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Barriers to e‐commerce adoption: evidence from the retail and food and beverage sectors in Malaysia

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  • Andrew Jia‐Yi Kam
  • Siew Yean Tham

Abstract

There is a continuing interest in small and medium enterprises (SMEs)' e‐commerce adoption, especially from South‐east Asia, including Malaysia. The objective of this study is to examine the key determinants of SMEs embracing e‐commerce in the retail and food and beverage sector in the Klang Valley. Using a Logit model, the findings show that organisational barriers are the most important barriers to SMEs' adoption of e‐commerce, followed by environmental barriers. The findings imply that one‐size‐fits‐all policies should not be used since the barriers are different between adopters and non‐adopters and the scale of their operations. Analysis within variables between adopters and non‐adopters using a decision‐maker, technology, organisation‐environment framework indicates that young leaders are important in adopting e‐commerce. Importantly, technology is not everything when it comes to e‐commerce adoption. It matters more to small firms. Therefore, policy needs to take firm heterogeneity.

Suggested Citation

  • Andrew Jia‐Yi Kam & Siew Yean Tham, 2022. "Barriers to e‐commerce adoption: evidence from the retail and food and beverage sectors in Malaysia," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 36(2), pages 32-51, November.
    • Handle: RePEc:bla:apacel:v:36:y:2022:i:2:p:32-51
    DOI: 10.1111/apel.12365
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    References listed on IDEAS

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