Determinants of e-invoicing readiness among small and medium enterprise (SMEs) in Malaysia

This study investigates the determinants of e-invoicing readiness among SMEs in Malaysia, focusing on technological, organizational, and environmental factors. Data were collected from SMEs in Selangor and Negeri Sembilan using a quantitative approach, and 55 responses were received from 100 questionnaires sent to respondents via email. Currently, about 70% of SMEs exhibit high technological readiness with robust IT infrastructure and software capabilities. The findings reveal that while SMEs exhibit high technological readiness with robust IT infrastructure and software capabilities, other factors such as organizational elements, including management support, employee skills, and organizational culture, as well as environmental factors like stakeholder cooperation and compliance with Inland Revenue Board (IRB) regulations, play similarly important roles in the readiness of SMEs to implement e-invoicing. The study found that SMEs' readiness to implement e-invoicing requires strong leadership, comprehensive training programs, regulatory support, and stakeholder engagement to enhance e-invoicing readiness. Addressing challenges such as cloud technology proficiency, integration support, and the need for clear strategies through targeted resources is crucial. The regression analysis confirms that technological, organizational, and environmental factors significantly influence e-invoicing readiness. This highlights the necessity for targeted support and resources such as clear regulatory guidelines, comprehensive training programs from the IRB, and technological infrastructure to facilitate successful e-invoicing adoption among SMEs in Malaysia.