Effect of End-User Personal and Systems Attributes on Computer-Based Information System Success in Malaysian SMEs

Small and medium-size enterprises (SMEs) need to play a very crucial role in achieving Malaysia's aspiration to become a fully-developed nation by the year 2020(1). The manufacturing sector is expected to spearhead the drive to fulfill this vision. In view of that, the Malaysian government is constantly trying to promote and upgrade Malaysian SMEs to provide a strong and competitive industry for the success of large enterprises. According to a survey in 1994, there were about 12,000 small and medium-size enterprises in Malaysia, comprised 88 percent small enterprises and 12 percent medium-size enterprises. Although these SMEs accounted for about 84 percent of the total manufacturing establishments in Malaysia, they contributed only about 28 percent of total value added and provided only about 33 percent of employment in the manufacturing sector. The relatively low contribution of Malaysian SMEs to the total value added of the manufacturing sector is seen as a bottleneck in achieving the rapid industrialization of the nation. Enhancement of the technical capabilities of Malaysian SMEs, through a greater and more diffusion of sophisticated technology among them, is often an effective way to improve their productivity and competitiveness. In spite of the availability of various government assistance programs (including technology acquisition and skills enhancement programs), the effectiveness of technology adoption among SMEs is an issue of great concern to the Malaysian government. A review of prior literature indicates that several factors may have a direct or indirect impact on the effectiveness of technology adoption or on the success of computer-based information systems (see Cragg and King 1993; Ein-Dor and Segev 1978; DeLone 1988; Raymond 1985; Montazemi 1988). Ein-Dor and Segev (1978) suggested that computerization is less likely to succeed in smaller organizations than in larger organizations. They largely attributed the absence or failure of many computerization projects among SMEs to their lack of resources. However, with the advent of the microcomputer and the significant fall in the prices of hardware, coupled with the availability of relatively cheap and user-friendly small business applications, more and more SMEs have found it feasible and necessary to computerize their information systems in this era of intense competition. The introduction of the microcomputer has given rise to end-user computing. The expected principal benefits of end-user computing are direct user-control of information processing, which should enhance systems usage, satisfaction, and performance. In the end-user computing environment, user resistance is often cited as a serious systems implementation problem. Hence, positive attitudes towards computers have to be cultivated and encouraged among employees to ensure success of computerization efforts. In the end-user computing environment, an issue of interest is whether the personal characteristics of the end-user and the manner of technology adoption, as well as the capabilities of the computer-based information system (CBIS), can influence the perceived success of the CBIS in the small business context. An understanding of the factors from the end-user perspective that influence the success of CBIS in a firm should be pertinent to the formulation of strategies to motivate and facilitate successful adoption of information technology (IT) among SMEs. The objective of this study is to investigate whether the personal characteristics of the end-user and attributes of the CBIS can affect the perceived success of CBIS in Malaysian SMEs. In past research, the perceived success of CBIS has been found to be significantly and positively correlated with the profitability, perceived growth, and future utilization of computer technology in firms (Cron and Sobol 1983). Previous Studies Several factors have been found to be significantly associated with the success of information systems. …