GEOGRAFIA Online
TM
Malaysian Journal of Society and Space 12 issue 12 (40-49)
© 2016, ISSN 2180-2491
40
The relationship between ICT adoption and business
performance in Malaysia and Indonesia
S. Y. Y. Ong
1
, N. F. Habidin
1
, M. I. Salleh
2
, N. M. Fuzi
2
1
Department of Management and Leadership, Faculty of Management and Economics,Universiti Pendidikan Sultan
Idris, 35900 Tanjung Malim, Perak, Malaysia
2
Departments of Accounting and Finance, Faculty of Management and Economics, Universiti Pendidikan Sultan Idris,
35900 Tanjung Malim, Perak, Malaysia
Correspondence: S.Y.Y Ong (E-mail: sharonogyy@gmail.com)
Abstracts
This paper reviews the relationship of information communication technology adoption (ICT) and
Business Performance (BP) from women entrepreneur perspective in Malaysia and Indonesia. The aim of
this paper is to identify the dimension of ICT adoption and BP to develop a conceptual framework for
further study about the relationship to identify those that can determine women entrepreneur success. To
achieve this objective, literature review is conducted by extend number of literature in ICT, BP, and
women entrepreneur. Related studies are review and analyze by using literature table. The finding of this
paper reveals a proposed conceptual framework and hypothesis that gain support from literature. The
significant of this study is expected to provide guideline for women entrepreneurs in Malaysia and
Indonesia who wish to adopt ICT in their business and help them to evaluate the relationship with BP.
This study can assist women entrepreneurs in considering the adoption of Electronic commerce (EC) and
Mobile commerce (MC) to embark themselves in technology and innovation. Further efforts are to test
this conceptual framework and hypothesis by using Structural Equation Modelling (SEM) to develop a
research model.
Key Words: ICT adoption, e-commerce, m-commerce, business performance, financial performance,
non-financial performance.
Introduction
Women in Asia is often being lay on responsibility to take care of household, children, family
and struggling to balance between work and domestic responsibility. Therefore, women
entrepreneur in Asia are often not in prominent role of entrepreneurship (Karami, Moradi,
Mazhari, Yarkarami, & Khan, 2013). Nugroho and Chowdhury (2015) also stated that women
entrepreneur from Muslim countries such as Indonesia had difficulties in conducting business
activities outside of their house due to home responsibility. This might effect on their Business
Performance (BP). In this paper, researchers select Malaysia and Indonesia as both countries are
Asia Muslim countries that have similar cultural and social background (Ball, 2010). Women
entrepreneur in both countries are also facing similar dilemma such as balance between works
and to perform in business (Karami et al., 2013; Nugroho & Chowdhury, 2015).
This limitation of women entrepreneur (domestic responsibilities of women especially
married or women entrepreneur that having family) cause women entrepreneur had difficulties
in BP. Therefore, ICT adoption plays an important role of helping women entrepreneurs in
reduce the limitation (Nugroho & Chowdhury, 2015). Further, the GEM report of Malaysia and
Indonesia country profile (2013) had stated that entrepreneur in Malaysia and Indonesia need to