Small and medium-sized businesses (SMEs) are an essential component of national economies worldwide since they are responsible for creating jobs, delivering services with added value, and advancing overall innovation. SMEs play an essential role in the generation of jobs in Malaysia, and the productivity of these enterprises is significantly correlated with employee performance. Literature on employee performance in SMEs still needs to be improved, despite the fact that these businesses significantly contribute to the country's GDP. This study investigates how ICT usage affects employee performance within Malaysian SMEs. In order to determine how the use of ICT usage influences employee performance in SMEs, the authors turned to the social exchange theory. This study presents a cross-sectional survey analyzed using SmartPLS 3.3.9 for multivariate statistical analysis. An integrated research framework was developed by bringing together significant aspects from existing literature. 301 employees of selected SMEs completed the survey. The findings of the study indicate that ICT usage affects employee performance. The study was done in SMEs, and the analysis is based on cross-sectional data that cannot be generalized to a broader range of industries. The study's outcomes will aid stakeholders, lawmakers, and SME management in lobbying for effective and well-articulated ICT usage strategies to enhance employee engagement, knowledge exchange, and performance. This study contributes to the literature by giving empirical evidence that ICT usage influences employee performance in Malaysian SMEs.
Abdul-Jalal, H., Toulson, P., & Tweed, D. (2013). Knowledge Sharing Success for Sustaining Organizational Competitive Advantage. Procedia Economics and Finance, 7(Icebr), 150–157. https://doi.org/10.1016/s2212-5671(13)00229-3
Alan M. Saks, J. A. G. (2014). What Do We Really Know About Employee Engagement? Human Resource Development Quarterly, 25(2), 155–182. https://doi.org/10.1002/hrdq
Alhawary, F. A., & Assistance, M. O. A. (2017). Determinant Factors of Knowledge Sharing among Academic Staff in the Jordanian Universities. European Journal of Social Sciences, 55(4), 415–426.
Allen, T. D., Poteet, M. L., Eby, L. T., Lentz, E., & Lima, L. (2004). Career Benefits Associated with Mentoring for Protégés: A Meta-Analysis. Journal of Applied Psychology, 89(1), 127–136. https://doi.org/10.1037/0021-9010.89.1.127
Alzghoul, A., Elrehail, H., Emeagwali, O. L., & AlShboul, M. K. (2018). Knowledge management, workplace climate, creativity and performance: The role of authentic leadership. Journal of Workplace Learning, 30(8), 592–612. https://doi.org/10.1108/JWL-12-2017-0111
Anderson, J. C., & Gerbing, D. W. (1998). Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach. Psychological Bulletin, 103(3), 411–423. https://doi.org/10.1504/EJIM.2021.114662
Anitha J. (2014). Determinants of employee engagement and their impact on employee performance. International Journal of Productivity and Performance Management, 63(3), 308–323. https://doi.org/10.1108/IJPPM-01-2013-0008
Atatsi, E. A., Stoffers, J., & Kil, A. (2019). Factors affecting employee performance: a systematic literature review. Journal of Advances in Management Research, 16(3), 329–351. https://doi.org/10.1108/JAMR-06-2018-0052
Bakker, A. B., & Bal, P. M. (2010). Weekly work engagement and performance: A study among starting teachers. Journal of Occupational and Organizational Psychology, 83(1), 189–206. https://doi.org/10.1348/096317909X402596
Baran, M., & Sypniewska, B. (2019). The Influence of Mentoring on Work Engagement and the Relationship with the Superior in Organizations in Poland. Przegl?d Organizacji, 52–59. https://doi.org/10.33141/po.2019.06.07
Becker, J. M., Cheah, J. H., Gholamzade, R., Ringle, C. M., & Sarstedt, M. (2022). PLS-SEM’s most wanted guidance. International Journal of Contemporary Hospitality Management. https://doi.org/10.1108/IJCHM-04-2022-0474
Blau, P. (1986). Exchange and Power in Social Life. John Wiley & Sons.
