E-Commerce And Value Creation: Empirical Evidence In Malaysia Tourism Sector

This study examined the impact of e-commerce usage on business performance in Malaysia tourism sector. Focus was given to online tourism which include online hotels and online private hospitals (for health tourism). With the aim to seek empirical evidence of e-commerce practices and its business implications, an interactive, comprehensive and multi-dimensional theoretical model known as E-VALUE model was introduced. E-VALUE model assesses the drivers of ecommerce usage by looking at technological, organizational, and environmental factors. Technological characteristic was represented by an independent variable named technology competence. Organizational characteristic includes four independent variables; firm size, firm scope, managerial beliefs, and web technology investment costs. Environmental characteristic on the other hand includes regulatory support and pressure intensity. All these variables were used to predict e-commerce usage. Next, E-VALUE model tested how front-end functionalities and backend integration through e-commerce usage influenced value creation by looking at four dimensions, impact on financial, impact on customers, impact on internal business process and impact on learning and growth. Besides independent and dependent variables, E-VALUE model also tested the mediator and moderator effect. Structural equation modeling was used to evaluate the model. Technology competence, firm size, firm scope, web-technology investment, pressure intensity and back-end usage were found to have significant influence on e-commerce usage. Among these, back-end integration was found to have the function of mediator. E-commerce experience (in years), was found to moderate the relationship between e-commerce usage and business performance. It is hoped that this study would narrow the gaps of knowledge and furnished useful guidelines that could trigger e-commerce implementation in the Malaysia tourism sector.

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