The Adoption of Electronic Payment System Among Small Medium Enterprises (SMEs) in Malaysia

This study aimed to investigate factors that significantly affect the adoption of electronic payment system (EPS) by local small and medium enterprise (SMEs) in Malaysia. Referring to the Central Bank of Malaysia’s report, it has stated that this country would achieve higher economic growth and hig...

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Main Authors: Nuryusmawati Mohd Yusof, Mohd Shamim Che Mohd Hariri, Ahmad Shazeer Mohamed Taheer, Syed Ashrene Syed Omar
Format: Article
Language:English
Published: UiTM Press 2018-12-01
Series:Journal of International Business, Economics and Entrepreneurship
Subjects:
Online Access:https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1426
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author Nuryusmawati Mohd Yusof
Mohd Shamim Che Mohd Hariri
Ahmad Shazeer Mohamed Taheer
Syed Ashrene Syed Omar
author_facet Nuryusmawati Mohd Yusof
Mohd Shamim Che Mohd Hariri
Ahmad Shazeer Mohamed Taheer
Syed Ashrene Syed Omar
author_sort Nuryusmawati Mohd Yusof
collection DOAJ
description This study aimed to investigate factors that significantly affect the adoption of electronic payment system (EPS) by local small and medium enterprise (SMEs) in Malaysia. Referring to the Central Bank of Malaysia’s report, it has stated that this country would achieve higher economic growth and higher competitiveness by fully migrating from paper-based payment system to electronic payment because the latter provide opportunities to enhance productivity level and lower cost of doing business. These four factors were simplicity, security/privacy, organization culture and top management support and how these factors may have impact on the adoption rate of electronic payment system. The population of this study was all the SMEs that are listed in SME Corporation Bhd, concentrated at all major cities in Malaysia. Proportionate sample was targeted from the company listings from SME Corp. Survey method was adopted in this study to achieve its objectives. A Likert five- point scale questionnaire was developed to collect the required data after reviewing some previous studies that related to the subject of the study. This study revealed that top management support and organizational culture have the strongest impact among the other independent variables on the adoption of EPS by SMEs in Malaysia. For future research, it is suggested that this research can be targeted according to state individually or by industry for better understanding on the adoption of EPS.
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spelling doaj-art-d0a74ffa4a584e4ebdfac1753ff85f882024-11-22T07:20:40ZengUiTM PressJournal of International Business, Economics and Entrepreneurship2550-14292018-12-013SIThe Adoption of Electronic Payment System Among Small Medium Enterprises (SMEs) in MalaysiaNuryusmawati Mohd Yusof0Mohd Shamim Che Mohd Hariri1Ahmad Shazeer Mohamed Taheer2Syed Ashrene Syed Omar3Faculty Business and Management, Universiti Teknologi MARA, Shah Alam, SelangorFaculty Business and Management, Universiti Teknologi MARA, Shah Alam, SelangorFaculty Business and Management, Universiti Teknologi MARA, Shah Alam, SelangorFaculty Business and Management, Universiti Teknologi MARA, Shah Alam, Selangor This study aimed to investigate factors that significantly affect the adoption of electronic payment system (EPS) by local small and medium enterprise (SMEs) in Malaysia. Referring to the Central Bank of Malaysia’s report, it has stated that this country would achieve higher economic growth and higher competitiveness by fully migrating from paper-based payment system to electronic payment because the latter provide opportunities to enhance productivity level and lower cost of doing business. These four factors were simplicity, security/privacy, organization culture and top management support and how these factors may have impact on the adoption rate of electronic payment system. The population of this study was all the SMEs that are listed in SME Corporation Bhd, concentrated at all major cities in Malaysia. Proportionate sample was targeted from the company listings from SME Corp. Survey method was adopted in this study to achieve its objectives. A Likert five- point scale questionnaire was developed to collect the required data after reviewing some previous studies that related to the subject of the study. This study revealed that top management support and organizational culture have the strongest impact among the other independent variables on the adoption of EPS by SMEs in Malaysia. For future research, it is suggested that this research can be targeted according to state individually or by industry for better understanding on the adoption of EPS. https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1426Adoption, Electronic Payment Systems (EPS), Organizational Culture, Small Medium Enterprise (SME), Malaysia
spellingShingle Nuryusmawati Mohd Yusof
Mohd Shamim Che Mohd Hariri
Ahmad Shazeer Mohamed Taheer
Syed Ashrene Syed Omar
The Adoption of Electronic Payment System Among Small Medium Enterprises (SMEs) in Malaysia
Journal of International Business, Economics and Entrepreneurship
Adoption, Electronic Payment Systems (EPS), Organizational Culture, Small Medium Enterprise (SME), Malaysia
title The Adoption of Electronic Payment System Among Small Medium Enterprises (SMEs) in Malaysia
title_full The Adoption of Electronic Payment System Among Small Medium Enterprises (SMEs) in Malaysia
title_fullStr The Adoption of Electronic Payment System Among Small Medium Enterprises (SMEs) in Malaysia
title_full_unstemmed The Adoption of Electronic Payment System Among Small Medium Enterprises (SMEs) in Malaysia
title_short The Adoption of Electronic Payment System Among Small Medium Enterprises (SMEs) in Malaysia
title_sort adoption of electronic payment system among small medium enterprises smes in malaysia
topic Adoption, Electronic Payment Systems (EPS), Organizational Culture, Small Medium Enterprise (SME), Malaysia
url https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1426
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