Influences of Digital Economy on E-commerce in Malaysia

This study explores the impact of digital economy on e-commerce in Malaysia. It discusses the government's role in encouraging e-commerce initiatives, the adaptability of stakeholders to e-commerce, and the shift towards a digital economy. The study also provides a conceptual framework and a literature review on the topic.

The Influences of Digital Economy in Development of e-commerce in
Malaysia
Name of the Student
Name of the University
Author note

Table of Contents
CHAPTER ONE..............................................................................................................................1
INTRODUCTION...........................................................................................................................1
Research Background......................................................................................................................1
Objective/ Purpose of studies..........................................................................................................5
Research Objective..........................................................................................................................5
Research Questions..........................................................................................................................6
Research Direction...........................................................................................................................6
Conceptual Framework....................................................................................................................9
Significance of the Study...............................................................................................................10
Scope of studies.............................................................................................................................11
Summary........................................................................................................................................11
CHAPTER TWO...........................................................................................................................12
LITERATURE REVIEW..............................................................................................................12
Introduction....................................................................................................................................12
Defining Topic...............................................................................................................................12
Digital Economy in Development E- Commerce..........................................................................12
Independent Variables...................................................................................................................14
Technology Adaptability...............................................................................................................14

Internet Knowledge.......................................................................................................................16
Trust...............................................................................................................................................19
Accessibility of Technology..........................................................................................................20
Summary........................................................................................................................................22
CHAPTER THREE.......................................................................................................................23
RESEARCH METHODOLOGY..................................................................................................23
Introduction....................................................................................................................................23
Research Instrument......................................................................................................................23
Pilot study......................................................................................................................................24
Research Design............................................................................................................................25
Sample Size...................................................................................................................................25
Target Population...........................................................................................................................25
Sampling Technique......................................................................................................................26
Research Approach........................................................................................................................26
Descriptive Analysis......................................................................................................................26
Reliability Test...............................................................................................................................27
Normality.......................................................................................................................................28
Correlation analysis.......................................................................................................................28
Conclusion.....................................................................................................................................29
Chapter 4: Data analysis and findings...........................................................................................30

4.1 Introduction..............................................................................................................................30
Discussion....................................................................................................................................117
Chapter 5: Conclusion and recommendations.............................................................................118
5.1 Conclusion.............................................................................................................................118
5.2 Recommendations..................................................................................................................118
5.3 Limitations and future scopes................................................................................................119
Reference.....................................................................................................................................121
Section A: Demographic..............................................................................................................124

List of tables
Table 1: Gender of the respondents...............................................................................................31
Table 2: Ethnicity of the respondents............................................................................................32
Table 3: Age of the respondents....................................................................................................32
Table 4: Academic qualification of the respondents.....................................................................32
Table 5: Sector of working............................................................................................................33
Table 6: Marital status of the respondents.....................................................................................33
Table 7: Monthly household income of the respondents...............................................................33
Figure 4: Academic qualification of the respondents....................................................................37
Table 8: Impact of digital economy on country economy............................................................43
Table 9: Importance of digital economy and e-commerce............................................................45
Table 10: Impact of digital economy on education of the society.................................................46
Table 11: Digital economy create awareness of e-commerce in our country................................47
Figure 11: Digital economy create awareness of e-commerce in our country..............................48
Table 12: Impact of digital economy to create efficient society...................................................49
Table 13: I am familiar with updated technology in our country..................................................50
Table 14: I am easily can adapt with any technology implementation..........................................51
Table 15: Technology make me to be more efficient and effective..............................................52
Table 16: Adoption of technology through using e-commerce.....................................................53
Figure 16: Adoption of technology through using e-commerce....................................................54
Table 17: Technology is applicable to daily task..........................................................................55
Table 18: I learn internet knowledge since schooling period........................................................56
Table 19: Internet knowledge is important to use e-commerce.....................................................57
Table 19: Internet knowledge is important to use e-commerce.....................................................57
Table 20: Importance of internet knowledge.................................................................................58
Table 21: Internet knowledge will create more awareness of digital economy.............................59
Table 22: Internet knowledge will motivate to use e-commerce facilities....................................60
Table 23: Trust of e-commerce websites.......................................................................................61
Table 24: E-commerce website keeps information secure............................................................62
Table 25: feeling convenience for using e-commerce...................................................................63
Figure 25: feeling convenience for using e-commerce..................................................................64
Table 26: Trust online transaction especially using e-commerce website....................................64
Table 27: trust hackers cannot access my information in e-commerce website............................66
Figure 27: trust hackers cannot access my information in e-commerce website...........................66
Table 28: Accessing technology in their area................................................................................67
Table 29: Accessing technology anywhere in the country............................................................68
Table 30: Accessing technology without registration fee..............................................................69
Table 31: Accessing unlimited technology in the country............................................................70
Figure 31: Accessing unlimited technology in the country...........................................................70
Table 32: Technology accessibility is free....................................................................................71

List of figures
Figure 1: Gender of the respondents..............................................................................................35
Figure 2: Ethnicity of the respondents...........................................................................................35
Figure 3: Age of the respondents...................................................................................................36
Figure 5: Sector of working...........................................................................................................38
Figure 6: Marital status of the respondents....................................................................................39
Figure 7: Monthly household income of the respondents.............................................................40
Figure 8: Impact of digital economy on country economy...........................................................44
Figure 9: Importance of digital economy and e-commerce...........................................................45
Figure 10: Impact of digital economy on education of the society...............................................47
Figure 12: Impact of digital economy to create efficient society..................................................49
Figure 13: I am familiar with updated technology in our country.................................................50
Figure 14: I am easily can adapt with any technology implementation........................................51
Figure 15: Technology make me to be more efficient and effective.............................................53
Figure 17: Technology is applicable to daily task.........................................................................55
Figure 18: I learn internet knowledge since schooling period.......................................................56
The above table and graph indicates that 31.5% respondents are agreed that internet knowledge
is important to use e-commerce. However, 21.5% respondents are disagreed about the matter.
Hence, internet knowledge has an important role for using e-commerce.....................................57
Figure 20: Importance of internet knowledge...............................................................................58
Figure 21: Internet knowledge will create more awareness of digital economy...........................59
Table 22: Internet knowledge will motivate to use e-commerce facilities....................................61
Figure 23: Trust of e-commerce websites.....................................................................................62
Figure 24: E-commerce website keeps information secure...........................................................63
Figure 26: Trust online transaction especially using e-commerce website...................................65
Figure 28: Accessing technology in their area..............................................................................67
Figure 29: Accessing technology anywhere in the country...........................................................68
Table 30: Accessing technology without registration fee..............................................................69
Figure 32: Technology accessibility is free...................................................................................72

CHAPTER ONE
INTRODUCTION
Research Background
Information and technologies (IT) has an incredible amount of influence over the current
society, especially on organizations, businesses and consumers. Numerous organizations in
Malaysian are being more innovative and creative by capitalizing on the use of Information
Technology and its advantages to their business activities. These activities have led to the rapid
growth of the IT sectors in Malaysia while at the same time boosting the E-Commerce practice in
Malaysia.
The government in Malaysia believes that IT is the key to the growth of Malaysia’s
economy. Therefore, the sustenance and the growth of this sector will contribute greatly to the
development of Malaysia’s economy. The 8th Malaysian Plan which was announced by the
government put great emphasize and focus on the development of the IT sector. Under this plan
government has allocated resources and funding with the objective to cultivate a knowledge base
economy which is anticipated would allow Malaysia to embark on the digital era in a more
strategic approach. In the 8th Malaysian Plan, the initiatives were designed in order to cater to
both Public and Private sectors by preparing them with the infrastructure of the vital IT
technologies. Government hoped that this initiative would increase the penetration and increase
of IT knowledge in many governmental and private agencies.
The 8th Malaysian Plan were formalised when the government launched the national
information security, and with the establishment of emergency response centre which main
function were to oversee the regulatory, technical, internet security and awareness aspects of the
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IT in Malaysia. With the implementation of these initiatives, an increase of 4.7% annual growth
rate has been achieved from the overall economic sectors in Malaysia, this was a great news to
our country. Supported by the growth in the IT sectors the government has decided to promote
and facilitate the wider adoption and usage of IT Technology in the people’s daily life, example
such as E-Commerce, industry, education and health (Murali Raman, Maniam Kaliannan and
Cheng Ming Yu, 2013). The motivation of this idea was to shift the country from a knowledge
base economy to a competitive knowledge based digital economy. Business activities over the
internet based platform are quickly becoming the trend nowadays.
E-Commerce no longer being.. seen as an alternative but the main platform of business
transaction of choice by the people. Great improvement in country Gross Domestic Product
(GDP) in technology service industry is a great platform for the country to improve country’s
digital economy. For organizations in particular, the New Economy brings immeasurable
possibilities and potential which also means an exceedingly higher competition on a universal
scale. Since the implementation of e-commerce in SMEs Companies, it has greatly contributed to
the country’s financial growth and digital economy as a whole. The implementation of e-
commerce in SME Company’s environment will bring that particular company to go to the next
level in business where they can compete internationally and put a mark in global business map.
When an organization involve in an international and globalization business through the
help of e-commerce, this will give a great help and contribute to the growth of Malaysia when an
external investors invest in Malaysia. E-Commerce is undeniably a business super weapon, if
this business platform being fully utilized by the organization, this platform will undeniably
bring the organization further and more sustainable in the market. the success valued in terms of
profitability and competition is no longer an issues. According to the following authors, they
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established some questions regarding development of e-commerce in our country (Murali
Raman, Murali Kalianannan and Cheng Meng Yu, 2015). What is the role of the government in
encouraging of E-commerce initiatives in the context of developing nations? How can E-
commerce initiative supplement the successful digital economy through SMEs? What factors
drive successfully E-commerce adaptability towards stakeholders? How the society adapt with
culture change from traditional economy to digital economy?
Digital Economy, and Growing up Digital is possibly today's leading expert when the
topic of Digital economy being discussed. This revolutionary book provides us with a framework
on how to better understand of how the digital revolution and what were the impact of this digital
revolutions towards the present business landscape.
Based on pivotal research led by The Alliance for Converging Technologies, which had
brought together over 30 first-class organizations all over the world composed of the executives
from the world’s leading technology, manufacturing, services, and government organizations.,
this research has published an important Blueprint to the Digital Economy which provides us
with the imperative insights into the emergent digital environment all over the world and how
this trends are shaping today's organisation.
The Blueprint of Digital Economy provides a ground breaking views and strategies which
were designed to support the today's businesses to sail and succeed in the vast and very
competitive digital business landscape. The Blueprint of Digital Economy were based on a
multimillion-dollar sequence of study and research programmes which were designed to study
the Internet and how its impact influence the business, this research also brings collected the best
knowledge and strategies based upon the world's prominent technology leaders. Top
management of global firms such as General Motors, IBM, MCI, and Nortel proposed a
3

