Developing and validating a digital inclusion instrument for sme entrepreneurs

Abstract

Entrepreneurial digital inclusion is essential for the evolution of small and medium businesses today. However, instrument for measuring digital inclusion among these entrepreneurs is scarce. Therefore, this study purposes to develop and validate a digital inclusion instrument for SMEs. Structural Equation Modelling of EFA and CFA were conducted using survey data collected from Malaysian SMEs. Reliability and validity were tested for this measurement scale. Dimensions like ‘social networking’, ‘information search’, ‘e-commerce’, and ‘e-marketing’ were discovered to be the main dimensions for digital inclusion in SMEs and they were found to be valid and reliable. These dimensions are combined from the literature review which were previously separated. Result indicated that digital inclusion was a multidimensional construct. Extension of the digital inclusion’s multidimensionality were observed in the SMEs. The implications of the finding are that entrepreneurs and researchers are able to assess digital inclusion by using these dimensions. Accordingly, policies and program are able to be developed by businesses and government agencies subsequently.