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

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.