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The purpose of this paper is to investigate the key determinants that affect the intention on adoption of Big Data Analytics (BDA) in Malaysian warehousing industry. Technology-Organization-Environment (TOE) framework has been adopted as the main theory to support the conceptual framework. The determinants of BDA adoption potential within Malaysian warehousing industry was explored using this conceptual paper.
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0% found this document useful (0 votes)
68 viewsBig Data
The purpose of this paper is to investigate the key determinants that affect the intention on adoption of Big Data Analytics (BDA) in Malaysian warehousing industry. Technology-Organization-Environment (TOE) framework has been adopted as the main theory to support the conceptual framework. The determinants of BDA adoption potential within Malaysian warehousing industry was explored using this conceptual paper.
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/ 13
‘Vision 2020: Sustainable Economic Development and Application of Innovation Management
Big Data Analytics Adoption in Malaysia Warehousing Industry
Siti Norida WAHAB, Ezutah Udoncy OLUGU?, Wei Chern LEE’, Say Yik TAN*
‘Department of Logistics Management, Faculty of Business & Inform:
UCSI University, 56000, Kuala Lumpur, Malaysia
'sitinorida@ ucsiuniversity.edu.my
Swelee1 997@ gmail.com
“illiontan6899@ gmail.com
Science,
*Faculty of Engineering, Technology and Build Environment,
UCSI University, 56000, Kuala Lumpur, Malaysia
‘lugu@ ucsiuniversity.edu.my
Abstract
‘The purpose ofthis paper isto investigate the Key determinants that affect the intention on adoption of
Big Data Analytics (BDA) in Malaysian warehousing industry. Technology-Organizaton-Environment
(TOE) framework has been adopted as the main theory to support the conceptual framework. ‘The
determinants of BDA adoption potential within Malaysian warehousing industry was explored using this
conceptual paper. The theoretical gap was identified in this study by exploring the factors of BDA
adoption potentials. Findings suggest five determinants that might have essential effects on the BDA
adoption potentials within warehousing industry. This study will serve as a facilitator for warehousing
firms to implement the most attractive and appropriate strategies in adopting BDA thus boost Malaysian
sustainable supply chain and logistics system. This research paper enables warehousing industry to
understand clearly the possible determinants that need to be considered for BDA adoption in warehouse
operations. Previous studies explored the adoption of BDA in emerging economies as well as at the
organizational level by using TOE framework. However, TOE framework has not been integrated in
the BDA adoption intentions in warehousing industry. This study is an extension of the
existing literature for future empirical study in this area,
Keywords: Big Data Analytics (BDA), Warehouse, TOE framework, Sustainable supply chain
1. Introduction
‘The term “Big Data’ was first introduced by Roger Magoulas from O° Reilly Media in 2005 which
{implies that traditional data management tools are almost impossible to manage and process a wide range
of data due to the size and complexity of the data (Gali et al., 2012). When meaningful insights of the
underlying data cannot be uncovered by traditional data mining and handling techniques, big. dat
becomes the most viable option as the data sets are so voluminous and complex for conventional data-
processing software (Oracle, 2018). BDA has the capability of extracting different meanings from big
data. In IBM’s words, BDA is the use of advanced analytic techniques and software such as Hadoop and
‘MapReduce that can cope with very large, diverse data sets (Big Data sets) that include structured, semi-
siructured and unstructured data from various sources and different sizes from terabytes to zettabytes
(IBM, 2018). In addition, the BDA can examine large amounts of data to uncover hidden patterns,
correlations and other insights (SAS, 2018).
Basically, big data comprises five characteristics which are known as the SVs. This means high volume,
high value, high velocity, high veracity and more variety (Ishwarappa and Anuradha, 2015). The big data
always accompanied by & large amount (Volume) of data sets. Many companies have high volume of data
2349 ‘Vision 2020: Sustainable Economic Development and Application of Innovation Management
in their database but they do not have the capacity to process the data. Hence, it makes no sense focusing
‘on minimum storage units since the total amount of data or information is growing exponentially every
year (Williamson, 2015). Veracity of big data is related to the accuracy of the result from the data set
ibeing analyzed. Veracty is a function of the data source. It may refer to as the integrity, trustworthiness
and data authenticity as being a true representation for the data sampling frame (as it is not possible that
all the data is going to be 100% correct) (Paryani, 2012). Veracity of big data is the hardest thing to
achieve due to the fact that the volume and variety of data is difficult to identify as well asthe usefulness
and accuracy of the big data (Trifu and Ivan, 2014.