stimulating illustrations and examples on how their businesses will use emergent networking and
multimedia technologies in order to bring a change to the competitive risks in their respective
industries. Blueprint of the Digital Economy brings a combined fortune of knowledge and
experience of top people in the industry with main purpose it to help businesses to realise digital
promise into a reality (Don Tapscott, 2009).
The shift of economy towards digital economy in today’s world has changed today’s
business landscape and this changes has produced a different forms of organizations which
capitalizes on the usage of IT to improve the knowledge and maximize the organizational
efficiency and effectiveness as a whole. Nevertheless, the more isolated concerns will be shifting
the organizational goals and objectives. Transformational not only happened in organizational
level, but e-commerce adaption is must to organizational level customers, suppliers, employees
and other stakeholders. For examples: when consumer want to improve his or hers learning
efficiency and effectiveness by using IT tools on their own computer or digital devices; the top
performer group where a group of employees within the same company work together
effectively by means of digitals tools to change the present job design to latest technology; the
incorporated firm: when an employees in an brought together in teams to do projects using the IT
technologies, it results in an inclusive structural change; - the incorporated firm: is a firm that has
a well-established connection and networks with its customers and providers which lead to the
creation of value chain.
In this approach products and/or services can be personalized and distributed within a
short period. This effects in shifting the current external relations and reshape the new
boundaries and expectations; - the internetworked business: where a company connect with the
other businesses on an exceptionally flexible basis through a 'virtual' connection or digital form,
4

to produce specific value-added goods for a customer - the internetworked team may be present
for that one product or service only, then return to other groups, as the requirement and market
dictate. However, implementation of e-commerce in business environment, individual usage and
e-government contribute so much for the country’s growth and economical scale. Nevertheless,
in my research I would like to research the adaptability of the technology among our country’s
residents and technology readiness among the residents in our country.
Most of the SMEs are ready to move towards e-commerce and contribution to the digital
economy. But now we should examine readiness and adaptability of the people towards e-
commerce and digital economy. According to the previous researchers they are emphasis on
organizational and customers’ readiness on technology adaptation. But there is some part of
community still preferred to traditional methods of doing business and refused to accept
technology in their daily life. So again, the testing will do on various kind of generations to
identify adaptation of technology in their daily life and the contribution of e-commerce towards
digital economy. Once more, the growth of internet technology is the enabling mechanism for
the expansion of Digital era. And this phenomenon has an extensive influence in triggering
wealth and societal advancement as a whole (Don Tapscott 2013).
Objective/ Purpose of studies
Research Objective
1. This paper seeks to understand the influences of technology adaptability on Digital
Economy.
2. This paper will focus on examining the influences of Internet knowledge on SME.
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3. The aim of this study was to evaluate and validate the influences of Trust on the
consumer’s behavior.
4. This paper study focuses on understanding the influences of accessibility of
technology and how it effect’s consumer.
Research Questions
1. What is the influences of technology adaptability on Digital Economy of E-
Commerce in Malaysia?
2. What is the influences of Internet knowledge on Digital Economy of E-Commerce in
Malaysia?
3. What is the influences of trust on Digital Economy of E-commerce in Malaysia?
4. What is the influences of accessibility of technology on Digital Economy of E-
commerce in Malaysia?
Research Direction
H1: Technology Adaptability is positively related to on Digital Economy of E-
Commerce in Malaysia.
According to the Don Tapscott, 2015 Cyber security Data is now available in a digital
format. Different to the yesteryears, during the old economy where information was kept in
physical form, and the only means of communication can only made possible by going
through the actual physical movement and this method was time consuming and costly to be
6

performed. On the other hand, in the new economy era, information has been transformed
into a digital format, enabled by the digital tools and this transformation permits the free
movement of massive amounts of information within a really short time between individuals
in the different sides of the world. Due to this there are possibilities of cybercrime to take
place since everything is open and there’s no knowing who are the people we are dealing
with. Therefore, it is important for the sellers and buyers to be aware on the existence of
cybercrime and the importance of cyber security in various industry as the world moving
towards this technology.
H2: Internet knowledge is positively related to on Digital Economy of E- Commerce in
Malaysia.
Webpages is a central tool in between consumers and sellers. Majority of businesses are
already linked to their customers through this median, as technology enables the exchange of
data and information amongst businesses and customers, innovative methods to add value to
the business owners and consumers are being found. Webpage is one of the important
element for internet users because webpage will influence digital economy and contribute
huge capacity in e-commerce Malaysia (Mohd Yunus Ali and Mohd Fauzi Mohd Jani, 2015).
H3: Trust is positively connected to Digital Economy of E- Commerce in Malaysia.
Trust is one of the criteria and the fundamental to any relationship, and it’s critically
important especially when dealing with the digital environment. This study identifies that
several fundamental issues related to the trust level in the B2C environment and recommends
a structure based on a series of underpinning connections between these factors. The findings
in this research put forward that people are more likely to purchase a product or services
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from the web if they developed a high degree of trust and familiarity with e-commerce and
have more knowledge and experience in using the web. Users trust levels are most likely to
be swayed by the level of digital economy, e-commerce and user’s web experience. People
that has higher degree level of perceived site quality appear to have a higher level of
perceived market orientation and trustworthiness towards e-commerce. In addition, people
with a higher level of trust in e-commerce are more likely to take part in the e-commerce
transaction and more likely to contribute to the digital economy (Brian J Corbitt, Theerasak
Thanasankit, 2013).
H4: Accessibility of technology is positively related to Digital Economy of E- Commerce
in Malaysia.
The focus in any businesses in the world and the country’s economy at the bigger picture
is towards maximizing the potential of the vast supply of human capital resources, which can
be easily inferred into knowledge. In the new economy, knowledge and technology are the
main drivers while other traditional resources are secondary. Often time, great knowledge is
associated with a great influence and power and this can create an opportunity or way to
transform life for the better. Which also means that organizations as a whole will be required
to shift their old methods on doing things and must focus on developing their employees.
Organization as well must retain and develop the capabilities and competencies of their
employees particularly in term of internet capacity related in order to compete in today’s era.
Nowadays majority of the company employees are familiar with internet knowledge due to
demand of digital economy (Murali Raman, Murali Kaliananan and Cheng Meng Yu, 2015).
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Conceptual Framework
Figure 1.1 (Conceptual Framework for Digital Economy in Development of E- Commerce in
Malaysia)
Resource: Don Top Scott (2013), Murali Raman, Murali Kalianannan and Cheng Meng Yu,
(2015); Mohd Yunus Ali and Mohd Fauzi Mohd Jani (2015) and Brian J Corbitt, Theerasak
Thanasankit (2013).
9
Technology
Adaptability
Internet
Knowledge
Trust
Accessibilit
y to
Digital Economy in
Development of E-
commerce in Malaysia
Develop the
country’s economy
and reputation

