• Shafiennawanie Mohamad Faisal Universiti Malaysia Sabah, Sabah, MALAYSIA
  • Sidah Idris Universiti Malaysia Sabah, Sabah, MALAYSIA


The use of technology in business operation has been encouraged for many years. However, according to the Department of Statistics’ Economics Census (2020), a total of 93.1% of SMEs in Malaysia used the computer in 2019 73.1% use the Internet, only 57.4% of 907,065 SMEs were involved in e-commerce transactions, and only 67.0% have web presence in their businesses. It shows the level of technology usage still very low within business operation especially in supply chain that discourage the firm to digitalise their business. Thus, effort required to identify the factors affecting supply chain technology (SCT) among SMEs as SMEs are the key industry in Malaysia. This paper use Diffusion of Innovation (DoI) theory as underpinning theory, three variables were proposed to help predict SCT adoption which were perceived usefulness, complexity and compatibility. Data was collected from 106 SMEs in Sabah regardless in manufacturing, services and agriculture industry was tested using Structural Equation Modelling (SEM) via Partial Least Squares (PLS). The results and implications included in this study contribute to an expanded understanding of the innovation factors that influencing SCT adoption among SMEs.


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How to Cite
MOHAMAD FAISAL, Shafiennawanie; IDRIS, Sidah. INNOVATION FACTORS INFLUENCING THE SUPPLY CHAIN TECHNOLOGY (SCT) ADOPTION: DIFFUSION OF INNOVATION THEORY. International Journal of Social Science Research, [S.l.], v. 2, n. 2, p. 131-149, june 2020. ISSN 2710-6276. Available at: <>. Date accessed: 13 july 2020.