Investigating the Intentions to Adopt ICT in Malaysian SMEs Using the UTAUT Model

Abstract

Small and Medium Enterprises (SMEs) in today’s global competition should establish strong initiatives and strategies to ensure that they can continue to survive. SMEs are now one of the driving engines for job creation and as an economy booster especially in Malaysia. Thus, the application of sophisticated technology in running the business has become necessary. This study aims to predict the intention to adopt the application of Information and Communication Technology (ICT) amongst SMEs in Malaysia. Using the Unified Theory of Acceptance and Use of Technology Model (UTAUT), a survey is conducted with 250 SME owners. A self-reported questionnaire is applied to examine the relationship between factors that influence SME owner’s intentions to use ICT, factor that influences action to use ICT, and control factors that mediate the effects of the process of using the ICT in running all the business activities. The findings suggest that three out of five factors in UTAUT affect SME owner’s intention to adopt ICT in their business namely effort expectancy, social influence and facilitating conditions. These results are useful especially for the government to plan and to design appropriate trainings to encourage SME owners are willing to adopt ICT in running their business.