Sales Performance and Efficiency of E-Business Adoption Among Women-Owned Micro, Small, and Medium Enterprises (MSMEs) in Malaysia

Abstract

The Covid-19 epidemic has eloquently demonstrated the potential of micro, small, and medium enterprises (MSMEs) in embracing technology. Anchored in the resource-based view (RBV), the purpose of this study was to develop and validate an integrated model encapsulating the factors that influence e-business adoption and its effect on the efficiency and sales performance of women-owned MSMEs in Malaysia. The model was tested via a quantitative methodology, with 158 women-owned MSMEs in Malaysia as respondents. Data analysis and hypothesis testing were performed using structural equation modelling (SEM). The findings established that organisational readiness, management support, competitive pressure, and information intensity are significant factors affecting e-business adoption among women-owned MSMEs. E-business adoption’s positive impact on these MSMEs’ efficiency and sales performance was further confirmed. The empirically verified model in this work contributes new insights to the present understanding of how e-business adoption affects small business performance. This framework is a potentially reliable tool in designing guidelines to encourage more female entrepreneurs to adopt e-business in their organisations.