E-Commerce Limitation and Study

11/5/2015 ECommerceReadiness:AcasestudyontheeffectivenessofBusinessandInformationTechnologyIntegrationwithinanOrganizationincreatinga
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ECommerceReadiness:AcasestudyontheeffectivenessofBusinessand
InformationTechnologyIntegrationwithinanOrganizationincreatingaBusiness
CompetitiveEdgeinKualaLumpurMalaysia
REVISIONREQUEST
ECommerceReadiness:AcasestudyontheeffectivenessofBusinessandInformationTechnologyIntegrationwithinanOrganizationincreatinga
BusinessCompetitiveEdgeinKualaLumpurMalaysia
Name
Date
Institution
Program
Acknowledgments
Iwouldliketoacknowledgemywifewhogavemeconstantencouragementandsupportthroughouttheprocessofconductingthisresearch.Iwould
alsoliketorecognizemysupervisor(Mr.John)onwhoseadviceIsomuchreliedupontosuccessfullyfinishthisdissertation.Finally,thisresearchcould
not have been completed with as much ease and within the short time frame without the help rendered by various department heads within the
companythatassistedtheauthortogainaccesstosuitablesurveyrespondents.
https://barbradozier.wordpress.com/2014/01/09/ecommercereadinessacasestudyontheeffectivenessofbusinessandinformationtechnologyinte
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Abstract
Businesseshavebeentransformedinthepastfewdecadesduetoseveralsociopoliticalandtechnologicaldevelopments,andofthesedevelopmentsin
information and communication technology (ICT) has been one of the most widely recognized. Of the several paradigms shifts this technological
developmenthascaused,oneofparticularnoteistheabilitytorevitalizebusinessesbyprovidingavirtualplatformofdeliveryofgoodsandservices.
The success of many businesses and organizations depend to a great extent, on the ability to effectively integrate the processes with information
technology.Inmostcases,thishasbeenseentoleadtomajorgainsinanorganizationandputthemanedgeovertherestinthecompetitivebusiness
world.Therefore,manyorganizationshaveseentheirwaytosuccessgiventheirabilitytoincorporateITinbusiness.
This dissertation conducts a critical evaluation of an organization with the purpose of analyzing its integration of IT into its business. The chosen
organization is Tomei in Kuala Lumpur, which is jewelry retailer in Malaysia. Specifically, this dissertation aims to understand how IT has been
levergedtoincreaseitsmarketshare.ThisshallbestudiedthroughTomeisendeavorstoemployITtoincreasemarketawareness,deliveranonline
environmentthatisengagingtoconsumers,expanditsonlinepresenceandimprovecustomeracquisition.
Additionally, the dissertation shall also examine the impact of IT cost structures and on the balance sheet of the organization with an objective of
understandingfinancialimpactsofITintegration.
TableofContents
1. i.ExecutiveSummary
2. ii.Acknowledgements
3. iii.Tableofcontents
1.0Introduction
1.1ChapterIntroduction
1.2PurposeofResearch
1.3ResearchAimsandObjectives
1.4ResearchQuestions
1.5ResearchRationale
1.6ScopeoftheResearch
1.7Thechallenges
1.8Summary
2.0LiteratureReview
2.1EcommerceTechnologyResource
i.ImpactsofEcommerce
ii.BenefitsofEcommerce
iii.LimitationsofEcommerce
2.2EpaymentinMalaysia
2.3InteractiveMarketing
2.4StreamlineBusinessProcess
2.5MalaysiasGovernmentInitiative
2.6InformationSecurityinEbusiness
2.7OrganizationalFactors
2.8LimitationsofStudy
3.0ResearchMethodology
3.1QualitativeandQuantitativeResearchMethodologies
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3.1QualitativeandQuantitativeResearchMethodologies
3.2PrimaryResearch
3.2.1QuestionnaireDesignandTesting
1. Questionnairecomponents
2. SurveyQuestions
3. SurveyInstrumentTesting
3.2.2RespondentsSampling
3.3SecondaryResearch
3.4ChapterSummary
4.0Results(PresentFindings)
4.1Surveyresults
4.2Secondarydata
5.0Discussion(Analysiswhilebringingsomekeyliterature)
6.0Conclusionandrecommendations
7.0Reflection(lessonslearnt,ifyouwheretodoitagainhowwouldyoudoit,challenges,barriers,limitationsetc.)
Appendix
CHAPTER1.0:INRODUCTION
1.1ChapterIntroduction
Tocopewiththeforcesofmarketdemandandsupply,aswellas,thedynamicchangesinthemarket,manyorganizationstrytofindoutnewwaysof
working. One of the sought out way is the integration of business and IT. Business integration refers to the method through which IT and business
objectivesaresynchronized,thereforereflectinghowITsystemsarebeingabsorbedasafunctionofbusiness.Suchanintegrationbringstoclientsmore
servicesandcosteffectivemeansensuringthatthebenefitsamounttomorethanthesumoftheirparts.InformationTechnologytoolsandsystemshave
become increasingly important in the rapidly changing business environment (Cordeiro, 2009). Many organizations have recognized the benefits of
using IT systems to their organizations and have implemented various IT solutions to their business processes with positive results (Cortada, 2005,
Cordeiro,2009).
The integration of IT into business has led to much easier transactions within the field. The applicaion of various faculties of technologies such as
internetmarketing,mobilecommerce,electronicfundstransfer,onlinetransactionprocessingandelectronicdatainterchangeintoabusinnessconstitute
electroniccommerce,commonlyrefferredtoasecommerce.
IntegrationofbusinesswithITisthemostcosteffectivewaytoaddvaluetoabusiness.Manycompaniesspendfortunesoftheirearningsandalotof
time to work on hardware, software development as well as consulting services. However, these organizations rarely try running several software
simultaneouslyontheirmachines.Inmostcases,theprogramsrunindependently.Theyaredesignedinsuchawaythattheymeetspecificneedsand
therefore do not meet the needs of a broad enterprise. In most cases the applications have limited interoperability and inter application capabilities
makingthemdifficulttoaddtonewbusinessandultimatelyaddbusinessvalue.Integrationofbusinessandinformationtechnologyaddressessomeof
these loopholes by providing new programmatic interfaces, allowing existing applications to interoperate, as well as, allow orchestration in business
logicandprocessrules.
ThecasestudyonintegrationofbusinessandITinKualaLumpurissuchanappropriateapproach.KualaLumpuristhefederalcapitalofMalaysiaand
istheeconomicepitomeofthecountry.KualaLumpuristhecultural,financialandeconomiccentreofMalaysiaduetoitspositionasthecapital,aswell
as,beingakeycity.ThiswouldthereforepresenttherequiredmarketforanywellstructuredbusinessventuresuchasTomei.Owingtothecitysability
of economic and business impetus, an organization integrating IT and business gets a competitive advantage over the rest. The service industry, in
whichmostorganizationsareclassified,isoneofthemostcompetitivesectionsoftheeconomy.Thelargeandheterogeneouspopulationofabout1.6
millioninKualaLumpurdemandsformoreofthebestservices.TokeeppacewiththeneedsofsuchapopulationintegrationofITwithbusinesswillbe
agoodidea.
GoldandjewelleryindustriesinMalaysiaarefastgrowingandverycompetitive.ApartfromKualaLumpur,theothercitieswithmajorindustriesof
GoldandotherjewelleriesarelocatedinPenangandJohoreBahru.Penanghasabout309registeredgoldandjewellerycompanies.Thisnumberposesa
realcompetitiontoitsothercompetitorsintheothercities.Togrowandincreasemarketshare,Tomeihastofasttrackonitsoperationandbusiness
ideasovertherest.IntegrationofITandbusinesswillsurelyenableTomeiprogressandremainrelevantinthemarket.Mostofthecompaniesinthe
regionareknowntofacedifficultiesinmovingupthevaluechain.Thecompanieshaveaweaknessinincorporationofdesignandmarketingintotheir
existingoperations.
Halimetal.whilequotingWeilandBroadbent(1998)saythattheprocessofdevelopingintegrationinfrastructuretakesalotoftime,effort,learning
experienceandfinancialrisk.Halimetal.(2012)concludesthatcompetitorsshouldexpectvaryingresults,whentheyinvestininformationtechnology.
Therefore,whenabusinessprocessisintegrateditallowstheusertointeractwiththesystemwiththefollowingdevices;personalcomputer,mobile
devices like smart phones and internet infrastructure to provide connectivity. An organization such as Tomei, would in effect be able to compete
favorablyinitsbusinessenvironmentgiventheproperintegrationofthebusiness.Theproductvarietiesarelikelytoboost,deliveryofservicesimprove
andtheorganizationwillultimatelyrealizeitsobjectives.
1.2PurposeoftheResearch
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ThepurposeofthisdissertationistoevaluatethepresentperformanceofTomei
inabidtoincreasingtheproductivitygiventheintegrationofITinitssystem.The
thesisistoadvancestructuresthatwillhelpTomeiincreaseitsmarketingawarenessin
anonlineplatform.ThethesisfurtheraimsatexaminingtheimpactsinTomeis
balancesheetwhenitadaptsebusiness.Thebalancesheetwillbeadisplayof
whethertherehavebeenpositiveimpactsarisingfromadoptionofecommerce.Itwill
seektoanswerwhethertheorganizationassetsaregrowingorequityandliabilitiesare
decreasing.ThethesisaimstousedeductivereasoningassuggestedbyAdamsetal.
(2009)initsmethodology.Thiswillultimatelyensurethatthevariablesinvolvedinthe
research,businessandtechnologicalelementsarerelated.Initsdesign,theresearch
willalsoextensivelyrelyonbothprimaryandsecondarydata.
1.3ResearchAims&Objectives
ThemainaimoftheresearchistoevaluatetheeffectivenessofITintegrationandbusinessinanorganizationinordertocreateacompetitiveadvantage.
Objectives
1)TocarryoutadetailedliteraturereviewofpreviousliteratureconcerningtheeffectivenessofintegrationofITandbusinessinanorganization.
2)ToidentifyhowTomeiwillincreaseitsmarketingawarenessonanonlineplatform,
3)ToexaminehowTomeicanstrengthentheirmarketshare
4)TounderstandthecostimplicationsofsuchanintegrationprocessatTomeitocheckifcostsarelowered
5)ToexaminetheimpactsofITintegrationonTomeisbalancesheet
6).
ResearchQuestions
Withmuchattentiongiventotheresearchaimsandobjectivesoutlinedintheprevioussections,thisstudyshallbeguidedbythequestion,Whatisthe
effectivenessofITintegrationandbusinessinanorganization?Tofindananswertothisquestion,answersfromseveralquestionsexploringdifferent
aspects of the integration of IT and business in different organizations shall be joined together to make a whole complete argument from which a
credibleconclusioncanbevalidlydrawn.Thesequestionsare:
DoesintegrationofITandbusinessincreasemarketawarenessonanonlineplatform?
WhatfactorsdeterminetheeffectivenessofITandbusinessintegrationinKualaLumpurtoday?
DoesadoptionofITandbusinessintegratedmoduleimpactonbalancesheet?
Does integration of IT and business in Tomei increase the market share (through improved market awareness, improved online presence and
enhancedbrandinteractionontheonlineplatform)aswellascutonoperatingcosts?
Whatstrategiesdoestheintegrationpresenttoallowconversionofpotentialconsumerstoregularcustomers?
HowdoesTomeiaimtoincreaseitsonlineshoppingpresence?
The answers to these questions shall be sort through a primary and secondary research. Recommendations as to how Tomei, a gold and jewellery
companycanbetterapplythismarketingtacticshallbemade;basedontheresultsobtainedfromresearchandanalysisconductedinconsiderationof
thepast,presentandprojectedfuturetrendsintheMalaysianmarket.
1.5ResearchRationale
Malaysia, being one of Asias fastest growing economies, is obviously a good choice for the study of integration of IT and business in a gold and
jewellerycompany.ThecountryisatthecentreofhighgrowthAsianmarketswhichenjoysrobusttradeandhighaggregatedemand.KualaLumpur,
rated as the best Malaysian city, provides a destination and market for jewellery. Given the numerous companies in the region such as Radiance,
BVLGARI, City Watch &Jewellery, Tiffany & Co and Lazo Diamond, integration of IT and business will obviously provide a competitive edge over
others. Apart from its iconic nature, Kuala Lumpur boasts of stable and attractive business environment, quality infrastructure and a burgeoning
middleclasspopulation,aswellas,askilledworkedforce.Thepresenceoftheskilledworkforceinanyenvironmentprovidestherequiredlaborinthe
surroundingindustries.Forthisreason,Tomeienjoysrobustpresenceofskilledlabor.Thepresenceofthemarketwithanumberofpotentialconsumers
in Kuala Lumpur creates an obvious competition with each of the industry seeking to edge over the other. Obviously, the best company in terms of
servicedeliveryandtechnologicaladvancementscarrytheday.
Producing quality jewelleries, selling at lower prices than competitors, lean production and brand promotion through advertisements are steps that
mostcompaniesbasedinMalaysiausetoedgeovertherestandhenceincreasesales.Atthemoment,thereisgrowingpopularityofseekingjewelleries
andotherrelatedproductsespeciallyamongthemiddleclass.Thisgrowthisanemergingtrendanditseffectivenessintermsofitsabilitytoincrease
the market presence of jewellery on consumers behavior and company tactics and strategies. The Jewellery industry in Kuala Lumpur is changing
rapidly and as a result, the consumer behavior. Therefore, it is important to assess the effectiveness of integrating IT and business in influencing
consumerbehaviorinthischangingmarket.Thisassessmentwillhelptopredictfuturetrendsinthisarea.Recommendationsmadeattheendofthis
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consumerbehaviorinthischangingmarket.Thisassessmentwillhelptopredictfuturetrendsinthisarea.Recommendationsmadeattheendofthis
papershallprovideimportantsuggestionstoacompanyoranorganizationseekingtointegratebusinessandITsystemsintheiroperationssoasto
competerelevantlyandtoremainasaleadcompanyinthemarket.
