Abstract:

Rapid development in electronic commerce (e-commerce) forms a new revolution in the era of digital economics. Malaysian government, in promoting e-commerce in Malaysia has launched the Multimedia Super Corridor (MSC) along with a variety of incentives. This research conducted to identify behavior factors that affect e-commerce adoption among small and medium scale tour and travel agencies in Malaysia. The focus of this research is to discover whether environmental factors and organization factors contribute to the adoption of e-commerce among tour and travel agencies in Malaysia. 1511 questionnaires were distributed to all tour and travel agencies in Malaysia and the response around 247. The result shows that all of the independent variables played important roles in determining the adoption of ecommerce and created a gap between agencies adopting e-commerce and those who have not. The finding also shows that there are two significant factors, making an impact on the adoption of ecommerce, which are the size of organization factor followed by changing of economy, cost and technology factor. Other factors include structure and system, the development of politics and regulations and also organizational objectives.