Understanding of e-Commerce Adoption in Malaysia and the Mediation Effects of Perceived Strategic Value

Seng Chee Lim, Xiu Ying Pan, Seng Poh Lim, Chen Kang Lee and Joi San Tan

In the era of Fourth Industrial Revolution, the integration of Information and Communication Technology (ICT) in the business operations for all industries both physically and virtually has become an essential norm. It is able to simplify the complicated and smoother the process, especially in the business transaction. With the raising of eCommerce practices which can assist the organization in increasing their profit and exploring for new potential market, most of the large organization have adopted and expanded their business through eCommerce practices. However, the adoption rate of eCommerce among Small and Medium Enterprises (SMEs) in Malaysia is still sufficientin its infancy state.It is very crucial because SMEs plays a signification role in contributing towards the growth of economic for Malaysia. Therefore, the objective of this research is to formulate a systematic approach by identifying the potential factors which can influence SMEs to adopt eCommerce in their organization. Quantitative survey method is applied to collect the data from the manufacturing sectors in Malaysia. Adoption is the dependent variable (DV) whereas Perceived Benefits (PB), Top Management (TM) and Government Support (GS) are the independent variables (IVs). Managerial Productivity (MP), Operational Support (OS) and Strategic Decision Aids (SDA) are the mediate variables (MVs) which derived based on Perceive Strategic Value (PSV). Based on the results, the three IVs show significant towards DV. OS and SDA show partially mediation effect while MP do not contains mediation effect on the DV. The output of this study can be used as the guidance to assist the local SMEs in understanding the eCommerce and to encourage more organizations to involve so that realization on Industry 4.0 mission can be achieved.

Volume 11 | 05-Special Issue

Pages: 813-819