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Proceedings of the 1st AAGBS International Conference on Business Management 2014 (AiCoBM 2014) pp 3–15Cite as

The Determinants of Technological Innovation Adoption in Malaysian SMEs

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Abstract

This study used the partial least squares (PLS) and structural equation modeling (SEM) tool to explore the factors to determine the adoption of technological innovation (TI) in the manufacture sector in Malaysian SMEs’ businesses. Statistical results confirm that the adoption of technology is positively associated with its size. It also examines on the best predictor pertaining to the TI adoption. The results, besides indicating the suitability of the PLS in statically analysis, have also contributed to a better understanding of technological innovation adoption in Malaysian SMEs’ business perspectives, and the findings are useful for policy makers and practitioners to enhance their application given the diversified advance to the small business.

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Notes

  1. 1.

    Based on PICS (2007) data, Malaysia’s investment climate is benchmarked with the following East Asian countries such as China (2003), Indonesia (2003), the People’s Republic of Korea (2005), the Philippines (2003), Thailand (2006), and Vietnam (2005) and some higher middle-income countries such as Turkey (2005), Brazil (2003), and Mexico (2006).

  2. 2.

    Cleaning data whereby only useful data are maintained in the analysis. For those respondent that did not indicated the firm size in the questionnaire will be executed from the data set.

  3. 3.

    This variable is unique because it is only applied in Malaysia. Firm status establishment refers to firm establishment either Bumiputera or non-Bumiputera. According to Bumiputera-controlled companies (BCCs), 50 % of the equity is owned by Bumiputera shareholder or at least 30 % of its equity is owned by individual Bumiputera shareholder.

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Acknowledgment

I wish to thank Dr. Nurhani Aba Ibrahim for her useful supervision and comments. I gratefully acknowledge the support by Arshad Ayub Graduate Business School, Universiti Teknologi MARA (UiTM), Shah Alam.

Author information

Authors and Affiliations

  1. Faculty of Business Management, Universiti Teknologi MARA, Sarawak, Malaysia

    Noni Ngisau

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  1. Noni Ngisau
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Correspondence to Noni Ngisau .

Editor information

Editors and Affiliations

  1. Universiti Teknologi MARA, Shah Alam, Malaysia

    Jaafar Pyeman

  2. Universiti Teknologi MARA, Shah Alam, Malaysia

    Wan Edura Wan Rashid

  3. Universiti Teknologi MARA, Shah Alam, Malaysia

    Azlina Hanif

  4. Universiti Teknologi MARA, Shah Alam, Malaysia

    Syed Jamal Abdul Nasir Syed Mohamad

  5. Universiti Teknologi MARA, Shah Alam, Malaysia

    Peck Leong Tan

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© 2016 Springer Science+Business Media Singapore

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Ngisau, N. (2016). The Determinants of Technological Innovation Adoption in Malaysian SMEs. In: Pyeman, J., Wan Rashid, W., Hanif, A., Syed Mohamad, S., Tan, P. (eds) Proceedings of the 1st AAGBS International Conference on Business Management 2014 (AiCoBM 2014). Springer, Singapore. https://doi.org/10.1007/978-981-287-426-9_1

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