Velocity of big data refers to the frequency or the speed on how the data can be addressed, processed,
stored and analyzed in a given time frame. It is a measure of the speed of data generation, data
transformation and data algorithm (Walunj et al, 2016). It requires real time storage and processing
models to analyze the big data (Kumar and Kumar, 2015). Variety of big data refers tothe types of big
data set that is needed to be addressed. These data set usually encompass structured data, semi-structured
data and unstructured data. Unstructured data occupy 80% of the storage space whereas structured data
only occupy 20% of the storage space inside the big data (Hurwitz ct al, 2013). Value of big data is the
‘most important aspect because big data are having a high potential value as all businesses hope to have
high Retum on Investment (ROD. It includes large volume and varity of data that could be easy 10
accessed, analyzed and delivered with expected reliable results. I is useless for us to ony access the big
data without extracting the important value from the big data (Elgendy and Elragal, 2014).
Big data differ significantly from smal data or traditional data, First of all, it has changed from random
sampling analysis to analysis ofall the data. In small data era it only can collect small amount of data
from the sampling frame to analyze because the tools to store, record and analyze the data are
insufficienly developed. In big data era, as the data analytics technique become advanced, the volume of
data that ean be addressed also inerease. Hence, it has the capability to analyze all the data easily without
relying on random sampling analysis (Chai, 2016). Furthermore, it has changed from pursuing. the
accuracy of data to accepting complexity of data. Small data is mainly concer on the accuracy of
structured data because the basic requirement i to reduce error in order to ensure the quality of the data
For big data, it emphasizes on integrity and complexity of the data, so as to make the fact of things more
legible Zhang, 2014). Moreover, it has changed from emphasizing on causality to correlational
relationship (Zhou and Li, 2016). Causality played a key role inthe development of things during the era
of small data. In big data, analysis of things can be easier, clearer and speedier through correlation
relationship. Big data era is secking for the fact of things but not the reason of the things, therefore
correlation relationship enable the fact of things to be presented in a clearer and concisely (Wang, 2015).
BDA and Logistics can be closely related as logistics sector can gain different kind of benefits from the
advancement of big data, This is because logistics providers today need to manage massive flow of goods
that create large amount of data, The data tracked are not fully exploited to create useful value for the
logistics company and there is still untapped potential for improving the operations flow, customer
experience and creating new business model in overall logistics activities (DHL, 2013). Therefore, BDA
is important to solve these problem and can create useful business value to the logistics sector.
According to Jacqueline Bloemhof, there are some potential usage of BDA in logistics such as strategic
sourcing, supply chain network design, demand planning, procurement and routing optimization (Big
Data Alliance, 2016). Logistics companies which invest in BDA solutions can gain competitive
advantage over their competitors (Marshall, Mueck and Shockley, 2015). BDA can help logistics
companies to conduct high performance analysis and improve the productivity and competitiveness (Kott
¢t al, 2015), BDA allows the logistics provider to match their demand accurately and secure customer
operations. DHL believe that BDA. will improve efficiency of logistics operation and experience of
customer through the creation of new business models (Hopkins and Hawking, 2018). For delivery
2350 ‘Vision 2020: Sustainable Economic Development and Application of Innovation Management
services in logistics activities, BDA can help the courier companies or logistics companies to monitor the
delivery route and use BDA application to find out the shortest route to the destination (KPMG, 2017). In
addition, it also can provide real-time trafic data and also the weather data to optimize the delivery
process.
In Malaysia, BDA is still in gradually emerging and many companies have started to adopt this
technology (Ng, 2017). Malaysia is on track to becoming the hub of BDA with leading technology in
Southeast Asia. Malaysian Digital Economy Corporation (MDEC) which is an agency under the
government of Malaysia aim to work hard in encouraging and increasing BDA adoption across all sectors
(MDEC, 2018).
According to the report from MDEC there are about 22 multinational BDA companies from six countries
currently setup in Malaysia as of August 2016. Furthermore, there are about 32 BDA companies whose
services are exported to Malaysia. About 47 BDA start-ups have made themself to be fully immersed in
BDA sector. Market research from International Data Corporation (IDC) found that the BDA market for
software solutions in Malaysia is forecasted to reach RMS95 million (USD144 Million) by 2021 (Ne,
2017). A study found that Malaysia has progressed within the ad-hoc stage (experimental proof of
concept and undefined processes) in the BDA maturity-landscape which is in stage 1 and already
progressing up the maturity curve since 2015 (Kua, 2015). This indicates that many organizations in
‘Malaysia have recently started adopting BDA or deploying BDA solutions.