1.6ScopeoftheResearch
Whilepursuingtheobjectivesofthisstudy,attentionwillbegiventointegrationofITsystemsinbusinessinTomeiasourcoreorganization.Inthis
regard,thepaperwilllimititselftothebusinessenvironmentofTomei.Foranempiricalinvestigationtobecarriedoutthereisneedtocarryoutboth
quantitativeandqualitativeresearchinwhichbothprimaryandsecondarydatawillbecollected.Thequalitativemethodwillbeusedtooverlookthe
outcomes of the research hypothesis and develop further study to test and support the research. In regard to the quantitative approach, facetoface
interviewwillbetheprimarytoolofresearch.Facetofaceinterviewispreferredduetotheirvalidityandreliability.Thefacetofaceinterviewwillbe
simpleandbothopenandclosedendedtoenhancehighresponserateandgetmoreinformationfromtheusers.Qualitativeinterviewswillbeusedto
verify and clarify the data collected (Adams et al., 2009).This study will limit itself to evaluating the viability of IT in increasing productivity of an
organizationwithregardstovariousdepartmentsanditsstructures.
1.7ChallengestoResearch
Threemainchallengesareenvisagedbytheresearcher:conceptualconstraints,timeconstraintsandfinancialconstraints.Conceptualconstraintsreferto
thescopeoftheinvestigationandtranslationoftheresearchquestionsintocriteriathatcanbeobjectivelymeasuredthroughqualitativeandquantitative
research.Asthisisamixedmethodresearch,ensuringthatasuitablesamplesizeisobtainedforbothqualitativeandquantitativestudies,obtaining
relevant information from them in the time slots allotted by them, and finalizing synthesizing the research findings seem daunting from a time
perspective.Finally,astheresearcherisconductingthispurelywithanacademicmotivewithoutanycommercialconsiderations,thelimitedbudgethas
tobeeffectivelyutilizedinaccessingtherequisitesamplesize.
In lieu of the ethical considerations, the researcher has determined that payment for information shall not be entertained and only voluntary
participation is sought. The costs of accessing such an accepting sample would then be travel related and other administration costs. As such, the
researcherisconfidentthatthebudgetwouldbeeffectivelyutilized.Toovercomethetimeconstraint,athoroughresearchplanhasbeendevelopedwith
predeterminedcheckpointsforthevariousstagesandcontingenciesplanformulatedincasethosecheckpointsarenotachieved.Athoroughliterature
reviewanddiscussionwithsupervisorisdeemedsufficienttoovercometheconceptualchallenges.
1.8SummaryandConclusions
ThischapteroutlinedthepurposeoftheresearchasunderstandingoftheimpactsofintegrationofITintoabusiness.Tomei,isthechosenorganization
wheresuchastudyshallbeundertaken.Thischapterhasalsoelaboratedontheresearchaims,objectiveandquestions.TheMalaysianjewelrymarketis
witnessing consumer behavior changes, which necessitates a strategic change in jewelry retailers. Thus, such a research undertaken has practical
applications in addition to the apparent academic value. This chapter has clearly defined the scope of the research in lieu of the research objectives.
Finally,thechallengesenvisagedbytheresearchandthemeansofovercomingthemhavebeenarticulated.
Thenextchaptershallpresenttheliteraturereviewbyexaminingpertinentconceptsandacademicconstructs.
Chapter2.0LiteratureReview
2.1Chapterintroduction
Thischapterreviewstheworksofpreviouswritersandresearchersonthetopicunderinvestigation.Itpresentsthepointsofviewsthatdifferent
authorshavetakentoaddresstheissueofITinorganizations.Thechapterwillalsoanalyzedifferentdefinitionsgivenbydifferentauthorsofsomekey
aspectssurroundingInformationsystems,ecommerce,andepaymentsystemsinMalaysia,informationSecurityinebusiness,organizationalfactors
andstreamlinebusinessprocess.ItwillalsoprovideadetailedanalysisofITanditseffectivenessinorganizationstoprovideabaseforthecomparison
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andstreamlinebusinessprocess.ItwillalsoprovideadetailedanalysisofITanditseffectivenessinorganizationstoprovideabaseforthecomparison
requiredtogetanswersfortheresearchquestionsoutlinedintheintroductionchapter.
Importanttheoriesrelevanttotheissueathandwillbereviewed.Thesetheorieswillbeusedinlaterdiscussiontocreateawholesomepictureof
thetheoryofITinorganizationsandwhetherornotitcanbeusedtoeffectivelyrunanorganization.Adetailedanalysisofthesetheorieswilllaya
goodfoundationandpreparethereaderfortheensuingdiscussion(Chanyagora&Kungwannarongkun,2011).
2.2ECommerceTechnologyResource
Electroniccommerceisatypeofindustryinwhichbuyingandsellingofcommoditiesiscarriedoutoverelectronicsystemsliketheinternetandother
computernetworks.AccordingtotheeditorinchiefofInternationalJournalofElectronicCommerce,VladimirZwass,
Electronic commerce is sharing business information, maintaining business relationships and conducting business transactions by means of
telecommunicationsnetworks.
Hemaintainsthatinitspurestform,electroniccommercehasexistedforover40years,originatingfromtheelectronictransmissionofmessagesduring
theBerlinairliftin1948.Fromthis,electronicdatainterchange(EDI)wasthenextstageofecommercedevelopment.Inthe1960sacooperativeeffort
betweenindustrygroupsproducedafirstattemptatcommonelectronicdataformats.Theformats,however,wereonlyforpurchasing,transportation
andfinancedata,andwereusedprimarilyforintraindustrytransactions.Itwasnotuntilthelate1970sthatworkbeganfornationalElectronicData
Interchange(EDI)standards,whichdevelopedwellintotheearly1990s.
Electronic commerce utilizes technologies like the mobile commerce, EFT, internet marketing as well as online transactions. In most cases, electronic
commerceisseenasthesalesaspectsofanyformofelectronicbusiness.Electroniccommerceentailsexchangingdatatofacilitateandmakeeasythe
financingandpaymentaspectsofbusinesstransactions(Chanyagora&Kungwannarongkun,2011).Electroniccommerce,therefore,presentsaneffective
and most efficient way to conduct a business.The advent of ecommerce has seen it through wider application in various fields. Some of these
applicationsincludedocumentautomationespeciallyinthesupplychainsandlogistics.Someareappliedinpaymentsystemsbothdomesticallyand
internationally,groupbuying,instantmessaging,onlineshopping,electronicsystemsaswellasinordertracking.
Inanygivensocietyorabusinessorganization,therearealwayskeydriversofecommerce.Thesedriversinmostcasesinfluencetheadoptionofthe
system in an economy. The key drivers are measured by certain criterion to help understand the level of advancement of ecommerce
(Chanyagora&Kungwannarongkun,2011).Theclassificationisdonebasedontechnologicalfactors,political,socialandeconomicfactors.Inamacro
environment,ecommerceinfluencesorganizationalculture,commercebenefits,commercialbenefits,committedworkforce.Theseinfluencesseemost
organizationscravetoadopttheecommercesystems.Asacommercialbenefit,ecommerceaidsinsavingofcostsandimproveefficiency,aswellas,
performanceofthefirm.Incompetition,ecommerceensuresthatorganizationsstayaheadoforratherkeeppacewithothercompetitorsintheindustry
ECommerce has two facades, the business side and the electronic side. From the business perspective Halim, Musa, Embat, Amin, Muda, & Noor,
(2012)sayecommerceisdoingpaperlessbusinessandreceivessupportbycomputersystemsthathaveverydynamictechnology,whichcomprisesof
messagingsystem,check,paymentandproductdelivery.Turban(2008)ascitedbyHalimetal.(2012)saysthatbusinesseswillsearchcustomersand
suppliers,dobusinessnegotiationsandcontractsonline,aswellassigningofagreementsandpaymentsthroughasecurechannelovertheinternet.
Halimetal.(2012)whilequotingKeen,(1991);Niederman,BrancheauandWetherbe,(1991);andWeill(1993)saythatTechnologicalInfrastructureinan
organization can be implemented to achieve a competitive advantage and our competitors cannot imitate because the technology and skills, and
informationtechnologyinfrastructureisseenasastrategicresourceandasapotentialsourceofsustainedcompetitiveadvantage.Ontheotherhand,
Hayes&Wheelwright(1984),Barney(1986)andPointsetal.,(1995)ascitedbyHalimetal.(2012)contrastthatInformationtechnologydoesnotgivea
businessacompetitiveadvantageasinfrastructuraltechnologyandtechnicalskillscanbereplicateoracquiredanytime.Whilenotcompletelyagreeing
nor disagreeing Bharadwaj (2000), argues that for a competitive advantage infrastructure technology has to coordinate with other components of a
businessascitedbyHalimetal.(2012).
Halimetal.whilequotingWeilandBroadbent(1998)saythattheprocessofdevelopingintegrationinfrastructuretakesalotoftime,effort,learning
experienceandfinancialrisk.Halimetal.(2012)concludesthatcompetitorsshouldexpectvaryingresults,whentheyinvestininformationtechnology.
Therefore,whenabusinessprocessisintegrateditallowstheusertointeractwiththesystemwiththefollowingdevices;personalcomputer,mobile
deviceslikesmartphonesandinternetinfrastructuretoprovideconnectivity.
2.2.1Impactsofecommerce
Ecommercehasbeenseentoleadtointensifiedcompetitiongivenitsnaturetoallowconsumerstogetsufficientinformationregardingproductsand
services. Four researchers at the University of Chicago found out that growth of online shopping has had major impacts on the travel agencies and
bookshops. However, most scholars argue that ecommerce as well as ebusiness does not just encompass internet but also incorporates all previous
businessmanagementandeconomicconcepts.Assuch,ecommerceimpactwidelyinmanydisciplinesandfacadesofanorganization.
Inmarketingforinstance,Boatingetal(2011)notesthatecommercehasadirectplayonissuesofonlineadvertising,consumerbehavior,consumer
cultureandmarketingstrategies.Inthepast,therewasadirectmarketingwhichwasdonethroughdoortodoorusingleafletsorcatalogues.However,
thisbehaviorhaschangedovertimeandmuchisseenintelemarketing(Boatingetal,2011).
In finance and accounting sector, ecommerce has evolved the online banking thus easing the issues of transactions. This in the long run has made
auditingandaccountingsoeasy.Inproductionandoperationsmanagement,ecommercethroughonlineprocessinghasdrasticallyreducedcycletimes.
Forinstance,ittakessecondstodeliverdigitizedproductsandserviceselectronically.
2.2.2BenefitsofECommerce
The introduction of ecommerce in our systems has had several benefits. The benefits of ecommerce majorly affect three stakeholders. These
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The introduction of ecommerce in our systems has had several benefits. The benefits of ecommerce majorly affect three stakeholders. These
stakeholders are organizations, consumers and society. There are several benefits that an organization accrues from ecommerce. In International
marketplace, the scope and environment has been widened. By becoming eenabled, what was a single physical marketplace located in a specific
geographic area is now a borderless marketplace. Business tends to get access to people all over the world. This has led to creation of virtual
MultinationalsCorporationfromecommercebusiness.
Ecommerce leads to cost savings especially the operational costs. This is witnessed in the cost of creating, processing, distributing, storing and
retrievingpaperbasedinformation.Ecommercehasalsohadaneffectonmasscustomization.Inthissense,thewayconsumersbuygoodsandservices
have been revolutionized. There is the pull type processing that allows for products and services to be tailor made according to customers
requirements.
Ecommerce reduces the amount of inventories and overheads by facilitating the known pull type supply chain management. This is done through
collectionofcustomerorderandthendeliveringthroughjustintimemanufacturing.Thismethodisbeneficialforcompanieswithinthetechnological
advancements (Turban et al, 1996). There is reduced telecommunications cost. The internet has proved to be much cheaper source than value added
networkswhichdependedonleasingtelephonelinesforthesoleuseoforganizationandtheauthorizedpartners.
2.2.3LimitationsofECommerce
Theadventofecommercewasinvitedwithalotofhype.However,asonewouldquoteIsaacNewtons3rdLawofMotion,Foreveryactionthereisan
equalandoppositereaction.Thereforeecommercehasalsoitslimitations.
AccordingtoDelone&Mclean(2004)ecommercepresentsinsufficiencyinsystemsecurity,reliabilitystandardsandcommunicationprotocols.Withthe
ideaofecommercetherearehackingofwebsitesreported,holesionsecuritysoftware.Delone&Mcleanpresentsacaseexampleofseveralbanksthat
haveexperiencedabreachinsecuritysystemovertheyears.Organizationsalsofindthemselvescaughtupintherapidlyevolvingandthechanging
technologyastheydonotwanttobeleftout.Theseorganizationsareunderconstantpressuretoinnovateanddevelopbusinessmodelstohelpthem
taponnewandupcomingbusinessideas.Thismajorlyhaveanimpactonformulationoflongtermstrategiesthatwouldensureorganizationshave
longtermcompetitiveadvantages.Ecommerceopensorganizationstotheworld,thispresentwithitbothnationalandinternationalcompetitorsthus
leadingtopricewarsandunsustainablelossesfortheseorganizations.
Focusingonthebenefitsversusthelimitationsofecommerce,itisquiteclear,thatecommerceisstillarelevantsysteminanybusinessororganization.
Giventheadvancementsandchangesintechnology,theincorporationofecommerceisessentialforanorganizationinacompetitivemarket.
2.4EPaymentinMalaysia
EPayment systems involve the process through which customers pay for goods and services online by use of integrated hardware and software
systems.ThemainideabehindEPSisadrivetoincreaseefficiency,improvesecurityandenhanceconvenienceofusersaswellaseaseofuse.While
othercustomerspayforgoodsandservicesusingcash,check,orcreditcardsinconventionalbusinesses,onlinepotentialconsumersusemethodsand
meanssuchaselectronicfundstransfer,paymentcards,creditcards,smartcards,emoney,onlinepaymentsystem,ewallets,micropaymentsystems
andelectronicgifts(Award,2007).
