Digital Technology Acceptance Among MSMEs in Northern Malaysia: Evidence on the Moderating Role of Perceived Security

This study examines the determinants of digital technology acceptance among micro, small, and medium enterprises (MSMEs) in northern Malaysia. Drawing on the information system success model (ISSM), this research investigates the effects of information quality (IQ), system quality (SysQ), and service quality (SQ) on digital technology acceptance (DTA) with its moderator which is perceived security (PS). Data were collected from MSME operators across Perlis, Kedah, and Penang using a structured questionnaire, and the analysis was conducted using SPSS version 25.0 and partial least squares structural equation modelling (PLS-SEM). The findings reveal that IQ significantly influences DTA (β = 0.283, p < 0.001), indicating that accurate, relevant, and timely information enhances users’ confidence in adopting digital technologies. SysQ emerged as the strongest predictor of DTA (β = 0.403, p < 0.001), highlighting the importance of reliability, usability, and efficiency in digital systems. SQ also demonstrated a significant positive effect on DTA (β = 0.077, p = 0.031). Furthermore, PS significantly moderates the relationships between SysQ and DTA (β = -0.132, p = 0.007) and between SQ and DTA (β = 0.126, p < 0.001), although it does not moderate the relationship between IQ and DTA. Overall, the study extends existing technology acceptance literature by integrating quality dimensions and perceived security within the MSME context. The findings provide valuable insights for policymakers and practitioners in designing effective digitalisation strategies to strengthen technology adoption among MSMEs in emerging economies.

Digital technology acceptance (DTA), Information System Success Model (ISSM), MSMEs

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