Can e-business adoption be influenced by knowledge management? An empirical analysis of Malaysian SMEs

Abstract

Purpose–The aim of this research paper is to evaluate the effect of knowledge management on the adoption of the e-business in the supply chain of small and medium enterprises (SMEs) in Malaysia.Design/methodology/approach–Questionnaires were distributed to 200 Malaysian SMEs with a response rate of 68 percent. Data were analyzed by employing multiple regression analysis.Findings–The results showed that knowledge management processes such as knowledge acquisition and knowledge application are significant in affecting Malaysian SMEs' decision to adopt e-business in their supply chain. Knowledge dissemination was found not to be significant in affecting the adoption of e-business among Malaysian SMEs.Practical implications–This study has addressed the previous lack of literature on the relationship between knowledge management processes and e-business adoption among Malaysian SMEs.Originality/value–Although existing literature has shown a relationship between knowledge management processes and technology adoption, this study empirically verifies an adoption model based on knowledge management processes. SMEs can use this model to do a pre-test baseline measurement and reassessment of effect by any KM changes on e-business adoption periodically. Organizations planning to adopt e-business would also be able to apply strategies based on the findings from this research.