ElectronicFundsTransfer
Delone& Mclean (2004) defines Electronic funds transfer (EFT) as the electronic exchange or transfer of money from one account to another using
computer based systems. Delone& Mclean further goes on to note that the transfer can either be within a single financial institution or across many
institutions. Electronic funds transfer is one of the oldest and most used electronic payment systems. EFT eliminates usage of paper for instance in
cheques.Throughthis,themethodprovidesasafe,reliable,andconvenientwaytoconductbusinessorrunanorganization.Likeanyotherfacadeofe
commerce,epaymentthroughEFTprovidessimplifiedaccounting,improvedefficiency,improvedsecurityandreducedadministrativecosts.
PaymentCards
Thesearecardsthatareusedtofacilitateelectronicmoneytransfersfromoneaccounttoanother.Thesecardsincludecreditcards,debitcards,smart
cardsandchargecards.Therearetwotypesofcreditcardsonthemarkettoday,thoseissuedbycreditcardcompaniesandbankssuchasMasterCard,
Visa. As Daniel et al(2002) captures, the cards are always given out using certain specific criteria;these criteria may include customers income level,
credithistoryandtotalwealth.Someofthemainusesofthesecardsaretobuygoodsandservicesortogetcashfromparticipatingfinancialinstitutions.
Danielfurthergoesontoexplainthatthecardspresenttwomainlimitations,theirunsuitabilitytobeusedforsmallandlargetransactions.Itisnotcost
justifiabletousethemforsmallpaymentsandduetosecurityreasonstheyarenotalsousedforlargetransactions.
Ontheotherhandtherearecreditcardsthatareissuedbydepartmentsstoressuchasoilcompanies.Organizationsandbusinessessignificantlybenefit
fromthesecompanycardsastheyarecheapertooperate.Turban,etal(1996)positsthatinmostcases,customersareattractedtousethecardsthrough
incentives when they open accounts.Debit cards are also widely used, though they require knowledge of personal identification number (PIN) to
operatethem.Thecardsaremainlyusedbecauseoftheireaseofuseandconvenience.Thecardshelpcustomersmanagetheirbudgeteffectivelyasthey
limitthecustomerstooperatewithintheirmeans.
ECommerce and EPayment in Malaysia have seen a change in the way businesses, and customers pay for their goods and services. The online
transactionscanbedone24hoursaday,allweek,throughouttheyear,andgloballywithoutboundariesorgeographicalrestrictions,unlikephysical
paymentchannels(Danial&Sadeeq,2012).
AccordingtoDanialandSaddeq(2012),withthesignificantgrowthofinternetusersandconnectivityinMalaysia,thishasofferedmoreMalaysiansan
opportunity to transact online than before, thus the need for electronic payment. Franklin, James, and Philip (2002) say that the ability of financial
services and markets to use electronic communication to offer online credit payment underpin the success of online business transactions. An e
commercewebsiteshouldallowavisitortopurchaseandpaywithoutbeingphysicallypresentattheshop.Locally,inMalaysia,manybanksandother
financial institution are offering the solutions to their customers to fully transact online without their physical presence. Institutions like Maybank,
OCBCBank,GHLSystems,PayDirectorFinancialLinkpaymentgatewaytoMEPS(MalaysiaElectronicPaymentSystem),offerthispaymentservices
(Danial&Sadeeq,2012).
DanialandSaddeq(2012)saythatinadditiontoonlinecreditcards,MalaysiancanusedirectInternetBankinglikeMaybank2u,premiumSMSortheir
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DanialandSaddeq(2012)saythatinadditiontoonlinecreditcards,MalaysiancanusedirectInternetBankinglikeMaybank2u,premiumSMSortheir
mobile devices like Mobile Money Weblink. PayPal an internationally renowned payment firms that have set a foot in Malaysia, and has allowed
transactioninMalaysiancurrency,makingiteasierforMalaysiantotransactonlinereducetheuseofdollars.WorldPayandiPay88.com(alocalfirm)
also offer online payment services and are firms with a reputation. This has seen a growth in the economy, and increase in the number of online
shoppers in Malaysia and across the globe. Although epayment comes with security threats, it has led to the significant growth of ecommerce by
offeringapaymentplatform.
PayPal study in 2011 shows that Malaysians spend more on local ecommerce websites than foreign ones, standing at RM825 million and RM627
millionrespectively(HO,2011,ascitedinDanialandSadeeq,2012).SeeAPPENDIX5Top7ThingsMalaysianPayOnline.
2.4InteractiveMarketing
JohnDeighton(ascitedinLeeFerry,2007.p.2)InteractiveMarketing(IM)asmarketingthatismorechatlikethantransactionbasedandisdoneviathe
internet. Lee (2007) suggests a number of ways that can be used to enhance ecommerce readiness, they are briefly discussed. Other scholars define
interactivemarketinginseveraldifferentways.Forinstance,T.KendrickandK.Fletcher(1999),definesinteractivemarketingas;
Combination of conventional marketings planning and methods of handling of relations with consumers and technologies, which enables
establishmentofinteractivemutualrelationsandattractionofnewconsumers.
Thisdefinitionestablishesthemutualrelationthatisneededinanorganizationorabusinesstoattractconsumers.
BlattbergandDeighton(1991)definethesameconceptas;
Interactive marketing is the mutual exchange of information. During the interaction needs, interests and possibilities are identified gradually. Such
relationsareestablishedduringsometimewhilethecompanyaccumulatesdatabasethatgivesfavorablepossibilitiestoact.
Themainaccent,inthisdefinitionisthatinteractivemarketingstriveforfavorablepossibilitiestoact.
Affiliate marketing is where an affiliate is rewarded for every visitor they recommend to the website. Contextual advertising is where the user sees
contentthatrelatestowhattheyareviewingontheweb.Emailmarketing,useselectronicmailtosendcustomizedpromotionalmessagestocurrentand
potentialcustomers.Payperclick,isanIMmodelusecomelybysearchengines,wherethebusinesspayonlyforthenumberofclicktheiradvertsget.
Lee(2012)furtherexplorestheuseofSearchEngineOptimizationoptionsliketheSearchEngineMarketingwhereabusinesspaysforsearchlisting.A
viralmarketingisalsoexplored,anditsvoluntarywhereusersexchangefunnyvideoclips,images,gamesamongotherstomarketaproduct.Theother
twoIMapproachesareblogsandbannerAds.
It has been established that this method is 212 times more effective than the conventional traditional method.Interactive marketing means not only
individualcommunication with a consumer. It involves personalizedproducts and proposals responding to consumersneeds which are not imparted
yet.Reallycloserelationswithaconsumermaybeestablishedwhenaconsumerisallowedtoexpresshis/herwishesclearlywhichhe/shewantsthe
company to satisfy and mutual dialog isnecessary for this purpose. Content of the actual marketingmessages that are presented to the consumer
andoverallrelationsbetweenconsumerandcompanyinfluencethefuturesuccess.
Aftertheanalysisofdescriptionsofinteractivityandinteractivemarketingwemayassumethatinteractivityisbasedonnewinformationtechnologies
which enable synchronic mutual communication during which a consumer is involved into the process of active mutual cooperation. Being a new
marketing concept, interactive marketing reveals value of a long term interaction between the company and a consumer which stimulates consumer
loyaltyandemphasizessignificanceofestablishmentanddevelopmentofrelationswithallparticipantswhotakepartintheactivityofthecompanyor
influenceitsresults.Award(2007)positsthattheuseofthesetechniquesbusinesseshaveseenanincreaseincustomerloyalty,customersatisfaction,and
customerbase.SomeofthetechniquessuggestedareverycostlyforaSmallMediumEnterprise(SME).
StreamlineBusinessProcesses
Jansen(2010)addressesandprovidestheprinciplesontheredesignofbusinessprocessandecommercereintroduction.Theauthorfurtheraddsthat
existing business process must be integrated with the ecommerce website to enhance timely interaction with the suppliers and the customers.
Krzwonosas cited in Jansen (2010), observes that 8590% of ecommerce websites have no integration with the backoffice processes, which makes
technologybenefitsunrealized.Inthestudy,itcomesoutclearthatbusinessprocessreengineeringshouldallowanecommerceandbusinessprocessto
coexistandexcelatthesametimesupportingeachother.
Business processes should be transparent to the customers and suppliers, especially on the epayment say Lummus and Vorkurka as cited in Jansen
(2010).Itisfurthernotedthatabusinessprocessshouldincreasecustomerloyalty,whichformsthebedrockofasuccessfulecommerce.However,e
commercefirmsshouldbecautionedascustomersareonlyamouseclickawayfromthecompetitors.Jansen(2010)observesthatbusinessprocesses
shouldencouragetimeindependencetotheircustomers,andasmuchastheyallowunlimitedopeninghours,theyshouldalsofacilitatearoundthe
clockattendance.HallasquotedinJansen2010saysbusinessprocessshouldbeveryefficienttothecustomerswheninteractingwiththeecommerce
website.
ReijerscitedinJansen(2010)identifiesbusinessprocessreengineeringbestpracticesas,taskrules,routinerules,resourceallocationrulesandrulesof
external parties. These rules allow outsourcing, contact reduction, buffering through subscription of information and allowing the trusted parties to
verifyinformation.BusinessprocessreengineeringcanhaveapositiveimpacttothebusinesswhenappliedconcludesJansen.
2.6MalaysiasGovernmentInitiative
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ThegovernmentofMalaysiahastakenaleadroleinthedevelopmentofecommerce.Ithassetupconcreterealisticmeasureslikecreatingafavorable
policyenvironmentforecommerce;itisaleadingedgeuserofecommerce,andprovidesforitscitizenstherequiredinfrastructureforthewidespread
ecommerceuse(Yew,Ang,&Ramasamy,2010).
Malaysia has always showed support for ICT industry being among the first to introduce a single federal ministry of Energy, Communication and
Multimedia. The main task of the Ministry was to oversee and support the growth of Information and Communication Technology (ICT) industry.
MGPWA(2012)notesthat,severalagencieshavebeenformedsincethenundertheministry.SomeoftheseagenciesnotedbyMGPWA(2012)include
Malaysian Institute of Microelectronic Systems (MIMOS) established in 1984, Multimedia Development Corporation (MDC) formed in 1996, and
MalaysianCommunicationsandMultimediaCommission(MCMC)establishedin1998.Theagenciescomeupwiththeirownagendawiththesoleaim
ofmakingpossiblegrowthofEcommerceinMalaysia.
Amasterplanhasbeendevelopwithfourkeyfocuswhichincludetoincreaseconfidenceinonlinetrading,preparationofaregulatoryframework,
buildadigitalsubscriberbase,andintroduceandelectronicpaymentsystem.SomeofthelegislationthathavebeenpassedinMalaysiaareMalaysian
CommunicationsandMultimediaCommissionAct1998;CommunicationsandMultimediaAct1998;DigitalSignatureAct1997;ComputerCrimesAct
1997;andTelemedicineAct1997.Thelegislationshavegonemanychangestoincorporateissuesofecommerce(Burn&Robins,2003).
In the Third Outline Perspective plan (20012010) government recognized Information Technology and Communication (ICT) as a key driver for the
economysaysYew,Ang,andRamasamy(2010).AsgovernmentrecognizesthatICTisamongthe12NationalKeyEconomicAreas(NKEA)thatwill
makeMalaysiabeahighincomeeconomy.ThereportrecommendsgovernmentinvestmentinICTinfrastructure,akeyelementforthegrowthofe
commerce.
The paper by Yew, Ang, and Ramasamy (2010) notes that since the conception of the informationage phenomena, the government through the
Malaysian Ministry of Science, Technology and Innovation (MOSTI) finally came up with a policy under the guidance of ecommerce development
throughoutthecountry.ItsthevisionofthegovernmentofMalaysiatohaveafullydevelopedeconomyby2020subsequentlythegrowthandaccessof
theInternetinthecountry.
Yew,Ang,andRamasamy(2010)saytthegovernmenthascreatedafavorableenvironmentforthegrowthofecommercebyenactinganumberoflaws.
The Personal Data Protection Act 2010; It comes in handy for online and real time transactions. This act ensures the data or information privacy is
protected. Such laws have boosted consumer confidence, thus an increase in the number of online users. The introduction of cyber laws prohibits
fraudulentpractices,enhancecustomeronlineprivacy,andprovideaprovisionforarefundandreturnofgoods,andservicesshoppedonline,thusan
increasetothenumberofonlineusers.However,despitetheenactmentoftheselawsdoesnoteliminatetheonlinehazards(Yew,Ang,&Ramasamy,
2010).SeeAPPENDIX4forCyberlawsinMalaysia.
2.7InformationSecurityinEBusiness
Rashad,Foong,Mohammad,andSeyed(2001),saythatcustomerprivacyisthemostsensitivepartintheprocessofecommerce.Companyssuccesses
are now days measured on how they protect the confidential information of their online clients. Infarction risk and personal security threat have
dejectedmanycustomersfromembracingecommerce.Fromthestudythecompanieshavetoworkonhowtogainonlineconsumertrustthatissaidto
beincrementalandbuiltupexperimentallyovertime.
Hackers,crackers,disgruntledemployees,corporateadversaries,phishingandharmingfraudsaresomeofthethreatsboththeclientandbusinessface
whentheyengageinanonlinetransactionsaysRashad,Foong,Mohammad,andSeyed(2010).Businessshouldcomeupwithwaystoreassuretheir
customers of maximum security. They can use some of the following means to reassure their customers testimonies from pervious customers,
photographsofpeopleenjoyingtheirproduct,expertwitnessstatementsandcelebrityendorsementamongothers.Tohaveastrongcustomerbase,the
business can also use trusted thirdparty companies to handle online money payment, work in unison with other government agencies and send
occasionalmessagesassuringtheircustomersoftheirprivacy.Rashad,Foong,Mohammad,andSeyed(2010)concludethatanecommercesystemmust
besecure,andguaranteesthecustomersdatatoremainconfidential,andnevermisused.