According to figure 1.1 dependent variable in this research is Digital Economy in Development
of E-commerce in Malaysia, and the independent variables are cyber security, webpage
adaptability, Internet Knowledge and Trust.
Significance of the Study
There are many researchers on the digital economy for the country’s stability. According
to the Don Tapscott (2013) he has made a strong statement on the creation and formation of a
digital economy at large. Conversely, he does not consider that in order for the economy to thrive
it will be highly reliant on the methods on how people look at it. Language barriers and the entire
social range of cultural differences, such as the different values and beliefs system will at the end
lead to the bigger issue which is the concerns of trust within an organizations. According to
Murali Raman et. al, 2015 said that the concept of assessing wealth in terms of knowledge and
information conception is wonderful but will definitely take a long time to be accepted by the
people at large due to the fact that common standard must be developed accepted by the people.
Nonetheless, the questions from the research gives the people a defined explanation on
the nature of a digital economy landscape and on its advantages over the current economy
landscape. He also makes use of appropriate illustrations on digital economy while at the same
time make use of a simple language which helps one’s to understand the concept and nature of
the topic easily. The digital economy theoretical allows a free access to the information and
facilitates knowledge transfer across boundaries of people in Malaysia. Yet, it is becoming
apparent that there are concerns on the privacy and security of the people and the rising gap of
digital knowledge among the generations of the people in Malaysia. Older generation still
believe in traditional method of economy growth but current generation epically generation x
and y highly believe that digital economy playing an important role in developing country’s
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economy and digital economy through the way of e-commerce. They also believe that country’s
economy growth based on an educated society in technology world.
Scope of studies
This research would be conducted at most of state cities because wanted to examine the digital
economy awareness among the e-commerce society. The survey will be conducted places like
shopping malls, banking area and educational institute. The respondents would be the people that
are familiar with the digital technology in order to do the survey questionnaire. The results of
the survey would confirm the influences of digital economy towards e-commerce in Malaysia.
Summary
Companies are confronted with the challenge of transformation and the need to re-look and re-
invent their system and structure in order to bring an efficient and effective products and services
through the digital technologies. The demand for successful implementation of e-business
through implementation of digital economy is ever increasing. Therefore, it is vital to validate
and understand the problems and barriers experienced and their contributions on the digital
economy. Malaysia is a fast growing country with references of e-commerce in digital
environment. However, before Malaysia can take full advantage of the full worth and the huge
potential of E-commerce, issues such as awareness amongst citizen, improving cooperation
between corporation and improving digital economy must be considered and tackled. Overall, e-
commerce contribution would be giving Malaysia an edge and spot in the world’s digital
economy.
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CHAPTER TWO
LITERATURE REVIEW
Introduction
In this section, it will examine and research how the distinctive components can
influences of digital economy in developing of e-commerce in Malaysia. Definition of the topic,
definition of the framework, theories and proposed framework are well describe over here. The
relationship between digital economy together with independent variable (technology
adaptability, Internet knowledge, trust and accessibility) are examined.
Defining Topic
Digital Economy in Development E- Commerce
According to the Samira Borouji Hojeghan, Alireza Nazari Esfangareh, 2014 stated that
Digital economy is founded and centred on the definition of usage of electronic devices and
services which were produced and traded through the usage of electronic commerce platform,
Digital Economy can be defined as when a business with E-Commerce technologies operates
their business through the online platform and majority of the business operations were
completed through the E-Commerce example such as interaction with business partners and
customers and business conducts were completed through the online transactions with the help of
Internet and Web technologies.
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Stimulated by the growing population all over the world and resource being maximized,
digital economy is no longer being restricted to business transaction and services related to our
life, such as health to the higher education and from commerce to financial industry. People
realized that the rapid development of the broadly defined digital economy has transformed our
daily life. Extra effort is being placed to the current and intense development in electronic or e-
commerce sectors in Malaysia. Despite of its fast growth in the recent years, the development of
e-commerce is viewed as an imperative development that is important but also at the same time a
much needed change which will shape our future to the better economy with the help of IT.
As Alireza Alipour Marzangou, Morteza Ghorbani, Sogand Ranbar Vandi, Sina
Khodami, 3 Saeed Saadati, Meghdad Aminian, (2014) stated in their research that currently with
the fast development in communication and information technology and the most important of it,
the Internet, we are witnessing huge changes in terms of the conditions and the method of
processing and experiencing new inventions being produced much faster compared to the old
era. As a whole, the affinity to make e-commerce as the platform of choice has been observed.
Encouraged by the shifting economic from the traditional economic towards electronic era. In
this study, the definition and explanation of the digital economy will be explained and how its
impact and the important elements and the procedure of its formation, then we will define the E-
Business benefits and its operational challenges in digital economic.
Improvements in information and communications technologies have produced a digital
revolution era that has shifted the way we works, study, connect and performs in our daily life.
E-commerce continues to show strong progress and has produce a positive impacts to the social
and economic growth of our country. Nonetheless, E-Commerce has facilitated the country to
accelerate in the economic growth and providing higher prospects for businesses to grow and be
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more sustainable. Then again, E-Commerce at the same time no lacking of its own challenges
and the growth of E-Commerce has creates a ripples of impacts across various domains
especially to the people and government. The issues being discuss in this study covers the
economic productivity, intellectual rights, privacy protection, and affordability among other
concerns. This study describes several socio-economic influences that have been formed by E-
Commerce in a digital economy (Sushil K. Sharma, 2014).
According to Alqahtani, M. A, Al-Badi, A. H. and Mayhew, P.J (2013) mentioned that
“Digital Economy,” “IT,” and “E-Commerce” has several definitions. While referring to IT, we
will be discussing on information and data processing over the internet. While definition to E-
Commerce can be defined as the business transaction with the help of the internet over an online
and digital platform. On the other hand, the interpretation of Digital Economy includes both IT
and E-Commerce. Therefore, it can be defined that the Digital Economy cannot be called a
standard classification for economic data, so there may possibly be some disagreement on what it
entails.
Independent Variables
Technology Adaptability
In order to understand the aspects which were responsible for technology adaptability, it
is imperative to study the elements that influence the technology acceptance among people.
Rogers (2015) explains that adaptability of innovation is tedious process and requires huge
efforts and time to be consumed and the dissemination of information takes place becomes
important for individuals or organizations that are concerned with acceptance of the technology.
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Roger (2015) also mentioned that Technology adaptability not an important factor about twenty
years ago but currently the world conquers by technology. All the living human nowadays must
familiar with basic technology in the world so that we can easily can access any information they
need anytime and anywhere. Roger 2015 mention also that it is must people must adapt with the
basic technology because it will help to boost digital economy through e-commerce in the future.
According to the Sherah Kurnia, Basil Alzougool, Mazen Ali, (2015) E-Commerce
provides numerous benefits to all organizations no matter of their size such as small to medium-
sized enterprises (SMEs). At this point, it is imperative for us to understand of the potential and
the relevance of E- Commerce in our country as well as the acceptance of SMEs towards E-
Commerce implementation. In addition, there is still a need for a more holistic view of how
several widely known issues at the organization, industry and national levels affect E-Commerce
implementation. Hence, this study recommends a theoretical model of E-Commerce technologies
implementation and adoption by SMEs by integrating several readiness elements which have
been described in the literature that may determine E-commerce technologies adoption by SMEs.
This paper will then explore on how these factors influence the adoption of different E-
Commerce technologies.
SMEs are playing their role to boost the digital economy by introducing e-commerce in
their business. The environmental pressure towards E-Commerce is also being considered in this
study. Saadat M. Alhashmi (2016) stated that through a study on SMEs within the grocery
business in Malaysia as an illustration of a developing country on E-Commerce. The study
validates how several readiness elements influence the adoption of various E-Commerce
technologies. This study will further explain on the adoption of E-Commerce by SMEs in and
their significant impacts on the research and practice of the digital economy. At the same time,
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Abdalslam.S.Imhmed.Mohmed, Nurdiana Binti Azizan, Mohd Zalisham Jali, (2013) stated that
an essential condition for SMEs must be developed before online transaction can be made
possible. Malaysian organizations is encouraged to follow the methods and ways of
implementing e-commerce by imitating similar businesses practices in the developed countries
before we start to implement E-Commerce to our businesses; the developed countries have an
established frameworks on the best ways and practices based on their past experience and
challenges and have successfully broaden the basis of trust with the technology application and
adoption of the law to the new technological environment.
If Malaysian adopt with e-commerce technology, it will give a wide room for the country
to boost digital economy. This is the foundation of trust that lies at the heart of E-Commerce in
the developed world. A suitable environment and platform are required in order implement a
new technology like E-Commerce, the legal aspect that control the payments and online
transaction would be required as proven in developed countries, the company will at a
disadvantage if consumers lack of trust to the companies due to the lack of security, whether real
or imaginary.
Internet Knowledge
Based on Sevgi Özkan, Farid Huseynov, Sema Yildiz Huseynov (2014) mentioned that
the Internet users increase rapidly every year all over the world due to the increase of
infrastructure and accessibility of the internet. Businesses, being aware of prospective
opportunity over the internet, have ventured into the technology and now try to provide
transaction and services over the use Internet based platforms. When consumers are given the
access to the huge amounts of products and services over the online platform, they usually being
16

confronted with the challenges in selecting the right product or service due to the huge range of
options provided. In addition, since the transaction is being conducted online, consumers have
little opportunity to ask for a consultation and advise since there’s no sales advisor contrary to
the traditional brick and mortar establishment where sales representative will be the assist the
consumers in regards to the products and services being offered in the establishment. Devoid of
any advice, online consumers usually run into worries and concern in selecting the best products
that fulfill their needs. So Sevgi Özkan et, al. 2014, also stated that internet knowledge must
implement for all the consumers so that they can familiar with online purchasing and it can
create a best way to develop e-commerce within the country.
Minister of Energy, Communications and Multimedia (KKMM) of Malaysia during the
launching of the National E-Commerce Expo (2012) stated that the prospective revenues from
business to consumer (B2C) and business to business (B2B) from the E-Commerce activities in
Malaysia are set to increase by almost nine fold from USD2.5 billion in 2012 to USD10.4 billion
by 2015. Domestic online sales total RM46 million in 2009, however, several State and
commercial agencies estimated a rise to between RM 750 million and RM1 billion by 2003
(MATRADE, 2012).
The figure above illustrates E-Commerce’s substantial influences to the nation’s
economy development. For that reason, it is only fitting that a study be directed to review the E-
Commerce practices in Malaysia. Based on the Ministry of Energy, Communications and
Multimedia indicated that usage of e-commerce is increasing yearly due to many Malaysian are
exposed to the culture of technology. It is also showing that internet knowledge is not something
new for Malaysian even in rural areas since smart phone is introduce in Malaysia. This study
17

will focuses on the SMEs as they are an imperative economic vitality to a nation ((Sulaiman
Ainin and Jaafar Noorismawati, 2012).)
Other than that knowledge of Information Technology among SMEs still important for
the development of digital economy. Presently, website is an important element for businesses
because it is the face of the company and consumers browse through the internet to gather
information, through the usage of a website, entrepreneurs and business owners can extensively
broadcast and disseminate information to consumers and potential consumers and this activities
will provide customers an opportunity to select the best product and services that attracts their
attention. According to the Hamid and Baharun (2014) in his research on the entrepreneurship in
Kelantan, he discovered in his research that the majority of entrepreneurs in Kelantan are still
using the traditional way on doing business, they have not adopted the current technology such
as the usage of computers in their daily business operations and at the same time these
entrepreneurs are not entirely exposed on the knowledge on IT and their benefits to the business.
The study also discovered that it is challenging for the people in the rural area since they
are not exposed with the progress of technology. This phenomenon not only happened in
Kelantan, but also in other SMEs in Malaysia who are still far behind with the usage of the
Internet in business transactions. This study revealed and explain that the knowledge and skills
of Internet based platform among SMEs in our country is somewhat low compared to the other
developed countries. On the other hand, the researcher also discovered that the level of IT
knowledge in Terengganu is somewhat similar with Kelantan since majority of sectors still has
low IT technology sectors and similar trends being observed on the new or long established
industries (Mansor and Abdul Manap, 2013). In this aspect, it can be concluded that a more
proactive involvement by the relevant parties should be taken immediately and a support by
18

businesses with the status of the Multimedia Super Corridor (MSC) would help to rive this
initiative and explain the importance of E-commerce technology in the business which will be
enhancing their business and create more awareness among community the importance of e-
commerce in developing digital economy, Hashim and Hamid, (2014).
Trust
Based on Na Li and Ping Zhang, (2015) consumers' trust to a provider or supplier results
with becoming committed to the company. Trust issue will increase with a few successful
transactions, after individuals start feel safe and confidence and believe that this merchant
answers their needs and wants as per the consumers’ requirement. On the other hand, provided
information is another issue in terms of e-commerce. Since e-commerce is an activity which
related to a computer-system, individuals cannot touch or feel products and services. Therefore,
their decisions based on the information that provided by online retailer. Information issue not
only important in terms of availability situation, it is also important in convenience and
personalization concept. Web site design, access to information, access time to information also
influence on behaviours of consumers in adapting in e-commerce. According to the Lakshmi. S,
(2016), Trust in online transaction is an important factor for people to use e-commerce because
e-commerce will help to develop digital economy. So SMEs are playing their role to provide
prompt information in online so that many consumers will get use to e-commerce. This will help
country economy to transfer from traditional economy to digital economy.
Johnson-George and Swap (2016), stated that “readiness and willingness to take risks
may be one of the few characteristics common to all trust situations. They also claimed that to
properly study the trust level there must be some meaningful motivations or incentives at stake
19

