Exploring the Mediating Role of E-Commerce Adoption on Halal SMEs' Competitiveness in Malaysia
Authors
Mohd Sirajuddin Siswadi Putera Mohamed Shith
Academy of Contemporary Islamic Study (ACIS), MARA University of Technology (UiTM) 40450 Shah Alam, Selangor (Malaysia)
Muhammad Syahrul Deen Bin Ahmad Rosli
Academy of Contemporary Islamic Study (ACIS), MARA University of Technology (UiTM) 40450 Shah Alam, Selangor (Malaysia)
Article Information
DOI: 10.51244/IJRSI.2025.1210000104
Subject Category: Business
Volume/Issue: 12/10 | Page No: 1157-1169
Publication Timeline
Submitted: 2025-10-06
Accepted: 2025-10-12
Published: 2025-11-06
Abstract
The study examines the influence of e-commerce adoption on the growth and market competitiveness of Halal Small and Medium Enterprises (SMEs). It investigates the relationships between e-commerce adoption and perceived usefulness, perceived ease of use, perceived trust and security, and perceived competitive advantage. Data from 311 Halal SME owners and managers were analyzed using statistical techniques. The findings indicate that perceived usefulness positively influences e-commerce adoption, while the relationship between perceived ease of use and adoption is insignificant. Perceived trust and security are crucial factors driving e-commerce adoption, as Halal SMEs exhibit confidence in online transactions and relationships with e-commerce providers. The study highlights the significant impact of perceived competitive advantage on e-commerce adoption. However, e-commerce adoption does not directly mediate the relationship between these factors and business competitiveness. Future research should explore additional factors, such as the competitiveness of digital marketing strategies, to gain a comprehensive understanding of the complex dynamics between e-commerce adoption and Halal SME competitiveness.
Keywords
Halal SME’s, E-commerce adoption, Competitive Advantages
Downloads
References
1. Aamer, A., Sahara, C. R., & Al-Awlaqi, M. A. (2022). Digitalization of the supply chain: transformation factors. Journal of Science and Technology Policy Management. [Google Scholar] [Crossref]
2. Abed, S. S. (2020). Social commerce adoption using TOE framework: An empirical investigation of Saudi Arabian SMEs. International Journal of Information Management, 53(March), 102118. [Google Scholar] [Crossref]
3. Ageron, B, … O. B.-S. C. F. A., & 2020, undefined. (2020). Digital supply chain: challenges and future directions. Taylor & Francis, 21(3), 133–138. [Google Scholar] [Crossref]
4. Ageron, Blandine, Bentahar, O., & Gunasekaran, A. (2020). Digital supply chain: challenges and future directions. Taylor & Francis, 21(3), 133–138. [Google Scholar] [Crossref]
5. Ahrari, S., Krauss, S., Ariffin, Z., Entrepreneurship, L. M.-S., & 2019, undefined. (n.d.). “Making a Difference on My Own Terms”: Motivational Factors of Youth Involvement in Social Entrepreneurship in Malaysia. Emerald.Com. [Google Scholar] [Crossref]
6. Ali, Z., Gongbing, B., & Mehreen, A. (2020). Does supply chain finance improve SMEs performance? The moderating role of trade digitization. Business Process Management Journal, 26(1), 150–167. [Google Scholar] [Crossref]
7. Alshurideh, M., Salloum, S. A., Al Kurdi, B., & Al-Emran, M. (2019). Factors affecting the social networks acceptance: An empirical study using PLS-SEM approach. ACM International Conference Proceeding Series, Part F1479. [Google Scholar] [Crossref]
8. Alzarooni, A. M., Khan, S. A., Gunasekaran, A., & Mubarik, M. S. (2022). Enablers for digital supply chain transformation in the service industry. Annals of Operations Research. [Google Scholar] [Crossref]
