Cooperative’s involvement in online businesses in Malaysia: Constraining factors

Abstract

Online business is a business that uses the Internet as an intermediate medium between sellers and buyers. This is a new platform that can boost the cooperative economy, thus preserving the cooperative business in accordance with the current situation. However, the small number of cooperatives involved in online business is believed to be due to certain constraints. Therefore, this study aimed to identify constraint factors of cooperative’s involvement in online businesses. This study involved 92 cooperatives through data obtained from MCSC and cooperative that participated in the Cooperative Digital Empowerment (CODE) program organized by IKMa. 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 of analysis using Statistical Package for Social Science (SPSS) software showed that risk and a lack of employee competency have a significant relationship with cooperative performance.