PROFILE OF ICT INNOVATIVENESS IN MALAYSIAN SMES FROM SERVICES SECTOR BASED ON CORE ICT INDICATORS

Abstract

This study is to determine the profile of Information and Communication Technology (ICT) innovativeness in Malaysian SMEs from services sector by using the core ICT indicators by businesses as suggested by International Telecommunication Union (ITU). Previous research had indicated that the rate of adoption of ICT innovation specifically among SMEs in Malaysia was low although there are many initiatives have been implemented by the government but the outcomes have not been fully translated into results. This is important to improve the business performances, to sustain and compete globally by adopting the ICT innovation as SMEs are key drivers and engine for the economic growth. More importantly, ICT are among the National Key Economic Areas (NKEAs) that need to be focus especially for the purpose of SMEs development. Core ICT indicators have been used as the measuring tools adhered to globally accepted standards. From the probability proportionate stratified random sampling, 390 respondents participated in the survey questionnaires. The results are analyzed using descriptive statistic. This study revealed the profile of ICT innovativeness for Malaysia services sector SMEs specifically based on the 12 elements of core ICT indicators. Mainly, the findings supported government agenda for developing the SMEs as stated in SME Masterplan (2011-2020) and towards achieving government’s aspiration to become high income and developed nation by 2020 as stated in New Economic Model (NEM).