2.8OrganizationalFactors
AccordingtoSenarathaandWickramasuriya(2011)study,organizationalfactorsaffecttheadoptionoftheECommerceinanorganization.Theycite
culturetype,computerperemployee,availabilityoftechnicalofficers,resistancetochange,topmanagementandorganizationalcultureassomeofthe
factorsthathaveadirectimpactonthereadinessofbusinessandITintegration.Inecommerce,oneofthemostcommonthemesisthatofitsadoption,
thecompatibilityoforganizationalculturewithecommercematters.Inseveralresearchesithasbeenestablishedthatorganizationsperceivingwebsite
use as appropriate and compatible with the existing organizational culture adopted the structures early enough. However, those than view them as
incompatible,hadlateadoptionofITinfrastructure.Organizationalculturesthatdonotsupportinnovationanduseofnewandupcomingtechnologies
have been identified as a barrier4 to B2B type of ecommerce adoption. Other researchers have also established that organizational culture poses a
potentiallybarrierbetweenfirmstakingpartinB2Becommerceactivities.Inrelationtotheorganizationalcultureattributes,organizationalcultures
thatsupportinnovativenesshavebeenassociatedwithhighercapacitiesforsuccessadaptationandinnovation.
Havingbeenidentifiedasoneofthemostcriticalmanagementissues,organizationalculturehasformedthebackboneofnumerousstudiesinthe
management literature. In most cases, the construct has been studied as a facet of organizational behavior. Therefore, organizational culture can be
definedasdeeperlevelofbasicassumptionsaswellasbeliefsthataresharedbycertainmembersofanorganization.Theseassumptionsareseento
operateunconsciouslyandinmostcasesaretakenforgranted.
The organizational culture Assessment Instrument (OCAI) by Cameron and Quinn (as cited in to Senaratha and Wickramasuriya p.206) was used to
measuretheorganizationalfromtheparticipatingbusinesses.AccordingtoCameronandQuinn(1999),organizationalculturecanbecategorizedinto
four prevailing cultures. There is the clan culture which is characterized as having friendly, supportive work environments. In this environment
supervisors are viewed as mentors. The general attention given to people, employees and customers is superb. Ultimate emphasis is placed on
teamwork.CameronandQuinn(1999)talkofmarketculture.Inthistype,thereisanobviousharddrivingandcompetitiveorganizationalenvironment
seen.Managersarequitedemandingandthemajororganizationalgoalistowininsuchamarket.Theduoalsodescribesorganizationswhichadopt
hierarchycultures.Theseorganizationsareformalandhaveastructuredworkenvironmentswithmainemphasisputoncoordinationofefforts.The
coordination is to help achieve efficiency and a central focus. On the employees management, it is seen as procedure driven and predictability is so
muchvalued.Ontheotherhand,istheadhocracyculture.Organizationsthatadoptsuchculturesacceptrisks.IntheirworkCameronandQuinn(1999)
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muchvalued.Ontheotherhand,istheadhocracyculture.Organizationsthatadoptsuchculturesacceptrisks.IntheirworkCameronandQuinn(1999)
characterizetheorganizationsasentrepreneurial,dynamicandquitecreativeintheirplacesofwork.Inthistype,moreemphasisisputoninnovation
andexperimentationandemployeesareencouragedtoworkwithindividualinitiative.
Thereresearchshowedthattopmanagerswhentheysupportaninitiativeitwouldsucceed.Thestudyshowsempiricalevidencethatthereisapositive
relationshipbetweenadhocracyculturalcharacteristicsamongtheSMEandthelevelofecommercereadiness(Farhad,2012).Adhocraticorganizations
valueflexibility,dynamicadaptability,highentrepreneurship,andacreativeplacetowork.Employeesandleadersembraceinnovationandrisktaking.
HierarchicalcultureshowsalooserelationshipinthelevelofecommerceadoptioninSMEs.Itsahighlystructuredandformalplaceandtomaintain
coexistence is most critical. The management in this culture wants security and predictability. Farhad (2012) further noted that effective measures /
checksmustbeputinplacetoenhancetheusageandadoptionofEcommerce.
2.9LimitationsoftheStudy
Duetoseveraltechnicalitiesintheprocessofconductingthisresearch,itwouldbeunrealistictoclaimthatalltheinformationacquiredandusedinthis
researchhasbeenexaminedexhaustively.Thiscouldresultinpossiblyimportantfactsnotbeingmissedorbeingunderstoodvaguely.Thisimpliesthat
a further research can be conducted to explore the topic further. The information collected has limitations, ranging from the respondents to the
ethnographicones,andpossiblycontainsexcessesintroducedbyinaccuracyoffieldsurveydata.Notwithstandingtheabove,theauthorhasundertaken
to reduce the effects of these limitations to the minimum level possible to avoid bias by employing efficient techniques of data and information
collectionandanalysis.
3.0RESEARCHMETHODOLOGY
Thischapterpresentsthemethodusedtocarryoutprimaryaswellassecondaryresearchforthisstudy.Itpresentsadetaileddescriptionoftheprocess
theauthorundertooktoobtaininformationandanswerstotheresearchquestions.Theresearchaimsatestablishingwhether,ITcanbeasuitablein
ensuringincreaseinbusinessproductivityinanorganization.Todothis,theresearchwillfollowadeductivereasoningassuggestedbyCreswell(2003)
because it will be an attempt to derive conclusions from something that is known to be true, and an explanatory approach where qualitative and
quantitative research methods will be used. An explanatory design approach will ensure the variables involved in the research, business and
technologicalelementsarerelated.Thisresearchwillrelyonbothprimaryandsecondarydatacollectiontechniques.
3.1Qualitativeandquantitativeresearchmethodologies
Giventhenumerousencountersonstatisticalproblemsmanyresearchershavealwaysusedeitherorbothquantitativeandqualitativemethodsto
explain and solve these problems. To begin with, the definition of quantitative method has been advanced differently by various researchers but all
pointatrelatedthings.AliagaandGunderson(2000),describesquantitativeresearchmethodsas:
Explainingphenomenabycollectingnumericaldatathatareanalyzedusingmathematicallybasedmethods(inparticularstatistics).
Thisdefinitiongivesthequantitativepartofitwhenitaffirmsthatthereiscollectionofnumericaldata.Theanalysisisdoneusingmathematicalbased
methods. Quantitative research method employs statistical techniques to test a theory. Mora (2010) says that quantitative research is one that has a
conclusive purpose. Results from a sample population are quantified and taken to represent a larger population. The method uses numbers and
variablestoestablishwhetherapredictedgeneralizationofaconceptistrue(Abawi2008).Thismethodrequiresasignificantlylargepopulationsample
tomaketheresultsvalid.Thismethodassumesthatrealityisobjectiveandhenceteststheoriesdeductivelyfollowinglogicandhypothesesinacause
andeffectorder.AccordingtoNeils(2007)aresearcherusingquantitativeresearchmethodology,knowspreciselywhatheislookingforinadvance.
Consequentlyhe/shecanmakedesignsoftheresearchaspectsbeforecollectingdata.Neilsarguesthat,quantitativedataisrelativelymoreefficientsince
itiscollectedtoproveaparticularresearchhypothesis.Inaddition,theresearcherisabletoseparatehimself/herselfobjectivelyfromthesubjectunder
investigation. However, some research contextual details may be missed by researchers using this method (Abawi, 2008). Quantitative research
commonlyusessurveysandquestionnairestocollectdata(Neils2007).
Inregardtothequantitativeapproach,facetofaceinterviewwillbetheprimarytoolofresearch.Facetofaceinterviewispreferredduetotheirvalidity
andreliability.Thefacetofaceinterviewwillbesimpleandbothopenandclosedendedtoenhancehighresponserateandgetmoreinformationfrom
theusers.Qualitativeinterviewswillbeusedtoverifyandclarifythedatacollected(Creswell,2003).
Primarydatawillbecollectedthroughthefacetofaceinterviewsandquestionnaires;thestudysamplesizewillbe30personsandaminimumof20will
besampled,drawnfromvariousheadsofbusinessunitsandkeyoperationsusers,whohasbeeninvolvedincompanysebusinessorecommerce
related project or daytoday business operations. Whereas secondary data shall be collected from the Internet, journals, data already collected
publicationssuchascompanyreports,textbooks,newspaperarticles,andinformationfromthegovernmentsources.
On the other hand, qualitative research is conducted by constructing complex holistic pictures of the theory under investigation (Abawi,
2008).According to Mora (2010), qualitative methodology is exploratory and is commonly used when the researcher does not know what to expect.
Researchersusingthismethodseektoknowdeepertruth.Unlikequantitativeresearch,qualitativemethodassumesthatmultiplerealitiescanexistin
anygivensituation.Often,theresearcheronlyhasroughideasofwhattoexpect(Neils2007).Neilsarguesthat,theresearchdesignofaresearchdone
throughqualitativemethodemergesintheprocessoftheresearch.
Therefore,itrequiresamorecomplexmethodofdatacollectionsinceitwouldbecumbersometoprepareaquestionnaireforasituationwhereseveral
realitiesmayexistatthesametimeforanyparticularrespondent.Oftentheresearcheristheinstrumentofgatheringdata.Themostusedmethodsof
collectingdatainqualitativeresearchincludetriads,focusgroups,dyads,ethnographicparticipationand/orobservation,bulletinboards,uninterrupted
observation, and indepth interviews.The qualitative method will be used to overlook the outcomes of the research hypothesis and develop further
studytotestandsupporttheresearch.
Theobjectivesofthisstudyaresuchthattheresearchercanonlycometotwoalternativeconclusionsonly.IntegrationofITinorganizationcan
either be effective or not effective in realization of business objectives. As discussed in previous chapters, the effectiveness of IT integration in
organizationislargelydependentontheabilityandwillingnessoftheorganizationtokeeppacewiththechangingtechnologyandbringonboardthe
bestapplications.ItalsodependsonthesustainabilityofITsystemsandflexibilityoftheseorganizations.Thesevariablesarerelativelyempiricaland
canhencebequantifieddependingontheresponses.Byusingqualitativemethod,theresearcherhopestoremainobjectivelyseparatefromthesubject
underinvestigation.
3.2PrimaryResearch
Primaryresearchencompassesthecollectionoffirsthandprimarydata.Inmostcases,itiscarriedoutaftertheresearcherhasgainedsomeinsightor
understandingintotheissueunderstudybyeitherreviewingsecondarydataorthroughanalysisofpreviouslycollectedprimarydata.Primaryresearch
is done through many avenues; these include use of questionnaires and telephone interviews. These two methods are employed mostly in market
researchorinexperiments.
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researchorinexperiments.
Creswell(2003)definesprimaryresearchasthefirsthandcollectionofdatabyapersoninvestigatingsomething.Oneofthegreatestadvantagesof
primary research is that the data collected is specific to the research since the researcher has full control over the methods used (Robson, 2009). The
control is also viewed from the aspect of information collection. The researcher, in this case, can decide on certain specific requirements such as the
projectsize,goalandthetimeframe.Usingthismethodallowstheresearchertoexploretheirfocusonboththequalitativeandquantitativemethods.
Primary research for this study shall be conducted in the wider business market targeting mostly individuals or companies that have integrated
businessandITintheirprocesses.ThisstudywillbeconductedmainlyinKualaLumpurandothermajorcitiesinMalaysia.Therespondentstargeted
mainly wasdrawn from various heads of business units and key operations users, who has been involved in companys ebusiness or ecommerce
relatedprojectordaytodaybusinessoperationsTherefore,allfirmsandbusinessheadswhohaveparticipatedintheintegrationofbusinesswithIT
wereeligibleresearchobjects.
Thesurveyshallseektheviewsofthebusinessheadsandkeyoperators(consumers)inregardtoeffectivenessofintegratingITwithbusinessintheir
areasofwork.Inthisregard,thesurveyshallseektoestablishwhetherintegrationofITandbusinesshasledtoincreasedmarketshareonanonline
platform.Itwillalsoseektofindouttheimpactsonthegeneralproductivityofthebusinessunitsandalsototheconsumers.SincetheentireMalaysian
marketisincreasinglybecomingsegmentedwithtime,otherdemographicinformationshallbecollectedtohelpincategorizationofrespondentswith
similarcharacteristics.ThisshallprovideamorespecificviewontheeffectivenessofITandbusinessanditsimpactonconsumerspurchasedecision
andthefirmspoliciesamongvarioussectionsoftheMalaysianmarket.
Questionnairesandfacetofaceinterviewswillbeusedastheprimarymethodofdatacollection.Creswell(2003)aquestionnairespecialistandauthorof
fourvolumesofbooksoutliningguidelinesondesigningandusingquestionnairesinsurveys,saysthatquestionnairesareeconomicalandrequireless
time to administer as compared to interviews. However, the study will seek to incorporate the two to ensure that the best responses are got. After
conducting pilot tests, the questionnaires will be emailed to the respondents. The respondents will be given a specific date as the deadline for
submissionofresponses.Thiswillensurethattheresponsesarereceivedwithinareasonabletimeframetoleavetheresearcherenoughtimetoanalyze
theresponses.
3.2.1QuestionnaireTestingandDesign
Surveys conducted using questionnaires are cheap and effective especially when collecting data from a large sample of respondents. This is because
questionnairescanbepreparedandadministeredwithinshortperiodsoftimesincedifferentrespondentsindifferentplacescanfillthematthesame
time. As one of the most commonly used tools of data collection, there is an amount of reasons to study a topic with a questionnaire survey. First,
questionnairesareanonymous,andresearcherscanmoreeasilycollectprecisedatawithcarefullydraftedquestions.Secondlythedatacollectedcanbe
quantifiedeasilyhencemakingcomparisonofresponsesfromdifferentrespondentseasy.Inaddition,questionsfromquestionnairesaredesignedfor
theoreticalreasonsandtheauthorcaneasilycontrolwhatshouldbeincluded.Theyenablearesearchertoobtainonlythatinformationneededtotest
thevariableofinterestinthestudy.Hence,focusisretainedonthetopicofstudywithmoreease.
