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The Impact of TOE Framework on E-Commerce Advantage Among Small Medium Enterprise (SME's) Digital Channel In Malaysia

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2022, v.20 no.8, pp.33-46
https://doi.org/https://doi.org/10.15722/jds.20.08.202208.33
TAMIN, Masran
ABDUL ADIS, Azaze-Azizi
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Abstract

Purpose: This study aims to understand the impact of e-commerce's advantage among SME's digital channel in Malaysia. To achieve the objective, this study used Technology, Organization, Environment (TOE) framework, Diffusion of Innovation (DOI) theory and Resource-Based View (RBV) theory. Research design, data and methodology: This study is quantitative method involve 195 SMEs online business in Malaysia. The integrated framework highlights the conceptual insight in multidimensional technology context (i.e. relative advantage, compatibility, and complexity); organizational context (i.e. top management support, innovation capability, branding capability, market-sensing capability, and human and organization capability); and environmental context (i.e. government support and supplier pressure). Results: The findings revealed that complexity, branding capability, human and organization capability, government support, and supplier pressure have significant positive relationship with e-commerce advantage. Meanwhile, relative advantage, compatibility, innovation capability, and market-sensing capability have significant negative relationship with e-commerce advantage. However, top management support has found no significant relationship with e-commerce advantage. Conclusions: The extended theoretical framework dimension improves existing knowledge on e-commerce advantage as well as the prospect of SMEs digital channel.

keywords
E-Commerce Advantage, Digital Channel, Small-Medium Enterprise (SMEs), TOE Framework

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