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This thesis is motivated by the need to establish a model covering innovative information systems (IS) adoption behaviours within small and medium-sized enterprises (SMEs). Studies on adoption behaviour related to innovative IS are devoting increasing attention to SMEs. Most prior studies, however, have still relied on models developed from studies of large firms. The applicability to SMEs of findings and models developed from large firm studies is not without question as SMEs are not miniature versions of large firms. SMEs face different challenges and opportunities from large firms. This thesis empirically examined issues on the adoption behaviours of innovative IS by SMEs. In line with this objective, two research questions were established. First, what are the critical determinants that allow SMEs to overcome inhibiting factors and adopt an innovative IS? Second, what are the critical determinants that ultimately activate and stimulate them to become enabled and actively utilise an innovative IS? The conceptualisation of enacted capabilities, adapted from the resource-based view of the firm is introduced. This thesis postulates that appropriate enacted capabilities facilitate SMEs to become enabled and actively utilise an innovative IS. These enacted capabilities include the level of IT skills and knowledge of the enterprises’ members, trust in technology, trust in trading partners, external experts’ support, and organisational culture Models incorporating aspects of the theory underlying the technology acceptance model (Davis, 1989), the diffusion of innovation theory (Rogers, 1995), and the resource-based view of the firm (Barney, 1991) were developed to describe the causal linkages between the determinants that activate and stimulate innovative IS adoption behaviour (i.e., from adopting to enabling to utilising innovative IS). One model was developed for the adoption stage and a second for the enablement and utilisation stages. The adoption stage model contains three main hypotheses. The first two hypotheses propose that enacted capabilities have a positive direct effect on both perceived net benefits and attitude towards adoption from a competitive advantage perspective. The third hypothesis proposes that perceived net benefits have a positive effect on attitude towards adoption form a competitive advantage perspective. The enablement and utilisation stages model contains four main hypotheses. The first two hypotheses propose that enacted capabilities and attitude have positive effects on perceived net benefits. The last two hypotheses propose that perceived net benefits and attitude towards adoption from a competitive advantage perspective have positive effects on the extent of enablement and usage of innovative IS. The hypotheses are tested using data obtained via a survey and follow-up interview. Responses were received from 206 SMEs of varying industries and sizes from the survey. Out of these 206 SMEs, follow-up interviews were conducted with twenty-one SMEs. The interviews utilise a combination of both open and closed questions. The questions for the follow-up interviews were based on findings derived from the survey. The innovative IS examined was the Malaysian government’s electronic procurement system, known as ePerolehan. All government suppliers must register for the system and become enabled for use before they can start utilising the system. The results indicate that enacted capabilities possessed by SMEs affect perceived net benefits at all stages of adoption behaviours of SMEs (i.e., adoption, enablement and utilisation). More significantly, two aspects of enacted capabilities, top management IS skills and knowledge and trust in trading partners dominate the effect on perceived net benefits. Support from external experts dominates the effect on attitude at the adoption stage. Top management IS skills and knowledge and trust in technology have a negative effect on attitude at the time of adoption. Enacted capabilities also contribute to the extent of enablement and usage within SMEs. Furthermore, different categories of adopters differ in the set of enacted capabilities underlying their innovative IS adoption behaviour. Results also indicate that when SMEs perceived higher net benefits in adopting innovative IS, they have a positive attitude. The positive attitude generated at the time of adoption has a direct effect on the extent of enablement and usage. The influence of perceived net benefits differs at the different stages of adoption behaviour. At the utilisation stage, usage is affected by perceived net benefits, however, perceived net benefits do not affect the extent of enablement at the enablement stage. In conclusion, this thesis found that enacted capabilities display important roles as antecedents to perceived net benefits, and that perceived net benefits act as a mediator from enacted capabilities to attitude at the adoption stage. Enacted capabilities also display important roles as stimulators of the extent of enablement and usage. Thus, apart from requiring good ideas and financial resources, SMEs also require appropriate enacted capabilities when adopting, enabling and utilising innovative IS.

