Acme Transformer
Todays deals on Acme Transformer?
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ACME T-2-53014-4S GENERAL PURPOSE TRANSFORMER $200.00 |
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NIB ACME TRANSFORMER TA-83220 1000KVA 240/480V PRIMARY $200.00 |
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Acme Transformer Questions
Adoption of ICT among SMEs in Malaysia
INTRODUCTION
Adoption of e-business becomes a substantial research topic because it enables the firm to perform electronic transactions on value of activities’ chain. It stands for a new way to comprise Internet-based technologies with core business potentially affecting the whole business.
The present study is completely different from previous ones because its unit of analysis is the SME owners rather than the firm itself. The importance of studying the owners themselves is that they are the decision-makers, and they are often too busy to learn ICT or its potential benefits to their business. Understanding how SME owners learn to use and adopt IT will represent a knowledge gap in the IT adoption model by providing penetrations on the link between IT adoption and IT illiteracy, and will help providers of training programs to guide the SME owners for a quick learn and adopt IT and so become IT-literate.
Very limited empirical research has been done to identify the patterns of e-business adoption among SME owners in Malaysia and obviously all results were explaining the need to overtake new management and economic trends such as IT use, k-economy and e-commerce.
For this goal, the Malaysian government has enrolled on a major push to persuade SMEs to put the Internet into service as a new and more efficient way of doing business. To assist in achieving this goal, the government provides funding to SMEs for computer system upgrading, training, consultancy fees, technology acquisition and electronic commerce activities. In spite of these new models which are expected to influence peoples’ everyday life as much as they will affect work and employment, however, many SMEs in Malaysia exist on the wrong side of a digital divide and also organizations fail in their ICT investments and we can mention lack of appropriate context specific knowledge as a serious problem in these techniques. From our point of view, the main reason for these failures is that the attention that is given to the social nature of ICT investment process is too little.
The most important e-factors have been grouped in the following categories: factors related to Region, Culture, Policy, Geography, Economic, Ethical and Professional factors, factors related to Social Capital or Social Networks and Social Structure. These factors influence, directly or indirectly, the way in which e-business models are covered, implemented and evaluated.
In this paper we are describing the most important general conditions of ICT investing in SMEs and providing the basic theories for the research. Then, an overview of the data gathered in interviews of SME decision makers and research methods. After that we analyzing the data from the base of ICT investment decisions making by use of their knowledge.
SMEs IN MALAYSIA
Small and medium enterprises (SMEs) categorized by Malaysian Ministry of Internal Trade and Industry as following (1) maximum annual sales RM25 million, and (2) up to 150 full-time employees. At present, 80% of manufacturing firms in Malaysia are known as SMEs.
To increase successfulness and readiness for the global market, Malaysian SMEs continue to bring in to the service of mass product characteristic, design, and activities such as engineering, marketing scattering. Malaysian government is trying to increase the level of education, experience and development of skills in order to improve technology accumulation.
One of the most important factors to gain success for every company is higher employee education and also that’s one of the vital elements to be more successful in a knowledge based economy and IT is an important tool to pay off that competition. By accelerating their ability to master IT, SME owners will enable themselves and their employees to compete successfully in today‘s global knowledge economy [Fong, 2001; Fong, 2002].
RESEARCH OBJECTIVES
In this study we are trying to focus on (1) studying ICT skills and applying new characteristic of SME owners in Malaysia, and (2) expanding the connections between the quantity of construct; specifically, ICT skills, adoption aspects, adoption standards and use.
DIFFUSION OF INNOVATION THEORY
The important routine, which is going to lead members of a certain community to adopt innovation, is diffusion. The most frequently cited work dealing with diffusion is Diffusion of Innovation [Rogers, 1995]. As Rogers mentions, diffusion is a meta theory which means that it is not a single, all-embracing theory, but rather several theoretical view that associate to the overall innovation of diffusion. There are four factors that are going to influence the adoption of a concept: (1) the innovation itself, (2) the communication channels used to spread information about the innovation, (3) time, and (4) the nature of the group to which it is introduced [Rogers, 1995]. Rogers [1995] explained about four major theories that deal with the diffusion of innovation. These are (1) the innovation- decision process theory, (2) the individual innovativeness theory, (3) the rate of adoption theory, and (4) the theory of perceived attributes. Individual innovativeness theory and the theory of perceived attributes are the main goal in this study because they help to have a better relationship between adopters and innovator categories.
