Research on e-commerce in Malaysia is developing, especially amongst the manufacturing small and medium-sized enterprises (SMEs), as it includes questions about the adoption of business-to business (B2B) e-commerce. Manufacturing SMEs accounted a large portion of gross domestic product (GDP) and SMEs exports. Previous scholars from the developed countries had conducted several research on these issues compared to the developing countries, especially Malaysia. The Balanced Scorecard (BSC) was used to measure the company’s performance from four different perspectives. Strategic agility as a moderator should be attributed to the adoption of B2B e-commerce to improve business performance. Strategic agility plays a vital role in technological change, which can improve business performance. The study obtained detailed information on the respondents through the 49th edition of the Federation of Malaysian Manufacturers (FMM) Industry Directory. Three hundred and eighty-one Malaysian manufacturing SMEs participated in this study. The collected data used the online survey methods and Smart Partial Least Squares Analysis (SmartPLS) under the Structural Equation Modeling (SEM). The BSC’s point of views include that financial, customers, internal processes, and learning and growth had a significant impact on the adoption of B2B e-commerce. The results showed that strategic agility governed the relationship between B2B e-commerce and internal processes.

This study aimed to investigate the impact of perceived characteristics on Diffusion of Innovation (DOI) and few other factors through information technology (IT) adoption on Small and Medium Enterprises (SMEs) performance. This paper summarized and synthesized relevant literature and mainly contributed to the Diffusion of Innovation theory. Other than the perceived characteristics of Diffusion of Innovation, the literature on organizational image, technology readiness, and organizational awareness were explored in relation to IT adoption to enhance SMEs performance. The outcome of this paper would inform especially on Malaysian researchers to further analyze the theory of Diffusion of Innovation on SME context. Organizational image, technology readiness, and organizational awareness are the eye opener for future researchers to explore more on these issues. It was proposed that, a questionnaire to be distribute among manufacturing SMEs in Malaysia and the data is analyze using Smart PLS. It is expected that the perceived characteristic of diffusion of innovation, organizational image, technology readiness, and organizational awareness are the factors to be considered in information technology adoption to enhance SMEs performance.