Integration of information technology among small and medium-sized enterprise manufacturing sector in Malacca.

This paper seeks to identify the extent of IT integration among Malacca Manufacturing SMEs, The significant environmental and organizational factors that affect IT integration, and the relationships between IT integration and the performance efficiencies of value chain activities A study conducted on 100 SMEs discovered that the level of IT integration is limited to some functional area only. IT integration is found to be greater in the support activities of the value chain. Higher levels of IT integration are found mainly in manufacturing companies, companies which produce high technological goods and services, Companies with larger number of employees, and those with clear vision and mission objectives. Positive perception of management and employees toward computer technologies and systems are also found to result in higher IT integration levels. The overall correlation is significant to substantiate the hypothesis that higher levels of IT integration lead to better performance efficiencies in all functional areas.