Determinants Influencing Supply Chain Technology Adoption towards the Performance of Micro, Small, and Medium Enterprises in Malaysia


  • Nor Azian Abdul Rahman Faculty of Business and Management, Universiti Teknologi MARA Cawangan Selangor, Kampus Puncak Alam, Malaysia; Malaysia-Japan International Institute of Technology, Universiti Teknologi Malaysia, Kuala Lumpur, Malaysia
  • Zulhasni Abdul Rahim Faculty of Business and Management, Universiti Teknologi MARA Cawangan Selangor, Kampus Puncak Alam, Malaysia



Supply Chain Technology, Diffusion of Innovation (DOI), Micro, Small and Medium Enterprises (MSME's), Technology-Organization-Environment (TOE)


Supply chain technology (SCT) is a tool to improve MSMEs' performance. Although SCT is widely utilised in various industries, its adoption by MSMEs is limited. Hence, this study aims to determine the relationship and develop the framework of technological, organisational, and environmental factors and MSME's performance using SCT adoption as a mediator. This study will employ the Diffusion of Innovation (DOI) and Technology-Organization-Environment (TOE) theories. Data will be collected through a questionnaire and analysed using (PLS-SEM). This study will provide significant information for MSMEs to further utilize the benefits of SCT adoption for improving organisational performance.


Alsetoohy, O., Ayoun, B., Arous, S., Megahed, F., & Nabil, G. (2019). Intelligent agent technology: what affects its adoption in hotel food supply chain management? Journal of Hospitality and Tourism Technology, 10(3), 317–341. DOI:

Amini, M. (2016). Cloud Computing Adoption by MSMEs in Malaysia: A Multi-Perspective Framework based on DOI Theory and TOE Framework.

Awa, H. O., Ojiabo, O. U., & Orokor, L. E. (2017). Integrated technology-organisation-environment (T-O-E) taxonomies for technology adoption. Journal of Enterprise Information Management, 30(6), 893–921. DOI:

Ben-Daya, M. & Hassini, Elkafi & Bahroun, Zied. (2019). Internet of things and supply chain management: a literature review, International Journal of Production Research,

:15-16, 4719-4742, DOI: 10.1080/00207543.2017.1402140 DOI:

Chatterjee, S., Chaudhuri, R., Shah, M., & Maheshwari, P. (2022). Big data driven innovation for sustaining SME supply chain operation in post COVID-19 scenario: Moderating role of SME technology leadership. Computers & industrial engineering, 168, 108058. DOI:

Chuang, T., Nakatani, K. and Zhou, D. (2009), "An exploratory study of the extent of information technology adoption in SMEs: an application of upper echelon theory", Journal of Enterprise Information Management, Vol. 22 No. 1/2, pp. 183-196. DOI:

Eiriz, V., Barbosa, N., & Ferreira, V. (2019). Impacts of technology adoption by small independent food retailers. Journal of Small Business Management, 57(4), 1485-1505. DOI:

Hwang, B.N., Huang, C.Y., & Wu, C.H. (2016). A TOE Approach to Establish a Green Supply Chain Adoption Decision Model in the Semiconductor Industry. Sustainability, 8(2), 168. DOI:

Idris, S., Faisal, S. M., Lajuni, N., & Weli, A. (2020). Innovative value chain: supply chain technology (SCT) adoption of MSMEs in Sabah. Asian Journal of Entrepreneurship, 1(4), 91–101. DOI:

Ivanov, D., Dolgui, A., & Sokolov, B. (2019). The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics. International Journal of Production Research, 57(3), 829-846. DOI:

Kamaruddin, N. K., & Udin, Z. M. (2009). Supply chain technology adoption in Malaysian automotive suppliers. Journal of Manufacturing Technology Management, 20(3), 385–403. DOI:

Kamble, S., Baliga, R. & Raut, R. (2019). Sustainable supply chain management practices and performance: An integrated perspective from a developing economy. Management of Environmental Quality: An International Journal. DOI:

Kiwanuka, A., (2015). Acceptance Process: The Missing Link between UTAUT and Diffusion of Innovation Theory. American Journal of Information Systems. 3. 40-44.

Kumar Bhardwaj, A., Garg, A., & Gajpal, Y. (2021). Determinants of Blockchain Technology Adoption in Supply Chains by Small and Medium Enterprises (MSMEs) in India. Mathematical Problems in Engineering, 2021. DOI:

Mentzer, J.T., DeWitt, W., Keebler, J.S., Min, S., Nix, N.W., Smith, C.D. and Zacharia, Z.G. (2001) Defining Supply Chain Management. Journal of Business Logistics, 22, 1-25. DOI:

Mustafa, H. K., & Yaakub, S. (2018). Innovation and technology adoption challenges: impact on SMEs' company performance. International Journal of Accounting, 3(15), 57-65.

Miertschin, S., Sumrall, J., Wahlström, D., Seaker, B. & Willis, C. (2006). Developing information technology specialisations in growing IS environment areas. 65-70. DOI:

Rogers, E. M. (2003). Rogers, E.M. (2003) Diffusion of Innovations. Free Press, New York.

Rosli, M. M. & Sidek S. (2013). The Impact of Innovation on the Performance of Small and Medium Manufacturing Enterprises: Evidence from Malaysia, Journal of Innovation Management in Small & Medium Enterprise, Vol. DOI:

Setiawati, R., Eve, J., Syavira,, A., Ricardianto, P., & Endri, E. (2022). The Role of Information Technology in Business Agility: Systematic Literature Review. Quality - Access to Success. 23. 144-149. DOI:

Singh, R. (2015). Modelling of critical factors for responsiveness in supply chain. Journal of Manufacturing Technology Management. 26. 868-888. 10.1108/JMTM-04-2014-0042. DOI: 10.1108/JMTM-04-2014-0042 DOI:

Shahbaz, M. S., RM, R. Z., Bin, M. F., & Rehman, F. (2017). What is supply chain risk management? A review. Advanced Science Letters, 23(9), 9233-9238. DOI:

Shamout, M., Ben Abdallah, R., Alshurideh, M., Alzoubi, H., Al Kurdi, B. & Hamadneh, S., (2022). A Conceptual Model for the Adoption of Autonomous Robots in the Supply Chain and Logistics Industry. Uncertain Supply Chain Management. 10. 577–592. DOI:

Soon, K. N., Ahmad, A. R., Kiat W. C. & Rizad, H. (2017). SMES Are Embracing Innovation for Business Performance. Journal of Innovation Management in Small & Medium Enterprises. 2017. 1-17. 10.5171/2017.824512. DOI:

Thomas, D. J. and Griffin, P. M., (1996), Coordinated supply chain management, European Journal of Operational Research, 94, issue 1, p. 1-15 DOI:




How to Cite

Abdul Rahman, N. A., & Abdul Rahim, Z. (2023). Determinants Influencing Supply Chain Technology Adoption towards the Performance of Micro, Small, and Medium Enterprises in Malaysia. Environment-Behaviour Proceedings Journal, 8(SI15), 25–30.

Most read articles by the same author(s)