9. Apospori, E., Zografos, K. G., & Magrizos, S. (2012). SME corporate social responsibility and competitiveness: A literature review. In International Journal of Technology Management (Vol. 58, Issues 1–2, pp. 10–31). Inderscience Publishers [Google Scholar] [Crossref]
10. Bernardes, E., & Wuest, T. (2020). Digital Supply Networks: Transform Your Supply Chain and Gain Competitive Advantage with Disruptive Technology and Reimagined Processes The Operator 4.0-Towards Socially Sustainable Factories of the Future View project Competition networks and affiliation-Up, down and sideways View project. [Google Scholar] [Crossref]
11. Bouwman, H. ;, Nikou, S. ;, De Reuver, M., Bouwman, H., & Nikou, S. (2019). Digitalization, business models, and SMEs How do business model innovation practices improve performance of digitalizing SMEs? Elsevier. [Google Scholar] [Crossref]
12. Carla, S., Pereira, F., Vargas, F. G., Eaesp, F. G. V, & Paulo, S. (2021). Industry 4 . 0 and digital supply chain capabilities A framework for understanding digitalisation challenges and opportunities. 28(5), 1761–1782. [Google Scholar] [Crossref]
13. Dan, S., & Dan, S. (2019). ISSN 1985-7667 • e-ISSN: 2289-6325 J. 20(2), 75–89. [Google Scholar] [Crossref]
14. Dang Lang, L., Behl, A., Ngoc Duy Phuong, N., Chi Minh City, H., Jighyasu Gaur, V., & Tien Dzung, N. (2022). Toward SME digital transformation in the supply chain context: the role of structural social and human capital. Emerald.Com. [Google Scholar] [Crossref]
15. Daud Awang, M., Muhammad, J., Nur Aiman Mohd Noor, M., Abdullah, A., Amir Abdullah, A., Abdullah, N., & Shobihah Abang Abai, D. (n.d.). Knowledge, acceptance and application of Islamic financial management among small and medium enterprises (SMEs) halal entrepreneurs in peninsular of Malaysia. Knepublishing.Com, 2020. [Google Scholar] [Crossref]
16. Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–340. [Google Scholar] [Crossref]
17. Devasena, C. L. (2014). Impact Study of Cloud Computing on Business Development. Operations Research and Applications: An International Journal (ORAJ), 1(1), 1–7. [Google Scholar] [Crossref]
18. Franco, M., Godinho, L., & Rodrigues, M. (2021). Exploring the influence of digital entrepreneurship on SME digitalization and management. Small Enterprise Research, 28(3), 269–292. [Google Scholar] [Crossref]
19. Galvão, A., Mascarenhas, C., Gouveia Rodrigues, R., Marques, C. S., & Leal, C. T. (2017). A quadruple helix model of entrepreneurship, innovation and stages of economic development. Review of International Business and Strategy, 27(2), 261–282. [Google Scholar] [Crossref]
20. Gefen, D., Karahanna, E., & Straub, D. W. (2003). Trust and TAM in online shopping: An integrated model. MIS Quarterly, 27(1), 51–90. [Google Scholar] [Crossref]
21. Giyanti, I., Indrasari, A., … W. S.-J. of I., & 2021, undefined. (n.d.). Halal standard implementation in food manufacturing SMEs: its drivers and impact on performance. Emerald.Com. [Google Scholar] [Crossref]
22. Haftor, D. M. (2018). D igital B usiness M odels. 37(November), 591–616. [Google Scholar] [Crossref]
23. Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. [Google Scholar] [Crossref]
24. Hakim Ghazali, N. (2018). Awareness and Perception Analysis of Small Medium Enterprise and Start-up Towards FinTech Instruments: Crowdfunding and Peer-to-Peer Lending in Malaysia. International Journal of Finance and Banking Research, 4(1), 13. [Google Scholar] [Crossref]
