Internet‐based ICT adoption: evidence from Malaysian SMEs

Purpose – The purpose of this paper is to investigate the innovative characteristics, benefits, and barriers influencing internet‐based information and communications technology (ICT) adoption among the small and medium enterprises (SMEs). Design/methodology/approach – A questionnaire‐based survey was used to collect data from 406 managers or owners of SMEs in the southern region of Malaysia. Findings – The results suggest that internet‐based ICT adoption provides a low cost yet effective communication tool for customers. However, security continues to be a major barrier. Finding on cost as a barrier is mixed. The inferential statistics reveal that relative advantage, compatibility, complexity, observability, and security are significant factors influencing internet‐based ICT adoption. Research limitations/implications – The study focuses only on the SMEs in the southern region of Malaysia. Practical implications – The findings offer valuable insights to policy makers in general and to the SMEs in particular on the significance of the measured characteristics and the associated benefits and barriers of internet‐based ICT adoption. Originality/value – The study is perhaps one of the first to comprehensively address internet‐based ICT adoption among the SMEs through the use of a wide range of variables.