What is it about?
This study explores what drives Small and Medium Enterprises (SMEs) in Malaysia to adopt digital finance. It uses two key frameworks—Technology-Organization-Environment (TOE) Theory and the Net Valence (NV) Model—to analyze factors influencing this decision. Data was gathered from 313 Malaysian SMEs involved in exporting, and advanced statistical methods were used for analysis. The findings reveal that perceived benefits like convenience and seamless transactions encourage SMEs to adopt digital finance, while risks like financial and operational concerns may hold them back. Interestingly, trust has less impact on adoption than expected. Factors like government support and global events (e.g., COVID-19) play a major role, while organizational readiness and top management support are less critical. However, having skilled human resources is key to successful adoption.
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Why is it important?
This research is important because it highlights the key factors influencing the adoption of digital finance among Small and Medium Enterprises (SMEs), which are vital for economic growth and innovation. By identifying what drives or hinders digital finance adoption, the study helps SMEs understand how tools like seamless transactions and convenient processes can improve their efficiency and competitiveness, especially in international markets.
Perspectives
The study offers practical insights for policymakers, financial tool developers, and SME leaders. Policymakers can design better policies to support SMEs, while developers can create digital finance solutions tailored to SMEs’ needs by addressing adoption barriers. It also contributes to academic knowledge by using a unique approach to study digital finance adoption and sets a foundation for future research. Ultimately, this research helps SMEs embrace digital finance, boosting their resilience and performance in today’s digital economy.
Associate Professor Sedigheh Shakib Kotamjani
Central Asian University
Read the Original
This page is a summary of: Predictive Factors Influencing the Adoption of Digital Finance: A Unified Approach Drawing from TOE and NV Theories, December 2023, ACM (Association for Computing Machinery),
DOI: 10.1145/3644713.3644772.
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