This thesis is motivated by the need to establish a model covering innovative information systems (IS) adoption behaviours within small and medium-sized enterprises (SMEs). Studies on adoption behaviour related to innovative IS are devoting increasing attention to SMEs. Most prior studies, however, have still relied on models developed from studies of large firms. The applicability to SMEs of findings and models developed from large firm studies is not without question as SMEs are not miniature versions of large firms. SMEs face different challenges and opportunities from large firms. This thesis empirically examined issues on the adoption behaviours of innovative IS by SMEs. In line with this objective, two research questions were established. First, what are the critical determinants that allow SMEs to overcome inhibiting factors and adopt an innovative IS? Second, what are the critical determinants that ultimately activate and stimulate them to become enabled and actively utilise an innovative IS? The conceptualisation of enacted capabilities, adapted from the resource-based view of the firm is introduced. This thesis postulates that appropriate enacted capabilities facilitate SMEs to become enabled and actively utilise an innovative IS. These enacted capabilities include the level of IT skills and knowledge of the enterprises’ members, trust in technology, trust in trading partners, external experts’ support, and organisational culture Models incorporating aspects of the theory underlying the technology acceptance model (Davis, 1989), the diffusion of innovation theory (Rogers, 1995), and the resource-based view of the firm (Barney, 1991) were developed to describe the causal linkages between the determinants that activate and stimulate innovative IS adoption behaviour (i.e., from adopting to enabling to utilising innovative IS). One model was developed for the adoption stage and a second for the enablement and utilisation stages. The adoption stage model contains three main hypotheses. The first two hypotheses propose that enacted capabilities have a positive direct effect on both perceived net benefits and attitude towards adoption from a competitive advantage perspective. The third hypothesis proposes that perceived net benefits have a positive effect on attitude towards adoption form a competitive advantage perspective. The enablement and utilisation stages model contains four main hypotheses. The first two hypotheses propose that enacted capabilities and attitude have positive effects on perceived net benefits. The last two hypotheses propose that perceived net benefits and attitude towards adoption from a competitive advantage perspective have positive effects on the extent of enablement and usage of innovative IS. The hypotheses are tested using data obtained via a survey and follow-up interview. Responses were received from 206 SMEs of varying industries and sizes from the survey. Out of these 206 SMEs, follow-up interviews were conducted with twenty-one SMEs. The interviews utilise a combination of both open and closed questions. The questions for the follow-up interviews were based on findings derived from the survey. The innovative IS examined was the Malaysian government’s electronic procurement system, known as ePerolehan. All government suppliers must register for the system and become enabled for use before they can start utilising the system. The results indicate that enacted capabilities possessed by SMEs affect perceived net benefits at all stages of adoption behaviours of SMEs (i.e., adoption, enablement and utilisation). More significantly, two aspects of enacted capabilities, top management IS skills and knowledge and trust in trading partners dominate the effect on perceived net benefits. Support from external experts dominates the effect on attitude at the adoption stage. Top management IS skills and knowledge and trust in technology have a negative effect on attitude at the time of adoption. Enacted capabilities also contribute to the extent of enablement and usage within SMEs. Furthermore, different categories of adopters differ in the set of enacted capabilities underlying their innovative IS adoption behaviour. Results also indicate that when SMEs perceived higher net benefits in adopting innovative IS, they have a positive attitude. The positive attitude generated at the time of adoption has a direct effect on the extent of enablement and usage. The influence of perceived net benefits differs at the different stages of adoption behaviour. At the utilisation stage, usage is affected by perceived net benefits, however, perceived net benefits do not affect the extent of enablement at the enablement stage. In conclusion, this thesis found that enacted capabilities display important roles as antecedents to perceived net benefits, and that perceived net benefits act as a mediator from enacted capabilities to attitude at the adoption stage. Enacted capabilities also display important roles as stimulators of the extent of enablement and usage. Thus, apart from requiring good ideas and financial resources, SMEs also require appropriate enacted capabilities when adopting, enabling and utilising innovative IS.

