BACHELOR BUSINESS ADMINISTRATION IN ISLAMIC FINANCE

EIB 20503

BUSINESS RESEARCH METHODS

GROUP: ME30

INDIVIDUAL ASSIGNMENT

RESEARCH CRITICAL REVIEW

DIGITAL LOGISTIC: E-COMMERCE & LOGISTIC FOR AMAZON

PREPARED FOR

DR. AHMAD AZMAN BIN MOHD ANUAR

PREPARED BY

ZUL IRFAN HAZIM BIN SURURI

62211219262

DATE OF SUBMISSION

31 AUGUST 2020

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NO CONTENT PAGES

1 1.0 Introduction 3

2 2.0 Background to Research 4

3 3.0 Literature Review 5

3 4.0 Problem Statement

- 4.1 Research Problem 6-7

- 4.2 Research Objective

- 4.3 Research Questions

4 5.0 Theoretical Framework and Hypotheses 8-9

5 6.0 Research Methodology

- 6.1 Research Design 10

- 6.2 Data Collection
- 6.3 Sampling Design

6 7.0 Data Analysis and Findings 11-12

7 8.0 Contribution of The Research 12

8 9.0 Conclusion and Recommendation 13

9 10.0 References 14-15

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1.0 INTRODUCTION

Digital logistics is end-to-end visibility of production, shipment and deliveries across

the supply chain. There is a central command and control center to assist decision-making for
the logistics operation. From the establishment of E-logistics, the process has become more
systematic. The data is accessible online and helps users to process information borderless.
It will make the process of logistics for the company become productive.

In this modern era, by using the GPS monitoring device, everything will become easy.
A transaction can be recorded from anywhere in the world by using the current technology. A
minor pause in the path of the package is clearly understood to those involved. If the rerouting
is required, it can be completed as soon as possible. The establishment of digital logistics can
avoid the company from face the problem such as shipment delay, incorrect destination
deliveries and inability to produce shipments. Weather data is based on forecast and
distribution is planned accordingly. Before the item was selected from the factory to the second
point of arrival, the whole route is digitally chartered.

One of the main reasons why the company need to apply digital logistics is the need
for flexibility to connect with modern technologies to share information, synchronize operations
and coordinate through processes. The systems are based on the central repository of all
logistic knowledges. Stakeholders can display, change or add details. The application of
ground-breaking technology system such as data mining, computer sciences and deep
learning is used in logistics.

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2.0 BACKGROUND OF THE STUDY

Nowadays, e-commerce is well-known and become popular among the businesses. The E-
commerce will be used to improve the performance of the specific company. The rising
popularity of e-commerce has led to a growing need for logistic. Other than that, this study
focuses on identifying the factors that influence e-logistic performance in Amazon. Before we
go further in the research, the main objective to know in the detail about E-Commerce.

E-Commerce

In this era, the usage of Internet is rapidly improving time by time. The network performance
also growing rapidly. E-Commerce is an emerging concept that including process of buying
and selling, exchanging product or services and trade transactions by using the internet and
technology. E-commerce bring the benefit to their users especially in the product promotions,
timely information and cost savings. By using the E-commerce, the users also can have the
better relationship with the customers especially improving in the customers care and services.

Staff Service Quality

Staff service quality have a big role in e-logistic performance. Good staff service quality will
increase customer satisfaction and improve e-logistic performance. According to the findings
in a study by Hua and Jing (2015), staff service quality is significantly related to e-logistic
customer satisfaction.

Information and communication technology (ICT)

Information communication technology (ICT) is the key element to increase e-logistic

performance. It enhances efficiency and effectiveness because the internet is used to manage
most of the operations. Shih et al. (2006) found that information communication technology
(ICT) has a positive relationship with any online activities where e-logistic is one the online
activities.

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3.0 LITERATURE REVIEW

The dependent variable for this study is e-logistic performance. E-logistic refers to
the transfer of products and services through the usage of internet (Gunasekaran & Ngai,
2003). Today, logistic management is one of the most essential factors which facilitate an
organization to gain competitive advantage and improve the organization’s performance (Li et
al., 2006). According to Mansidao and Coelho (2014), e-logistic performance will be a vital
issue in management.

The researcher would discuss about independent variables in this study. The first
independent variable is e-payment. E-payment has several characteristics, such as security,
acceptability, privacy and practicality (Cotteleer et al., 2007). The stated characteristics have
the positive impact on e-logistic performance. This is because e-payment characteristics
increase the customer satisfaction. High level of customer satisfaction will affect the e-logistic
performance positively.

