Factors Influencing E-Commerce Adoption: Evaluation Using Structural Equation Modelling (SEM)

Electronic commerce (e-commerce) has become a rapidly growing phenomenon to date. A peep into the exponential growth of main players in this industry reveals large reservoir market potential for ecommerce. Nevertheless, prevalence e-commerce adoption attracted attention from government, retailers, and academicians place specific focus on area. As such, study determined correlation between Chief Executive Officer’s (CEO’s) technology knowledge, relative advantages, competitive pressure through lens Tornatzky Fleischer’s (1990) Organisational, Technological, Environmental (OTE) model order probe e-commerce. CEOs managers Small Medium Enterprises (SMEs) established Northern states Malaysia were selected as subject analysis. total 283 out 364 questionnaires distributed valid analysing testing hypotheses. Next, gathered data analysed using Statistical Package Social Sciences (SPSS) version 18.0 Analysis Moment Structures (AMOS) 16.0. The Structural Equation Modelling (SEM) was employed assess fit test conclusion, CEO’s knowledge advantage displayed significantly positive influence upon ecommerce, whereas exhibited insignificant impact In precise, implementation appeared be driven by other unseen variables worthy discovered. For future research, comparison can conducted selecting samples both employers employees, well multiple associated with adoption, so keep sampling bias at minimum level.