25. Hanifah, H., Abdul Halim, H., Ahmad, N. H., & Vafaei-Zadeh, A. (2019). Emanating the key factors of innovation performance: leveraging on the innovation culture among SMEs in Malaysia. Journal of Asia Business Studies, 13(4), 559–587. [Google Scholar] [Crossref]
26. Hoque, N., Mamun, A., & Mohammad Ahshanul Mamun, A. (2014). Dynamics and traits of entrepreneurship: an Islamic approach. World Journal of Entrepreneurship, Management and Sustainable Development, 10(2), 128–142. [Google Scholar] [Crossref]
27. J. Bennett, R. (1998). Business associations and their potential contribution to the competitiveness of smes. Entrepreneurship and Regional Development, 10(3), 243–260. https://doi.org/10.1080/08985629800000014 [Google Scholar] [Crossref]
28. Johnson, M. P., & Schaltegger, S. (2020). Entrepreneurship for Sustainable Development: A Review and Multilevel Causal Mechanism Framework. Journals.Sagepub.Com, 44(6), 1141–1173. [Google Scholar] [Crossref]
29. Juni Marianti, D., Khairawati, S., Wijiharta, W., & Hamfara Yogyakarta, S. (2022). Adaption of Technological Implementation Towards SMEs’ Perlis Performance in Halal Industry. Atlantis-Press.Com, 1(2), 2022. [Google Scholar] [Crossref]
30. Juni Marianti, J., Abdullah, N. H., & Ismail, M. (2022). The role of e-commerce adoption in enhancing SMEs’ competitiveness: Evidence from Malaysian retail sector. Journal of Asian Finance, Economics and Business, 9(4), 211–220. [Google Scholar] [Crossref]
31. Kamarulzaman, N., … N. M.-J. of I., & 2022, undefined. (n.d.). An investigation of adoption intention of halal traceability system among food SMEs. Emerald.Com. [Google Scholar] [Crossref]
32. Kartiwi, M., Hussin, H., Suhaimi, M. A., Mohamed Jalaldeen, M. R., & Amin, M. R. (2018). Impact of external factors on determining E-commerce benefits among SMEs in Malaysia. Journal of Global Entrepreneurship Research, 8(1), 1–12. [Google Scholar] [Crossref]
33. Ken, K., & Kay, W. (2019). Mastering Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS in 38 Hours. March, 1–172. [Google Scholar] [Crossref]
34. Konstantopoulou, A., Rizomyliotis, I., Konstantoulaki, K., & Badahdah, R. (2019). Improving SMEs’ competitiveness with the use of Instagram influencer advertising and eWOM. International Journal of Organizational Analysis, 27(2), 308–321. [Google Scholar] [Crossref]
35. Kusumaningtyas, R. O., Subekti, R., Jaelani, A. K., Orsantinutsakul, A., & Mishra, U. K. (2022). Reduction of Digitalization Policy in Indonesian MSMEs and Implications for Sharia Economic Development. Ojs.Iainbatusangkar.Ac.Id, 21(2), 157–171. [Google Scholar] [Crossref]
36. Lang, L. D., Behl, A., Phuong, N. N. D., Gaur, J., & Dzung, N. T. (2022). Toward SME digital transformation in the supply chain context: the role of structural social and human capital. International Journal of Physical Distribution and Logistics Management. [Google Scholar] [Crossref]
37. Lányi, B., Hornyák, M., & Kruzslicz, F. (2021). The effect of online activity on SMEs’ competitiveness. Competitiveness Review, 31(3), 477–496. [Google Scholar] [Crossref]
38. Lee, K. L., Ain, N., Azmi, N., Hanaysha, J. R., Alzoubi, H. M., & Alshurideh, M. T. (2022). The effect of digital supply chain on organizational performance: An empirical study in Malaysia manufacturing industry. Uncertain Supply Chain Management, 10, 495–510. [Google Scholar] [Crossref]
39. Lee, Y. Y., Falahat, M., & Sia, B. K. (2021). Drivers of digital adoption: a multiple case analysis among low and high-tech industries in Malaysia. Asia-Pacific Journal of Business Administration, 13(1), 80–97. [Google Scholar] [Crossref]