Blau, P. . (1964). Exchange and power in social life. John Wiley & Sons Inc.
Burke, K. (2012). Journal of Small Business & Entrepreneurship The Impact of Internet and ICT Use among SME Agribusiness Growers and Producers The Impact of Internet and ICT Use among SME Agribusiness Growers and Producers. September 2014, pp. 37–41. https://doi.org/10.1080/08276331.2010.10593480
Carter, W. R., Nesbit, P. L., Badham, R. J., Parker, S. K., & Sung, L. K. (2018). The effects of employee engagement and self-efficacy on job performance: a longitudinal field study. International Journal of Human Resource Management, 29(17), 2483–2502. https://doi.org/10.1080/09585192.2016.1244096
Cesário, F., & Chambel, M. J. (2017). Linking Organizational Commitment and Work Engagement to Employee Performance. Knowledge and Process Management, 24(2), 152–158. https://doi.org/10.1002/kpm.1542
Chang, S.-J., Witteloostuijn, A. van, & Eden, L. (2010). From the Editors?: Common method variance in international business research. Journal of International Business Studies, 41, 178–184. https://doi.org/10.1057/jibs.2009.88
Chen, Y. Y., & Huang, H. L. (2012). Knowledge management fit and its implications for business performance: A profile deviation analysis. Knowledge-Based Systems, pp. 27, 262–270. https://doi.org/10.1016/j.knosys.2011.11.012
Cheng, M., Ho, J. S., & Lau, P. M. (2009). Knowledge sharing in academic institutions?: a study of multimedia university Malaysia. Electronic Journal of Knowledge Management, 7(3), 313–324.
Choo, S. (2020). 2020 Global Employee Experience Trends.
Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd Editio). Lawrence Erlbaum Associates Publishers.
Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2013). Applied multiple regression/correlation analysis for the behavioral sciences. Routledge.
Cropanzano, R., & Mitchell, M. S. (2005). Social exchange theory: An Interdisciplinary review. Journal of Management, 31(6), 874–900. https://doi.org/10.1177/0149206305279602
Davidavi?iene, V., Al Majzoub, K., & Meidute-Kavaliauskiene, I. (2020). Factors affecting knowledge sharing in virtual teams. Sustainability (Switzerland), 12(17). https://doi.org/10.3390/SU12176917
Demerouti, E., & Cropanzano, R. (2010). From thought to action: employee work engagement and job performance. In Bakker, A.B., and Leiter, M.P. (Eds), Work Engagement: A Handbook of Essential Theory and Research (pp. 147–163). Psychology Press.
Diamantopoulos, A., & Siguaw, J. A. (2006). Formative versus reflective indicators in organizational measure development: A comparison and empirical illustration. British Journal of Management, 17(4), 263–282. https://doi.org/10.1111/j.1467-8551.2006.00500.x
Eze, S. C., Chinedu-Eze, V. C., & Bello, A. O. (2018). Determinants of dynamic process of emerging ICT adoption in SMEs – actor network theory perspective. Journal of Science and Technology Policy Management. https://doi.org/10.1108/JSTPM-02-2018-0019
Farooq, R. (2018). A conceptual model of knowledge sharing. International Journal of Innovation Science, 10(2), 238–260. https://doi.org/10.1108/IJIS-09-2017-0087
Franke, G., & Sarstedt, M. (2019). Heuristics versus statistics in discriminant validity testing: a comparison of four procedures. Internet Research, 29(3), 430–447. https://doi.org/10.1108/IntR-12-2017-0515
Ghabban, F., Selamat, A., & Ibrahim, R. (2018). New model for encouraging academic staff in Saudi universities to use IT for knowledge sharing to improve scholarly publication performance. Technology in Society, 55(July), 92–99. https://doi.org/10.1016/j.techsoc.2018.07.001