THEORY OF INDIVIDUAL INNOVATIVENESS
Two factor are the basement of the individual innovativeness theory which are who adopts the innovation and when, there are five categories of adopters. Innovators are the name of first category. These are pioneers and risk-takers who lead the way. Their capability is to adopt any risk despite a high level of uncertain innovation, and are able to accept a setback when face to an unsuccessful idea.
Early adopter is the second group. They upgrade on base the train early and try to find new methods to explain the innovation word to others.
The early majority is the third group. They are carried to adopt by early adopters and he innovators, and may they do a deliberation for some time before the new idea adoption, and they have a longer period of decision-making rather than the innovators and early adopters.
The fourth group is the late majority. They spend a lot of time on research about their goals and interests and the result is late adoption.
The fifth group is called the laggards. These groups are denying adopting until absolutely necessary any be sure about benefits.
Model of Diffusion of Technology into SME‘s indicated in table 1 (categories of adopters).
Table 1
Categories of adopters
Categories Percentage of adopters
Innovators 3.5 %
Early adopters12.5%
Early majority 35%
Late majority 32%
Laggards 17%
PERCEIVED ATTRIBUTES THEORY
Owners base this theory on the impression that adoption of an innovation completely depends on the following perceived attributes.
First, most important factor is that the innovation must have more advantages from the existing ones. Second, the value of new innovation must be compatible with, adopter potential and past experience. Third, the innovation must be easy to understand and not being complicated. Fourth, innovation must be tested without adoption for a limit time. Finally, the offered result must be observable.
Rogers [1995] asserts that an adopter‘s experience with one-innovation influences that individual‘s perception of the next innovation in a technology cluster to diffuse through the individual‘s system. Indeed, if the first experience of an adopter has a negative effect, he or she may pay attention to all computer applications through this perspective.
Advantages of this theory are explaining, predicting and accounting the elements that hinder or increase the innovations diffusion and in the case of ‘why IT is not adopted by all individuals?’ this theory provides a framework.
ABOUT THE SAMPLE
Small and medium enterprise (SMEs) is playing a vital roll in each country. Although, there is little knowledge about e-business and IT usage by SMEs.
In order to get some information from some SME owners in Malaysia, we decided to make some question papers and make an interview with them. The stories were recorded and also result of each question was gathered and then transcribed on paper.
The semi-structured interview consisted of 20 questions:
- How many employees do you have in your company?
- What kind of software products and services does your company buy?
- What are your fundamental issues in making decisions in ICT investments?
- From whom or what kind of purchasers do you buy ICT products from?
- How can ICT help us to create new methods in your managing skills inside or outside of your company?
- What do you do for your company decision-making in purchasing process?
- Do you think increased or improved use of ICT helped to expand business activities?
- What is a successive purchasing process like?
- What problems have you had in your purchasing process?
- How can you recognize which kind of purchase process is more suitable and successful for reaching to your goals?
- Describe your recent purchasing process.
- Does the impact of ICT vary by firm age?
- Does the impact of ICT vary across by time?
- Why Have So Few SMEs Adopted ICT?
- Do you think that we need a specific knowledge for purchasing?
- If your answer is yes, from how do you get this knowledge?
- Does ICT have measurable effects on productivity?
- What is the most important reason that leads your company to engage in IT activities?
- What are the most remarkable impediments for practicing e-business in your company?
- What are the differences between ICT and non-ICT industries?
All the interviewees worked as chief executives or as IT managers in local SME companies. The numbers of employees vary from 10 to 200 in each company.
All the firms purchase their ICT services from software seller and none of them has their own development software.
METHODOLOGY
The coverage of this methodological discussion is range of study, data analysis, instrumentation and reliability test of the instrument.
I. SCOPE OF THE STUDY
According to Rockman [2005], ICT literacy proficiency is the ability to use digital technology, communication tools, and/or networks appropriately to solve information problems in order to function in an information society.
Users skills such as having basic knowledge of the computer and how to navigate and detect information and even how to input information is called literacy. The present study focuses mainly on the basic skills of IT such as word processing; e-mail skills (such as reading, sending messages and composing); spreadsheets; CD ROM skills and Internet skills (such as copying and printing from web-sites and browsing web-sites).