AccordingtoFairfaxCountyDepartmentofNeighborhoodandCountyServices(FCDNCS)(2012),toobtainhighresponseratesandminimumerror
andbiasinsurveyresultsthequestionnairedesignshouldbesuchthatitincorporatesonlythoseelementswhicharerelevanttotherespondentsample
andthetopicunderinvestigation.Inlightofthis,andinconsiderationofthediversenatureoftheKualaLumpurmarketsegments,athoroughprocess
wasundertakentodesignandtesttheresearchinstrumentusedforthisstudy.Thesectionsbelowoutlinethevariousconsiderationsanddecisionsthat
weremadeintheprocessofdesigningandtestingthequestionnaireusedforthisstudy.
a)Questionnairecomponents
A short two paragraph introductory section was included to explain the aim, objectives and nature of the study for which the survey was
conducted. This section also explains to the respondents that participation in the survey was voluntary and requests their cooperation. Finally, the
researcher assures the respondents that the information they supply shall be treated with confidentiality and promises to avail a copy of the study
resultstotherespondentiftheywishitso.Thissectionguaranteestherespondentsthattheircooperationwillnotresultinanycomplicationsforthem
andthattheircooperationishighlyappreciated.Henceitcanalsobeseenasamotivationtoproceedwiththesurveyfortherespondents.
Thenextsectionofthequestionnaireprovidessomeshortinstructionstoguiderespondentsincompletethequestionnaire.Thissectionisthe
followedbytheactualquestions.Thelastsectionofthequestionnaireisashortmessageofappreciationtotherespondentforhavingcompletedthe
survey. The design was made such that the number of questions per section was kept to a minimum. This was done through careful analysis of all
questionsandtherelevanceoftheinformationtheysought.Transitionstatementswereusedinbetweensectionstomakethesurveyflow.
b)Surveyquestions
ThesurveyquestionswereoriginallywritteninEnglishandthentranslatedtoMalays,IndianandChinese.Thequestionswerewritteninasimple
languageconsideringthatthesurveyrespondentshaddiverselevelsofeducation.Inaddition,asmuchasthequestionsarearrangedintosections,an
effortwasdonetoordertheminlevelsofincreasingcomplexity.Thequestionswerethentestedthroughreadingthemoutloudtoagroupoffellow
studentswhomadecontributionsthatwereusedtoreviewthesurveyinstrument.Inthisprocesssignificantchangesweremadeinreducingambiguity
inquestions,potentialbiasandquestioncomplexity.
Thequestionswerebothopenendedandcloseended.Thecloseendedquestionnairesweredesignedinsuchawaythatarespondenthadto
chooseoneoptionastheanswerorchooseannumberofoptionsprovidedastheresponsesforquestionsthatcouldhavemultipleanswersfromone
respondent.Theopenendedquestionnairesallowedfortheindividualstogivetheirviewsandexplainreasonsbehindsomeoftheirresponses.Again,
thequestionnairewasreviewedtocheckwhetherallpossibleanswerstoallquestionsinthequestionnairehadbeenprovided.Thiswasdonetoensure
thatrespondentsdidnotleavesomequestionsduetolackofoptionsandhenceintroducingbiasintheresults.Thequestionsweredesignedtocollect
information from the respondents concerning the effectiveness of IT and business integration in their organizations in China today. Demographic
informationsuchasage,sex,income,andeducationlevelandemploymentstatuswasalsosoughttoallowclassificationofresults.
c)SurveyInstrumentTesting
Inthecourseofdevelopmentofthesurveyquestionnaire,itwastakenthroughseveraltests.Thesetestsweredonetopinpointandhenceremove
potential causes of bias in the questionnaire instructions, structure, questions and language used. Throughout the process of development, the
researcherconsultedwithfellowstudents.Theconsultationsyieldedsuggestions;someofwhichwerereflectedinthefinaldraftofthequestionnaire.A
fewcolleagueswerealsorequestedtoreviewthedraftquestionnaire.Afewchangesweremadeatthisstagereflectingsomesuggestionsmadebythe
reviewers.
Aversionofthesurveywasconductedasafinaltestingstep.Themocksurveywasconductedwithtenrespondentswhoallofwhomwere
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Aversionofthesurveywasconductedasafinaltestingstep.Themocksurveywasconductedwithtenrespondentswhoallofwhomwere
students . Data collected was analyzed and mock results generated. After the pilot study, one question was added into the questionnaire and slight
changesinphrasingofsomequestionsweremade.Thefinalcopyofthequestionnairewhichwasusedtocollectprimarydataforthisstudyisprovided
attheappendixsectionofthispaper.
3.2.2RespondentsSampling
TheaimofthisstudyistoassesstheeffectivenessofITandbusinessintegrationinorganizationsinKualaLumpur,Malaysia.Hence,thesurvey
samplerequiresbeingarepresentativeoftheKualaLumpurorganizationsdemographics.DuetothesegmentationoftheMalaysianmarketandthe
size of the population, such a representative sample would have relatively many respondents. For this particular case, information could only be
collectedfrompeoplewhohadbenefitedorhadanintegrationofITandbusinessintheirsystems.
3.3SecondaryResearch
AccordingtoCreswell(2003),secondaryresearchistheprocessofgatheringdatathathasbeencollectedbyanotherpersonandusingitinastudy.
Prescottexplainsthatsecondaryresearchinvolvescollectingdatafromthirdpartysources.Someofthesethirdpartysourcesincludecompanysalesand
accounting records, articles in magazines and journals, company websites, research reports and other online sources of data. Secondary data for this
studywascollectedfromvarioussources.Effortwasputtoselectandusecurrentdatafromcrediblesources.
Secondarydataisconsideredgivenitseconomicalnature,thereisalotofeffortandexpensesthataresavedwhentheresearcheroptsforthemethod.
Withthereferencetosecondarymaterials,primarydatacollectionismademorespecificgiventhattheresearcherisabletocompensateforthegapsand
deficiencies.Secondarydataalsoprovidesabasisforcomparisonofdatacollectedbytheresearcher.
Theresearcherhasaccesstoauniversitylibrary.Thelibraryisequippedwithvariousacademicsourcesincludingbooks,journals,periodicalsand
newspapers.Inadditiontothesesources,someofthedatausedinthisstudywascollectedfromtheinternet.Inadditiontothedatacollectedfromthese
sources, the researcher acquired information about the subject under study. This made the analysis and discussion of the results easier due to the
resultingwideknowledgeofthesubject.
Inthisstudy,secondarydatawassoughttocomplementprimarydata.Inthisway,datathatcouldnotbecollectedorrequiredcomplexprocesses
tocollectthroughasurveywasobtained.Theinformationcollectedfromsecondaryresearchhelpedtoincorporatecontextualdataintheanalysisof
resultsobtained.
3.4Chaptersummary
Informationanddatausedinthisstudywascollectedfrombothprimaryandsecondaryresearch.Asurveywasusedtocollectprimarydata.The
surveyinstrumentwasdraftedandreviewedseveraltimestoeliminatepossiblesourcesofbiasandensurethatitwouldcollectallinformationrequired.
Itwastakenthroughseveraltestsincludingareviewbycolleaguesandapilotstudybeforethefinaldraftwasdeveloped.Astratifiedsamplingmethod
was employed to obtain a respondent sample. Secondary data was collected from various sources. This data was used to complement primary data
collected through the survey. As outlined in the previous sections of this chapter, several steps were taken in the processes of questionnaire design,
respondentssamplingandselectionofsecondarydatasourcestoensurehighaccuracyofresultsandreducebias.Thenextchapterpresentstheresults
obtainedfromprimaryandsecondaryresearch.
4.0RESULTS
Thischapterpresentsresultsandfindingsfrombothprimaryandsecondaryresearch.Theprimaryresearchresultswereobtainedfromanalysisofdata
collected using the questionnaire outlined in appendix (1.). The secondary research results presented here in below are findings made by previous
researchersconcerningsomeaspectsofthesubjectunderinvestigation.Asexplainedinthepreviouschapter,secondaryresearchwasnecessitatedby
theneedtoprovidesomecontextualaspectsandhistoricaldataonthesubjectunderinvestigation.Hencethesecondaryresearchwillcomplimentthe
primaryresearchbyprovidingcontextualevidencefrompreviousstudies.
4.1Surveyresults
Atotalof30questionnaireswereemailedtorespondentssampledfollowingthesamplingprocedureoutlinedinchapterthreeabove.Outofthis,
25questionnairesweresuccessfullycompletedandemailedback.Thisrepresentsaresponserateof84%.Thisresponseratewasviewedasasuccess
especiallyconsideringthattimeconsiderationslimitedtheresponseperiodgiventotherespondentsforcompletionandemailingofthequestionnaire.
Thesuccesscanbeattributedtothecorroborationwithheadsofvariousorganizationsthatwererequestedtoencouragepeopleassociatedwiththeir
institutions to participate in the survey. The data collected from these questionnaires was analyzed and percentages for all responses for each of the
questionswerecalculated.Thedataispresentedusingvariousstatisticalmethodsofdatapresentation.Briefelaborationsoftheaspectsofdatacollected
arealsoprovided.
Thesamplingprocedureadoptedwasdesignedtoarriveatarepresentativesampleoftheheadsofbusinessunitsandkeyoperators(consumers).
Suchasamplewouldrequirethatconsumersatdifferentages,havingdifferentlevelsofeducation,incomelevels,andlivingindifferentgeographical
andculturalregionsberepresentedinthesample.Section(B)ofthesurveyquestionnaire(Appendix1.)wasdesignedtocollectclassificationdata.As
shownbythepiechartbelow,thelargestportionofthesurveysamplecomprisedofpeopleagedbetween2635years.28%(7)oftherespondentswere
aged between 1830 years. The categories of 2635, 3645, 4655 and 55 and above years accounted for 40%, 12%, 16% and 4% of the respondents
respectively.
Ofthe25respondents,4(16%)hadgrade12levelofeducation.Mostrespondentsinthiscategorywereagedbetween1825years.Thesurvey
sample did not have respondents whose lowest verifiable level of education was lower than grade 12 level due to the nature of their jobs and some
limitationsofemailedquestionnaires.Thiscategoryofconsumersgenerallyhaslowpurchasingpowerowingtothefactthattheyareinstudentsand
hencearenotworkingtoearn.However,asexplainedbyKalakotaandRobinson(2003),inafamilysetup,purchaseofvariousproductsisdetermined
byallfamilymembers.Hence,thereisneedtoexplorehowITandbusinessintegrationshapetheattitudeoftheproductendorsedforallagegroups
characterizingtheMalaysianconsumers.ThelimitationintroducedbytheinabilitytocollectdatafromtheMalaysian`populationwhoseeducationlevel
islowerthanprimarylevelshallbecomplimentedbysecondarydata.Thetablebelowtabulatestheagedistributionofthesurveysampleusedforthis
study.
Educationlevel
Percentage
Numberofrespondents
Grade12
16%
12/25
PostMatricDiplomaorCertificate
32%
BaccalaureateDegree(s)
32%
PostGraduateDegree(s)
20%
Categorizationwasdoneethniclevelandthiswastomajorlyhelpinunderstandingtheethnicdiversityinorganizationssoastocomeupwiththebest
IT and business for the right market. It was established that a majority of the individuals surveyed were Asian that is 12 out of 25(48%) while the
number of whites and Indians stood at 4 and 5 respectively. One colored and 3 blacks were also surveyed. This represented the 4% and 12%
respectively.
Black
White
Colored
Indian
Asian
12
The globalization of the marketplace, as well as, changing ethnic structures of society, both within and across national boundaries, have prompted
marketerstoconsiderthedevelopmentandimplementationofmarketingstrategiesspecificallytargetedtowardsdiverseethnicgroups.Usingethnicity
as a segmentation variable is justifiable by its nature as an obviously relevant causal construct for both sellerbuyer and consumer behavior.
Identification of similarities and differences between ethnic sub cultural groups, and how these change over time, is important in making a
segmentationdecision.
The next categorization of respondents was done according to occupation. 70% of the respondents were key operators or consumers in their
organizations.Theremaining30%wereheadofbusinessunits.Thetablebelowshowsthedistributionoftherespondentscategorizedbyoccupation
categoryortheirrelationtowork.
Occupationcategory
Percentage
Numberofrespondents
Headsofbusinessunits
30%
Keyoperators
70%
16
Asshowninthepiechartbelow,asignificantlylargeportion(65%)oftherespondentsinthesurveysamplewerepeopleearningabout40,000per
month.Thisgrouplargelycomprisedofthekeyoperatorswhoarelargelyconsumers.Gettingthemwasquiteeasiergiventheirnatureofjobandtheir
alignmenttochangingtechnology.Thattechnologyisfortheyouth.Majorityoftheremaining35%oftherespondentswerepeopleearningbetween
40,000to100,000.ThiscategoryofrespondentsrepresentstheMalaysianmiddleclasswhichineffectmakeupmostheadsofbusinessunits.Busler(2010)
positsthatthemiddleclasspopulationisincreasinglybecomingimportantformarketersasitcontinuesexpanding.Inaddition,largeportionsofthis
categoryofMalaysianconsumershavebeeninmanagementforquitesometimeandfullyunderstandtheecommercefactorsandconceptasawhole.
Thequestionsinsection(B)ofthequestionnairesoughtinformationrelatingtheirunderstandingofITservicesandintegrationinbusiness,aswellas,
theirtakeonecommercewithregardstotheirorganizations.
Question 7sought to establish whether the respondents had an idea that their institutions offer ecommerce; an overwhelming 22 (88%) respondents
agreed that their institutions offer ecommerce. The remaining 3 respondents which represented 12% were not sure of the institutions embracing e
commerce.Thetablebelowoutlinestheresponsethatweregiven
No.OfRespondents
Percentages
InstitutionsofferembraceEcommerce
22
88%
NotSure
12%
Theresearchfurthersoughttofindoutthepaymentmethodsthatareusedintheorganization.Itwasestablishedthatquiteanumberofindividualsuse
creditcardsinthepaymentsystem.Thenumberofrespondentswhoagreedtothisfactwas20representing80%ofthosesurveyed.Thehighusageof
creditcardsisattributedtotheirabilitytoreduceoperationcosts,theneedtogogreenandincreasecorporatecitizenry.Thecardshavealsobeenfound
toaidinexceptionallyimprovedvisibilitywithcashwhichinthelongrunaidinerrorreductionandmaximizeonfrauddetection.
Thelowernumberofthoseusingofflinepaymentsystemstoodat5outofthe25respondentssurveyed.Thisrepresentedabout20%ofthetotalusers.