Gupta, M., Acharya, A., & Gupta, R. (2015). Impact of work engagement on performance in indian higher education system. Review of European Studies, 7(3), 192–201. https://doi.org/10.5539/res.v7n3p192
Hair, J., Hollingsworth, C. L., Randolph, A. B., & Chong, A. Y. L. (2017). An updated and expanded assessment of PLS-SEM in information systems research. Industrial Management and Data Systems, 117(3), 442–458. https://doi.org/10.1108/IMDS-04-2016-0130
Hair, Joe F., Sarstedt, M., Ringle, C. M., & Mena, J. A. (2012). An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the Academy of Marketing Science, 40(3), 414–433. https://doi.org/10.1007/s11747-011-0261-6
Hair, Joseph F., Ringle, C. M., & Sarstedt, M. (2013). Partial Least Squares Structural Equation Modeling: Rigorous Applications, Better Results and Higher Acceptance. Long Range Planning, 46(1–2), 1–12. https://doi.org/10.1016/j.lrp.2013.01.001
Hair, Joseph 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. https://doi.org/10.1108/EBR-11-2018-0203
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
Ibrahim, H. I., Mohamad, W. M. W., & Shah, K. A. M. (2020). Investigating Information and Communication Technology (ICT) usage, knowledge sharing and innovative behavior among engineers in electrical and electronic MNCs in Malaysia. Jurnal Pengurusan, 58, 133–143. https://doi.org/10.17576/pengurusan-2020-58-11
Ismail, H. N., Iqbal, A., & Nasr, L. (2019). Employee engagement and job performance in Lebanon: the mediating role of creativity. International Journal of Productivity and Performance Management, 68(3), 506–523. https://doi.org/10.1108/IJPPM-02-2018-0052
Jaganathan, M., Ahmad, S., Ishak, K. A., Nafi, S. N. M., & Uthamaputhran, L. (2018). Determinants for ICT adoption and problems: Evidence from rural based small and medium enterprises in Malaysia. International Journal of Entrepreneurship, 22(4), 1–13.
Javadi, M. H. M., Zadeh, N. D., Zandi, M., & Yavarian, J. (2012). Effect of Motivation and Trust on Knowledge Sharing and Effect of Knowledge Sharing on Employee’s Performance. International Journal of Human Resource Studies, 2(1), 210. https://doi.org/10.5296/ijhrs.v2i1.1675
Jennex, M., & Olfman, L. (2005). Assessing Knowledge Management Success. International Journal of Knowledge Management (IJKM), 1(2), 33–49. https://doi.org/10.4018/jkm.2005040104
Johnson, R. E., Rosen, C. C., & Chang, C.-H. (2011). To Aggregate or Not to Aggregate?: Steps for Developing and Validating Higher-Order Multidimensional Constructs Related papers. Journal of Business and Psychology, 26, 241–248. https://doi.org/10.1007/s10869-011-9238-1
Jose, G. (2012). Satisfaction with HR Practices and Employee Engagement: A Social Exchange Perspective. Journal of Economics and Behavioral Studies, 4(7), 423–430. https://doi.org/10.22610/jebs.v4i7.343
Joseph F. Hair, Jr., G. Tomas M. Hult, C. M. R. and M. S. (2017). A Primer on Partial Least Squares Structural Equation Modeling. In Long Range Planning.
Joseph F.Hair, J., M.Hult, G. T., Ringle, C. M., & Marko Sarstedt. (2022). A Primer on Partial Least Squares Structural Equation Modelling (PLS-SEM) (3rd Editio). SAGE Publication, Inc.
Junaidah Hashim. (2007). Information Communication Technology ( ICT ) Adoption Among SME Owners in Malaysia. International Journal of Business and Information, 2(2).
