THE ENGAGEMENT OF CO-OPERATIVES IN ONLINE BUSINESS IN MALAYSIA

Abstract

Statistics from the Companies Commission of Malaysia show that, as of July 2018, a total of 53,285 businesses had registered as online retailers. However, no formal data has been obtained on the engagement of co-operatives in online business. This research aimed to identify the profile of co-operatives in online business, particularly the factors that motivate co-operatives’ adoption of online business and the barriers faced by co-operatives in performing online business. In addition, this study sought to determine the role of co-operative performance in linking the motivating and barrier factors to continuous online business usage among co-operatives. The census method was used to collect data from the entire population of the study, which comprised co-operatives engaged in e-commerce businesses in Malaysia. The findings showed that trendiness, government support, and cost reduction have a direct positive effect on co-operative performance, while risk and a lack of employee competency have a direct negative effect on co-operative performance. Apart from that, co-operative performance was found to influence satisfaction and continuous usage directly and positively. The results further revealed that satisfaction has a direct positive impact on continuous usage as well as a mediating effect on the relationship between co-operative performance and continuous usage.