The second independent variable is staff service quality. Staff service quality is a
main role in e-logistic performance. Good staff service quality will make the customer
satisfaction increase and indirectly it will improve e-logistic performance. According to the
findings in a study conducted by Hua and Jing (2015), staff service quality is significantly linked
to e-logistic customer satisfaction. Next, website design also affecting the e-logistic
performance. It is compulsory for e-logistic to have a good website design that offers all the
essential services and information in order to gain customers trust to the organizations (Kidane
& Sharma, 2016).

The mediating variable for this research is information communication technology

(ICT). Information communication technology (ICT) is the main element to increase e-logistic
performance. It enhances efficiency and effectiveness because nowadays the internet is used
to manage most of the operations. Shih et al. (2006) found that information communication
technology (ICT) has a positive relationship with any online activities where e-logistic is one
of it. The second mediating variable include in this research is technology integration.
Technology integration made it possible to realize better performance through developing
information technology and system by developing processes and activities of an organization
(Uusipaavalniemi, 2009).

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4.0 PROBLEM STATEMENT

4.1 Research Problem

The problem statement for this study is as follow:

“What are the factors that influence e-logistic performance in Amazon?”

Based on the research problem, there are three research questions to be discovered
in this research topic. Organizations must always make the innovation in order to stay
competitive in today’s environment where the disruption keeps increasing in all industries. The
main factors that influence e-logistic performance in Amazon are e-payment, staff service
quality and website design. The mediating factors are information communication technology
(ICT) and technology integration. E-payment is essential in e-commerce business where e-
logistic is based on e-commerce. E-payment makes the transactions easier, which influence
e-logistic performance.

In the simple word to be understand, good staff service quality has a positive impact
on e-logistic performance when customers are satisfied. E-logistic performance is also
influenced by website design where a proper website design will facilitate customers to make
their online purchase which in turn will increase their satisfaction and result in better e-logistic
performance. Then, the effectiveness of overall processes is enhanced by information
communication technology (ICT), and this will increase e-logistic performance. Technology
integration also plays a role in influencing e-logistic performance because technology
integration will deliver efficiency and help the organization to meet changing needs and
demands among customers.

4.2 Research Objective

The objective for the research is to gain the understanding about the E-Commerce and the
important point is to understanding about the process of E-Logistics used by Amazon in China.
The main point of this research to study about the methodology used, literature review and
others information.

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4.3 Research Questions

The research is established into three (3) research questions and including five (5)
hypotheses.

Research Questions Research Hypotheses

Research Questions 1 H1: There is significant relationship between

e-payment and e-logistic performance in
What are the main factors that influence
Amazon.
e-logistic performance in Amazon?
H2: There is significant relationship between
staff service quality and e-logistic
performance in Amazon.

H3: There is significant relationship between

website design and e-logistic performance in
Amazon.

Research Questions 2 H4: There is significant relationship between

information communication technology (ICT)
What is the relationship between
and e-logistic performance in Amazon.
information communication technology
(ICT) and e-logistic performance in
Amazon?

Research Questions 3 H5: There is significant relationship between

technology integration and e-logistic
What is the relationship between
performance in Amazon.
technology integration and e-logistic
performance in Amazon?

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5.0 THEORETICAL FRAMEWORK AND HYPHOTESIS

In the figure below, the independent variables are e-payment, staff service quality and website
design. The dependent variable is e-logistic performance. The mediating variables for the
research involve two variables. The first mediating variables is information communication
technology (ICT) which mediates the relationship between e-payment and e-logistic
performance in Amazon and also mediates the relationship between staff service quality and
e-logistic performance in Amazon. The second mediating variable is technology integration
which mediates the relationship between website design and e-logistic performances.

Hypotheses Development

In this study, there are five (5) hypotheses that are developed and have been tested.

i. E-payment and e-logistic

E-payment is a main role that can affect e-logistic performance. The main factor in business
is e-commerce as it has grown more popular, which makes e-payment being the major issue
in business performance (Cotteleer et al., 2007).

H1: There is a significant relationship between the e-payment and e-logistic performance in
Amazon.

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 ii. Staff service quality and e-logistic performance

Good e-logistic performance is a consequence of customer satisfaction. Customer satisfaction

is determined by service quality (Thai, 2013). There is a significant positive relationship
between staff service quality and e-logistic customer satisfaction.

H2: There is significant relationship between the staff service quality and e-logistic
performance in Amazon.

iii. Website design and e-logistic performance

Website design is essential component in e-logistic, as stated by Rana et al., (2014). The good
and interesting website design will enhance customer satisfaction and will affect to a greater
performance of e-logistic.

