Competitive Advantages amongst Travel Agencies in Malaysian SMEs: The Role of IOE Factors and Web Technologies & E-Business Adoption

  • Nor Asikin Shaharuddin Universiti Teknologi MARA Cawangan Melaka
  • Suhailah Kassim Universiti Teknologi MARA Cawangan Melaka
  • Alisa Ibrahim Universiti Teknologi MARA, Shah Alam
Keywords: Web-Technology & E-Business Adoption; competitive advantage; travel agencies; Malaysia; SMTAs

Abstract

In response to the volatile industrial landscape, particularly about Small and Medium-sized Enterprises (SMEs), organizations have extensively embraced electronic business (e-business) as a strategic initiative aimed at enhancing their competitive advantage mechanisms. Nevertheless, the adoption of e-business amongst local Small and Medium Travel Agency (SMTAs) is still negligible. This study seeks to introduce a comprehensive model encompassing the factors driving and the consequences resulting from the adoption of e-business within SMTAs. The determinants of e-business adoption and the adoption of web-based technologies were empirically examined by employing data obtained from a sample of 323 managerial personnel. The collected data was subjected to analysis through structural equation modelling methods. The findings revealed the significance of specific determinants in influencing the adoption of e-business. Particularly, owner support, perceived ease of use, and government support emerged as critical factors influencing the decision to adopt e-business within SMTAs. In contrast attitude, competitive pressure, and relative advantage were found not significant. While e-business adoption has a major impact on SME functioning and operational progress, it also influences competitive advantage. This study's exploration of the factors influencing, and the consequences associated with the adoption of e-business offers valuable insights. These findings offer e-business practitioners and managers practical guidance for enhancing the efficiency and effectiveness of e-business adoption within their respective organizations. The results also provided a basis for more precise e-business studies to be conducted for small and medium companies in developing countries.

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Published
2023-10-08
How to Cite
Shaharuddin, N. A., Kassim, S., & Ibrahim, A. (2023). Competitive Advantages amongst Travel Agencies in Malaysian SMEs: The Role of IOE Factors and Web Technologies & E-Business Adoption. Information Management and Business Review, 15(3(I), 347-360. https://doi.org/10.22610/imbr.v15i3(I).3545
Section
Research Paper