40. Link, B. A. N., & Siegel, D. S. (2002). Journal of Labor Research, 23, 4, 615-630. [Google Scholar] [Crossref]
41. Liu, Z., Sampaio, P., Pishchulov, G., Mehandjiev, N., Cisneros-Cabrera, S., Schirrmann, A., Jiru, F., Bnouhanna, N., & as, C. (2022). The architectural design and implementation of a digital platform for Industry 4.0 SME collaboration. Elsevier. [Google Scholar] [Crossref]
42. Lui, T. K., Zainuldin, M. H., Yii, K. J., Lau, L. S., & Go, Y. H. (2021). Consumer adoption of alipay in Malaysia: The mediation effect of perceived ease of use and perceived usefulness. Pertanika Journal of Social Sciences and Humanities, 29(1), 389–408. [Google Scholar] [Crossref]
43. Lui, T. W., Wong, K. K., & Chau, K. Y. (2021). Determinants of e-commerce adoption among SMEs: The role of perceived usefulness and trust. Sustainability, 13(6), 3223. [Google Scholar] [Crossref]
44. Lukovszki, L., Rideg, A., & Sipos, N. (2020). Resource-based view of innovation activity in SMEs: an empirical analysis based on the global competitiveness project. Competitiveness Review, 31(3), 513–541. [Google Scholar] [Crossref]
45. Malaysia, N. I.-J. E., & 2013, undefined. (2013). Business networks in halal food industries in Malaysia. Core.Ac.Uk, 47(1), 87–98. [Google Scholar] [Crossref]
46. Marcysiak, A., & Pleskacz, Ż. (2021). Entrepreneurship And Sustainability Issues Determinants Of Digitization In Smes * Entrepreneurship And Sustainability Issues. [Google Scholar] [Crossref]
47. Matt, D. T., Modrák, V., & Zsifkovits, H. (2020). Industry 4.0 for smes: Challenges, opportunities and requirements. In Industry 4.0 for SMEs: Challenges, Opportunities and Requirements. [Google Scholar] [Crossref]
48. McFarlane, D., Ratchev, S., Thorne, A., Parlikad, A. K., de Silva, L., Schönfuß, B., Hawkridge, G., Terrazas, G., & Tlegenov, Y. (2020). Digital manufacturing on a shoestring: Low cost digital solutions for SMEs. Studies in Computational Intelligence, 853, 40–51. [Google Scholar] [Crossref]
49. Moghavvemi, S., & salleh, N. A. M. (2014). Malaysian entrepreneurs propensity to use IT innovation. Journal of Enterprise Information Management, 27(2), 139–157. [Google Scholar] [Crossref]
50. Mohd Tawil, N., Ramlee, S., Jaafar, J., Firdaus, &, & Saat, M. (2015). An overview of foodpreneur awareness among Small and Medium-Sized Enterprises (SME) of halal certification. Pdfs.Semanticscholar.Org, 11(21). [Google Scholar] [Crossref]
51. Mokhtar, S. A., Katan, H., & Hidayat-ur-Rehman, I. (2018). Instructors’ behavioural intention to use Learning Management system: An integrated TAM perspective. TEM Journal, 7(3), 513–525. [Google Scholar] [Crossref]
52. Mokhtar, S. S. M., Sulaiman, Z., & Hussain, N. (2018). E-commerce adoption among SMEs in Malaysia: A study of key determinants and performance outcomes. International Journal of Business and Society, 19(S3), 799–816. [Google Scholar] [Crossref]
53. Moslehpour, M., Pham, V. K., Wong, W. K., & Bilgiçli, I. (2018). e-purchase intention of Taiwanese consumers: Sustainable mediation of perceived usefulness and perceived ease of use. Sustainability (Switzerland), 10(1). [Google Scholar] [Crossref]
54. Norris, L. (2020). The spatial implications of rural business digitalization: case studies from Wales. Taylor & Francis, 7(1), 499–510. [Google Scholar] [Crossref]
55. Parama, A., Sari, H., & Prihartono, B. (2017). Conceptual Model for Online Marketing Strategy to Success in the Survival Phase of Small Firms. 1872–1877. [Google Scholar] [Crossref]
56. Pavlou, P. A. (2014). Consumer acceptance of electronic commerce: Integrating trust and risk with the technology acceptance model. International Journal of Electronic Commerce, 7(3), 101–134. [Google Scholar] [Crossref]
