The Dynamics of Logistics Industry Involvement in Malaysia’s E-Commerce

Ah Huai Ah Chan, Prashanth Beleya, Mahendran Suppiah, Diana Airawaty, Sadegh Salehi

Abstract

E-commerce in Malaysia has experienced remarkable growth, particularly following the COVID-19 pandemic, as more businesses increasingly adopt digital platforms in their operations. This study aims to examine the contribution of logistics service providers (LSPs) to e-commerce businesses, with particular focus on cost, delivery service, and location as critical factors influencing the selection of logistics operators. The Theory of Reasoned Action (TRA) is employed to explain the decision-making behavior of e-commerce operators.
The Malaysian e-commerce sector was chosen as the research context due to its status as one of the most dynamically developing in Southeast Asia, yet facing significant logistical challenges that directly impact customer satisfaction and sustainability. Using cluster random sampling, 270 e-commerce operators were surveyed, and the data were analyzed through factor analysis, reliability testing, regression, and ANOVA. The findings indicate that location is the strongest predictor of engagement with LSPs, whereas cost and delivery service exhibit relatively weaker effects.
The study contributes to the literature by applying TRA to the logistics-e-commerce interface in a developing market, providing new empirical evidence from Malaysia. Its novelty lies in highlighting the critical role of location - a factor previously underemphasized in global studies - in shaping logistics engagement. The results offer both theoretical insights and practical implications, guiding LSPs and policymakers in enhancing coverage, accessibility, and sustainable development within the Malaysian e-commerce ecosystem.

 

Keywords: Logistics Service Providers (LSPs); E-commerce; Theory of Reasoned Action (TRA); Sustainable Infrastructure; Industrial Growth.

 

DOI https://doi.org/10.55463/issn.1674-2974.53.1.12


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