However,itisnotedthatthereareindividualswhobothuseofflineandonlinepaymentmethod.Thoughthedifferencebetweenthedistinctusersis
large,therearesomeorganizationsandindividualswhoarenotfullyintotheonlinesystem.Thisshowsthetransformationorchangingperiodofusers
andorganizationsfromofflinetoonlinepaymentmethod.Thenumberofrespondentswhoassertedthattheywitnessusageofonlinepaymentwasat
13/25
andorganizationsfromofflinetoonlinepaymentmethod.Thenumberofrespondentswhoassertedthattheywitnessusageofonlinepaymentwasat
18.Thisrepresented72%ofthetotalrespondents.TheleastpaymentsystemintermsoftheviewsoftherespondentsisthePO.Threerespondents(12%)
confirmedtheirusage.Thefollowingtableshowstheresultsofthefinding:
Number
Percentages
PO
12%
CreditCard
20
80%
OnlinePayment
18
72%
OfflinePayment
20%
Question 9 and 10 sought to establish cards that most users have during transactions and whether the cards have gateway security on them. The
findings showed that a majority, 18 of the 25 (72%) respondents use the Visa or MasterCard while the remaining 7 (28%) use the American Express
cards.Askedwhetherthereisprovisionofsecuritygatewayonthecreditcards,20respondents(80%)agreedwhile5ofthem(20%)werenotsure.The5
respondentssaidthattheywouldnotapplaudthatthecardsareprovidedwithsecuritygivensomeincidencestheyhaveheardofconcerningfraud.
However,theyacknowledgedthattheyhaveneverbeenvictims.
Question 11 sought to understand and get the financial institutions and banks that are used for online payment. Some of the institutions mentioned
includeInstitutionslikeMaybank,OCBCBank,GHLSystems,PayDirectorFinancialLinkpaymentgatewaytoMEPS(MalaysiaElectronicPayment
System).
Question12soughttogaugetheunderstandingofthekeyparticipantsonthegoalsoftheirorganizations.Amajorityoftherespondents(20outof25)
representing 80% said that it was to ensure their organizations remain competitive, the market share is increased, productivity increases in the
organizationsand
Inquestion18,theheadsofbusinessandtheconsumerswereaskedwhethertheyseethefutureofintegrationofITandbusiness.Amajority,21outof
25respondentsaffirmedthatithadafuture.Theremaining4werenegativeaboutthefutureofITandbusinessintegration.Thoseoptimisticaboutthe
idearepresented84%whilethosewithcontraryopinionsrepresented16%.
YES
84%
NO
16%
When asked whether they would opine that IT increase market share on an online platform, most of respondents were quite positive. 20 out of 25
respondentsconfirmedthatitwouldincreasemarketshare.Thiswouldrepresent80%ofthetotalrespondents.5respondentsaffirmedthattheydont
seetheintegrationincreasingmarketshare.Thisrepresented20%oftheindividualsinterviewed.
Questions23,24,25,26and27soughttogettheopinionandtheratingofindividualsconcerningimpactofITandbusinessintegrationonrunningcosts
oftheorganizations,competitiveadvantage,effectiveness,growthoforganizationsIT.Thequestionsalsosoughttoestablishtheeffectivenessofthe
wholeidea.Thebusinessheadsandconsumersweretoranktheimpactsbasedonthecriteriaofstronglydisagree,disagree,neutral,agree,strongly
agree.
4.2SecondaryFindings
This sectionpresentsinformation collected fromsecondary sources. As indicated hereinbefore, thedata presented hereshall onlybe usedto
complementtheprimarydatapresentedintheprevioussectionofthischapter.
NationalbroadbandinitiativeinMalaysiahasstimulatedgrowthintheecommercesector.AccordingtoInternationalDataCorporation(IDC)survey
by2007theoverallEcommercespendinginMalaysiahasgrowntoUS$22.3billion.OnlinebuyersinMalaysiaarealsomovingupwardyearby(Figure
1).DepartmentofStatisticsputsthetotalvolumeofonlinetransactiontoUSD26bn(Figure2).Figure1and2showspositiontrendstowardsgrowthof
ECommerceindustryinMalaysia,thesetrendsarefurthersubstantiatedbyarecentsurveydonebytheStarnewpaper.Accordingthenewsarticlein
2010MalaysianspentRM1.8bilononlineshopping(HO,2011)andthisfigureisexpectedtotripleinthreeyearstime.
AccordingtoPaynter&Lim(2001)astudydonebyinternetpaymentserviceproviderPayPalreportedthatMalaysianswerespendingmoreonlocal
websiteswithtransactionsuptoRM825million,incomparisontoforeignwebsiteswhichrecordedonlyRM627millioninreceiptslastyear(HO,2011).
Thisisaverypositivesignfortheeconomy,plusamotivatingfactorfornewentrepreneursandexistingbusinessorganizationtoventureintoonline
businessmodels.
ThesamestarnewspaperstorymentionedPayPalsmanagingdirectorforSouthEastAsiaandIndia,EliasGhanemsuggestingthatlocalwebsiteshave
achancetocompetewithoverseaswebsiteduetothefactthatMalaysianarespendingmoreonlocalwebsite,retailersshouldsetuponlinestoresto
captureshareofagrowingmarket.Table1presentscategoriesofproductsandservicespurchasedonlinebyMalaysianbuyers.Reasonsforgoingon
overseasonlineretailershopsincludeunavailabilityofitemslocally;howevertheyarenotconcernedtoomuchaboutcostoftheproducts.
CertainlygrowthintheECommerceshowpositivesignsanditseemsfutureofonlinebusinessindustryisbright,howeverstillalothastobedoneas
MalaysiaincomparisontoAsiaPacificcountriesstilllagbehindinEcommerce.Table1belowpresentsthemarketreachofpopularonlinestoresin
AsiaPacificregion.Basedon
thefigurespresentedinthetable2marketreachoftheonlineretailstoresinMalaysiacomparedtoothercountriesintheregionisnotthatimpressive,
howeverpositivesignsofgrowthareevidentandcomingyears
MalaysiaECommerceindustryisexpectedtogrowrapidly.
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Figure1
Figure2
Table1:Companyattributesandrateofadoptionofonlinesalechannel
5.0DISCUSSION
This chapter discusses the findings presented in Chapter three. The findings from the current study shall be compared and contrasted with various
previous research findings to highlight similarities and differences in findings. The chapter shall be organized into several sections for ease of
organization.
The main goal of integrating IT and business is to increase the productivity of an organization. Increasing productivity would entail increasing the
market share mainly on the online platform, increasing the sales and ultimately increasing profits in the balance sheet, improving operations and
makingtheorganizationscompetitiveenough.Therefore,anorganizationmuststrivetoadoptthebestITandbusinessintegrationtechniques.Forsuch
anintegrationtobethebestitmustcaterfortheneedsofalltheusers,thatis,bothbusinessheadsandconsumers.
As discussed in the literature review section, the Malaysian market of today is highly competitive. Due to this, the organizations and consumers are
exposedtonumerousbusinessideasandthebestorganizationstotransactwith.Asaresult,efficientitandbusinessintegrationtacticsshouldbeableto
attracttheattentionoftheintendedrecipients.Inotherwords,themostefficientbusinessandITintegrationorganizationshouldstandoutfromthe
numerousorganizationsthatpresenttheirtechniquesinthedailylivesofMalaysians.Efficiencywouldencompasstheeffortsbytheorganization,labor
andthebestadoptiontechniquetheyapply.
As(MasonandMitroff,1981)putit,thevariouseffortsbystakeholdersintheorganizationimpactontheadoptiondecisions.Thestakeholdersthatthey
identifyincludecustomersandsuppliers,ITproductvendors,systemintegratorsandinternalISorganizationsaswellastheconsumers.Thecustomers
orconsumersattitudeinmostcasesisinformedbythedecisionoftheorganization.Themoretheorganizationsopttoadoptingastandardtechniqueof
ITandbusinessintegration,themoreitwillbeadoptedbythegeneralpopulous.TheITproductvendorshaveahugeparttopartgiventhattheyare
usually the innovators and earlier adopters of new techniques. Their efforts must always be utilized extensively to ensure that right software is
incorporatedinbusiness.
SystemintegratorshavetherightITskillsrequiredtokeeptheorganizationsincheckandupwithnewstandards.Somesystemsintegrators,suchas
CommerceQuest,arepromotingtheiruseofstandardsasbeneficialgiventhattheyprovideforlowermaintenanceandsupportcosts.Inoneproject,
CommerceQuestestimatedthattheyachieve70%reductionindevelopmenttimeandcosts,reducedmaintenancecosts,and100%paybackwithin1
yearbyitscustomer.
WhiletryingtofindoutfurtherthereasonsthatarelikelytoinfluencetheadoptionofITandbusinessintegration,organizationalfactorswerebrought
forward. Some of the identified factors included company size and industry type, organizational culture, and IT architecture. Big organizations that
showaneedtointegrateoftenbelongtotheearlyadopterscategory.Thisisbecause;theorganizationshavesomeofthebestITinfrastructurewith
them.Theorganizationsthatexudeinnovativeculturearealwaysmorelikelytoabsorbandexperimentwithebusinessstandardsatearlystages.The
organizationsthatemphasizeconformancearemorelikelytoadoptebusinessstandards.
The IT skill set influences massively the adoption of IT and business integration. In most cases, before an organization adopts the technology, the
questionthatliesbeforethemiswhethertheyarecapableofhandlingtheITandthetechnologythatisdynamiceveryday.Theorganizationsthathave
highlyskillITpersonneltendtobeearlieradoptersofebusinessstandards.Thesmallandmediumsizeorganizationsareoftenamongthelatemajority
categoryinadoption.Thisisduetothelackofnecessaryskillsetsandresources.However,thelargeorganizationsarealwayspressuredbytheirlarge
consumersandstafftoadoptcertainstandards.
Asdiscussedinliteraturereviewecommercehavenumerousimpactsonorganizationsoperations.Ecommerceleadtointensifiedcompetitioninany
market,thisisduetoitsnaturetoallowconsumerstogetsufficientinformationregardingproductsandservices.FourresearchersattheUniversityof
Chicagofoundoutthatgrowthofonlineshoppinghashadmajorimpactsonthetravelagenciesandbookshops.However,mostscholarsarguethate
commerceaswellasebusinessdoesnotjustencompassinternetbutalsoincorporatesallpreviousbusinessmanagementandeconomicconcepts.As
such,ecommerceimpactwidelyinmanydisciplinesandfacadesofanorganization.
Inmarketingforinstance,ecommercehasadirectplayonissuesofonlineadvertising,consumerbehavior,consumercultureandmarketingstrategies.
In the past, there was a direct marketing which was done through door to door using leaflets or catalogues. However, this behavior has changed
overtimeandmuchisseenintelemarketing.
In finance and accounting sector, ecommerce has evolved the online banking thus easing the issues of transactions. This in the long run has made
auditingandaccountingsoeasy.Inproductionandoperationsmanagement,ecommercethroughonlineprocessinghasdrasticallyreducedcycletimes.
Forinstance,ittakessecondstodeliverdigitizedproductsandserviceselectronically.
GiventhepositivereceptionofITandbusinessintegrationinmostorganizationsasindicatedbythesurveyresultsdiscussedabove,onewouldexpect
thatadoption of this technique would be embraced by all or nearly 90% of organizations in Malaysia. However, in a real life setting, there are many
factors including the initiative by the government, the security measures and the ability of the organization to streamline smoothly that affect the
integration.Thesefactorsineffectinformthedecisionsoftheorganizations.Forinstance,organizationsthathaverightpoliciesinlinewiththoseofthe
government,willfinditeasiertoadoptITandbusinessintegrationintheirprocesses.Furthermore,theywillonlyadoptrightmeasuresthatareinline
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government,willfinditeasiertoadoptITandbusinessintegrationintheirprocesses.Furthermore,theywillonlyadoptrightmeasuresthatareinline
withthegovernmentsiftheyareawareofthegovernmentpolicies.Therefore,theactualnumberoforganizationsthatadoptthetechniqueisaffected
bynumerousfactorsamongthemgovernmentpolicies.
MalaysiaisanemergingAsianeconomyaspiringtomovetowardsatechnologydrivenandhightechproductionbasedpatternofdevelopmentand
thusreplicatetheexperienceofthenewlyindustrializingeconomies(NIEs)ofAsia.Infact,Malaysiahasbeencategorizedinthegroupofcountriesthat
havethepotentialtocreatenewtechnologiesontheirown.Theprospectsremainpromisingdespitethe1997Asianfinancialcrisis,althoughnocountry
intheregionwasspared.TherapidtechnologicaldevelopmentoftheNIEsoverthepasttwodecadeshascaughttheattentionofbothdevelopingand
developedeconomies.
Coincidentally,MalaysiaandtheNIEsarenotonlylocatedinthesameregion,buttoalargeextenthavesimilareconomicregimesandtradestructures.
In view of that, Malaysia has a strong basis to consider formulating its own technological development strategy based on those in the NIEs with
appropriateadaptationstoaccommodatetheeconomysuniqueness.
ThegovernmentofMalaysiahastakenaleadroleinthedevelopmentofecommerce.Ithassetupconcreterealisticmeasureslikecreatingafavorable
policyenvironmentforecommerce;itisaleadingedgeuserofecommerce,andprovidesforitscitizenstherequiredinfrastructureforthewidespread
ecommerceuse.
The globalization of the marketplace as well as changing ethnic structures of society, both within and across national boundaries, have prompted
marketerstoconsiderthedevelopmentandimplementationofmarketingstrategiesspecificallytargetedtowardsdiverseethnicgroups.Usingethnicity
as a segmentation variable is justifiable by its nature as an obviously relevant causal construct for both sellerbuyer and consumer behavior.
Identification of similarities and differences between ethnic sub cultural groups, and how these change over time, is important in making a
segmentationdecision.