“Thore are some challenges that influence the intent to adopt BDA by firms in the global perspective and
also in Malaysia perspective. In the global perspective, one of the main challenges is the data
transparency issue among the firms. Lack of transparency of data means that all the process on how the
data are managed, analyzed and addressed are confidential and will not be available for public
consumption. Lack of transparency of data in part of businesses and government constitute a source of
concern to the customers. This will create imbalance in society's information flow as the businesses and
government are getting to know people better but people do not know how they operate (Klous and
‘Wielaard, 2016). Facebook-Cambridge Analytical data scandal is one of the well-known scandal which is
atypical example of lack of transparency among the personally identifiable data (Meredith, 2018).
In addition, a lot of firms do not have sufficient resources for adopting and practicing BDA as the costs of
implementation is very high (Balachandran and Prasad, 2017). If an organization does not have adequate
resources for implementing BDA in its business operations, then the data and information for making
decisions will be inaccurate and this will lead to ill-advised decisions which would be harmful to the
future of organization, Insufficient resources in implementing BDA is also a problem in global Supply
Chain Management (SCM) perspective. Data and analytics resource capacities vary among the firms in
supply chain networks. If there are any inadequacies in supply chain partners’ data and analytics
resources, discrepancies in sharing real-time data and information might be generated.
Insufficient resources can also be refered to as lack of big data expertise. This is one of the current
problems being faced by firms in adopting big data analytics in Malaysia. More data experts are needed
to fll up the postions in big data sector because the demand for BDA solutions by the firms are growing
from infancy stage. Ifthe supply of data experts cannot fulfill the demand ofthe firms who adopted big
data analytics solutions, then the growth in adoption of BDA in Malaysia will be inhibited. Therefore,
only the firms which have sufficient human capita that seck for foreign big data expertise are wiling 10
adopt big data analytics in Malaysia (Shah, 2017). Lack of big data expertise will have a direct impact to
the level of BDA adoption among the firms in Malaysia.
Lack of awareness towards the benefits of BDA, insufficient investment, unwillingness for firms to share
their data and lack of success testimony are among the main factors that cause low level of BDA adoption
2351 ‘Vision 2020: Sustainable Economic Development and Application of Innovation Management
among the firms in Malaysia (Goh, 2015). Firms that are uncertain over BDA and its capabilities to
Perform will delay the adoption ofthis new technology (Shah, 2017)
Lastly, Technology-Organization-Environment (TOE) framework which is the theory being applied in
this study has not been integrated in examining the BDA adoption in warchousing. There are dearth of
research related to the BDA adoption in warehouse. Previous studies like Lai, Sun and Ren (2018) and
Chen, Preston and Swink (2015) have done their research related to the adoption of BDA by using TOE
framework as their theoretical foundation but they tend to focus more on the broader area of Logistics and
‘Supply Chain Management (LSCM),
Lai et al. (2018) applied TOE framework to study specific research context of SCM which is a wider area
as there are many elements or activities encompassed in the entire supply chain. They have identified four
categories of factors that will affect the adoption of BDA in their conceptual framework which include
technological context, organizational context, environmental context, and Supply Chain characteristics.
Supply chain characteristics act as a moderator in their study which will affect the strength of the
relationship between the variables in TOE framework (independent variables) and the intention to adopt
BDA (dependent variable). Chen et al. (2015) use TOE. framework to study on the value creation driven
by the actual usage of BDA on the organizational level throughout the supply chain. They adopted the
variables from TOE framework as the independent variables and actual usage of BDA as the dependent
variables in their conceptual framework. Thus, our study will only focus on the adoption of BDA in
‘warehousing. Warehousing is an important key component of LSCM. Focusing on warehousing narrows
down the study scope, hence tend to find out the factors that will affect the intention of warehousing firms
in Malaysia to adopt BDA in their businesses by using TOE framework as theoretical foundation.