and that the trustor must be cognizant of the risk involved. The definition of trust proposed in
this research is the willingness of a party to be vulnerable to the actions of another party based on
the expectation that the other will perform a particular action important to the trustor,
irrespective of the ability to monitor or control that other party (Park and Kim, 2013). Trust can
be a crucial factor in business to consumer (B2C) E-Commerce. It provides consumers with faith
to buy products or services even if an e-trader is unknown to the consumers. It encourages the
consumers to use more of E-Commerce technologies, makes the e-transaction process easier,
improves the level of acceptance and adoption of E-Commerce, leads to the improvement of
consumer commitment, raise customer satisfaction, introduces the concept of loyalty, sustains
long-term relationships with customers and assists the acquiring of a competitive benefit because
it will help to improve the country economy towards digital economy.
Future purchases can be encouraged and increased prices will be tolerated. With trust, it
will reduce customer anxieties about information privacy, and eases customers concerns and
tolerate the irregular blunders made by the e-trader (Pittayachawan, 2017). Trust is an intricate
and sophisticated concept and has a huge multitude of sides to be addressed. There are a number
of researchers who have persistently come within reach of the ‘trust’ issue from a technical side
such as Internet and network security and even web interface design. Nonetheless, according to
Ratnasingham and Kumar (2013), considering just the technical perceptions will not guarantee
trust in e-commerce.
Accessibility of Technology
As the internet is quickly to become a main source of information and services, a well-
designed e-commerce website has become a necessity so that consumers can have an access to
the public information and improve their participation in the e-commerce. E-commerce websites
20

can assist as an instrument for both communication and relations for the customers and general
public. Information and data can effortlessly be shared with and be transferred to external
stakeholder (Moon, 2002). Henry (2006) defines web accessibility as getting people to use,
perceive, comprehend, direct and interact with the web. The International Standards
Organizations (ISO) has defined accessibility as “the usability of a product, service, environment
or facility by people with the widest range of proficiencies”.
Gummerus (2014), explain the user interface as the channel through which customers are
in interaction with the e-service provider. Park and Kim 2013, found that the quality of the user
interface influences customer satisfaction directly, since it offers physical evidence of the service
provider’s competence as well as enabling effortless use of the service. Because of its
significance to customer satisfaction, Tan, Tung, and Xu (2009) recognized fourteen key
elements for developing effective B2C e-commerce websites. Furthermore, Cyr 2013 studied the
effect of B2C e-commerce website user interface design factors (such as information design,
navigation design, and visual design) on trust and satisfaction across three developed countries;
Canada, Germany, and China. Cyr found that these user interface design variables are key
antecedents to website trust and website satisfaction across cultures. Trustable website will
create more reassurance for consumers to perceive e-commerce and finally usage of e-commerce
can be increase among the people.
An exception was found by a study conducted by Agarwal and Prasad (2013). Their
study examined the role of website accessibility and perceived voluntariness in the acceptance of
information technologies. Agarwal and Prasad (2013) also found that accessibility and Internet
technology due to the high visibility that the technology has. Website accessibility important
factor here because people want everything in ease. Due to that technology accessibility is an
21

important element for people to adapt with e-commerce and boost digital economy within our
country. Ever since smart phone introduce in our country usage of data is increase among
consumer in urban and rural area. So smart phone is one of the important tool for the people
visiting website involving in e-purchasing. It’s also contributed very much for digital economy
(Siti Hajar Halili, Hamidah Sulaiman1, 2018).
Summary
The findings and analysis demonstrated the relationship with technology adaptability, internet
knowledge, trust and accessibility of website were the factors influences in digital economy and
e-commerce. The theories are further to investigation with essential information. The above
discussion reviews a range of previous researches that have used for investigating the SMEs and
people in e-commerce and digital economy in Malaysia.
22

CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
The main components of the third chapter are the explanation of the investigation
conceptual framework. The research equation is presented right after the research hypotheses.
The techniques that will be used in the questionnaire are discussed in this chapter including the
measurements. For the data location, the main method will be distributing questionnaires for
conducting the survey. Furthermore, methods such as sampling and data collection are discussed
in more details and in the end to encapsulate the results, data analysis are presented.
Research Instrument
In this study, the method which has been used is a self-administered method to get the
respond (Salkind, 2009). The questionnaires were adopted from previous studies regarding this
topic and the Likert scale was used as the main measurement in order to measure all variable
which has been developed in framework proposal. There are two sections for the questionnaires
where B is consisting of dependent variable and C includes all five independent variables.
Table 3.1: Research Instrument
Section Variables that need to
be measured Items Scale Resources
23

B
DV
Digital Economy in E-
Commerce
Development
α= 0.811
6 5-point
Murali Raman, Murali
Kalianannan and Cheng Meng
Yu, (2015)
C
IV
Technology
Adaptability
α= 0.754
5 5-point
Mohd Yunus Ali and Mohd
Fauzi Mohd Jani ( 2015)
C Internet Knowledge
α= 0.833 7 5-point Sulaiman Ainin and Jaafar
Noorismawati, 2012
C Trust
α= 0.754 5 5-point Ratnasingham and Kumar 2013
C
Accessibility of
Technology
α= 0.718
6 5-point
Murali Raman, Murali
Kalianannan and Cheng Meng
Yu, (2015)
Pilot study
A pilot study is a test to analyze and assess the feasibility of questionnaires designed
(Meriwether, 2012). The main objective of the study is to verify that the instructions and content
of the questionnaire are clear and understandable by the respondents. Cronbach’s Alpha value
was used to examine the reliability of the pilot test (Boon, Yee, & Ting, 2014). Minor
amendments were made to the questionnaires based on the feedback from the respondents
(Arain, 2014).
24

Research Design
This a research paper on identifying factors which influence digital economy in
development E-Commerce in Malaysia. The quantitative method was used by the researcher
where empirical assessment encompasses of analysis and numerical measurement. In this study,
the deductive approach was used by to carry out this study based on existing research and
theories (Saunders, Lewis & Thornhill, 2014) to examine the relationship between digital
economy in development E-Commerce in Malaysia and the four factors (Technology
adaptability, Internet Knowledge, Trust and Accessibility of Technology).
Sample Size
Sampling design can be defined as a process of choosing a certain amount of people
in order to provide exact and correct information for the whole population (Hair, Babin, Money,
& Samouel, 2013). According to Cattell (2014), the minimum sample size of 200 respondents is
enough for the study which consists of three to six variables. For the research there are four
variables will be studied, therefore, 200 samples considered to be sufficient to represent the
entire population.
Target Population
Easton & McColl (2016), defined the target population as the group of the people that
research is considered to choose. The target group of people for the study has been chosen the
residence of Malaysia. In this study, the age of respondents is above 18 years old despite the race
and gender. The young adults who are the target respondents enrolled in courses and
qualification in this studies. Mainly targeting capital of Malaysia and state capital to get more
25

educated generation to fill up this questionnaire. Other than that, most of the cities are targeted
for this questionnaire so that the study will be more in term of accuracy.
Sampling Technique
Sampling can be understood as a method of selecting incidents, events or the respondents
for reasons such as study or a research. There are two methods in the process of sampling which
are non-probability and probability (Sekaran, 2013). The first type, which is the probability
sampling, is occurred when the population’s entities are having an identical probability of being
chosen. As for this research, it uses purposive sampling under the non-probability sampling. This
method is used the information is only gathered from a particular group of people.
Research Approach
From research metrology perspective, according to Bryman & Bell (2015), research
approach can be defined as a process of collecting data for identifying factors which are
inflicting the independent variable.
Descriptive Analysis
Descriptive statistics are brief expressive coefficients that review a given data set, which
can be either an exemplification of the entire population or a sample of it. Descriptive statistics
are broken down into measures of central tendency and measures of variability or spread.
Measures of central tendency include the mean, median and mode, while measures of variability
include the standard deviation or variance, the minimum and maximum variables, and the
26

kurtosis and skewness. All descriptive statistics, whether they be the mean, median, mode,
standard deviation, kurtosis or skewness, are either measures of central tendency or measures of
variability. These two methods use graphs, tables and general discussions to help people
recognize the meaning of the data being analyzed. (Orifjon, 2013)
Reliability Test
Reliability is a crucial test for examining the elements of the variable in terms of reliability.
Hence, the reliability analysis is the test of a Cronbach’s alpha to make sure that measurements
are free of error and bias for getting a consistent result (Sekaran, 2013). Questionnaire’s
reliability can be measured in varies ways. One of the most used measurements of reliability is
Cronbach’s alpha and it’s kind of a tool in detecting variable’s consistency in the questionnaire.
This method is commonly used to ensure the reliability by detecting the reliability of an item or
its regular relationship. Thus, to find out the degree to which a set of items is positively
correlated to each other is done through the Cronbach’s alpha. Cronbach alpha is less complex
compared to another measurement (Cavana, & Delahaye, 2014). The general for Cronbach alpha
is that when (α) which represents the correlation and standardization of elements in the
questionnaire exceeds 0.5 then variables considered good and acceptable. Therefore, the results
of Cronbach alpha should be above 0.5 in order to be accepted and show that the items of the
variables are reliable (Malhotra, 2015). The rule of thumb for Cronbach’s alpha coefficient value
is shown in the following table.
Table 3.2 Reliability Test, Range, and Indication
The Coefficient Range of Alpha Reliability Analysis
Less than 0.5 Poor
27

0.60-0.69 Acceptable
0.70-0.79 Moderate
0.80-0.89 Good
0.90-0.99 Excellent
1.00 Perfect
Sources: Straub, Boudreau, & Gefen, (2014)
Normality
This test is specifically to examine whether the collected data was normally distributing it
or not. There is more than one test can be used in order to get the results of the distribution of
data (Hair et al., 2014). One of the effective tests is a histogram of residuals in which the error
will be detected easily. Therefore, the histogram of residuals was used in order to identify and
compare the shape of the distribution of the shape of a normal curve. In case, the shape of the
sample is normal then it considered the sample has been distributed normally (Sit, & Chong,
2013).
Correlation analysis
Pearson correlation is a statistical test that assesses the strength of the relationship between
two numerical data variables (Saunders et al., 2013). Therefore, the relationship between
independent variables and the dependent variable is measured via Pearson Correlation. The
significance level is 0.05 in the Pearson Correlation test, which means there is 95% of
confidence level. Therefore, the hypotheses only can be accepted if the significant p-value is less
than 0.05 (Malhorta, 2013).
28

Table 3.3: Interpretation of Correlation Indices
Correlation Indices Size Interpretation (Relationship)
< 0.20 Very Low Correlation
0.2 – 0.4 Low Correlation
0.4 – 0.6 Moderate Correlation
0.6 – 0.8 High Correlation
0.8 – 1.0 Very High Correlation
Sources: Gratton and Jones (2010)
Conclusion
In this chapter, the research framework and research methodology which covered explore
diagram, masses, test measure, investigate, instruments, data gathering strategies and real
methods are discussed. The present study is a correlation study, which investigates the
relationship between the variables.
29