This thesis is motivated by the need to establish a model covering innovative information systems (IS) adoption behaviours within small and medium-sized enterprises (SMEs). Studies on adoption behaviour related to innovative IS are devoting increasing attention to SMEs. Most prior studies, however, have still relied on models developed from studies of large firms. The applicability to SMEs of findings and models developed from large firm studies is not without question as SMEs are not miniature versions of large firms. SMEs face different challenges and opportunities from large firms. This thesis empirically examined issues on the adoption behaviours of innovative IS by SMEs. In line with this objective, two research questions were established. First, what are the critical determinants that allow SMEs to overcome inhibiting factors and adopt an innovative IS? Second, what are the critical determinants that ultimately activate and stimulate them to become enabled and actively utilise an innovative IS? The conceptualisation of enacted capabilities, adapted from the resource-based view of the firm is introduced. This thesis postulates that appropriate enacted capabilities facilitate SMEs to become enabled and actively utilise an innovative IS. These enacted capabilities include the level of IT skills and knowledge of the enterprises’ members, trust in technology, trust in trading partners, external experts’ support, and organisational culture Models incorporating aspects of the theory underlying the technology acceptance model (Davis, 1989), the diffusion of innovation theory (Rogers, 1995), and the resource-based view of the firm (Barney, 1991) were developed to describe the causal linkages between the determinants that activate and stimulate innovative IS adoption behaviour (i.e., from adopting to enabling to utilising innovative IS). One model was developed for the adoption stage and a second for the enablement and utilisation stages. The adoption stage model contains three main hypotheses. The first two hypotheses propose that enacted capabilities have a positive direct effect on both perceived net benefits and attitude towards adoption from a competitive advantage perspective. The third hypothesis proposes that perceived net benefits have a positive effect on attitude towards adoption form a competitive advantage perspective. The enablement and utilisation stages model contains four main hypotheses. The first two hypotheses propose that enacted capabilities and attitude have positive effects on perceived net benefits. The last two hypotheses propose that perceived net benefits and attitude towards adoption from a competitive advantage perspective have positive effects on the extent of enablement and usage of innovative IS. The hypotheses are tested using data obtained via a survey and follow-up interview. Responses were received from 206 SMEs of varying industries and sizes from the survey. Out of these 206 SMEs, follow-up interviews were conducted with twenty-one SMEs. The interviews utilise a combination of both open and closed questions. The questions for the follow-up interviews were based on findings derived from the survey. The innovative IS examined was the Malaysian government’s electronic procurement system, known as ePerolehan. All government suppliers must register for the system and become enabled for use before they can start utilising the system. The results indicate that enacted capabilities possessed by SMEs affect perceived net benefits at all stages of adoption behaviours of SMEs (i.e., adoption, enablement and utilisation). More significantly, two aspects of enacted capabilities, top management IS skills and knowledge and trust in trading partners dominate the effect on perceived net benefits. Support from external experts dominates the effect on attitude at the adoption stage. Top management IS skills and knowledge and trust in technology have a negative effect on attitude at the time of adoption. Enacted capabilities also contribute to the extent of enablement and usage within SMEs. Furthermore, different categories of adopters differ in the set of enacted capabilities underlying their innovative IS adoption behaviour. Results also indicate that when SMEs perceived higher net benefits in adopting innovative IS, they have a positive attitude. The positive attitude generated at the time of adoption has a direct effect on the extent of enablement and usage. The influence of perceived net benefits differs at the different stages of adoption behaviour. At the utilisation stage, usage is affected by perceived net benefits, however, perceived net benefits do not affect the extent of enablement at the enablement stage. In conclusion, this thesis found that enacted capabilities display important roles as antecedents to perceived net benefits, and that perceived net benefits act as a mediator from enacted capabilities to attitude at the adoption stage. Enacted capabilities also display important roles as stimulators of the extent of enablement and usage. Thus, apart from requiring good ideas and financial resources, SMEs also require appropriate enacted capabilities when adopting, enabling and utilising innovative IS.