2. Literature Review and Proposition Development
2.1 The current state of BDA in Malaysia warehouse
In 2017, one of the world largest e-commerce company Alibaba Group came to Malaysia and established
the world’s first Digital Free Trade Zone (DFTZ) in Malaysia. The founder of Alibaba Group, Jack Ma
said he wanted to build the electronic world trade platform (eWTP) in Malaysia (Naidu, 2017). Therefore,
hae has set up a regional logistics hub in Malaysia to support the DFTZ and increase the logistics system
(Xin Hua Net, 2017). The first phase of the DFTZ. on the I
operated by POS Laju Malaysia, National Courier of Malaysia. This warehousing faci
transformed from an old terminal cargo to full-fledged warehouse with sorting, shelving, distribution,
{temperature control storage, custom clearance and pick-pack facilites that deploy automated material
handling equipment (AMHE) (Alibaba, 2017). Malaysia Airports Holdings Berhad and Cainiao Smart
Logistics Network, Alibaba’s logistics arm (Leong, 2017) have jointly developed the second phase of
warehousing facility in the logistics hub. ‘The cooperation between these two companies has greatly
increased the importance of warehousing facility in the logistics hub of Malaysia (Alias, 2018).
Alibaba Group logistics platform, Cainiao Smart Logistics Network has brought the technologies and
professionals in BDA to their system along with the cloud computing into the warehousing facility of the
logistics hub in Malaysia (Xinhua, 2017). Along with the linkage between BDA and logistics cloud of
Cainiao Logisties Network that implemented in the warehouse, they can ease the process of activities in
‘warehouse such as procurement, storage, custom clearance and goods delivery (She, 2017). These actions
will make significant impact to the logistics industry of Malaysia especially the warehousing industry and
will stimulate the warehousing firms to adopt BDA in their warehouse daily operations (Chandran, 2018).
2352 ‘Vision 2020: Sustainable Economic Development and Application of Innovation Management
2.2 BDA in Warehousing
BDA is needed in warchouse firm along the supply chain activites. This is because BDA will enable
warehouses to have better decision making, idemtify and trace errors easily, forecasting demand that will
affect the level of inventory in warehouses and have efficient operation flow by using different types of
BDA (Bradlow et al, 2017). Furthermore, BDA is capable of transforming the business process in
logistics in the warehouse or distribution area such as optimize the inventory levels and the supply chain
activities. It also can improve retailers’ inventory management and customer service for logi
activities in the warehouse (Schmarzo, 2013). BDA enables the warehousing firms to identify inventory
levels, delivery miss-matches and incoming deliveries with the real-time conduct of BDA within the
Enterprise Resource Planning (ERP) system. Based on the material low data, BDA ease the process of
distributing goods because it can perform real time optimization of complex webs of distribution hubs
and warehouses (KPMG, 2017)
2.3 Theoretical Foundations
‘There are many theories that have been developed and used in Information Technology (IT) research
(Lim et a, 2009). However, we only want to focus on those theories that influence the user adoption and
relative behavior towards the technology innovation within organization as related to our research paper
(Ndubisi and Jantan, 2003; Verma and Bhattacharyya 2017). We tend to choose Diffusion of Innovation
(DO) theory and TOE framework as integrated theories foundation to support our study because TOE
and DOL are developed for predicting organization adoption atthe firm level (Oliveira and Martins, 2011;
Williams et al, 2009; Liu et al., 2008) and our research are mainly focusing on warehousing firms in
Malaysia,
DOI is used to describe the process from creation of technology innovation to the usage and the
technology adoption over time. We can use the perceived characteristics of DOL to explain the factor that
affect new technology adoption (Tu, 2018). Rogers (2003) has suggested that the technology adoption
greatly depends on five perceived characteristics which are relative advantage, compatibility, complexity
(simplicity), observabitity and trialability (Ngah et al, 2017). DOL is still insufficient to support our study
a it does not cover the external factor which is also termed as environmental context (Vermai and
Bhattacharyya, 2017).
Based on this reason, the study incorporated TOE framework as a grounded theory to support DOL theory
which lack environmental context. TOE framework was developed to elucidate firm's intention and
bbchavior to adopt and implement a technology innovation with the consideration of three contexts which
are technological, organizational and environmental context (Senyo et al., 2016). It can help to identify
the internal factor and external factor that influence firm’s intention for adopting and implementing, of
new technology (Gutierrez etal, 2015).
‘The difference between DOI theory and TOE framework is thatthe TOE framework addresses more firm
level evaluation such as environmental context which provides big picture about the mechanism in
decision making process for adopting new technology on firm level (Lai et al, 2018). TOE framework
explains DOI theory on inira-firm innovation diffusion and cover the external firm factor (Hsu et al,
2006; Oliveira and Martins, 2011.1 is important for rescarcher to combine more than one theoretical
‘mode! in order to have better understanding of the adoption on new technology innovation (Oliveira and
Martins, 2011).