Chapter 4: Data analysis and findings
4.1 Introduction
In the current chapter of the research, detailed analysis of the collected survey data is presented.
At first, the demographic profile of the sample is studied. In addition, the sample for different
features of socio-demographic provide is discussed in the chapter. The reliability of the collected
sample data is studied in this chapter of the research. However, the correlation analysis between
the variables is studied for understanding relation between the factors of the research. ANOVA
analysis is used for understanding the mean scores of the variables.
Frequencies
Gender
Frequency Percent
Valid
Male 85 42.5
Female 115 57.5
Total 200 100.0
Table 1: Gender of the respondents
30

Figure 1: Gender of the respondents
Ethnicity
Frequency Percent
Valid
Malay 29 14.5
Chinese 87 43.5
Indian 59 29.5
Others 25 12.5
Total 200 100.0
Table 2: Ethnicity of the respondents
Figure 2: Ethnicity of the respondents
Age
Frequency Percent
Valid 21 – 30 years 49 24.5
31 – 40 years 78 39.0
41 – 50 years 41 20.5
31

51 – 60 years 14 7.0
61 years and older 18 9.0
Total 200 100.0
Table 3: Age of the respondents
Figure 3: Age of the respondents
Academic Qualification
Frequency Percent
Valid
Secondary Education or lower 26 13.0
Diploma and Certificate 73 36.5
Undergraduates 58 29.0
Post Graduates 21 10.5
Others 22 11.0
Total 200 100.0
Table 4: Academic qualification of the respondents
32

Figure 4: Academic qualification of the respondents
Which Sector are you working in
Frequency Percent
Valid
Private 38 19.0
Homemaker 73 36.5
Self-employed / Business 37 18.5
Government / GLC 19 9.5
Student 8 4.0
Unemployed 8 4.0
7.00 17 8.5
Total 200 100.0
Table 5: Sector of working
33

Figure 5: Sector of working
Marital Status
Frequency Percent
Valid
Single 58 29.0
Married 96 48.0
Others 46 23.0
Total 200 100.0
Table 6: Marital status of the respondents
34

Figure 6: Marital status of the respondents
Monthly Household Income (RM)
Frequency Percent
Valid
< 2000 30 15.0
2001 - 4000 64 32.0
4001 - 6000 34 17.0
6001 - 8000 25 12.5
8001 - 10000 23 11.5
> 10000 24 12.0
Total 200 100.0
Table 7: Monthly household income of the respondents
35

Figure 7: Monthly household income of the respondents
According to the table, the data mentions that the percentage of male is 42.5% in the survey,
whereas the percentage of female in the survey is 57.5%. However, the percentage of Malay in
the survey is 14.5%. Nearly 43.5% respondents are Chinese in the survey. Moreover, 29.5%
respondents in the survey are Indian. The respondents aged between 21-30 years are 24.5%.
There are 39% respondents participated in the survey in the age between 31-40 years. On the
other hand, most of the respondents are diploma and certificate holder. In terms of working in the
particular sector, 19% respondents are working private sector, whereas 36.5% respondents are
working as homemaker.
Frequency Table
Frequency Percent
Valid
Strongly Agree 22 11.0
Agree 70 35.0
Neutral 33 16.5
Disagree 44 22.0
Strongly Disagree 31 15.5
Total 200 100.0
36

Table 8: Impact of digital economy on country economy
Figure 8: Impact of digital economy on country economy
Findings and analysis
From the above table and graph, it clearly indicates that nearly 11% respondents out of total
number of respondents in the survey are strongly agreed digital economy has ability to improve
economy of the country by implementing e-commerce. Approximately 35% respondents are
agreed about the matter. In the survey, 22% respondents are disagreed and 15.5% respondents
are strongly disagreed about the impact of digital economy on economy of the country.
Hence, it is important for the SMEs organizations to focus on adopting latest technology in order
to gain competitive benefits in the market.
Frequency Percent
V
a
li
d
Strongly Agree 17 8.5
Agree 67 33.5
Neutral 46 23.0
Disagree 40 20.0
Strongly Disagree 30 15.0
37

Total 200 100.0
Table 9: Importance of digital economy and e-commerce
Figure 9: Importance of digital economy and e-commerce
Findings and analysis
In the table and graph, it is mentioned that there is 8.5% respondents in the survey are strongly
agreed that digital economy and e-commerce applicable to all developing country, whereas
33.5% respondents are agreed. On the other hand, nearly 20% respondents are disagreed on the
matter. There are 15% respondents strongly disagreed on the matter. Hence, SMEs need to focus
on so that digital economy as well as e-commerce applicable to all developing as well as
developed country.
Frequency Percent
Valid Strongly Agree 14 7.0
Agree 66 33.0
Neutral 47 23.5
38

Disagree 40 20.0
Strongly Disagree 33 16.5
Total 200 100.0
Table 10: Impact of digital economy on education of the society
Figure 10: Impact of digital economy on education of the society
In the survey, nearly 7% participants in the survey are strongly agreed that digital economy
create more educated society through using e-commerce, whereas 33% respondents are agreed.
There are 23.5% respondents neutral on the matter. Nearly 16.5% respondents are strongly
disagreed on the statement. Hence, it is required to focus on creating educated society by using e-
commerce.
Frequency Percent
Valid Strongly Agree 13 6.5
Agree 67 33.5
39

Neutral 46 23.0
Disagree 40 20.0
Strongly Disagree 34 17.0
Total 200 100.0
Table 11: Digital economy create awareness of e-commerce in our country
Figure 11: Digital economy create awareness of e-commerce in our country
In the survey, most of the respondents are agreed that digital economy has an important role on
creating awareness of e-commerce in the country. However, few respondents are disagreed on
the matter.
Frequency Percent
Valid
Strongly Agree 16 8.0
Agree 64 32.0
Neutral 47 23.5
Disagree 39 19.5
Strongly Disagree 34 17.0
Total 200 100.0
40

Table 12: Impact of digital economy to create efficient society
Figure 12: Impact of digital economy to create efficient society
The above table suggests that digital economy is able creating awareness of e-commerce
companies in the country. However, 33.5% respondents are agreed on the matter. There are 20%
respondents disagreed on the mater.
Frequency Percent
Valid
Strongly Agree 12 6.0
Agree 59 29.5
Neutral 56 28.0
Disagree 34 17.0
Strongly Disagree 39 19.5
Total 200 100.0
Table 13: I am familiar with updated technology in our country
41

Figure 13: I am familiar with updated technology in our country
The table suggests that 6% respondents are strongly familiar with the updated technology.
However, 17% respondents are not familiar with the updated technology. Hence, it is important
to focus on implementing technology and create internet knowledge within the people.
Frequency Percent
Valid
Strongly Agree 9 4.5
Agree 71 35.5
Neutral 42 21.0
Disagree 41 20.5
Strongly Disagree 37 18.5
Total 200 100.0
Table 14: I am easily can adapt with any technology implementation
42

Figure 14: I am easily can adapt with any technology implementation
Frequency Percent
Valid
Strongly Agree 12 6.0
Agree 66 33.0
Neutral 48 24.0
Disagree 38 19.0
Strongly Disagree 36 18.0
Total 200 100.0
Table 15: Technology make me to be more efficient and effective
43

Figure 15: Technology make me to be more efficient and effective
The table shows that most of the respondents are agreed that technology makes them more
effective. However, few respondents remain neutral, as they are not sure with the result of
adopting technology.
Frequency Percent
Valid
Strongly Agree 10 5.0
Agree 58 29.0
Neutral 45 22.5
Disagree 46 23.0
Strongly Disagree 41 20.5
Total 200 100.0
Table 16: Adoption of technology through using e-commerce
44

Figure 16: Adoption of technology through using e-commerce
In the table, it has been indicated that 29% respondents are agreed that they adopt technology
using e-commerce. However, 20.5% respondents are strongly disagreed about the matter. The
table suggests that there are most of the participants are agreed that they adapt technology using
e-commerce.
Frequency Percent
Valid
Strongly Agree 13 6.5
Agree 77 38.5
Neutral 32 16.0
Disagree 45 22.5
Strongly Disagree 33 16.5
Total 200 100.0
Table 17: Technology is applicable to daily task
45

Figure 17: Technology is applicable to daily task
The table indicates that 38.5% respondents are agreed that technology is applicable to their daily
task. However, nearly 16.5% respondents are strongly disagreed about the matter. Hence, it is
required by the organizations to make people more familiar with technology.
Frequency Percent
Valid
Strongly Agree 10 5.0
Agree 60 30.0
Neutral 40 20.0
Disagree 54 27.0
Strongly Disagree 36 18.0
Total 200 100.0
Table 18: I learn internet knowledge since schooling period
46

Figure 18: I learn internet knowledge since schooling period
There are most of the respondents agreed that they learn internet knowledge since schooling
period. However, few respondents are disagreed about the particular matter.
Frequency Percent
Valid
Strongly Agree 12 6.0
Agree 63 31.5
Neutral 47 23.5
Disagree 43 21.5
Strongly Disagree 35 17.5
Total 200 100.0
Table 19: Internet knowledge is important to use e-commerce
47

Table 19: Internet knowledge is important to use e-commerce
The above table and graph indicates that 31.5% respondents are agreed that internet knowledge
is important to use e-commerce. However, 21.5% respondents are disagreed about the matter.
Hence, internet knowledge has an important role for using e-commerce.
Frequency Percent
Valid
Strongly Agree 9 4.5
Agree 59 29.5
Neutral 47 23.5
Disagree 49 24.5
Strongly Disagree 36 18.0
Total 200 100.0
Table 20: Importance of internet knowledge
48

Figure 20: Importance of internet knowledge
The above table suggests that most of the respondents are agreed that internet knowledge is
important for them. Hence, it is important for the government to take initiative regarding internet
learning for common people.
Frequency Percent
Valid
Strongly Agree 9 4.5
Agree 59 29.5
Neutral 48 24.0
Disagree 51 25.5
Strongly Disagree 33 16.5
Total 200 100.0
Table 21: Internet knowledge will create more awareness of digital economy
49

Figure 21: Internet knowledge will create more awareness of digital economy
The table shows that most of the respondents are agreed that internet knowledge create more
awareness of digital economy. However, 25.5% respondents are disagreed about the matter.
Frequency Percent
Valid
Strongly Agree 8 4.0
Agree 66 33.0
Neutral 35 17.5
Disagree 51 25.5
Strongly Disagree 40 20.0
Total 200 100.0
Table 22: Internet knowledge will motivate to use e-commerce facilities
50

