Electronic Government Procurement Adoption Behavior amongst Malaysian SMEs

Wan Sallha Yusoff,Md Aminul Islam,Dayang Hasliza Yusuf,Zakaria Abas

doi:10.5539/ibr.v4n1p100

Abstract

The aim of this study is to investigate the relationship electronic procurement (e-procurement) adoption behavior and the level of Government e-procurement adoption amongst Small Medium Enterprise (SME) in Malaysia. Data was collected through questionnaires that were distributed by mail and e-mail to 150 SME selected randomly in all SME in Malaysia in various industries which are listed in Small and Medium Industries Development Corporation Directory (SMIDEC) and registered with electronic government procurement. The data were analyzed using factor analysis, reliability analysis, independent-sample t-test, descriptive statistics, Pearson Correlation and multiple regressions. Regression results reveals that ‘power’, ‘trust’ and ‘value’ have a positive relationship with the level of e-procurement adoption amongst SME in Malaysia. All dimensions, namely; the power of supplier, power of procurement, trust on supplier, trust on information technology, value of implementation system efficiency and value of cost efficiency were also correlated with the level of e-procurement adoption amongst SME. Past studies on e-procurement are beset by problems of buyer-seller relationship perspective. In addition, these studies are skewed towards Government-SME relationship perspective which the Government possesses more power than SME and provide a better incentive to educate and influence SME to adopt e-procurement. In investigation the relationship between a model of e-procurement adoption behavior and the level of Government e-procurement adoption amongst SME in Malaysia, this study also tries to provides recommendation to Malaysian government for improving the level of e-procurement adoption amongst SME. Keyword(s): Government procurement, Communication technologies, electronic procurement and

Highlights

As a response to the challenge of trade liberalization and globalization, the options available for conducting business electronically will continue to increase
The accurate statistical method such as Correlation Pearson and Multiple Regression are use to determine the relationship between independent variables and e-procurement adoption amongst Small Medium Enterprise (SME)
The mean, the range, the standard deviation, and the variance in the data will give the researcher a good idea of how the respondents reacted to the items in the questionnaires and how good the items and measures are

Summary

Introduction

As a response to the challenge of trade liberalization and globalization, the options available for conducting business electronically will continue to increase. Many developed country such as United State, Canada and Japan are implementing e-procurement. Most suppliers (e-procurement users) to the government have registered with e-procurement, but fewer than 18,000 electronic catalogue items have been uploaded to the system (Leatham, 2003). This means that they are alert about the system but they do not maximize the benefits

Objectives

Methods

Results

Conclusion