‘There are some common variables between DOI theory and TOE framework which are complexity,
compatibility and relative advantage. DOI framework can be seen as a small part of TOE framework to
adoption of new technology which does not cover environmental factors. It is not sufficient to conduct
research that consider internal and external factors by using DOI only. Hence, the decision to adopt TOE.
framework as the main theoretical framework which already comprise three variables (relative advantage,
2353 ‘Vision 2020: Sustainable Economic Development and Application of Innovation Management
compatibility and complexity) of DOI framework in it for this study. Taking the TOE framework
developed by Agrawal (2016) which related to BDA adoption in Asian countries as a reference, this study
has selected some of the variables which are relative advantage, technological infrastructure, absorptive
capacity, industry competition, and government support. These variables are chosen due to their ability to
provide significant result based on many previous researchers who use TOE framework and DOI theory
to study adoption of new technology innovation. Piaralal et al. (2015) discovered that DOI theory
combined with TOE framework are capable of providing useful theoretical framework for those logistics
‘companies especially small and medium sized to explore the use of technology innovation by considering
intemal and external factors. Therefore, we have developed the following conceptual research framework
that integrate TOE framework and DOI theory for our study and it will be discussed in section 3,
2.4 Key Determinants of BDA adoption intentions
2.4.1 Relative advantage
In an early study by Rogers and Shoemaker (1974), relative advantage refers to the extent of perception
of an organization that an innovation can be better than the existing idea it replaces. According to Zhu
and Kraemar (2005), firms must realize that the adoption of new innovative technologies in business
‘operations will either provide insights and solutions to existing problems or offer new production
opportunities like enhanced operational effectiveness and efficiency, and improved productivity. In
addition, an early study relating to the factors influencing the adoption of Electronic Data Interchange
(EDI) intentions shows that relative advantage is the most important determinant within technology
context which can influence EDI adoption intentions in warehousing firms (Kuan and Chau, 2001).
Based on the above studies, the most influential factor in technological dimension is relative advantage in
order to motivate firms to adopt the innovative technology. Therefore, inthis study relative advantage is
chosen as a key factor on BDA adoption intentions of warchousing firms in Malaysia under technology
context. In order to achieve the research objective, the advantages of BDA have to be mainly focused.
Decision makers will also need to evaluate and make a comparison whether BDA has relative advantage
over traditional system in firms. Besides that, BDA can help firms in predicting risks, tacking, decision-
‘making process, and innovating in real time compared to conventional system. BDA can also help to
iprove the efficiency of business operations, reduce lead time, and reduce labor costs if itis integrated
ith backend systems (Agrawal, 2015).
Furthermore, big data can enhance data transparency in the entire business operation process in
warehouses along the supply chain (Aggarwal, 2015). The combination of big data with block chain
technology can actually provide the most open way such that all transactions and documentations are
conducted in transparent environment (Kristoffer and David, 2017). Bbased on the argument above, we
suggest the following proposition
PI: Relative advantage has a significance positive effect on the intention to adopt BDA in warehousing
firms.
2.4.2 Technological infrastructure
‘Apart from the determinants from technology context, there are also some key determinants from
‘organization context. According to the prior organizational level studies, there are some important
characteristics and properties influencing the adoption intentions of BDA in firms. There are identified by
former studies, including employees’ technical expertise, organizational structure, top management (TM)
support, financial readiness, and innovativeness.
2354 ‘Vision 2020: Sustainable Economic Development and Application of Innovation Management
Based on one of the studies, expertise, technological infrastructure, and top management (TM) support
fare considered in the construct of IT sophistication in their empirical test of EDI adoption mode!
(Qawelos etal, 2001; Lai et al., 2018). According to Bharadwaj (2000) and supported by Agrawal (2015).
in order for firms to assimilate innovations and improve products more quickly, the firms should have
tangible resources based on resource-based theory. A highly integrated technological infrastructure can
provide a platform in order to run innovative IT infrastructure applications faster than its competitors who
adopt less developed and non-integrated IT infrastructure. Therefore, tangible technological infrastructure
is believed that it is a relevant determinant of BDA adoption intentions in warchousing firms. In this
research paper, technological infrastructure is chosen as a determinant of BDA adoption intentions in
‘warehousing firms under organization context.
‘Technological infrastructure refers to the tangible resources of firms such as physical assets that firms
need to have them to adopt technological innovations. Based on the prior studies, it has been proven
empirically that there exists a positive relationship between technological infrastructure and IT innov:
adoption (Sharma et al, 2007; Maduku et al, 2016; Hsu et al, 2014). Assertions by Kuan and Chau
(2001) and Kamal (2006) show thatthe higher firm has technological infrastructures, the higher chance
for it to adopt BDA.