II. INSTRUMENTATION
In ICT adoption measurement, the study discussed in five areas: (1) background of respondent, (2) ICT skills, (3) innovation characteristics of the respondent, (4) usage of ICT a work place by respondent, and (5) category of respondent’s adopter.
There are some questions which are included a five-point Likert scale for respondents usage in showing their reply to each asked items.
Part (1) included of questions about answerer’s position, gender, age, race and highest education degree. Part (2) consisted of questions about measuring the basic skills of respondent, such as using the Internet, CD ROM and e-mail. Part (3) included questions designed for measuring the acceptance level of five innovation characteristics. Part (4) contained of several questions regarding CD ROM use, usage of Internet and e-mail at work place. Finally part (5) included questions designed for measuring the five adopters categories.
ICT INVESTMENT DECISION MAKING IN SMEs
ICT adoption is a challenging evaluation for any organization, but this challenge has two side; ICT adoption by SMEs that usually seen as flexible organizations which can easily adapt their processes followed by new technology innovation to create competitive advantage.
On the other hand, technological changes in the SMEs are forced by the small size organization to limits the resources needed for the transformation. The biggest obstacle for an SME to succeed in its ICT adoption is the availability of the required knowledge and skills (Richie & Brindley, 2005; Lucchetti & Sterlacchini, 2004; Boekhoudt & van der Stappen, 2004).
In this dilemma we may face some important questions about ICT adoption by SMEs such as: what is known of the decision-making processes in SMEs in general? How the SMEs are using their scarce resources for successful, value-creating ICT adoption? What type of information and knowledge is used in ICT decision process and, how?
ICT investment related decision-making in a company could rely on the decision-maker’s own experiences and professional peer approval (Buchowicz, 1991). As Jaakkola (2007) concludes, the buying of professional services utilizes different kinds of decision tasks than organizational purchase of goods.
The decision-making process can be labeled as complex, equivocal, required knowledge, highly customized and risky irreversible and high involvement requirement for the client. Hence, this decision-making is costly.
In large companies the percentage of opportunities to take part in user events, presentation and benchmarking with different suppliers is higher than SMEs. Therefore, the small size firms affect the role of the supplier as an important knowledge source. Moreover, this influence is more common among middle-sized companies than of small and micro sized firms. As Bharati & Chaudhury (2006) report, the smaller the firm, the harder it becomes for the company to connect with the social networks that contain ICT expert information. The knowledge necessity and support for micro companies ICT development probably depend on public-sector agencies. Micro firms might be dependent on public-sector agencies to provide the necessary knowledge and support for their ICT development. Thereby, a lack of ICT knowledge is reality for many SMEs making ICT investments.
The action of making decision encodes vast variety of coded information, including planning, data collecting and analysis. By encoding the information, many people may involve in this action. Although, the ending decision is mostly on decoded or obscured intuition, such as knowledge, experience, behavior and values. This kind of intuition looks to be un-detachable part for the human to make a decision and also in organizational contexts. Eventually this is a fact in small firms that the manager is the one who will make the last decision. Also in large firms the intuition appears to be a significant factor in the process of strategic investment decision-making (Alkaraan & Northcott, 2007). We know not much about the usage of various types of knowledge in small and medium enterprises (SMEs) decision-making.
IMPORTANT FACTORS IN ICT ADOPTION
SMEs paly a very important roll in every countries economy however SMEs in Malaysia is still considerably unused. Information and Communication Technology (ICT) is recognized as a advanced innovative catalyst. In this paper we discuss about the use of a network of SMEs, knowledge institutes and industry organizations to succeed adoption of new ICT.
IT adoption by SMEs in Malaysia is still lower than expected. IT adoption faces several obstacles, such as: lack of knowledge about the potential of IT, a shortage of resources such financial and expertise, and lack of skills [Blackburn and Athayde, 2000; Cavalcanti, 2006; Ndubisi & Jantan, 2003; Utomo, 2001].
There are some elements determining internet adoption such as government interact, public administration, and external pressure from competitors, suppliers, and buyers play the key role in the adoption and implementation of IT, especially in e- commerce [Daniel & Wilson, 2002; Dasgupta, 2000; Lai & Hsieh, 2007; Scupola, 2003].
Lucchetti and Sterlacchini [2004] identify financial resources, technical skills, and firm characteristics as significant determinants of IT adoption among SMEs and also we can mention to some other elements in that case such as size and type of business, compatibility, trainability, observably and complexity. ICT knowledge and practices are the simple factors for IT adopting or rejecting by SMEs.
