Systems Adoption in Small and Medium - sized Enterprises

The adoption and utilisation of information systems (IS) by small-and medium-sized enterprises (SMEs) across heterogeneous culture, locales, and markets are a critical and an ongoing challenge. Such challenge requires more than just good ideas and extensive resources. It requires organisational capabilities, which can be labelled as “enacted capabilities”. This study defines enacted capabilities as the firm’s ability to mobilise and deploy IS-based resources in combination or copresent with other resources and/or capabilities within SMEs Consequently, the aim of this study is to empirically examining the SMEs enacted capabilities that may influence the success of IS adoption. In line with this objective, an IS adoption behaviour investigation at a deeper level is conducted particularly as to why some SMEs are able be enabled for use and actively utilise IS, while others fail to do so. A survey of 206 Malaysian SMEs was conducted. The IS examined was the government’s electronic procurement systems. Structural equation modelling (SEM) was used to test the research model. The findings are consistent with the notion that all SMEs have these enacted capabilities. The findings also indicate that strong enacted capabilities affect the SMEs’ ability to perform or assimilate IS related strategic change. Thus, some SMEs are more capable to leverage IS enabled change to their business advantage and respond rapidly to changes in the IS business environment.