Based on the above review, physical technological infrastructure should have si
intuence on BDA adoption iniatons.Accoeding to Bharadwaj (2000) and suppted by Agrawal (2013),
firm's technological infrastructure is a major business resource as it acts as a key source for maintaining
long-term competitive advantage. Hence, it can be said in such a way that a warehousing firm's
technological infrastructure can increase the BDA adoption intentions in firm, We suggest the following
proposition:
P2: Technological infrastructure has a significance positive effect on the intention to adopt BDA in
warehousing firms.
2.4.3 Absorptive capability
Absorptive capability is also one of the determinants under organization context of BDA. adoption
intentions within warehousing firms in Malaysia. Absorplive capability can be defined as the capacity and
ability to explore the value of new information from outside the firms, assimilate it, and finally apply it to
the commercial ends (Cohen and Levinthal, 2006).
According to Coben and Levinthal (2006), a good and effective absorptive capability can be determined
by prior relevant knowledge and intensity of effort. The absorptive capability can be generated in a
variety of ways at the level of firms. The studies by Tilton (1971), Allen (1977), Mowery (1983), and
Cohen & Levinthal (2006) indicate that the firms which have their own Research and Development
(R&D) are better to absorb and apply outside information. This means that absorptive capability can be a
byproduct of R&D investment in warchousing firms. According to Cohen and Levinthal (2006), whatever
‘organizational level at which the innovation is defined, the external sources of knowledge are usually
crucial 10 the process of innovation technology adoption. Hence, most of the innovations result from
borrowing rather than invention at the organizational level (March and Simon, 1958; Cohen and
Levinthal, 2006).
According to early study by Lane et al. (2001), absorptive capability is assumed by existing research as @
knowledge base, especially the degree of former knowledge the firms possess. This is quite similar to
path dependency that is an organization's ability and motivation to adopt innovative technologies. It can
be greally determined by the degree of prior knowledge and experiences possessed by firms prior to
relevant technologies (Hassan and Chatterjee, 2006). This is because such skills, expertise, and
knowledge are significant for successful adoption of innovative technologies (Cohen and Levinthal,
2355 ‘Vision 2020: Sustainable Economic Development and Application of Innovation Management
2006). Hence, the warehousing firms which have enough prior knowledge and experiences of relevant
technologies adoption may have adequate technical and managerial skills in adopting and developing
BDA tools and techniques compared to those firms without such technological knowledge. Thus, we
subsequently propose the following proposition:
3: The absorptive capability of firms has a significance positive effect on the intention to adopt BDA in
warehousing firms.
2.4.4 Industry competition
Industry competition (competitive) refers to the level of pressure faced by the firm from its competitors is
fan external power pushing the firm towards the adoption of new technology to keep pace with the
competitors (Passos et al., 2016). Some past studies have shown that industry competition is the
significant factor that will influence the intention of an organization to adopt new technology
(Ghobakhitoo et al, 2011).
Firms who use big data in their businesses can gain enormous competitive advantage and also grow their
businesses rapidly. Ifthe firm can capture large competitive advantage within the industry, it can gain a
leading position on the market (Kubina et al., 2015). The ability to extract big data to gain helpful
business insights is the key factor to gaining competitive advantage in today's rapidly changing business
environment (Wong, 2012). BDA can act as a catalyst for organizations or firms to achieve competitive
advantage (Wamba et al, 2017). Chen et al. (2012) suggested that BDA can provide an opportunity for
businesses to achieve competitive advantage.
BDA has positive effect on the supply chain performance and firm’s performance (Gunasekaran et al,
2017). BDA has become an approach that generate competitive advantage in logistics and supply chain
‘management (Wang et al, 2016; Sivarajah et al., 2017). Some researchers have empirically tested the
relationship between BDA, supply chain agility and competitive advantage (Sangari and Razmi, 2015;
Gunasekaran et al., 2017). According to the survey done by EMC Corporation, 40% of Malaysia
companies have already achieved the competitive advantage after adopting BDA in their businesses (The
Malaysian Reserve*, 2017). This competitive advantage can directly increase the adoption level of BDA
for the industries in Malaysia as many companies will intend to adopt BDA after they realize their
competitors’ edge through BDA.