Karatepe, O. M., & Karadas, G. (2015). Do psychological capital and work engagement foster frontline employees’ satisfaction?: A study in the hotel industry. International Journal of Contemporary Hospitality Management, 27(6), 1254–1278. https://doi.org/10.1108/IJCHM-01-2014-0028
Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of E-Collaboration, 11(4), 1–10. https://doi.org/10.4018/ijec.2015100101
Kuo, Y. K., Kuo, T. H., & Ho, L. A. (2014). Enabling innovative ability: Knowledge sharing as a mediator. Industrial Management and Data Systems, 114(5), 696–710. https://doi.org/10.1108/IMDS-10-2013-0434
Kuruppuge, R. H., & Gregar, A. (2017a). Family involvement, employee engagement and employee performance in enterprising family firms. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(5), 1695–1707. https://doi.org/10.11118/actaun201765051695
Kuruppuge, R. H., & Gregar, A. (2017b). Knowledge sharing and job performance: the intervening role of technological competency in knowledge-based industries. International Journal of Economics and Statistics, 5(April), 15–20.
Lai, F. Y., Tang, H. C., Lu, S. C., Lee, Y. C., & Lin, C. C. (2020). Transformational Leadership and Job Performance: The Mediating Role of Work Engagement. SAGE Open, 10(1), 1–11. https://doi.org/10.1177/2158244019899085
Lee, H., & Choi, B. (2003). Journal of Management Information Systems, Informa-tion and Management. Journal of Organizational Computing and Electronic Commerce, 20(1), 179–228.
Liao, S., Chang, J., Cheng, S., & Kuo, C. (2004). Employee relationship and knowledge sharing: a case study of a Taiwanese finance and securities firm. Knowledge Management Research & Practice, 2(1), 24–34. https://doi.org/10.1057/palgrave.kmrp.8500016
Lin, H., Fan, W., & Chau, P. Y. K. (2014). Determinants of Users’ Continuance of Social Networking Sites: A Self-Regulation Perspective. Information & Management. https://doi.org/10.1016/j.im.2014.03.010
Lorinkova, N. M., & Perry, S. J. (2014). When Is Empowerment Effective? The Role of Leader-Leader Exchange in Empowering Leadership, Cynicism, and Time Theft. Journal of Management, 43(5), 1631–1654. https://doi.org/10.1177/0149206314560411
M.Emerson, R. (1976). Social Exchange Theory. Annual Review of Sociology, 2(1976), 335–362.
MacKenzie, S. B., & Podsakoff, P. M. (2012). Common Method Bias in Marketing: Causes, Mechanisms, and Procedural Remedies. Journal of Retailing, 88(4), 542–555. https://doi.org/10.1016/j.jretai.2012.08.001
Moliner, C., Martinez-Tur, V., Ramos, J., Peiro, J. M., & Cropanzano, R. (2008). Organizational justice and extrarole customer service: The mediating role of well-being at work. European Journal of Work and Organizational Psychology, 17(3), 327–348. https://doi.org/10.1080/13594320701743616
Na-nan, K., Saribut, S., & Sanamthong, E. (2019). Mediating effects of perceived environment support and knowledge sharing between self-efficacy and job performance of SME employees. Industrial and Commercial Training, 51(6), 342–359. https://doi.org/10.1108/ICT-01-2019-0009
Nabila, S., Ambad, A., Andrew, J. V., Haryani, D., & Awang, D. (2020). Growth Challenges of SMEs?: Empirical Evidence in Sabah , Malaysia Growth Challenges of SMEs?: Empirical Evidence in Sabah , Malaysia. ASEAN Entrepreneurship Journal, 6(1), 8.
