Revitalizing SMEs' performance: unleashing the dynamics of Technology-Organization-Environment factors for M-Commerce adoption

PurposeStrategic leveraging of Mobile Commerce (M-commerce) holds immense potential for augmenting firm performance within the realm of Small and Medium Enterprises (SMEs) in Malaysia. This study seeks to unravel the important role played by specific factors, namely, relative advantage, security, complexity, firm performance, organizational competence, M-commerce knowledge, competitive pressure, customer value and information intensity in influencing M-commerce adoption and its subsequent impact on SME performance. Drawing on the Technology-Organization-Environment (TOE) framework, the study posits that technological factors (relative advantage, security and complexity), organizational factors (organizational IT competence and M-commerce knowledge) and environmental factors (competitive pressure, customer value and information intensity) collectively shape M-commerce adoption, thereby influencing SME performance.Design/methodology/approachThe study employs a quantitative approach, engaging SME owners in Malaysia as participants, with a sample size of 150 selected through an online survey. Analysis was conducted using Smart PLS, revealing crucial insights.FindingsThe investigation revealed a positive relationship between relative advantage, security, complexity, competitive pressure, customer value and information intensity, and the adoption of M-commerce within SMEs in Malaysia. Moreover, a positive relationship was identified between M-commerce adoption and firm performance among Malaysian SMEs. Intriguingly, there was no discernible relationship between Organizational IT competence, M-commerce knowledge and the adoption of M-commerce.Originality/valueThis research contributes to the scant literature exploring SMEs' inclination toward M-commerce for performance enhancement. The proactive adoption of M-commerce stands poised to empower SMEs in Malaysia, enabling them to play a more substantial role in the national economic structure. Consequently, it emphasizes the need for effective communication of government policies pertaining to M-commerce adoption, particularly among SME stakeholders.