‘Warehousing industry that involved in logistics and supply chain management is one of the key focus
area under 11th Malaysia Plan (2016 ~ 2020) (Malaysia Productivity Corporation, 2017). Therefore,
‘warehousing firms need to put some effort in adopting new innovative technology in order to gain more
competitive edge. If the warehousing firms in Malaysia realize the competitive advantage inherent in
BDA, the intention to adopt BDA in their businesses will definitely soar. Based on this argument, we can
establish the following proposition:
4: Industry competition has « significance positive effect on the intention to adopt BDA in warehousing
firms.
2.4.5 Government support
Government support represents the government strategies initiatives that encourage the adoption of new
technology innovation (Hoti, 2015). Government support in term of their polices, attitudes and initiatives
are important factors that influence the adoption of innovative technology in business firms (Dahnil etal,
2014). Government usually will provide incentives in order to encourage innovative technologies whi
are believed to be capable of fostering growth in particular sector and economy of the country (PWC,
2010).Government policies come in the form of law which aim to protect and support the firms to adopt
2356 ‘Vision 2020: Sustainable Economic Development and Application of Innovation Management
‘now innovation (Makena, 2013; Nkhoma and Dang, 2013). High support from government can actually
expedite the diffusion of new innovation technology throughout the industry (Lai et al., 2018).
‘The government of Malaysia has actually demonstrated their effort in supporting all industry to adopt
BDA. This is because the implementation of BDA is a critical component of the 11th Malaysia Plan
(2016 — 2020). In the same light, Malaysia government has established several agency such as Malaysia
Digital Economic Corporate (MDEC) and MIMOS Berhad to support any new innovation technology
which include the BDA as a catalyst for further economic growth in all sector. Government of Malaysia
has te initiatives to support the BDA adoption in Malaysia in order to achieve 20% of GDP from digital
economy by 2020 (The Malaysian Reserve**, 2017). All of these actions has shown that Malaysia
government is fully supportive in BDA adoption in all industry including public and private sectors.
Malaysia government has listed down warehousing industry as a part of focus area in Logistics and
Supply Chain Management (LSCM) that can contribute to the productivity and economy of countries
under Logistics and Trade Facilitation Masterplan (2015-2020) and 11th Malaysia Plan (2016 ~ 2020)
(Malaysia Productivity Corporation, 2017). Ifthe warehousing firms realize the support from government
in BDA adoption to them, they may have the intention to adopt BDA in their warehouse operations
activities. Hence, based on the arguments above, following proposition is suggested:
PS: Government support has a significance positive effect on the intention to adopt BDA in warehousing
firm.
3. Conceptual Research Framework.
Since TOE framework is consistent with DOI theory in both internal and external characteristics of
‘organizations (Pan and Jang, 2008; Wang et al, 2010; Oliveira and Martins, 2011), we will choose the
‘TOE framework that embarks on DOI theory as a prominent research framework. Based on the review of
past researchers who used TOE framework anxd DOT theory such as Lai et al (2018) and Agrawal (2015),
‘we propose a framework to examine the key determinants to adopting BDA in Malaysian warehousing
industry. The relationship between the independent variables towards the dependent variable are
lustrated in Figure 1. In this theoretical framework, there are five independent variables (relative
advantage, technology infrastructure, absorptive capability, industry competition and government support)
that influence the dependent variable (intention to adopt BDA) from the TOE framework. Relative
advantage is the common variable that appeared in both TOE framework and DOI theory and other
‘variables are adopted from TOE framework. Theref jependent variables in this study are mainly
from TOE framework and only one of them from both TOE framework and DOI theory.
ae
aS
Conceptual framework,
2357 ‘Vision 2020: Sustainable Economic Development and Application of Innovation Management
4. Theoretical Implications
‘There are some key theoretical implications that have been determined in this research that are applicable
to scholarly work, educations, and other researches in the future. The issues of BDA have attracted a lot
of researchers’ attention in investigating the determinants of BDA adoption intentions within
warehousing industry. Therefore, it is believed that this study stimulant towards studies on factors
influencing the adoption of BDA in firms.
Based on Agrawal’s (2015) research, BDA is an emerging technology that can provide operational and
strategic advantages. The rate of adoption in the firms across the warchousing industries is yet to be
observed. Lack of focus on this technology and factors which impact its organizational adoption has lead
the present study to developed and identified a rescarch model in order to examine the contextual
determinants that affect BDA adoption within warehousing industry in Malaysia drawing upon the DOL
theory (Rogers, 1995) and TOE framework (Tomatzky, Fleischer and Chakrabarti, 1990).
