E-commerce Adoption in Malaysia vs China

Introduction to the Study

• E-commerce is rapidly growing, allowing businesses to operate online globally.
• Adopting e-commerce presents challenges that need to be addressed before implementation.
• Key barriers include technological capacity, infrastructure, and government support.
• This study compares the adoption of e-commerce in China and Malaysia, focusing on SMEs.
• It aims to understand why e-commerce implementation is more complex in Malaysia than in China.
• The study considers how SMEs in both countries use web 2.0 to improve customer relations & online sales.
• It examines how China initially adopted e-commerce and how it became dominant in online transactions.
• It analyzes the factors preventing Malaysian SMEs from achieving similar online sales volume compared to Chinese firms.

Research Problem

• Malaysia is a developing country with limited e-commerce adoption despite efforts.
• Existing e-commerce implementation struggles to reach high adoption levels seen in developed countries.
• Technological barriers and insufficient funding hinder implementing e-commerce effectively, specifically within SMEs.
• Malaysian businesses face challenges with online sales volume compared to their Chinese counterparts.
• Cultural differences contribute to the complexity of e-commerce adoption in Malaysia.

Research Objectives

• Identify key barriers to adopting e-commerce in Malaysian SMEs.
• Analyze the impact of web 2.0 on customer relations within Malaysian and Chinese SMEs.
• Analyze success factors in Chinese e-commerce adoption and compare them with the Malaysian case.
• Assess current e-commerce practices in Malaysia.

Research Questions

• What are the key adoption barriers for e-commerce in Malaysian SMEs?
• How can cultural differences impact the adoption of e-commerce in Malaysia?
• Why is implementing e-commerce more complex in Malaysia compared to China?
• How do Malaysian businesses utilize web 2.0 to foster customer relationships and enhance online sales?

Research Methodology

• Mixed methods approach combining qualitative and quantitative techniques for accurate results.
• Qualitative research used in initial phases, supported by quantitative analysis for data assessment.
• Techniques include focus groups, in-depth interviews with experts, and statistical analysis.
• Rating scale (Likert scale) used in questionnaires to measure consumer behavior and adoption factors.

Research Framework

• The study analyzes e-commerce adoption considering four sections: payment security, cultural implications, adoption, and government policy.
• Each section relates to the overall payment decision-making process.
• The four-stage decision-making process comprises awareness, primary evaluation, purchase intention, and final evaluation.