ISSN: 2222-6990
Open access
The growing significance of online business adoption among small business entrepreneurs has become increasingly evident in the digital era, where the ability to leverage online platforms can significantly enhance competitiveness and sustainability. This study aims to explore the interrelationships between psychological constructs, specifically self-efficacy, perceived competence, autonomy, and perceived behavioural control, and their impact on the adoption of online business practices. Utilizing a quantitative approach, primary data were collected via survey questionnaires distributed to a targeted sample of 470 small business entrepreneurs in Malaysia, with 359 valid responses for analysis. The data analysis was conducted using Structural Equation Modeling (SEM) to test various hypotheses. Results indicated significant pathways; for instance, self-efficacy was found to be a pivotal mediator influencing both perceived competence and online business adoption. However, some hypotheses, particularly concerning perceived autonomy's direct impact on adoption, were not supported. These findings suggest that further research is warranted to explore the evolving dynamics between these constructs over time and how contextual factors may influence adoption behaviours. Practical implications highlight the need for targeted interventions to enhance self-efficacy and perceived competence among entrepreneurs, facilitating smoother transitions to online business environments. By providing training programs and resources, stakeholders can empower small businesses to adopt digital practices effectively, thus driving economic growth. Ultimately, this study contributes to a deeper theoretical understanding of the factors influencing online business adoption while offering actionable insights for practitioners aiming to support small enterprises in the digital landscape.
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