies in Malaysia

Abstract

PurposeThis paper sets out to examine the factors influencing internet‐based e‐commerce in the electronic manufacturing companies in Malaysia.Design/methodology/approachThe sample data are derived from a questionnaire survey of 194 companies selected from the Federation of Malaysian Manufacturer lists to investigate the study hypotheses. Roger's five innovation diffusion characteristics were considered as factors that affect EC adoption and security/confidentiality was taken as an additional factor for this study.FindingsThe multiple regression analysis results indicate that relative advantage, compatibility, complexity, observability and security appear significant. Relative advantage and compatibility have positive and significant influence on EC adoption whereas complexity and security have negative effects. This study also revealed a non‐significant relationship between trialability and e‐commerce adoption.Research limitations/implicationsThe results are limited within the sample of electronic manufacturing companies in Malaysia, so the results cannot be generalized.Originality/valueThis study provides a greater understanding of managers' perception of e‐commerce adoption in their manufacturing companies. Those interested in promoting their business online may find these results helpful in guiding their efforts.