Table 22: Internet knowledge will motivate to use e-commerce facilities
The table indicates that 33% respondents are agreed about the matter. However, 20%
respondents are strongly disagreed about the matter. The table shows that most of the
respondents are agreed that internet knowledge will motivate for using e-commerce facilities.
However, few respondents are disagreed about the matter.
Frequency Percent
Valid
Strongly Agree 7 3.5
Agree 59 29.5
Neutral 45 22.5
Disagree 53 26.5
Strongly Disagree 36 18.0
Total 200 100.0
Table 23: Trust of e-commerce websites
51

Figure 23: Trust of e-commerce websites
Frequency Percent
Valid
Strongly Agree 10 5.0
Agree 54 27.0
Neutral 49 24.5
Disagree 48 24.0
Strongly Disagree 39 19.5
Total 200 100.0
Table 24: E-commerce website keeps information secure
52

Figure 24: E-commerce website keeps information secure
The graph indicates that 27% respondents are agreed that e-commerce website keeps information
securely. However, 24% respondents are disagreed about the matter. Hence, the e-commerce
sites need to emphasize on providing more security to the users.
Frequency Percent
Valid
Strongly Agree 9 4.5
Agree 56 28.0
Neutral 47 23.5
Disagree 50 25.0
Strongly Disagree 38 19.0
Total 200 100.0
Table 25: feeling convenience for using e-commerce
53

Figure 25: feeling convenience for using e-commerce
In the table and graph, it indicates that nearly 28% respondents feel convenience for using e-
commerce. However, 19% respondents are strongly disagreed about the matter. Hence, the e-
commerce organizations need to focus on the matter.
Frequency Percent
Valid
Strongly Agree 7 3.5
Agree 57 28.5
Neutral 48 24.0
Disagree 44 22.0
Strongly Disagree 44 22.0
Total 200 100.0
Table 26: Trust online transaction especially using e-commerce website
54

Figure 26: Trust online transaction especially using e-commerce website
The above table and graph indicates that nearly 22.5% respondents trust that online transactions
using e-commerce websites. However, 44% respondents have not trust on online transactions
using the websites. Hence, it is required for the e-commerce organizations to develop security
measures so that people have trust on this.
I trust hackers cannot access my information in e-commerce
website
Frequency Percent
Valid
Strongly Agree 7 3.5
Agree 53 26.5
Neutral 63 31.5
Disagree 44 22.0
Strongly Disagree 33 16.5
Total 200 100.0
Table 27: trust hackers cannot access my information in e-commerce website
55

Figure 27: trust hackers cannot access my information in e-commerce website
In the table, it has been indicated that 26.5 respondents are agreed that they trust that hackers
cannot access their personal information in the e-commerce websites. However, 16.5%
respondents are disagreed about the matter. Hence, the organizations need to take effective steps
so that personal information are kept securely in the websites.
Frequency Percent
Valid
Strongly Agree 13 6.5
Agree 55 27.5
Neutral 45 22.5
Disagree 50 25.0
Strongly Disagree 37 18.5
Total 200 100.0
Table 28: Accessing technology in their area
56

Figure 28: Accessing technology in their area
According to the table, nearly 53% respondents are agreed that 27.5% respondents are agreed
that they access technology anytime in their area. However, 18.5% respondents are strongly
disagreed about the matter.
Frequency Percent
Valid
Strongly Agree 9 4.5
Agree 57 28.5
Neutral 56 28.0
Disagree 42 21.0
Strongly Disagree 36 18.0
Total 200 100.0
Table 29: Accessing technology anywhere in the country
57

Figure 29: Accessing technology anywhere in the country
Accessing technology is one of the major criteria for improving digital economy in a country. In
the table, it has been indicated that there are 28.5% respondents out of total respondents are
agreed that they access technology in anywhere in Malaysia. However, 21% respondents and
18% respondents are disagreed and strongly disagreed regarding the matter. Hence, the
government needs to take proper steps so that people can access e-commerce sites anywhere in
Malaysia.
Frequency Percent
Valid
Strongly Agree 9 4.5
Agree 54 27.0
Neutral 44 22.0
Disagree 53 26.5
Strongly Disagree 40 20.0
Total 200 100.0
Table 30: Accessing technology without registration fee
58

Table 30: Accessing technology without registration fee
From the above table and graph, it clearly indicates that there are 27.5% respondents are agreed
that they can access any e-commerce website without any registration fee. However, nearly
26.5% respondents are disagreed about accessing e-commerce websites without registration fees.
Hence, government and agencies of the country need to take proper steps so that the advantages
of developing e-commerce can be gained in Malaysia.
Frequency Percent
Valid
Strongly Agree 11 5.5
Agree 55 27.5
Neutral 45 22.5
Disagree 54 27.0
Strongly Disagree 35 17.5
Total 200 100.0
Table 31: Accessing unlimited technology in the country
59

Figure 31: Accessing unlimited technology in the country
The above table indicates that there are 27% respondents are agreed that there is unlimited
technology accessibility in the country. However, 27% respondents are disagreed about the
matter. Hence, it is required to focus on accessibility of technology so that the organization can
gain competitive benefits.
Frequency Percent
Valid
Strongly Agree 11 5.5
Agree 62 31.0
Neutral 43 21.5
Disagree 46 23.0
Strongly Disagree 38 19.0
Total 200 100.0
Table 32: Technology accessibility is free
60

Figure 32: Technology accessibility is free
The table and graph indicates that there are nearly 5.5% respondents out of total number of
respondents are strongly agreed that technology accessibility is free of charge in the country. In
addition, 31% respondents are agreed about the matter, whereas 21.5 respondents are neutral on
the matter. However, 23% respondents are disagreed about the matter. Hence, the above table
suggests that most of the respondents are agreed that technology accessibility is free of the
charge in their country.
Bar Chart
Reliability
Scale: ALL VARIABLES
Case Processing Summary
N %
Cases Valid 200 100.0
61

Excludeda 0 .0
Total 200 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha N of Items
.905 5
Item Statistics
Mean Std. Deviation N
Digital economy improve country
economy through implementation of
e-commerce
2.9600 1.27929 200
Digital economy and e-commerce
applicable to all developing and
developed country
2.9950 1.21753 200
Digital economy create more
educated society through using e-
commerce
3.0600 1.21399 200
Digital economy create awareness
of e-commerce in our country 3.0750 1.21522 200
Digital economy able to create
more efficient society through usage
of e-commerce
3.0550 1.23271 200
In the test, the value of Cronbach’s alpha is .905. Hence, the analysis is properly justified.
Item-Total Statistics
Scale Mean if Item
Deleted
Scale Variance if
Item Deleted
Corrected Item-Total
Correlation
Cronbach's Alpha if
Item Deleted
Digital economy improve country
economy through implementation of
e-commerce
12.1850 18.162 .709 .896
Digital economy and e-commerce
applicable to all developing and
developed country
12.1500 18.389 .734 .891
62

Digital economy create more
educated society through using e-
commerce
12.0850 17.636 .826 .871
Digital economy create awareness
of e-commerce in our country 12.0700 17.895 .794 .878
Digital economy able to create
more efficient society through usage
of e-commerce
12.0900 18.102 .754 .886
Scale Statistics
Mean Variance Std. Deviation N of Items
15.1450 27.532 5.24706 5
Reliability
Scale: ALL VARIABLES
Case Processing Summary
N %
Cases
Valid 200 100.0
Excludeda 0 .0
Total 200 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha N of Items
.900 5
Item Statistics
Mean Std. Deviation N
I am familiar with updated
technology in our country 3.1450 1.21298 200
63

I am easily can adapt with any
technology implementation 3.1300 1.21262 200
Technology make me to be more
efficient and effective 3.1000 1.21548 200
I am adapt with technology through
using e-commerce 3.2500 1.21857 200
Technology is applicable to my
daily task 3.0400 1.23939 200
Item-Total Statistics
Scale Mean if Item
Deleted
Scale Variance if
Item Deleted
Corrected Item-Total
Correlation
Cronbach
's Alpha if
Item
Deleted
I am familiar with updated
technology in our country 12.5200 17.778 .714 .886
I am easily can adapt with any
technology implementation 12.5350 17.436 .755 .877
Technology make me to be more
efficient and effective 12.5650 17.192 .782 .871
I am adapt with technology through
using e-commerce 12.4150 17.309 .765 .875
Technology is applicable to my
daily task 12.6250 17.391 .738 .881
Scale Statistics
Mean Variance Std. Deviation N of Items
15.6650 26.556 5.15321 5
Reliability
Scale: ALL VARIABLES
64

Case Processing Summary
N %
Cases
Valid 200 100.0
Excludeda 0 .0
Total 200 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha N of Items
.890 5
Item Statistics
Mean Std. Deviation N
I learn internet knowledge since
schooling period 3.2300 1.20180 200
Internet knowledge is important to
use e-commerce 3.1300 1.20847 200
Internet knowledge very important
for me 3.2200 1.18262 200
Internet knowledge will create more
awareness of digital economy 3.2000 1.16481 200
Internet knowledge will motivate to
use e-commerce facilities 3.2450 1.22165 200
Item-Total Statistics
Scale Mean if Item
Deleted
Scale Variance if
Item Deleted
Corrected Item-Total
Correlation
Cronbach's
Alpha if Item
Deleted
I learn internet knowledge since
schooling period 12.7950 16.355 .721 .868
Internet knowledge is important to
use e-commerce 12.8950 16.255 .728 .866
Internet knowledge very important
for me 12.8050 15.736 .818 .846
65

Internet knowledge will create more
awareness of digital economy 12.8250 16.376 .751 .861
Internet knowledge will motivate to
use e-commerce facilities 12.7800 16.856 .644 .886
Scale Statistics
Mean Variance Std. Deviation N of Items
16.0250 24.808 4.98080 5
Reliability
Scale: ALL VARIABLES
Case Processing Summary
N %
Cases
Valid 200 100.0
Excludeda 0 .0
Total 200 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha N of Items
.907 5
Item Statistics
Mean Std. Deviation N
I am trust e-commerce website 3.2600 1.16585 200
E-commerce website keep my
information secure 3.2600 1.19564 200
I feel convenience for using e-
commerce 3.2600 1.18720 200
66