This thesis is motivated by the need to establish a model covering innovative information systems (IS) adoption behaviours within small and medium-sized enterprises (SMEs). Studies on adoption behaviour related to innovative IS are devoting increasing attention to SMEs. Most prior studies, however, have still relied on models developed from studies of large firms. The applicability to SMEs of findings and models developed from large firm studies is not without question as SMEs are not miniature versions of large firms. SMEs face different challenges and opportunities from large firms. This thesis empirically examined issues on the adoption behaviours of innovative IS by SMEs. In line with this objective, two research questions were established. First, what are the critical determinants that allow SMEs to overcome inhibiting factors and adopt an innovative IS? Second, what are the critical determinants that ultimately activate and stimulate them to become enabled and actively utilise an innovative IS? The conceptualisation of enacted capabilities, adapted from the resource-based view of the firm is introduced. This thesis postulates that appropriate enacted capabilities facilitate SMEs to become enabled and actively utilise an innovative IS. These enacted capabilities include the level of IT skills and knowledge of the enterprises’ members, trust in technology, trust in trading partners, external experts’ support, and organisational culture Models incorporating aspects of the theory underlying the technology acceptance model (Davis, 1989), the diffusion of innovation theory (Rogers, 1995), and the resource-based view of the firm (Barney, 1991) were developed to describe the causal linkages between the determinants that activate and stimulate innovative IS adoption behaviour (i.e., from adopting to enabling to utilising innovative IS). One model was developed for the adoption stage and a second for the enablement and utilisation stages. The adoption stage model contains three main hypotheses. The first two hypotheses propose that enacted capabilities have a positive direct effect on both perceived net benefits and attitude towards adoption from a competitive advantage perspective. The third hypothesis proposes that perceived net benefits have a positive effect on attitude towards adoption form a competitive advantage perspective. The enablement and utilisation stages model contains four main hypotheses. The first two hypotheses propose that enacted capabilities and attitude have positive effects on perceived net benefits. The last two hypotheses propose that perceived net benefits and attitude towards adoption from a competitive advantage perspective have positive effects on the extent of enablement and usage of innovative IS. The hypotheses are tested using data obtained via a survey and follow-up interview. Responses were received from 206 SMEs of varying industries and sizes from the survey. Out of these 206 SMEs, follow-up interviews were conducted with twenty-one SMEs. The interviews utilise a combination of both open and closed questions. The questions for the follow-up interviews were based on findings derived from the survey. The innovative IS examined was the Malaysian government’s electronic procurement system, known as ePerolehan. All government suppliers must register for the system and become enabled for use before they can start utilising the system. The results indicate that enacted capabilities possessed by SMEs affect perceived net benefits at all stages of adoption behaviours of SMEs (i.e., adoption, enablement and utilisation). More significantly, two aspects of enacted capabilities, top management IS skills and knowledge and trust in trading partners dominate the effect on perceived net benefits. Support from external experts dominates the effect on attitude at the adoption stage. Top management IS skills and knowledge and trust in technology have a negative effect on attitude at the time of adoption. Enacted capabilities also contribute to the extent of enablement and usage within SMEs. Furthermore, different categories of adopters differ in the set of enacted capabilities underlying their innovative IS adoption behaviour. Results also indicate that when SMEs perceived higher net benefits in adopting innovative IS, they have a positive attitude. The positive attitude generated at the time of adoption has a direct effect on the extent of enablement and usage. The influence of perceived net benefits differs at the different stages of adoption behaviour. At the utilisation stage, usage is affected by perceived net benefits, however, perceived net benefits do not affect the extent of enablement at the enablement stage. In conclusion, this thesis found that enacted capabilities display important roles as antecedents to perceived net benefits, and that perceived net benefits act as a mediator from enacted capabilities to attitude at the adoption stage. Enacted capabilities also display important roles as stimulators of the extent of enablement and usage. Thus, apart from requiring good ideas and financial resources, SMEs also require appropriate enacted capabilities when adopting, enabling and utilising innovative IS.