Factors Influence Small Medium Enterprises in Penang Island Reluctant to Use e-Commerce : A Research Proposal

Abstract

The powerful of Internet has changed the world. The successful story from Amazon.com has encouraged some business owners to switch their business model to e-business model. In year 1997, Malaysia's government allocated some budget to setup Internet infrastructure and introduce Multimedia Super Corridor (MSC) to public. The main objective is to transform current practice to service based platform, and to attract world class companies while grooming local Internet communication technologies (ICT) companies. Besides that, the government had put efforts to increase Internet user population such as taxes deduction for family who purchase computers, educate the public the importance of master Internet technologies. After a decade of implementation, the e-Commerce adoption response from the Small Medium Enterprises (SMEs) still do not reach the considerable level, based on Association Chinese Chamber of Commerce & Industries of Malaysia SME's survey it shows 28% of the respondents involve into e-Commerce activities. Small Medium Enterprises contribute 99.2% to Malaysia's economic. This study intends to find out the level of e-Commerce adoption among SMEs in Malaysia, and potential factors that hindrance to the e-Commerce adoption.