Since that TOE framework indicates a reasonable structure to analyze and consider appropriate
determinants that can affect business innovative technology adoption intentions, this research study
empirically identifies and supports the applicability of the TOE framework in investigating BDA
adoption intentions within warehousing industry in Malaysia. Thus, TOE framework is a recommended
framework for other researchers to adopt in understanding the factors of business innovation-adoption
decisions in the future (Agrawal, 2015).
In addition, this study treated technology benefits as a general concept. Hence, future research can
categorize various benefits into some categories in order for us to be informed of what is the most
defining benefit. Besides that, there are some other constructs that is do believed to exist which may
affect the adoption intentions of BDA within warehousing industry. Not only the determinants suggested
by the TOE and DOI theories, some SCM characteristics might also have essential effects on the BDA
adoption intentions. Therefore, in the future research, researchers can try to consider other related factors
(Lai et al, 2018). This can also contribute to scholarly inthe future.
5. Practical Implications
The potential implications of BDA greatly depend on the extent of intention to adopt BDA within
Malaysian warchousing industry. Hence, this research paper aims to investigate about the factors
influencing BDA adoption intentions within Malaysian warehousing industry. Furthermore, itis believed
that this research can help warehousing firms to implement the most atractive and appropriate strategies
‘adopting BDA and thus boost the sustainable supply chain and logistics system. The findings from this
study will enable the warehousing industry to envision the determinants required for successful to
adoption of BDA in their operations
ich of the variables in this research paper play a key role in influencing the intention for warehousing
lustry to adopt BDA. Hence, it will provide a clear mindset or better insight for warehousing industry
in Malaysia to adopt BDA through our research findings (Ngah et al, 2017). In addition, warehousing
industry can extract the importance of big data inthis research paper. Since BDA can enhance the overall
business efficiency, warehousing industry is urged to implement BDA to enhance to overall logistics
system in Malaysia,
By using the TOE framework combined with DOI theory in the research paper, we can empirically test
the BDA adoption in Malaysia warehousing industry by providing precise and reliable result. It can
provide warehousing firm some insights to understanding the BDA acceptance and its relative advantage
for usage. Not only that, this research paper can act as an indicator to measure the environmental change
context which can greatly influence the intention for adopting BDA in decision making process (Lai etal,
2358 ‘Vision 2020: Sustainable Economic Development and Application of Innovation Management
2018). Warehousing industry can take this study as a reference in their decision to adopt BDA by study
fon the variables context. Hence, the warehousing industry in Malaysia can save additional cost and time
for them to do research in the same area prior adoption of BDA in their business operations.
This research can also provide useful information for Malaysia Digital Economy Corporation (MDEC) to
encourage not only warehousing firms but also other Small and Medium Enterprises (SMEs) to adopt
BDA in firms. Since there is low level adoption of BDA in Malaysia, thus, this research study might be
valuable for SMEs which have intention to adopt BDA in thei firms as the data and information provided
in this esearch can provide many important insights for them to adopt BDA in their business in order to
cope with the changing business environment (Verma and Bhattacharyya, 2017). Since there is a lack of
BDA expertise, this research paper can increase the awareness of BDA expertise required by firms.
MDEC should encourage and train more BDA expertise by developing BDA courses and programs in
Malaysia in order for local firms can have enough technical skills from BDA expertise.
6. Conclusion and recommendations
In this research paper, the primary goal is to investigate the determinants of BDA adoption intentions
in Malaysian warehousing industry. The theory framework which adopted in this study is the
egration of TOE and DOI theory framework. In spite of the past research studies that focused on
supply chain and logistics areas only, the areas of warehousing industry are less focused even though itis
vital component in supply chain and logistics management. Therefore, through this conceptual research,
the determinants of BDA adoption intentions within Malaysian warehousing industry have been
explained and clarified. This paper also identified the theoretical gap, and bridges the uneven scope of
research by exploring the determinants of BDA adoption intentions. Through this research, the factors of
BDA adoption intentions set the foundation for the proposed theoretical framework.
‘This paper extends the knowledge of BDA and contributes to the determinants of BDA adoption
intentions in warchousing industry. It further emphasizes the relevance of TOE and DOL theory
frameworks in BDA research. This research can also serve as a precursor to future research on BDA
adoption intentions in other areas. As this study adopts theoretical perspective, therefore, the future
direction for future research is to focus on and carry out literature review in-detail and clarify the
concepts through empirical study. Indeed, the opinions and insights from practitioners and educators are
highly encouraged and valuable in strengthening the proposed theoretical framework.
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