57. Peng, Y., & Tao, C. (2022). Journal of Innovation. Journal of Innovation & Knowledge, 7(3), 100198. [Google Scholar] [Crossref]
58. Perera, C., & Lanka, G. (2021). Factors influencing trust and security in online shopping: Evidence from developing countries. Journal of Internet Commerce, 20(4), 385–406. [Google Scholar] [Crossref]
59. Perera, N., & Lanka, S. (2021). Impact Of Digital Transformation In Measuring Business Performance Of Small & Medium Scale Businesses In Sri. 5(07), 1–25. [Google Scholar] [Crossref]
60. Porter, M. E. (2001). Strategy and the Internet. Harvard Business Review, 79(3), 62–78. [Google Scholar] [Crossref]
61. Queiroz, M. M., Carla, S., Pereira, F., Telles, R., & Machado, M. C. (n.d.). Industry 4.0 and digital supply chain capabilities: A framework for understanding digitalisation challenges and opportunities. Emerald.Com. [Google Scholar] [Crossref]
62. Qurniawati, R., of, Y. N.-I. (International J., & 2020, undefined. (2020). Understanding halal food SMEs’ behavior intention towards e-money. Jurnal.Unissula.Ac.Id, 5(2). [Google Scholar] [Crossref]
63. Rahim, H. L., Abdul Kadir, M. A. B., Osman, C. A., Rosly, H. E., & Bakri, A. A. (2019). The Essentials and Challenges of Online Business Among Bumiputera SME Entrepreneurs in Malaysia. Research in World Economy, 10(3), 45. [Google Scholar] [Crossref]
64. Reiman, T., Rollenhagen, C., Pietikäinen, E., & Heikkilä, J. (2015). Principles of adaptive management in complex safety–critical organizations. Safety Science, 71, 80–92. [Google Scholar] [Crossref]
65. Ringle, C. M. (2016). Gain more insight from your PLS-SEM results The importance-performance map analysis. 3(2007), 1865–1886. [Google Scholar] [Crossref]
66. Rizca Amelia, W., Alhamra Salqaura, S., & Cattlya Febrizadly, F. (2022). Factors Influencing The Acceleration Process Of Halal Product Development In E-Commerce. [Google Scholar] [Crossref]
67. Rosa, Y. Del, … D. M.-… C. of B., & 2022, undefined. (n.d.). The Role of Financial Technology in Culinary SMEs City of Padang Based On Halal Food. Ojsicobuss.Stiesia.Ac.Id. Retrieved May 14, 2023, from [Google Scholar] [Crossref]
68. Saktia, M., Suwadib, P., of, B. W.-I. J., & 2023, undefined. (n.d.). Implementation of Halal Product Guarantee in Indonesia’s E-Commerce. Openaccessojs.Com, 1–17. [Google Scholar] [Crossref]
69. Santoso, S., Alfarisah, S., Fatmawati, A. A., & Ubaidillah, R. (n.d.). Correlation Analysis of the Halal Certification Process and Perceptions of the. Cost of Halal Certification with the Intentions of Food and Beverage SMEs Actors. Pdfs.Semanticscholar.Org. [Google Scholar] [Crossref]
70. Sarstedt, M., Ringle, C. M., & Hair, J. F. (2022). Partial Least Squares Structural Equation Modeling. Handbook of Market Research, May 2020, 587–632. [Google Scholar] [Crossref]
71. Sarstedt, M., Ringle, C. M., Smith, D., Reams, R., & Hair, J. F. (2014). Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers. Journal of Family Business Strategy, 5(1), 105–115. [Google Scholar] [Crossref]
72. Schaefer, J., Sellitto, M. A., & Siluk, J. (2021). The development of sustainable transport in local government units in Poland and in the world View project. Taylor & Francis, 33(4), 255–271. [Google Scholar] [Crossref]
73. Setik, R., Marjudi, S., Mohd, R., Raja, T., Ahmad, L., Azlan, W., Hassan, W., Azlina, A., & Kassim, M. (n.d.). Deriving Halal Transaction Compliance using Weighted Compliance Scorecard (WCS). Journal.Uob.Edu.Bh, 20, 2210–142. [Google Scholar] [Crossref]