Parallelingthegrowingacknowledgementofculturaldiversityandthepotentialofusingethnicsubculturesasasegmentingvariablewithindomestic
economies, the past two decades or so have witnessed a heightened level of attention to the study of ethnicity by consumer researchers. Despite the
attentionthistopichasreceived,mostweredoneintheNorthAmericanorEuropeancontext.Thereisapaucityofstudiesthathaveinvestigatedethnic
influencesinanAsiansetting.Thisissurprisingatatimewhenmarketingscholarsmakecontinuouspleasforcrossnationalstudiesandemphasizethe
acute need for international research to establish the universality of consumer behavior concepts and theories. The study reported in this article
responds to these calls and extends the research stream into Malaysia. Malaysia provides a good starting point for sub cultural analysis on Asian
consumersasitisamultiracialsocietyofMalays,Chinese,andIndians.AssertthatindividualsinamultiethnicsocietysuchasMalaysiaarelikelyto
haveasetofethnicandotheridentitiesthatmaybedifferentlysalient.Duetoculturaldifferencesthatexistintheoriginsofdifferentcommunities,there
isanoticeableabsenceofhomogeneityinthebehaviorofconsumersinMalaysiawherethenatureofitsdomesticmarketishighlycharacterizedbythe
ethnicallysegmentedconsumermarket.
Onestablishingwhethertherespondentshadanideathattheirinstitutionsofferecommerce;anoverwhelming22(88%)respondentsagreedthattheir
institutions offer ecommerce. The remaining 3 respondents which represented 12% were not sure of the institutions embracing ecommerce. The
numberofindividualsnotawareofecommercerepresentsinlargethesegmentofMalaysianpopulationthatmightnotbeawareofecommerceandits
facades.
Theresearchfurthersoughttofindoutthepaymentmethodsthatareusedintheorganization.Itwasestablishedthatquiteanumberofindividuals
usecreditcardsinthepaymentsystem.Thenumberofrespondentswhoagreedtothisfactwas20representing80%ofthosesurveyed.Thehighusage
ofcreditcardsisattributedtotheirabilitytoreduceoperationcosts,theneedtogogreenandincreasecorporatecitizenry.Thecardshavealsobeen
foundtoaidinexceptionallyimprovedvisibilitywithcashwhichinthelongrunaidinerrorreductionandmaximizeonfrauddetection.Thelower
numberofthoseusingofflinepaymentsystemstoodat5outofthe25respondentssurveyed.Thisrepresentedabout20%ofthetotalusers.However,it
isnotedthatthereareindividualswhobothuseofflineandonlinepaymentmethod.
Thoughthedifferencebetweenthedistinctusersislarge,therearesomeorganizationsandindividualswhoarenotfullyintotheonlinesystem.This
shows the transformation or changing period of users and organizations from offline to online payment method. The number of respondents who
assertedthattheywitnessusageofonlinepaymentwasat18.Thisrepresented72%ofthetotalrespondents.Theleastpaymentsystemintermsofthe
viewsoftherespondentsisthePO.Threerespondents(12%)confirmedtheirusage.Thefollowingtableshowstheresultsofthefinding.
Question 9 and 10 sought to establish cards that most users have during transactions and whether the cards have gateway security on them. The
findings showed that a majority, 18 of the 25 (72%) respondents use the Visa or MasterCard while the remaining 7 (28%) use the American Express
cards.Askedwhetherthereisprovisionofsecuritygatewayonthecreditcards,20respondents(80%)agreedwhile5ofthem(20%)werenotsure.The5
respondentssaidthattheywouldnotapplaudthatthecardsareprovidedwithsecuritygivensomeincidencestheyhaveheardofconcerningfraud.
However,theyacknowledgedthattheyhaveneverbeenvictims.
Question 11 sought to understand and get the financial institutions and banks that are used for online payment. Some of the institutions mentioned
includeInstitutionslikeMaybank,OCBCBank,GHLSystems,PayDirectorFinancialLinkpaymentgatewaytoMEPS(MalaysiaElectronicPayment
System).
Question12soughttogaugetheunderstandingofthekeyparticipantsonthegoalsoftheirorganizations.Amajorityoftherespondents(20outof25)
representing 80% said that it was to ensure their organizations remain competitive, the market share is increased, productivity increases in the
organizationsand.
Ingaugingtheknowledgeofrespondentsconcerningkeydriversandchallengesinadoptionofecommerce,therearenumerousresponsesthatwere
obtained.Someofthemincludedrapidinternetdiffusion,consumerpurchasingpowerandgovernmentsupporttowardstheprograms.Manystudies
havebeenconductedaroundtheworldtofigureoutchallengesanddriverstoonlinecommerce.Nair[13]statedthatamongkeyfactorsthatinfluence
thedevelopmentofecommerceareICTinfrastructuresincludingtherateofadoptionofcomputersandmaturityofInternetbroadband,availabilityof
onlineservicessuchasonlinepaymentservices,legislationsandregulations,andsecurity.
Astudywasconductedacrosscountrycompression,coveredUSA,Brazil,Mexico,German,France,Denmark,China,Taiwan,SingaporeandJapan,to
examinethekeyglobal,environmentalandpolicyfactorsthatactdeterminantsofecommercediffusion.ItfindsthatB2Becommerceseemstobe
drivenbyglobalforces,whereasB2Cseemstobemorelocalphenomena.Thedeterminantswhichactasdrivers/enablersforB2Cecommerceare(1)
consumer desire for convenience, lifestyle enhancements, and greater product/service selection, especially among younger generation; (2) business
desire to reach new markets or protect existing markets; (3) consumer purchasing power; (4) rapid Internet diffusion: high IT literacy, strong IT
infrastructure;and(5)governmentpromotion.Incontrast,thedeterminantswhichactasbarriers/inhibitorsforB2Cecommerceare(1)lackofvaluable
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infrastructure;and(5)governmentpromotion.Incontrast,thedeterminantswhichactasbarriers/inhibitorsforB2Cecommerceare(1)lackofvaluable
andusefulcontentforconsumers;(2)inequalityinsocioeconomiclevels;(3)consumerreluctancetobuyonlineandlackoftrustduetosecurity/privacy
concerns; (4) consumer reluctance to buy online due to preferences for instore shopping; (5) existence of viable alternatives, such as dense retail
networks,conveniencestores;(6)lackofonlinepaymentmechanisms;(7)lackofcustomerservice;(8)languagedifferences.
Asked to enumerate some of the government initiative towards support of ecommerce, it was quite affirmative on the side of the respondents. 22
respondents which represent 88% of the interviewed respondents were aware of the initiatives and could mention them. Many of the mentioned
initiativesweredriventowardsensuringsecurityandlackofcompromiseontheprivacy.Amajorityoftherespondentsconfirmedthatthegovernment
hadcomeupwithvariouslegislationstohelpsupporttheecommerceindustryandthereforeensurethatvariousorganizationsadoptingthemsucceed.
Many researchers have identified security and privacy as the main barriers in the implementation of ECommerce and making transactions online.
Organizationsandconsumersarebothfacingthedifficultiesandlackoftrusttogoonlineforbusinesspurposes.
Malaysiangovernmenthasthekeyconcerntoenhancethesecurityforonlinemeans.Forthepurposeofenhancingsecurityandimplementcyberlaws
governmenthastakenseveralinitiatives.Governmentconsultswidelywiththeprivatesectorandinitiatelegalandregulatoryframeworkofcyberlaws
andintellectualpropertylawstocreateaknowableatmospherefortheimplementationandencouragingofECommerce.Someofthecyberlawsthat
wereprivytotheindividualsincluded,
1.
2.
3.
4.
5.
6.
7.
DigitalSignatureAct1997
ComputerCrimeAct1997.
TelemedicineAct1997.
CommunicationandMultimediaAct1998
CommunicationandMultimediaCommissionAct1998.
TheCopyrightAct1997.
ElectronicCommerceAct2006.
TheheadsofbusinessandtheconsumerswereaskedwhethertheyseethefutureofintegrationofITandbusiness.Amajority,21outof25respondents
affirmedthatithadafuture.Theremaining4werenegativeaboutthefutureofITandbusinessintegration.Thoseoptimisticabouttheidearepresented
84%whilethosewithcontraryopinionsrepresented16%.
When asked whether they would opine that IT increase market share on an online platform, most of respondents were quite positive. 20 out of 25
respondentsconfirmedthatitwouldincreasemarketshare.Thiswouldrepresent80%ofthetotalrespondents.5respondentsaffirmedthattheydont
seetheintegrationincreasingmarketshare.Thisrepresented20%oftheindividualsinterviewed.
Questions23,24,25,26and27soughttogettheopinionandtheratingofindividualsconcerningimpactofITandbusinessintegrationonrunningcosts
oftheorganizations,competitiveadvantage,effectiveness,growthoforganizationsIT.Thequestionsalsosoughttoestablishtheeffectivenessofthe
wholeidea.Thebusinessheadsandconsumersweretoranktheimpactsbasedonthecriteriaofstronglydisagree,disagree,neutral,agree,strongly
agree.
6.0Conclusion
Fromthediscussionabove,severalkeyconclusionscanbemade.First,majorityoftheMalaysianorganizationsarepositiveabouttheintegrationofIT
andbusiness.MostofthemfindtheintegrationmoreeffectiveintheirprocessthanusingthebusinesswithoutintegratingwithIT.However,majorityof
organizationsarefacedwithquiteanumberofobstaclestowardstheadoptionofITinmostoftheorganizations.Withvarioussupportandtackleofthe
fewobstaclesintheadoptionofITinorganizationsitisfoundthatvariousbusinessprocessesoperateefficiently.
Secondly,itisfoundoutthatmarketshareononlineplatformincreasessignificantlyuponadoptionofITinanorganization.Thisthereforeresultsinan
increaseinrevenueofacompany.Asdiscussedinliteraturereview,roleofinteractivemarketingboostsecommerceleadingtoincreasedsales.
MoreoftheMalaysianorganizationsfindthattheirrunningcostsarereducedwiththeintegrationofITinbusinessprocesses.Furthermore,thepaper
workinmostoftheorganizationsisheavilyreducedincreasingtheproductivityoftheorganizations.Essentially,thefactthatanorganizationisina
positiontoadoptITenhancesthemessagethattheorganizationisefficientandreadytocompetewithothersglobally.Underthoseconditionsandbest
ITinfrastructureadoptedintheorganizations,potentialconsumersareeasilyconvertedtoregularcustomers.Theconversionisgovernedbythefact
thattheorganizationsareabletoadoptsystemsthatareeasytoworkwithandmeettheneedsofthecustomersatlarge.
Itwasalsoestablishedthattherearekeysecuritychallengessuchasfraud,espionagewithinthesystemsthatneedtobeaddressedtocomeupwitha
trustworthy system. The security threats if not well addressed then they pose a major challenge to the growth of the companies. In this regards, the
organizationsneedtokeeppacewithchangingtechnologytoensuretheykeeptheircustomers.Inthisrespect,customersareabletobekeptandtheir
engagementononlineenvironmentincreased.
In conclusion, the results from that majority of the Malaysian organizations are influenced more by their ability to adopt and integrate IT with their
business processes. Apparently, the right adoption of IT infrastructure is found to be directly correlating with the performance and results of the
company.Incidentally,mostorganizationsprefertousesameplatforminrealizationoftheirintegrationwithIT.Forinstance,mosttheorganizations
encouragetheirconsumerstousecreditcards,likeAmericanExpress,Mastercardandothersgiftcards.SuchcardsareusedforEFTinthenumerous
banksandfinancialinstitutionsinMalaysia.
7.0Recommendation
Fromthediscussionandconclusionchaptersabove,itisclearthattheintegrationofITinbusinessprocesseshasthepotentialtoincreaseproductivityof
anorganization.However,thisabilityisboundtoreduceifsecurityissuesarenotproperlyaddressed,theorganizationsshouldalsobeflexibleenough
given the dynamic change. Therefore, new ideas are required to introduce some diversity in the industry. Based on the findings of this research, the
followingaresuggestionsthatTomeiandotherMalaysianorganizationsshouldconsiderwithrespecttoeffectiveintegrationofITandbusiness.
1. Putpropersecuritymechanisms.Propersecuritywithintheonlinetransactionswillboostconfidenceofcustomersastheyareabletotransactsafely.
Asitwasdiscussedhereinbefore,privacyoftheclientmatterstothemalotandanyacttobreachontheirsecuritymustbethwartedtoensurethat
theconsumersaresafe.Researchanduptodatetoolsshouldbeputinplacetocurbfraudandhackingofsystems.Thebestsystemwouldportraya
competitiveorganizationwhichservestoattractmorecustomers.
2. Explorenewtechnologyinthemarket.Itwasestablishedchannelsofcommunicatingcelebrityendorsementcampaigns.Itwasestablishedthatmost
celebrity endorser advertisements comprise of visual images of the celebrity endorser with the product explaining the product qualities and
advantages.Tointroducesomediversity,ChinesemarketersshouldconsideramongotherthingsusingtheChinesesocialmediacelebritiesasbrand
ambassadorsonsocialmedia.
3. To increase market share, the marketers must continue to explore different techniques of marketing including interactive marketing. The
organizations should also explore the online platform hence make them more and more competitive resulting in greater revenues.The needs
of
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organizations should also explore the online platform hence make them more and more competitive resulting in greater revenues.The needs of
variousfacultiesoftheMalaysiancommunitymustbeputatheart.Allthesystemsadoptedmustatleastportraythefaceofthethreemainethnic
groupsinthecountry;Malays,IndiansandChinese.
4. To increase online presence, organizations should acquire more IT infrastructure for its members. Guidelines or lessons should be carried out
through a pilot kind of project. This helps the staff of the organizations to acquire right skills that would aid them in effectively running the
organizations. Focus on pointing out and emphasizing efficiency of the system. The survey results indicate that Malaysian consumers are
increasinglyemphasizingonqualityoftheorganizationsthatservethem.MorethanhalfoftheMalaysianpopulationconsidersqualityservicetobe
themostimportantfactorwhenmakingapurchasedecision.Hence,ITandbusinessintegrationwouldworkbetterifitwasorganizedinsuchaway
thatitbringsoutandemphasizesthequalityoftheproductbeingadvertised.Fromthediscussioninchapterfiveabove,itwasestablishedthatusing
anefficientsystemislikelytoboostandcaterfortheneedsoftheconsumersthusineffectturningpotentialconsumerstoregularcustomers.
