Shaping a Digital Future: Examining Technology, Organization and Environment (TOE) Framework

Abstract

Integrating e-commerce (EC) adoption represents digitalization opening for small and medium enterprises (SMEs). EC's capacity to utilize online platforms, connect with worldwide customers, and provide seamless customer experiences establishes it as a fundamental element in contemporary business strategies. Therefore, this study examines the critical constructs surrounding the adoption of EC by SMEs in the service and other industries in Malaysia. Utilizing the constructs of perceived benefits (H1), EC complexity (H2), top management attitude (H3), competitors' pressure (H4), and government support (H5), the adoption of EC by Malaysian SMEs was measured. This study is supported by the Technology, Organization, and Environment (TOE) framework dimension. The data were collected through an online questionnaire-based survey, and 155 responses were used for this study. Two of the most recognized statistical software are used to analyze the collected data. First, the R software was used to perform various descriptive statistics. Second, the SmartPLS was utilized to test measurement and structural models. The finding indicated that perceived benefits and EC complexity are optimistic about the SME's EC adoption. In contrast, the results of top management attitude, competitor pressure, and government support indicated otherwise. As SMEs navigate the path to digitalization, this study may be helpful to investors, owners, researchers, policymakers, and any individuals interested in knowing more about the progress of SMEs' EC adoption in Malaysia.