74. Sunardi, R., Hamidah, H., Dharmawan BUCHDADI, A., & Purwana, D. (2022). Factors Determining Adoption of Fintech Peer-to-Peer Lending Platform: An Empirical Study in Indonesia. The Journal of Asian Finance, Economics and Business, 9(1), 43–51. [Google Scholar] [Crossref]
75. Taber, K. S. (2018). The Use of Cronbach’s Alpha When Developing and Reporting Research Instruments in Science Education. Research in Science Education, 48(6), 1273–1296. [Google Scholar] [Crossref]
76. Tarmizi, H. A., … N. K.-F., & 2020, undefined. (2020). Adoption of internet of things among Malaysian halal agro-food SMEs and its challenges. Pdfs.Semanticscholar.Org. [Google Scholar] [Crossref]
77. Teo, T. S. H., Ranganathan, C., & Dhaliwal, J. S. (2019). Key dimensions of inhibitors for the adoption of e-business in Singapore. International Journal of Information Management, 29(1), 24–35. [Google Scholar] [Crossref]
78. Trapczyński, P., Puślecki, Ł., & Jarosiński, M. (2016). Competitiveness of CEE economies and businesses: Multidisciplinary perspectives on challenges and opportunities. Competitiveness of CEE Economies and Businesses: Multidisciplinary Perspectives on Challenges and Opportunities, September 2018, 1–223. [Google Scholar] [Crossref]
79. Tripopsakul, S. (2018). Social media adoption as a business platform: An integrated tam-toe framework. Polish Journal of Management Studies, 18(2), 350–362. [Google Scholar] [Crossref]
80. Tripopsakul, S. (2018). Social media adoption as a business platform: An integrated TAM-TOE framework. Polish Journal of Management Studies, 18(2), 350–362. [Google Scholar] [Crossref]
81. Truong, O. (2016). How fintech industry is changing the world. November, 1–54. [Google Scholar] [Crossref]
82. Ulas, D. (2019). Digital Transformation Process and SMEs. Procedia Computer Science, 158, 662–671. [Google Scholar] [Crossref]
83. Venkatesh, V., & Bala, H. (2008). Technology acceptance model 3 and a research agenda on interventions. Decision Sciences, 39(2), 273–315. [Google Scholar] [Crossref]
84. Venter, E., Turyakira, P., & Smith, E. E. (2014). The influence of potential outcomes of corporate social responsibility engagement factors on SME competitiveness. In J.Bus.Manage (Issue 4). [Google Scholar] [Crossref]
85. Vignesh, M. T., Research, P. D., & Yoganandan, G. (n.d.). Challenges And Prospects Of Young Entrepreneurship In Salem, Tamilnadu. In researchgate.net. [Google Scholar] [Crossref]
86. Yang, M., Jaafar, N., … S. Y.-I. J. of, & 2022, undefined. (2022). Modelling the Significance of Global Mind-Set and Halal Brand Trust to Determine the Performance of Halal SMEs. Publisher.Unimas.My, 23(2), 987–1004. [Google Scholar] [Crossref]
87. Yazdanifard, R., & Li, M. T. H. (2014). The Review of Alibaba’s Online Business Marketing Strategies Which Navigate them to Present Success. Global Journal of Management And Business Research, 14(7), 33–39. [Google Scholar] [Crossref]
88. Yuliana, E., … D. A.-F. transition to, & 2019, undefined. (n.d.). An Analysis Of Competitiveness Advantage Transformation Of Small Medium Enterprise Community In Bandung. Researchgate.Net. [Google Scholar] [Crossref]
Metrics
Views & Downloads
Similar Articles
- IFRS S1 and S2: A Global and Indian Perspective with Implications for Auditors
- A Study on Consumer Attitudes and Buying Behavior towards organic Food Products
- India’s Transfer Pricing Framework: Evolution, Challenges, and Future Directions
- Application of Statistical Methods in Business Administration: A Quantitative Study on Organizational Performance
- Decoding Fintech Adoption: The Role of Trust, Risks and Perceived Benefits