Information technology and survival of SMEs

an emprical study on Malaysian manufacturing sector

Mohammad Ali Jamali, Hatra Voghouei, Nor Ghani Md Nor

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

This study focuses on the impact of information technology on the survival rate of small and medium enterprises (SMEs) in the manufacturing sector in Malaysia. It analyses the effects of information technology on survival of SMEs in 2000 and 2005, based on two separate groups of firms. It sets out to show that information technology has positive and significant effect on survival of the firms, besides other factors such as minimum efficient size, market and firms attributes, transaction cost, uncertainty, opportunism, information asymmetry and atmosphere, profitability and learning have impact on the survival of SMEs. With using Cox proportional hazard regression model, we found that factors such as profits, R&D, location, ownership, market size, entry rate, industry growth and capital–labor ratio affect the survival of SMEs. Of equal importance is the expenditure on information technology, which is said to have an impact on the viability of firms. The results further demonstrate that being in certain stage of maturity of firms could be important in the effect of information technology on survival of SMEs.

Original languageEnglish
Pages (from-to)79-95
Number of pages17
JournalInformation Technology and Management
Volume16
Issue number2
DOIs
Publication statusPublished - 1 Jun 2015

Fingerprint

manufacturing sector
Information technology
information technology
firm
Industry
Profitability
opportunism
market
transaction costs
maturity
profitability
asymmetry
Malaysia
profit
expenditures
Manufacturing sector
Small and medium-sized enterprises
uncertainty
Hazards
regression

Keywords

  • Cox regression model
  • Information technology
  • Malaysian manufacturing sector
  • SMEs
  • Survival

ASJC Scopus subject areas

  • Information Systems
  • Communication
  • Business, Management and Accounting (miscellaneous)

Cite this

Information technology and survival of SMEs : an emprical study on Malaysian manufacturing sector. / Jamali, Mohammad Ali; Voghouei, Hatra; Md Nor, Nor Ghani.

In: Information Technology and Management, Vol. 16, No. 2, 01.06.2015, p. 79-95.

Research output: Contribution to journalArticle

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