Objective- The purpose of this paper is to identify the relationship between technological factors and innovation-adoption among technology-based SMEs in Malaysia.

Methodology/Technique - The study uses questionnaires survey and regression analysis to test the hypothesis in a sample of 172 from two listings which are InnoCert company list and MTDC list of technology companies.

Findings This analysis involved the factors that influence innovation adoption, which are the technological factors are categorized into relative advantage, compatibility, complexity, trial-ability, observability, ease of use, and perceived usefulness. The result shows that an innovation-adoption is significantly influenced by technological factors (relative advantage, complexity, ease of use, and perceived usefulness).

Novelty - The current state of innovation-adoption among technology-based SMEs in Malaysia is not well understood and clear. Factors that influence innovation-adoption among these technology-based companies need to be explored further since they have distinct characteristics compared to general SMEs. The significant impact of innovation on nation economic growth has propelled many countries, including Malaysia to strengthen their innovation capabilities. Among these SMEs, majority of innovation activities in has been centered on technology-based SMEs.

Type of Paper Empirical paper

Keywords: , Innovation, Adoption, Innovation Adoption, Organizational Innovation.