Factors Influencing ICT Usage Among Malaysian Small and Medium Agribusinesses: Conceptual Framework and Structural Model

Abstract

Information and communication technology (ICT) adoption studies have identified ICT as a tool capable of spurring innovative business development in small and medium-scale enterprises (SMEs) if used wisely. Adopting the Unified Theory of Acceptance and Use of Technology (UTAUT) model approach with adjustments by integrating two externally derived constructs (SME Managerial Creativity and SME Organisational Size as predictors), this study investigated factors that influence ICT usage among Malaysian agro-based SMEs. A pre-tested survey instrument consisting of 132 items was administered to 400 purposively selected workers from 43 agro-based SMEs that were randomly selected at Selangor. The study was aimed to identify the predominantly used ICTs by the agro-based SMEs in their businesses, to determine factors that influence ICT usage among the agro-based SMEs and to determine the relationship between the six predictors: performance expectancy, effort expectancy, facilitating conditions, SME organisational size and SME creativity and innovativeness and the dependent variable: ICT usage. Objective 4 was to determine the moderating effect of gender, age and experience on the relationship. Factor analysis was run to reduce the voluminous data; a new, robust model was designed using Structural Equation Modelling. The study concludes that integrating firm and management characteristic constructs into UTAUT model provides a scale capable explaining ICT usage behaviour of Malaysian agro-based SMEs better.

Keywords: Agribusinesses, Agro-based SMEs, ICT Usage, SME Management Characteristics,

SME Organisational Size, UTAUT