We can mention SMEs as a most important factor of a country’s economic growth. As a result, the greater the number of SMEs, the greater the world competition. Which then we can reach to price decreases, namely, lower products prices by companies, increasing product promotions, enhance the quality of products and internal readiness. It’s better to name ICT adoption as an adaptive challenge In both developed and developing countries adopting ICT may consider as a major challenging task for firms of all sizes. In fact, a vast type of management literature has a critical rule on the organizational changes, which are important for firms to pass through, regarding the effectively adopt ICT, for the act as a tool to change the process companies run their business. At the long time – running the company these changes may positively benefit able.
E-BUSINESS ADOPTION BY FIRMS AND SMEs
Several authors (Hong and Zhu 2006, Lacovou et al. 1995, Kuan and Chau 2001, Lin and Lin 2008, Oliveira and Martins 2008, Pan and Jang 2008, Premkumar and Ramamurthy 1995, Thong 1999, Zhu et al. 2003, Zhu et al. 2006) used the TOE framework, developed by Tornatsky and Fleisher (1990), to analyze IT adoption by SMEs.
There is three factors probably influence ICT adoption: technological context (technology readiness and technology integration); organizational context (foreseen benefits and impediment of e-business and services or routines or products); and environmental context (competitive pressure and internet penetration).
TECHNOLOGICAL CONTEXT
One of the most acceptable definitions of Technology readiness is technology basic structure and IT human resources. Technology readiness “is reflected not only by physical assets, but also by human resources that are complementary to physical assets” (Mata et al. 1995). Technology infrastructure establishes a platform on which Internet technologies can be built; IT human resources provide the knowledge and skills to develop web applications (Zhu and Kraemer 2005). Theoretical averments are supported by several empirical studies (Armstrong and Sambamurthy 1999, Hong and Zhu 2006, Lacovou et al. 1995, Kwon and Zmud 1987, Zhu 2004b, Zhu et al. 2003, Zhu and Kraemer 2005, Zhu et al. 2006, Pan and Jang 2008).
In a corresponding manner, a greater integration of existing applications and the Internet platform represent a greater capacity of conducting business over the Internet (Al-Qirim 2007, Mirchandani and Motwani 2001, Premkumar 2003, Zhu et al. 2006).
ORGANIZATIONAL CONTEXT
Firm size is one of the most commonly studied determinants of IT adoption (Lee and Xia 2006). Large companies are probably more applicable to apply innovation in to the organizational context of service. The three pre-discussed elements determine and support the positive effect of company size on IT adoption: appropriately (the benefits of the new IT), the greater chance has funding to be available and the faster reaching to economies of scale. Although, bigger companies have multi-layers of bureaucracy and this can hinder processes of decision-making about new ideas and projects. Moreover, IT adoption often requires deep coordination and cooperation that can be easily obtained in SMEs.
Empirical studies consistently found that perceived benefits have a significant impact in IT adoption (Beatty et al. 2001, Gibbs and Kraemer 2004, Lacovou et al. 1995, Kuan and Chau 2001, Lin and Lin 2008). Perceived obstacles are particularly relevant because the adoption process may be complicated and costly (Pan and Jang 2008, Zhu et al. 2006). Improved products or services or internal process that are enabled by or related to a subset of IT, namely e-business technologies (Koellinger 2008).
ENVIROMENTAL CONTEXT
Internet penetration is an important factor for decision makers of e-business adoption because it measures the adoption and expands of computer and Internet individual in the population of each country and in the other hand it reflects the potential market.
Porter and Millar (1985) suggested that, by using a new innovation, SMEs might be able to alter the rules of competition, affect the industry structure, and leverage new ways to outperform rivals, thus changing the competitive landscape.
This analysis can be expanded to comply with IT adoption. Empirical evidence suggests that competitive pressure is a powerful driver of IT adoption and diffusion (Al-Qirim 2007, Battisti et al. 2007, Dholakia and Kshetri 2004, Gibbs and Kraemer 2004, Grandon and Pearson 2004, Hollenstein 2004, Iacovou et al. 1995, Mehrtens et al. 2001, Zhu et al. 2003).
ICT
Communication technology (CT) containing “the hardware facilities, structures of organization and individuals information collect which lead to social values, process, and exchange information with other individuals”.
