This study examines the environmental factors influencing the implementation of Electronic Medical Records (EMRs) in Malaysian public healthcare institutions, focusing on Vendor IT Capability and Coercive Pressure. EMRs are critical for enhancing healthcare quality, yet their implementation has been slow due to unique challenges like interoperability, inadequate IT infrastructure, and resistance to change. Using the Technology-Organization-Environment (TOE) framework, this research identifies vendor IT capability including personnel capability, methodology capability, and client management capability as crucial for successful EMR implementation. Additionally, coercive pressures from external entities such as customers, suppliers, and partners further shape implementation strategies. The study highlights that overcoming these challenges requires strategic investments in IT infrastructure, capacity building, fostering a supportive organizational culture, and promoting collaboration between stakeholders. The findings provide valuable insights for healthcare administrators, policymakers, and technology vendors to develop effective frameworks for promoting EMR utilization, thereby improving patient outcomes and healthcare efficiency in Malaysia’s evolving digital health landscape.
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