Nasir, M. K. M., & Ngah, A. H. (2022). The Sustainability of a Community of Inquiry in Online Course Satisfaction in Virtual Learning Environments in Higher Education. Sustainability (Switzerland), 14(15). https://doi.org/10.3390/su14159633
Nasution, M. D. T. P., Rafiki, A., Lubis, A., & Rossanty, Y. (2021). Entrepreneurial orientation, knowledge management, dynamic capabilities towards e-commerce adoption of SMEs in Indonesia. Journal of Science and Technology Policy Management, 12(2), 256–282. https://doi.org/10.1108/JSTPM-03-2020-0060
Nazir, O., & Islam, J. U. (2017). Enhancing organizational commitment and employee performance through employee engagement: An empirical check. In South Asian Journal of Business Studies (Vol. 6, Issue 1, pp. 98–114). https://doi.org/10.1108/SAJBS-04-2016-0036
Ngah, A. H., Anuar, M. M., Rozar, N. N., Ariza-Montes, A., Araya-Castillo, L., Kim, J. J., & Han, H. (2021). Online sellers’ reuse behaviour for third-party logistics services: An innovative model development and E-Commerce. Sustainability (Switzerland), 13(14), 1–15. https://doi.org/10.3390/su13147679
Nisar, M., & Haque, M. (2018). Investigating the Knowledge Sharing among students in Pakistan. 7(1), 32–39.
Nisar Ul Haq, M., & Haque, M. (2018). Investigating the Knowledge Sharing among students in Pakistan. European Online Journal of Natural and Social Sciences, 7(1), 32–39.
Ohemeng, F. L. K., Obuobisa Darko, T., & Amoako-Asiedu, E. (2019). Bureaucratic leadership, trust building, and employee engagement in the public sector in Ghana. International Journal of Public Leadership, 16(1), 17–40. https://doi.org/10.1108/ijpl-05-2019-0018
Panda, A., Sinha, S., & Jain, N. K. (2021). Job meaningfulness, employee engagement, supervisory support and job performance: a moderated-mediation analysis. International Journal of Productivity and Performance Management, ahead-of-p(ahead-of-print). https://doi.org/10.1108/ijppm-08-2020-0434
Pletnev, D., Kozlova, E. (2022). ICT as an Employee Engagement Driver: Evidence from Russian Firms. In In: Bilgin, M.H., Danis, H., Demir, E., Zaremba, A. (eds) Eurasian Business and Economics Perspectives. Eurasian Studies in Business and Economics, vol 21. Springer, Cham. https://doi.org/https://doi.org/10.1007/978-3-030-94036-2_11
Podrug, N., Filipovi?, D., & Kova?, M. (2017). Knowledge sharing and firm innovation capability in Croatian ICT companies. International Journal of Manpower, 38(4), 632–644. https://doi.org/10.1108/IJM-04-2016-0077
Podsakoff, P. M., Mackenzie, S. B., Lee, J., & Podsakoff, N. P. (2003). Common Method Biases in Behavioral Research?: A Critical Review of the Literature and Recommended Remedies. Journal of Applied Psychology, 88(5), 879–903. https://doi.org/10.1037/0021-9010.88.5.879
Preacher, K. J., & Hayes, A. F. (2004). SPSS and SAS procedures for estimating indirect effects in simple mediation models. Behavior Research Methods, Instruments, and Computers, 36(4), 717–731. https://doi.org/10.3758/BF03206553
Preacher, K. J., & Hayes, A. F. (2008). Asymptotic and resampling strategies for assessing and comparing indirect effects INDIRECT EFFECTS IN MULTIPLE MEDIATOR MODELS. Behavior Research Methods, 40(3), 879–891. https://doi.org/10.3758/BRM.40.3.879
Razali, R., Saraih, U. N., Shaari, M. S., Rani, M. J. A., & Abashah, A. (2018). The Influences of Effectiveness , Competitive Advantages and Market Accessibility on SME Performance in Malaysia . MATEC Web of Conferences, 150(05023), 1–6.
Rohim, A., & Budhiasa, I. G. S. (2019). Organizational culture as moderator in the relationship between organizational reward on knowledge sharing and employee performance. Journal of Management Development, 38(7), 538–560. https://doi.org/10.1108/JMD-07-2018-0190
Sajid, M. (2016). The Impact of Job Satisfaction and Knowledge Sharing on Employee Performance. Journal of Resources Development and Management, 21(1992), 16–23.