TimeScale&TimescaleandGanttchart
References
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Development, Vol.3, No.10, pp 4854. Retrieved April 02, 2013 from http://www.iiste.org/Journals/index.php/JEDS/article/view/2904/2931
(http://www.iiste.org/Journals/index.php/JEDS/article/view/2904/2931)
Bharadwaj, A.S. (2000), a ResourceBased Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation. MIS
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andManagementSkillsOnOrganizationCapabilitiesInMalaysia.INTERDISCIPLINARYJOURNALOFCONTEMPORARYRESEARCHINBUSINESS,
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Lee,F.(2007).HowtoDevelopanInteractiveMarketingStrategy.Arizona,pp.116.
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Senarathna, R. P., & Wickramasuriya, H. V. (2011). Organizational Factors Affecting Ecommerce Adoption in Small and Mediumsized Enterprises.
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SoftwareandComputerApplications,vol.9,186191.
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ECommerceReadiness:AcasestudyontheeffectivenessofBusinessandInformationTechnologyIntegrationwithinanOrganizationincreatinga
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Yew,O.K.,Ang,C.J.,&Ramasamy,R.(2010).EnhancingCompetitivenessofICTIndustry:PIKOMsPolicyAdvocaciesandInterventions.Ecommerce
for Global Reach. Kualar Lumbar: 140. Retrived April 09, 2013 from http://marketeagles.com/pdf/ICT2010_11_Fullset_08092010.pdf (http://market
eagles.com/pdf/ICT2010_11_Fullset_08092010.pdf)
Weill,P.andBroadbent,M.(1998).LeveragingTheNewInfrastructure:HowMarketLeadersCapitalizeonInformationTechnology.HarwardBusinessSchool
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(http://books.google.com.my/books?
hl=en&lr=&id=e3NkOahPZbcC&oi=fnd&pg=PR10&dq=Leveraging+The+New+Infrastructure:+How+Market+Leaders+Capitalize+on+Information+Technology&o
Kalakota,R.,&Robinson,M.(2003).Electroniccommerce(pp.628634).JohnWileyandSonsLtd..
Turban,E.,Wetherbe,J.C.,&McLEAN,E.P.H.R.A.I.M.(1996).Informationtechnologyformanagement.Wiley.
Delone,W.H.,&Mclean,E.R.(2004).Measuringecommercesuccess:applyingtheDeLone&McLeaninformationsystemssuccessmodel.International
JournalofElectronicCommerce,9(1),3147.
Daniel,E.,Wilson,H.,&Myers,A.(2002).AdoptionofECommercebySMEsintheUKTowardsaStageModel.International Small Business Journal,
20(3),253270.
Awad,E.M.(2007).ElectronicCommerce:Fromvisiontofulfillment.Pearson/PrenticeHall.
Burn,J.,&Robins,G.(2003).Movingtowardsegovernment:acasestudyoforganizationalchangeprocesses.LogisticsInformationManagement,16(1),25
35.
Paynter,J.,&Lim,J.(2001).DriversandimpedimentstoecommerceinMalaysia.MalaysianJournaloflibraryandInformationscience,6(2),119.
Mora,Michaela.Quantitativevs.Qualitativeresearchwhentousewhich.2010.http://www.surveygizmo.com/surveyblog/quantitativequalitativeresearch/
(http://www.surveygizmo.com/surveyblog/quantitativequalitativeresearch/)(accessedAugust19,2012).
Neil, James. Qualitative versus Quantitative Research. February 28, 2007. http://wilderdom.com/research/QualitativeVersusQuantitativeResearch.html
(http://wilderdom.com/research/QualitativeVersusQuantitativeResearch.html)(accessedAugust19,2012).
Boateng,R.,Molla,A.,Heeks,R.,&Hinson,R.(2011).AdvancingEcommerceBeyondReadinessinaDevelopingCountry:ExperiencesofGhanaian.
Journal of Electronic Commerce in Organizations, 9 (1) , 116. Retrived April 1, 2013 from http://ctbus.files.wordpress.com/2010/10/ecommerceinghana
boatheeksmollahinson.pdf(http://ctbus.files.wordpress.com/2010/10/ecommerceinghanaboatheeksmollahinson.pdf)
Chanyagorn,P.,&Kungwannarongkun,B.(June2011).ICTReadinessAssessmentModelforPublicandPrivateOrganizationsinDevelopingCountry.
International Journal of Information and Education Technology, Vol. 1, No. 2, , 18. Retrived April 12, 2013 from www.ijiet.org/papers/17E00048.pdf
(http://www.ijiet.org/papers/17E00048.pdf)
Creswell,J.W.(2003).Researchdesign:Qualitative,quantitative,andmixedmethodapproaches.ThousandOaks,CA:SagePublications.RetriveApril1,2013
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(http://books.google.com.my/books?
hl=en&lr=&id=F8BFOM8DCKoC&oi=fnd&pg=PA209&dq=Creswell,+J.+W.+%282003%29.+Research+design:+Qualitative,+quantitative,+and+mixed+method+app
Farhad,N.,Masoud,B.,&Reza,R.(2011).DevelopingCountriesandElectronicCommercetheCaseofSMEs.WorldAppliedSciencesJournal,15(5),756
764.RetreivedApril1,2013fromhttp://idosi.org/wasj/wasj15(5)11/22.pdf(http://idosi.org/wasj/wasj15(5)11/22.pdf)
Mohd,R.,Maznah,W.O.,Shamsul,J.E.,Mahazir,I.,&Siti,M.(14March,2012).DeterminantsofelectroniccommerceadoptioninMalaysianSMEs
furniture industry. African Journal of Business Management, Vol. 6(10), 36483661. Retrived April 1, 2013 from
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(http://www.academicjournals.org/AJBM/PDF/pdf2012/14Mar/Shaharudin%20et%20al.pdf)
MGPWA, (2012). Malaysia Government Portals and Websites Assessment. Multimedia Development Corporation. Retrieved April 13, 2013, from
http://imej.spa.gov.my/dev/pdf/MGPWA2012%20%20Laporan%20Penuh.pdf
(http://imej.spa.gov.my/dev/pdf/MGPWA2012%20
%20Laporan%20Penuh.pdf)
OXLEY, E. J., & YEUNG, B. (n.d.). ECOMMERCE READINESS INSTITUTIONAL ENVIRONMENT AND INTERNATIONAL COMPETITIVENESS.
RetrievedApril16,2013http://people.stern.nyu.edu/byeung/ecommerce.pdf(http://people.stern.nyu.edu/byeung/ecommerce.pdf)
Paynter,J.,&Lim,J.(December2001).DRIVERSANDIMPEDIMENTSTOECOMMERCEINMALAYSIA.Malaysian Journal ofLibrary & Information
Science,Vol.6,no.2,119.
Vullers, J., & Reijers, A. (n.d.). Business Process Redesign for effective ecommerce processes in the service industry. Retrieved April 1, 2013, from
http://is.ieis.tue.nl/staff/hreijers/Papers/Beta%20report%20bpr.pdf(http://is.ieis.tue.nl/staff/hreijers/Papers/Beta%20report%20bpr.pdf)
APPENDIX1:ResearchInterviewQuestions
19/25
General
i.Inyourlifeexperience,howlonghaveyoubeenusingtheinformationsystems?
ii.Inyourlifeexperience,howmanyInformationSystemsenhancementorimplementationprojecthaveyoubeinginvolved?
iii. In your life experience, can you share with me one of your remarkable or most successful Information Systems enhancement or
implementationprojects?WhydoyouratethatprojectasyourremarkableormostsuccessfulInformationSystemsproject?
Business
1.
2.
3.
4.
i.Areyourbusinessunitsadaptedtotacklecurrentbusinesschallenges?
v.Doyouthinkthecurrentbusinessprocesswithintheorganization/businessunitshaveoptimizedaccordingly?
vi.DoyouthinkthatthecostoftheITsetup,andmaintenanceisaburdentothebusinessunitsorproject?
vii.DoyouthinkavailabilityofthesystemsandcomputersatTomeiareveryimportant?
2. Doyouhaveanapproachtomanageriskthatmatchestheorganizationscomplexity?
3. Doyouhave(theright)talentstrategy&solutions?
4. Canyouimproveyourworksolutions?
InformationTechnology
1. i.HowwouldyouratethequalityoftheaccessibilitytothesystemsandcomputersintheOrganization?Where0isworstand10isbest.
2. ii.HowistheutilizationoftheinformationsystemsandserversatTomei?Where0ismuchunderutilizedand10isveryoverutilized.
3. iii.DoyouthinkthecurrentITInfrastructureatTomeiarerobustenoughandhaveagooddisasterrecoveryplan?
4.
5.
6.
7.
8.
IsourITinfrastructurealignedwithourcurrentandfuturebusinessneeds?(ERP/SCM/CRM/eCommerce,HR,Tax,Risk)?
Areoursystemswellintegrated,uptodateandcosteffective?
Aretherebettertoolsandmethodsthanwhatweareusingcurrently?
Howdoyouhandlecorporatedatafromdifferentstakeholdersinasecureandaccurateway?
Doyouapplyanyelectronicdatastandardstoguaranteeprivacyandprotection?
APPENDIX2:TomeisBusinessandITIntegrationCharts
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APPENDIX3:PreferredIntegratedECommerceDiagram
APPENDIX4:CyberLawsinMalaysia
(Source:Compiledfrom:Yew,O.K.,Ang,C.J.,&Ramasamy,R.(2010),Pg.19)
21/25
APPENDIX5:TopSevenThingsMalaysianPayOnline
APPENDIX6:Questionnaire
QUESTIONNAIREONECOMMERCEREADINESS
Dearsir/madam
I am undertaking a research project to determine effectiveness of business and information integration within an organization to help realize a
competitiveedge.Tothisend,Ikindlyrequestyoutocompletethefollowingshortquestionnaire,regardingtheimpactsofecommercewithinyour
organization.Itshouldtakenolongerthan10minutesofyourtime.Yourresponseisofutmostimportancetous.
Pleasedonotenteryournameorcontactdetailsonthequestionnaire.Itremainsanonymous.Kindlyreturnthequestionnairetomeinthepostagepaid
returnenvelopeonorbefore1September,2013.
Summaryofthisresearchwillbepublishedinthemedia
Shouldyouhaveanyquerypleasecontactmeontelephoneat001345467oremailmeathelp@inc.co.usa(mailto:help@inc.co.usa)
YoursSincerely
PLEASEANSWERTHEFOLLOWINGQUESTIONSBYCROSSING(X)THERELEVANT
BLOCKORWRITINGDOWNYOURANSWERINTHESPACEPROVIDED.
SECTIONABACKGROUNDINFORMATION
This section of the questionnaire refers to background or biographical information. Although we are aware of the sensitivity of the questions in this
section,theinformationwillallowustocomparegroupsofrespondents.Onceagain,weassureyouthatyourresponsewillremainanonymous.Your
cooperationisappreciated.
1. Gender
Male
Female
1. Age(Incompleteyears)
1. Ethnicity
Black
White
Colored
Indian
Asian
1. HowwouldyoudescribeyourEconomicStatus?
22/25
1. HowwouldyoudescribeyourEconomicStatus?
Poor
BelowAverage
Average
Aboveaverage
Affluent
1. Whatisyourrelationwiththecompany?
HeadofBusinessunit
Keyoperator/Consumer
1. Yourhighesteducationqualification
Grade11orlower
Grade12
PostMatricDiplomaorCertificate
BaccalaureateDegree(s)
PostgraduateDegree(s)
SECTIONB
ThissectionexploresyourunderstandingofITservicesandecommercewithregardstoyourorganization.
1. DoesyourInstitutionorOrganizationembraceecommerce?
YES
NO
NOTSURE
1. Whattypesofpaymentsdoyouuseinyourorganization?
PO
CreditCard
OnlinePayment
OfflinePayment
1. Whichcardsdoyouusefortransactions?
Visa/Mc
AmericanExpress
23/25
1. 10.Doesthecompanyhavesecuregatewaytoacceptcreditcards?
YES
NO
11.Whichbank(s)orfinancialinstitutionsdoyouuseforonlinepayments?
12.Inlightofecommercewhatarethegoalsofyourorganization?
13.InyouropinionwhicharesomedriversofecommerceinMalaysia?
14.WiththeintegrationofITandbusinessinyourorganization,whoareyourtargetcustomers?
15.Whatdoyouthinkisthemostimportantneedsofyourtargetaudience?
16.WhataresomeoftheinitiativesputinbytheMalaysiangovernmentinsupportofecommerce?
SECTIONC
ThissectionexplorestheimpactsITandbusinessintegrationhashadinyourorganization
17.Inasincereview,doyouseeafutureinintegrationofITandbusinessinyourorganisation?
YES
NO
18.Whataresomeofthereasonsthatinformyourchoice?
19.WhatchallengesthattheseorganizationswhichintegrateITandbusinessface?
20.DoesadoptionofITincreasemarketshareonanonlineplatform?
YES
NO
21.Whatstrategiesdoesintegrationpresentinhelpingtoconvertpotentialcustomerstoregularcustomers?
Towhatextentdoyouagreewitheachofthefollowingstatements?Pleaseindicateyouranswerusing
24/25
Towhatextentdoyouagreewitheachofthefollowingstatements?Pleaseindicateyouranswerusing
Thefollowing5pointscalewhere:
1.=Stronglydisagree
2.=Disagree
3.=Neutral
4.=Agree
5.=StronglyAgree
Strongly
Disagree
Disagree
Neutral
Agree
Strongly
Agree
22. Integration of IT and business lower running

costs
23. Ecommerce gives an organization competitive

advantage
24. Epayment
organizations
on
25. Ecommerce has led to growth of the

organizationsbalancesheet
26.IntegrationofITandbusinessiseffective
has
positive
impacts
Thankyouforyourcooperationincompletingthisquestionnaire.Kindlyreturnthequestionnaireasspecifiedinthecoverletter.
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22. Integration of IT and business lower running

23. Ecommerce gives an organization competitive

25. Ecommerce has led to growth of the

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