Can e-business adoption be influenced by knowledge management? An empirical analysis of Malaysian SMEs

Purpose: The aim of this research paper is to evaluate the effect of knowledge management on the adoption of the e-business in the supply chain of small and medium enterprises (SMEs) in Malaysia. Design/methodology/approach: Questionnaires were distributed to 200 Malaysian SMEs with a response rate of 68 percent. Data were analyzed by employing multiple regression analysis. Findings: The results showed that knowledge management processes such as knowledge acquisition and knowledge application are significant in affecting Malaysian SMEs' decision to adopt e-business in their supply chain. Knowledge dissemination was found not to be significant in affecting the adoption of e-business among Malaysian SMEs. Practical implications: This study has addressed the previous lack of literature on the relationship between knowledge management processes and e-business adoption among Malaysian SMEs. Originality/value: Although existing literature has shown a relationship between knowledge management processes and technology adoption, this study empirically verifies an adoption model based on knowledge management processes. SMEs can use this model to do a pre-test baseline measurement and reassessment of effect by any KM changes on e-business adoption periodically. Organizations planning to adopt e-business would also be able to apply strategies based on the findings from this research.