In other hand, information technology relates to electronics-based technology and computer, mostly extensive development, installation and performance of computer systems and applications.
These two forms of technology creating a new type technology known as Information Communication Technology (ICT).
ICT is often classified into two types of product:
1. The traditional computer-based technologies (using computers at work or at home)
2. The modern computer-based technologies (easier way for digital communication and sharing information)
SLOW ACCEPTANCE OF E-COMMERCE
Disappointingly, EC acceptance and e-readiness among SMEs is slow. This is especially more obvious by bringing in to consider that developing countries have interfered in this issue.
The basic use of EC applications is limited in e-mail and web presence. The strategy companies apply other advertising and communication is highly relied on EC with low interest rate to enable online transaction.
Some of the major influence of using EC is company growth, financial benefits and competitive advantage. Although, the measure of realized advantages was changeable across sectors, area and sizes, on the same vein and the extent of EC usage are positively associated with advantages from EC. Advanced EC applications in companies need to gain greater benefits in periods of productivity than those with limited usage of applications. There for, this point of view of EC needs more investigation as SMEs are comparatively concerned about the distinguished benefits of using EC.
WHY HAVE SO FEW SMEs ADOPTED ICT?
SMEs in most modernized and developed countries in the Asia-Pacific area still have been slow to accept IT. Dynamism shortage between ICT companies and SMEs other than the ICT sector is one of the most important factors for the low range of ICT adoption. Because of the low demand from SMEs in the past, ICT companies have not supplied appropriate products and services to SMEs and this low demand is because of too complex and expensive products. There for, the result is a vicious cycle of limited demand and limited supply that eventually rejects SMEs from the benefits of ICT.
ICT ADOPTION AMONG SME OWNERS IN MALAYSIA
Malaysia‘s competitive edge in today‘s turbulent global economy will increasingly depend on the quality and productivity of its human capital. Building human capacity must be based on clear and dynamic strategies that can effectively respond to the rapid changes taking place. Companies must be capable, therefore, of adopting and adapting new technologies. They have to continuously upgrade themselves, and stay ahead of change by learning, re- learning, and learning again, and by making continuous retraining and skills upgrading a pertinent business strategy in their pursuit of increasing product quality and market share. These efforts should focus on not only the employees of the companies, but also the owner themselves. The owners should first set a good example in acquiring ICT knowledge and skills before trying to motivate their employees to do the same.
CONCLUSION
The findings show that SME owners in Malaysia have below-average ICT skills and also they are just using Internet at their workplaces. In innovation feature basis, these are in the complexity category, which defines as the IT adoption difficulties. With respect to the adopters’ social class, Malaysian SME owners are in the late majority and also their ICT skills, innovation characteristics and ICT use are importantly correlated to their adoption social class. Because they have below average ICT skills, they rarely use ICT, difficulties of ICT adoption and are late in the adoption process.
We can understand from the results of study that ICT adoption level among Malaysian SME owner is lower than expected. Some studies have shown that government play a vital role in supporting adoption by SME owners.[Daniel and Wilson, 2002; Dasgupta, 2000; Lai & Hsieh, 2007; Scupola, 2003; Seyal et al., 2007].
In Malaysia, attempts have been set to develop technology accumulation by using education, experience of other jobs and development of skills by the Malaysian government. Malaysia has involved in a major push to extend SMEs to adopt the Internet as the new and most important factor to develop business. In spite of these attempts, Malaysian SMEs are kept on the unbeneficial side of the digital divide. By using present study results, ICT skills are one of high lighting definition of ICT adoption. If the government were not going to prepare enough motivations and IT infrastructure development, the attempts would be ineffectual if there were no attempts for ICT skills improvement on business owners.
ICT adoption may leads citizens to two opposite directions. Life quality in the Information Society (IS) will increase for those who are in a position to adopt, understand and purchase these societal shifts and on the other hand, the similar effects in social exclusion and the isolation risk for those that probably not prepared enough to follow the trends.
The SME owners are playing a vital role in development of any country and one of the most important responsibility of training agencies is provide an ICT training to small and medium enterprise owners to feel their daily obstacles which they commonly face. On the other hand government has to increase its attempt in order to become SMEs awareness toward the actual benefits of ICT to SME businesses. After study the above discussed article, this is derived that government may have to either provide compulsory training to provide some motivation to advanced SMEs to apply ICT training.
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