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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.

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?

Background on IT and E-Commerce in Malaysia

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 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.

Role of Government in Encouraging E-Commerce Initiatives

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 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 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).

Factors Driving E-Commerce Adaptability towards Stakeholders

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, 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).

  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.
  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.

Evaluation of Influences of Technology Adaptability, Internet Knowledge, Trust, and Accessibility on Digital Economy of E-Commerce in Malaysia

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 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 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).

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).

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.

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 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.

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.

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.

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.

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.

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 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.

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. 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, 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.

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 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 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 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).

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 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.

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 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 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).

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.

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.

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

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)

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).

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).

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.

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 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 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.

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 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 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 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

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)

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).  

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).

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)

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.

Data analysis and findings

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

Ethnicity

Frequency

Percent

Valid

Malay

29

14.5

Chinese

87

43.5

Indian

59

29.5

Others

25

12.5

Total

200

100.0

Age

Frequency

Percent

Valid

21 – 30 years

49

24.5

31 – 40 years

78

39.0

41 – 50 years

41

20.5

51 – 60 years

14

7.0

61 years and older

18

9.0

Total

200

100.0

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

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

Marital Status

Frequency

Percent

Valid

Single

58

29.0

Married

96

48.0

Others

46

23.0

Total

200

100.0

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

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

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

Valid

Strongly Agree

17

8.5

Agree

67

33.5

Neutral

46

23.0

Disagree

40

20.0

Strongly Disagree

30

15.0

Total

200

100.0

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

Disagree

40

20.0

Strongly Disagree

33

16.5

Total

200

100.0

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

Neutral

46

23.0

Disagree

40

20.0

Strongly Disagree

34

17.0

Total

200

100.

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

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

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.

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

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

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

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

 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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.  

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

.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

 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

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

 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

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

.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

 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

 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

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

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

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

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

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

Regression

Variables Entered/Removeda

Model

Variables Entered

Variables Removed

Method

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

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

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.

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

.015

 I learn internet knowledge since schooling period

.243

.028

.258

8.628

.000

 Internet knowledge is important to use e-commerce

.166

.028

.177

6.008

.000

 Internet knowledge very important for me

.438

.034

.458

13.074

.000

 Internet knowledge will create more awareness of digital economy

.100

.029

.103

3.391

.001

 Internet knowledge will motivate to use e-commerce facilities

.109

.024

.117

4.501

.000

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

Regression

Variables Entered/Removeda

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

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

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.

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

 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

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

Accessibility

.045

.078

.044

.579

.563

a. Dependent Variable: Digital

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.

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.

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.  

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.

Reference

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