Perceived Ease of Use, Perceived Usefulness, and Intention to Use E-Commerce Platforms by Agribusiness Owners in Malaysia: A Review

Abstract

Malaysia's e-commerce is rapidly expanding, driven by increased online shopping among businesses and consumers. In the agriculture sector, companies are adopting e-commerce for efficiency, cost reduction, and revenue growth, supported by government initiatives such as NEP 2030, MyDigital, and PENJANA, recognizing its positive economic impact. Given the importance and challenges of agriculture in Malaysia, agribusinesses must leverage e-commerce and government support in this endeavour is vital. In Malaysia, e-commerce in agribusiness has potential, but many businesses hesitate due to perceived risks, lack of expertise, and high transition costs from traditional to online models. While e-commerce offers opportunities, immediate cost savings might not always be evident, with businesses needing to invest in online growth and customer engagement. Furthermore, challenges in logistics and delivery services, especially in remote areas, impact businesses' ability to efficiently serve customers. A comprehensive analysis of extant literature has revealed significant research gaps, particularly in understanding the factors influencing agribusiness owners' adoption of e-commerce. Thus, this paper aims to address the knowledge gap on e-commerce usage in agribusiness using TAM as the theoretical framework. Specifically, the paper reviewed the perceived ease of use, perceived usefulness, and intention to use, which are three (3) components of the model, and how they can be used to investigate e-commerce adoption by business entities in Malaysia. The paper also reviewed the benefits and challenges faced by agribusiness in Malaysia and provided insight on studies related to the adoption of e-commerce. In conclusion, although the TAM model has been widely used to understand technology adoption, including in Malaysia, there is a need for sector-specific studies. Therefore, this paper advocates for tailored TAM studies to precisely gauge the level of e-commerce acceptance within the Malaysian agribusiness sector, providing valuable insights for future digital integration strategies.