I can trust online transaction
especially using e-commerce
website
3.3050 1.19965 200
I trust hackers cannot access my
information in e-commerce website 3.2150 1.11580 200
Item-Total Statistics
Scale Mean if Item
Deleted
Scale Variance if
Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if Item
Deleted
I am trust e-commerce website 13.0400 16.431 .771 .885
E-commerce website keep my
information secure 13.0400 16.340 .756 .888
I feel convenience for using e-
commerce 13.0400 16.360 .761 .887
I can trust online transaction
especially using e-commerce
website
12.9950 16.106 .782 .883
I trust hackers cannot access my
information in e-commerce website 13.0850 16.872 .759 .888
Scale Statistics
Mean Variance Std. Deviation N of Items
16.3000 25.075 5.00753 5
Reliability
Scale: ALL VARIABLES
Case Processing Summary
N %
Cases
Valid 200 100.0
Excludeda 0 .0
Total 200 100.0
67

a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha N of Items
.894 5
Item Statistics
Mean Std. Deviation N
I can access technology anytime in
my area 3.2150 1.21910 200
I can access technology anywhere
in my country 3.1950 1.16782 200
I can access any e-commerce
website without any registration fee 3.3050 1.19546 200
There is unlimited technology
accessibility in my country 3.2350 1.19032 200
Technology accessibility is free of
charge in my country 3.1900 1.22121 200
Item-Total Statistics
Scale Mean if Item
Deleted
Scale Variance if
Item Deleted
Corrected
Item-Total
Correlation
Cronbach's
Alpha if Item
Deleted
I can access technology anytime in
my area 12.9250 16.401 .742 .870
I can access technology anywhere
in my country 12.9450 16.354 .794 .859
I can access any e-commerce
website without any registration fee 12.8350 16.259 .781 .861
There is unlimited technology
accessibility in my country 12.9050 16.559 .747 .869
Technology accessibility is free of
charge in my country 12.9500 17.264 .637 .893
Scale Statistics
68

Mean Variance Std. Deviation N of Items
16.1400 25.216 5.02160 5
Correlations
Correlations
Digital Tech Internet Trust Accessibility
Digital
Pearson Correlation 1 .760** .735** .657** .619**
Sig. (2-tailed) .000 .000 .000 .000
N 200 200 200 200 200
Tech
Pearson Correlation .760** 1 .816** .675** .692**
Sig. (2-tailed) .000 .000 .000 .000
N 200 200 200 200 200
Internet
Pearson Correlation .735** .816** 1 .761** .660**
Sig. (2-tailed) .000 .000 .000 .000
N 200 200 200 200 200
Trust
Pearson Correlation .657** .675** .761** 1 .788**
Sig. (2-tailed) .000 .000 .000 .000
N 200 200 200 200 200
Accessibility
Pearson Correlation .619** .692** .660** .788** 1
Sig. (2-tailed) .000 .000 .000 .000
N 200 200 200 200 200
**. Correlation is significant at the 0.01 level (2-tailed).
Regression
Variables Entered/Removeda
Model Variables Entered Variables Removed Method
69

1
Digital economy
able to create more
efficient society
through usage of e-
commerce, Digital
economy improve
country economy
through
implementation of e-
commerce, Digital
economy and e-
commerce
applicable to all
developing and
developed country,
Digital economy
create awareness of
e-commerce in our
country, Digital
economy create
more educated
society through
using e-commerceb
. Enter
a. Dependent Variable: Digital
b. All requested variables entered.
Model Summaryb
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .969a .940 .938 .29240
a. Predictors: (Constant), Digital economy able to create more efficient society through
usage of e-commerce, Digital economy improve country economy through
implementation of e-commerce, Digital economy and e-commerce applicable to all
developing and developed country, Digital economy create awareness of e-commerce
in our country, Digital economy create more educated society through using e-
commerce
b. Dependent Variable: Digital
70

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 258.693 5 51.739 605.148 .000b
Residual 16.587 194 .085
Total 275.280 199
a. Dependent Variable: Digital
b. Predictors: (Constant), Digital economy able to create more efficient society through usage of e-commerce, Digital
economy improve country economy through implementation of e-commerce, Digital economy and e-commerce
applicable to all developing and developed country, Digital economy create awareness of e-commerce in our country,
Digital economy create more educated society through using e-commerce
`Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) -.209 .063 -3.292 .001
Digital economy improve country
economy through implementation of
e-commerce
.112 .024 .122 4.741 .000
Digital economy and e-commerce
applicable to all developing and
developed country
.159 .025 .164 6.281 .000
Digital economy create more
educated society through using e-
commerce
.269 .031 .278 8.716 .000
Digital economy create awareness
of e-commerce in our country .336 .029 .347 11.661 .000
Digital economy able to create
more efficient society through
usage of e-commerce
.198 .027 .208 7.375 .000
a. Dependent Variable: Digital
Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
71

Predicted Value .8652 5.1609 3.0600 1.14016 200
Residual -.92763 1.36566 .00000 .28870 200
Std. Predicted Value -1.925 1.843 .000 1.000 200
Std. Residual -3.172 4.671 .000 .987 200
a. Dependent Variable: Digital
Graph
Regression
Variables Entered/Removeda
Model Variables Entered Variables Removed Method
72

1
Technology is applicable to my
daily task, I am familiar with
updated technology in our country,
I am easily can adapt with any
technology implementation, I am
adapt with technology through
using e-commerce, Technology
make me to be more efficient and
effectiveb
. Enter
a. Dependent Variable: Tech
b. All requested variables entered.
The table shows regression analysis between digital economy in development of e-commerce in
Malaysia and internet knowledge, trust and accessibility to technology.
Model Summaryb
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .960a .921 .919 .33301
a. Predictors: (Constant), Technology is applicable to my daily task, I am familiar with
updated technology in our country, I am easily can adapt with any technology
implementation, I am adapt with technology through using e-commerce, Technology
make me to be more efficient and effective
b. Dependent Variable: Tech
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 251.281 5 50.256 453.186 .000b
Residual 21.514 194 .111
73

Total 272.795 199
a. Dependent Variable: Tech
b. Predictors: (Constant), Technology is applicable to my daily task, I am familiar with updated technology in
our country, I am easily can adapt with any technology implementation, I am adapt with technology through
using e-commerce, Technology make me to be more efficient and effective
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) -.241 .076 -3.183 .002
I am familiar with updated
technology in our country .206 .029 .213 7.128 .000
I am easily can adapt with any
technology implementation .182 .031 .189 5.812 .000
Technology make me to be more
efficient and effective .336 .032 .349 10.407 .000
I am adapt with technology through
using e-commerce .162 .032 .169 5.042 .000
Technology is applicable to my
daily task .198 .029 .210 6.786 .000
a. Dependent Variable: Tech
Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value .8422 5.1768 3.1450 1.12371 200
Residual -.87846 1.36961 .00000 .32880 200
Std. Predicted Value -2.049 1.808 .000 1.000 200
Std. Residual -2.638 4.113 .000 .987 200
a. Dependent Variable: Tech
Graph
74

Regression
Variables Entered/Removeda
Model Variables Entered Variables Removed Method
1
Internet knowledge
will motivate to use
e-commerce
facilities, Internet
knowledge is
important to use e-
commerce, I learn
internet knowledge
since schooling
period, Internet
knowledge will
create more
awareness of digital
economy, Internet
knowledge very
important for meb
. Enter
a. Dependent Variable: Internet
b. All requested variables entered.
75

Model Summaryb
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .963a .927 .925 .31022
a. Predictors: (Constant), Internet knowledge will motivate to use e-commerce facilities,
Internet knowledge is important to use e-commerce, I learn internet knowledge since
schooling period, Internet knowledge will create more awareness of digital economy,
Internet knowledge very important for me
b. Dependent Variable: Internet
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 235.925 5 47.185 490.290 .000b
Residual 18.670 194 .096
Total 254.595 199
a. Dependent Variable: Internet
b. Predictors: (Constant), Internet knowledge will motivate to use e-commerce facilities, Internet knowledge is
important to use e-commerce, I learn internet knowledge since schooling period, Internet knowledge will create
more awareness of digital economy, Internet knowledge very important for me
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1(Constant) -.184 .075 -2.465 .01
5
I learn internet knowledge since
schooling period .243 .028 .258 8.628 .00
0
Internet knowledge is important to
use e-commerce .166 .028 .177 6.008 .00
0
Internet knowledge very important
for me .438 .034 .458 13.074 .00
0
Internet knowledge will create more
awareness of digital economy
.100 .029 .103 3.391 .00
1
76

Internet knowledge will motivate to
use e-commerce facilities .109 .024 .117 4.501 .00
0
a. Dependent Variable: Internet
Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value .8724 5.0965 3.2050 1.08883 200
Residual -1.09577 .96729 .00000 .30630 200
Std. Predicted Value -2.142 1.737 .000 1.000 200
Std. Residual -3.532 3.118 .000 .987 200
a. Dependent Variable: Internet
Graph
Regression
Variables Entered/Removeda
77

Model Variables Entered Variables Removed Method
1
I trust hackers
cannot access my
information in e-
commerce website,
E-commerce website
keep my information
secure, I feel
convenience for
using e-commerce, I
am trust e-
commerce website,
I can trust online
transaction
especially using e-
commerce websiteb
. Enter
a. Dependent Variable: Trust
b. All requested variables entered.
Model Summaryb
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .956a .915 .912 .32384
a. Predictors: (Constant), I trust hackers cannot access my information in e-commerce
website, E-commerce website keep my information secure, I feel convenience for
using e-commerce, I am trust e-commerce website, I can trust online transaction
especially using e-commerce website
b. Dependent Variable: Trust
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 218.050 5 43.610 415.845 .000b
Residual 20.345 194 .105
Total 238.395 199
a. Dependent Variable: Trust
78

b. Predictors: (Constant), I trust hackers cannot access my information in e-commerce website, E-
commerce website keep my information secure, I feel convenience for using e-commerce, I am trust e-
commerce website, I can trust online transaction especially using e-commerce website
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) -.103 .078 -1.311 .191
I am trust e-commerce website .226 .032 .240 7.066 .000
E-commerce website keep my
information secure .173 .031 .189 5.566 .000
I feel convenience for using e-
commerce .200 .031 .217 6.462 .000
I can trust online transaction
especially using e-commerce
website
.228 .033 .250 6.935 .000
I trust hackers cannot access my
information in e-commerce website .218 .033 .222 6.681 .000
a. Dependent Variable: Trust
Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value .9424 5.1232 3.3050 1.04677 200
Residual -.97280 1.43355 .00000 .31974 200
Std. Predicted Value -2.257 1.737 .000 1.000 200
Std. Residual -3.004 4.427 .000 .987 200
a. Dependent Variable: Trust
Graph
79

