Influences of Digital Economy on E-commerce in Malaysia
Introduction to the research background, objective/purpose of studies, research direction, conceptual framework, significance of the studies, and scope of studies.
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Added on 2023-06-10
About This Document
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.
Influences of Digital Economy on E-commerce in Malaysia
Introduction to the research background, objective/purpose of studies, research direction, conceptual framework, significance of the studies, and scope of studies.
Added on 2023-06-10
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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
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
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
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
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
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
1
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
1
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
2
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
2
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