ICT Adoption in Small and Medium Enterprises: an Empirical Evidence of Service Sectors in Malaysia

The purpose of this study is to gain a deep understanding of the factors which influence the adoption and usage of ICT by SMEs in Malaysia. This study examines the relationship between ICT adoption and its five factors which are perceived benefits, perceived cost, ICT knowledge, external pressure and government support. The results of this study show that three factors examined are significantly important to the adoption of ICT where as perceived cost and external pressure are found to be insignificant in determining its adoption. This study provides a greater understanding of SME’s perception about ICT adoption in their service business. Those SMEs who are interested in promoting their business on online may find these results helpful in guiding their efforts.