Regression
Variables Entered/Removeda
Model Variables Entered Variables
Removed
Method
1
Technology accessibility is
free of charge in my country, I
can access technology
anywhere in my country, I can
access technology anytime in
my area, I can access any e-
commerce website without any
registration fee, There is
unlimited technology
accessibility in my countryb
. Enter
a. Dependent Variable: Accessibility
b. All requested variables entered.
80

Model Summaryb
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .958a .917 .915 .33209
a. Predictors: (Constant), Technology accessibility is free of charge in my country, I
can access technology anywhere in my country, I can access technology anytime in my
area, I can access any e-commerce website without any registration fee, There is
unlimited technology accessibility in my country
b. Dependent Variable: Accessibility
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 236.000 5 47.200 427.978 .000b
Residual 21.395 194 .110
Total 257.395 199
a. Dependent Variable: Accessibility
b. Predictors: (Constant), Technology accessibility is free of charge in my country, I can access technology
anywhere in my country, I can access technology anytime in my area, I can access any e-commerce website
without any registration fee, There is unlimited technology accessibility in my country
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1(Constant) -.245 .079 -3.084 .002
I can access technology anytime in
my area .207 .030 .222 6.824 .000
I can access technology anywhere
in my country .245 .038 .252 6.409 .000
I can access any e-commerce
website without any registration fee .382 .032 .401 12.045 .000
There is unlimited technology
accessibility in my country
.132 .033 .138 3.993 .000
81

Technology accessibility is free of
charge in my country .095 .026 .102 3.629 .000
a. Dependent Variable: Accessibility
Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value .8158 5.0587 3.1950 1.08900 200
Residual -1.32195 1.05614 .00000 .32789 200
Std. Predicted Value -2.185 1.711 .000 1.000 200
Std. Residual -3.981 3.180 .000 .987 200
a. Dependent Variable: Accessibility
Graph
82

Regression
Variables Entered/Removeda
Model Variables Entered Variables Removed Method
1 Accessibility,
Internet, Tech, Trustb . Enter
a. Dependent Variable: Digital
b. All requested variables entered.
Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate
1 .794a .630 .623 .72260
a. Predictors: (Constant), Accessibility, Internet, Tech, Trust
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 173.462 4 43.365 83.052 .000b
Residual 101.818 195 .522
Total 275.280 199
a. Dependent Variable: Digital
b. Predictors: (Constant), Accessibility, Internet, Tech, Trust
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) .222 .172 1.293 .198
Tech .438 .081 .436 5.396 .000
Internet .248 .090 .238 2.739 .007
Trust .158 .089 .147 1.767 .079
83

Accessibility .045 .078 .044 .579 .563
a. Dependent Variable: Digital
Discussion
The above results in the table suggest that regression analysis between the compulsory
characteristics of implanting digital technology as well as impact on economy of the country.
From the table, it has been found that the variability in impact on economy of the country can be
predicted with the variable compulsory characteristics of implementation of digital technology.
The ANOVA table shows that the regression analysis is statistically significant, p<0.001. From
the coefficients table is observed that the impact of compulsory characteristics of digital
technology and its impact on the economy of the county.
The table shows that the results of the regression analysis between of the influence of digital
economy in development of the e-commerce in Malaysia. From the table, it has been found that
89% of the variability in satisfaction of the respondents. The ANOVA table shows that
regression analysis is significant, p<0.001.
From the coefficients table, it is observed that the impact of evaluation is necessary
characteristics of the e-commerce sites on satisfaction can be expressed as, p<0.001. Hence, the
regression analysis shows that there is a relation between internet knowledge, trust and
accessibility to technology with digital economy in the development of e-commerce in Malaysia.
84

Chapter 5: Conclusion and recommendations
5.1 Conclusion
Information and technologies has influences over organizations. There are several organizations
in Malaysia are innovative, businesses as well as creative through capitalizing on the utilization
of information technology and its benefits to the activities of business. The activities have led to
rapid development of IT sectors in Malaysia during boosting e-commerce practice in Malaysia.
The government in Malaysia believes that information technology is one of the key for
development of economy of the organization. Hence, sustenance as well as development of the
sector will contribute to economy of the country. It is hoped that initiative can increase
penetration as well as increasing IT knowledge in several governmental along with private
agencies. The 8th Malaysian Plan is formalized during launching of the national information
security. From the above study, it can be concluded that adoption of technology has an impact on
economy of the country. On the other hand, substance as well as growth of the organizations
depends on the process. In addition, the plan has been announcement of the government makes
the proper use of information technology on the economy of the country. It has been allocated
the resources as well as finding the objective in order to cultivate knowledge based on the
allocated resources as well as funding with the objectives for cultivation of knowledge. On the
contrary, the 8th Malaysian plan has been formulated. E-commerce becomes an alternative,
however the main platform of the business. Hence, it is important to focus on adoption of
information technology properly as it has a great impact on economy of the country.
85

5.2 Recommendations
In order to eliminate the issues faced while using information technology in the organizations,
the recommendations can be helpful.
 Enhancing country through implementing e-commerce.
 Adopting technology with proper security measures
 Accessibility of the internet to all
 Increasing internet knowledge for all
 E-commerce sites should be used appropriately
It is important to apply digital economy as well as e-commerce in the developed and developing
country. In addition, it is important to create awareness of the e-commerce in the country.
However, creating awareness is important and efficient society by using e-commerce. However,
being familiar with the updated technology in the country would be helpful for the country. In
addition, technology makes more efficient as well as effective in the process. It is required to
apply technology in daily tasks. Internet knowledge is one of the important aspects that help to
use e-commerce sites properly. It is also important to use the facilities of e-commerce. The
information needs to be kept securely. Feeling convenience for using the e-commerce is another
important aspect that should be kept in mind.
5.3 Limitations and future scopes
The research has limitations, as the survey was restricted within Malaysia. In addition, some of
the respondents have provided hapazard answers in the survey. The time was so limited for a
particular time that does not allow the participants of the larger samples for better quality of the
analysis. On the other hand, financial budget was limited in the study that may hamper quality
of the study.
The scope of the study for having the restrictions could not be exploited for roper potential level.
In addition, the topic could have developed with the study of several organizations, examples of
e-commerce companies for clothing retail organizations so that the economy can be improved.
Furthermore, comparative study also improves the opportunity of observing the several steps
applied in both the organizations.
86

87

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Appendix A: Questionnaire
BUSINESS RESEARCH PROJECT QUESTIONNAIRE
The Influences of Digital Economy in Development of e-commerce in
Malaysia.
Dear respondents,
. As part of our final year project, we are conducting a survey on “The Influences of Digital
Economy in Development of e-commerce in Malaysia”.
We sincerely invite you to participate in this business research by completing the questionnaire.
This questionnaire only requires few minutes of your time to complete it. Your participation is
highly appreciated and thank you for your cooperation in spending time to assist me in my
research study. The information gathered and acquired through this questionnaire will be used
solely for academic purposes. We firmly assure that all information provided to us will be kept
PRIVATE AND CONFIDENTIAL. We truthfully appreciate your cooperation in completing
this questionnaire. Thank you for your precious time participation in this study.
Section A: Demographic
This part is to get the basic personal information of respondents.
1. Gender
A) Male
B) Female
6. Internet Access
A) Yes
B) No
91

2. Ethnicity
A) Malay
B) Chinese
C) Indian
D) Others: ____________
3. Age
A) 21 – 30 Years
B) 31 – 40 Years
C) 41 – 50 Years
D) 51 – 60 Years
E) 61 and older
4. Academic Qualification
A) Secondary Education or lower
B) Diploma and Certificate
C) Undergraduates
D) Postgraduate
E) Others ______________
5. Which Sector Are You Working in
A) Private
B) Homemaker
C) Self-employed/Business
D) Retired
E) Government/GLC
F) Student
G) Unemployed
7. Marital Status
A) Single
B) Married
C) Other
8. Monthly Household Income (RM)
A) <2,000
B) 2,001 – 4,000
C) 4,001 – 6,000
D) 6,001 – 8,000
E) 8,001 – 10,000
F) ≥10,001
Section B: Variable
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This part is to obtain opinion of respondents about The Influences of Digital Economy in
Development of e-commerce in Malaysia. This part is using the Likert Scale
(Strong Agree - 5, Agree - 4, Neutral – 3, Disagree - 2, Strongly Disagree -1)
Please tick (√) in the column based on your opinion.
No Statement
Strongly
Disagree
Strongly
Agree
Digital Economy in Development of E-Commerce
1
Digital economy improve country economy through
implementation of e-commerce
1 2 3 4 5
2
Digital economy and e-commerce applicable to all developing
and developed country
1 2 3 4 5
3
Digital economy create more educated society through using e-
commerce
1 2 3 4 5
4
Digital economy create awareness of e-commerce in our
country
1 2 3 4 5
5
Digital economy able to create more efficient society through
usage of e-commerce
1 2 3 4 5
Technology adaptability
6. I am familiar with updated technology in our country 1 2 3 4 5
7. I am easily can adapt with any technology implementation 1 2 3 4 5
8. Technology make me to be more efficient and effective 1 2 3 4 5
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9. I am adapt with technology through using e-commerce 1 2 3 4 5
10
.
Technology is applicable to my daily task 1 2 3 4 5
Internet Knowledge
11
.
I learn internet knowledge since schooling period 1 2 3 4 5
12
.
Internet knowledge is important to use e-commerce 1 2 3 4 5
13
.
Internet knowledge very important for me 1 2 3 4 5
14
.
Internet knowledge will create more awareness of digital
economy
1 2 3 4 5
15
.
Internet knowledge will motivate to use e-commerce facilities. 1 2 3 4 5
Trust
16
.
I am trust e-commerce website 1 2 3 4 5
17
.
E-commerce website keep my information secure 1 2 3 4 5
18
.
I feel convenience for using e-commerce 1 2 3 4 5
94

19
.
I can trust online transaction especially using e-commerce
website
1 2 3 4 5
20
.
I trust hackers cannot access my information in e-commerce
website
1 2 3 4 5
Technology Accessibility
21
.
I can access technology anytime in my area 1 2 3 4 5
22
.
I can access technology anywhere in my country 1 2 3 4 5
23
.
I can access any e-commerce website without any registration
fee.
1 2 3 4 5
24
.
There is unlimited technology accessibility in my country 1 2 3 4 5
25
.
Technology accessibility is free of charge in my country 1 2 3 4 5
Thank you. 
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