Sarstedt, M., Hair, J. F., Cheah, J. H., Becker, J. M., & Ringle, C. M. (2019). How to specify, estimate, and validate higher-order constructs in PLS-SEM. Australasian Marketing Journal, 27(3), 197–211. https://doi.org/10.1016/j.ausmj.2019.05.003
Schaufeli, W. B., Bakker, A. B., & Salanova, M. (2006). The measurement of work engagement with a short questionnaire: A cross-national study. Educational and Psychological Measurement, 66(4), 701–716. https://doi.org/10.1177/0013164405282471
Sekaran, U., & Bougie, R. (2011). Research method for business: A skill building approach. Taylor & Francis.
Selamat, Z., Jaffar, N., & Kadir, H. A. (2014). ICT Adoption in Malaysian SMEs ICT Adoption in Malaysian SMEs. January 2011.
Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J. H., Ting, H., Vaithilingam, S., & Ringle, C. M. (2019). Predictive model assessment in PLS-SEM: guidelines for using PLSpredict. European Journal of Marketing, 53(11), 2322–2347. https://doi.org/10.1108/EJM-02-2019-0189
SME Corp. Malaysia. (2016). SME Annual Report, 2016. http://www.smecorp.gov.my/index.php/en/sme-annual-report2015-16
Sveiby, K. E., & Simons, R. (2002). Collaborative climate and effectiveness of knowledge work – an empirical study. Journal of Knowledge Management, 6(5), 420–433. https://doi.org/10.1108/13673270210450388
Swanson, E., Kim, S., Lee, S. M., Yang, J. J., & Lee, Y. K. (2020). The effect of leader competencies on knowledge sharing and job performance: Social capital theory. Journal of Hospitality and Tourism Management, 42(November 2019), 88–96. https://doi.org/10.1016/j.jhtm.2019.11.004
Tahir, H. M., Razak, N. A., & Rentah, F. (2018). The contributions of small and medium enterprises (SME’s) On Malaysian economic growth: A sectoral analysis. Advances in Intelligent Systems and Computing, 739, 704–711. https://doi.org/10.1007/978-981-10-8612-0_73
Thomas H. Davenport, & Prusak, L. (1998). Working Knowledge: How Organizations Manage What They Know (Vol. 35, Issue 09). Harvard Business School Press. https://doi.org/10.5860/choice.35-5167
Vorina, A., David, K., & Vrabi? Vukoti?, A. (2013). The relationship between the development of the ict competencies and employee engagement. Vesnik, 2(1), 37–50.
Wang, Z., Wang, N., & Liang, H. (2014). Knowledge sharing, intellectual capital and firm performance. Management Decision, 52(2), 230–258. https://doi.org/10.1108/MD-02-2013-0064
Wu, W. L., & Lee, Y. C. (2017). Empowering group leaders encourages knowledge sharing: integrating the social exchange theory and positive organizational behavior perspective. In Journal of Knowledge Management (Vol. 21, Issue 2).
Yan, Z., Wang, T., Chen, Y., & Zhang, H. (2016). Knowledge sharing in online health communities: A social exchange theory perspective. Information and Management, 53(5), 643–653. https://doi.org/10.1016/j.im.2016.02.001
Yin, N. (2018). The influencing outcomes of job engagement: an interpretation from the social exchange theory. International Journal of Productivity and Performance Management, 67(5), 873–889. https://doi.org/10.1108/IJPPM-03-2017-0054
Yusoff, T., Wahab, S. A., Latiff, A. S. A., Osman, S. I. W., Zawawi, N. F. M., & Faza, S. A. (2018). Sustainable Growth in SMEs?: A Review from the Malaysian Perspective. Journal of Management and Sustainability, 8(3), 43–54. https://doi.org/10.5539/jms.v8n3p43