The Technological-Organisational-Environmental Factors and Performance of SMEs in the Sarawak Service Sector: The Mediating Effect of Technology Adoption

• Main Author: YEE LING, FONG
• Format: Thesis
• Language: English
• Published: Faculty of Economics and Business 2024
• Subjects: A General Works; H Social Sciences (General)
• Online Access: http://ir.unimas.my/id/eprint/46005/3/Fong%20Yee%20Ling.pdf; http://ir.unimas.my/id/eprint/46005/

Various studies have explored the TOE framework within larger corporations, but its application to SMEs remains relatively uncharted territory. This study investigates whether technology adoption has a mediating effect on the relationship between technological- organisational-environmental (TOE) factors and the performance of SMEs, considering both financial and non-financial aspects in Sarawak’s service sector. The TOE dimensions consist of relative advantage, compatibility, and complexity (technological); firm size, top management support, and financial resources (organisational); and competitive pressure, customer pressure, and government support (environmental). A total of 150 questionnaires were distributed, achieving a full response rate from SMEs in Sarawak’s service sector. The results showed that all the hypotheses were correlated. The implications of the results indicate that technology adoption by SMEs in Sarawak’s service sector is impacted by TOE factors. The study also found that technology adoption influences both the financial and non- financial performance of SMEs in Sarawak’s service sector. A strong mediating effect was observed from technology adoption on the relationship between TOE factors and SME performance, for both financial and non-financial outcomes. This study validates the relevance of TOE factors in technology adoption and provides directions for policy improvements for Sarawak’s SMEs in the service sector.