H3: There is significant relationship between the website design and e-logistic performance in
Amazon.

iv. Information communication technology (ICT) and e-logistic performance

According to Evangelista (2013), it is essential to invest in information communication

technology (ICT) sector. Many past studies found that information communication technology
(ICT) has an influential role in e-logistic (Larson & Gammelgaard, 2001).

H4: There is significant relationship between information communication technology (ICT) and
e-logistic performance in Amazon.

v. Technology integration and e-logistic performance

Technology integration can be described as “environmental practices of the utilization of

technology tools that are taking place between a buyer and supplying organization concerning
activities such as product development, process re-engineering, and technical training” (Wu,
2013). According to Bushar et al. (2014), there is a correlated relationship between technology
integration and performance, which is proven by several past studies.

H5: There is significant relationship between technology integration and e-logistic

performance in Amazon.

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6.0 RESEARCH METHODOLOGY

6.1. Research Design

This study is a descriptive study which is aimed to establish strategies for e-commerce and
logistic for amazon to remain competitive in the Digital logistic industry in network wide. An in-
depth study was conducted to carry out the factors that influence e- logistic performance in
Amazon. In this study also it will discuss further the relationship between information
communications technology (ICT) and e- logistic performances in Amazon. The research will
focus on the e-logistic performances itself. The strategy was to conduct a study to establish a
good operation management decision strategy for e-commerce and the digital logistic.

6.2. Data Collection

This study used two type of data in which the study was obtained from primary data and
secondary data to gather all the information need for this study. The primary data were
collected from interview and also a questionnaire while the secondary data are from internal
sources as well as external sources to obtain all the information. The internal sources for this
study were gathered from the internet sources to collect all the information. For the external
sources of the secondary data, there are various platform has been used to collect all the
information needed such as website, articles, and report. All the information obtained from the
primary and secondary data was gathered and analyzed to get the information needed for this
study.

6.3. Sampling design

In this study there are two types of sampling design where it is probability of sampling method
and non-probability of sampling method. This study used systematic sampling where it falls
under category of non- probability sampling method because the national storehouse will be
arranged in accordance with the region and the situation. Amazon.com allows the international
business is usually based on the supply warehouse. The distribution center could increase the
operating efficiency and create different categories of goods, simplified and standardized
goods. The warehouse distribution of Amazon Com in Beijing is based on a warehouse
location in the city.

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7.0 DATA ANALYSIS AND FINDINGS

This study used descriptive analysis in which all the information and data were gathered from
the previous data that has been collected. The descriptive analysis has been used due to
factor that influences the logistic systems where it brings to the development of the Amazon
through e-commerce. From the descriptive analysis, SWOT analysis was construct based on
the information that has been collected. The finding of this study was the information
communication technology (ICT) and e- commerce are two of the strategic decision in
operation management have been taken by Amazon to ensure the continue in the market and
ensure the sustainability of the organization for their business.

STRENGTH, WEAKNESS, OPPORTUNITIES, THREATS (SWOT) ANALYSIS FOR E-

COMMERCE FOR LOGISTIC IN AMAZON

Strength Weakness

• A variety of online products and service
business activities.
• E-commerce provides a broad
development prospects and technical
support. e- Logistics has become an
essential part of the system and support
the modern system.
• The logistics industry becomes the
social production leader and the society
coordinator, logistics services complete
range
• The infrastructure is imperfect capacity of rail
and coastal waterways is tight, and port’s
distribution capacity less than two.
• Poor product service, in particular rough
handling of bulky products.
• It cost a great deal for the logistics industry,
the warehouse in general will select an e-
commerce plan Set in the advanced cities'
forefront. Therefore, it must rent a warehouse
and in one-year cost around RMB 5 million

Opportunities Threat

• The logistics business in China will grow • The presence of such an environment not only
rapidly affects ecommerce but also drastically limits
the organized and healthy development of
national system of Business

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 • Decentralization forces larger firms into • Most of the logistics companies are flocking to
more manageable and smaller the field of transport resulting in China’s
companies. transport capacity.

8.0 CONTRIBUTION OF THE RESEARCH

According to this study, the contribution of the research when the development of e-
commerce provides a lot of influences to logistic system, like volume, efficiency, economic
benefit, the impact for companies and customers. Amazon book store was the pioneer B2C
business, and develop quickly, so that the customer knows about this new business model.
Amazon’s E-commerce is the lifeline of logistics development.

Besides, this study also highlighted that Logistics plays a vital role in the development
of electronic commerce. China’s E-COMMERCE-commerce companies in the developing of
business can be a development strategy of logistics as a business. Hence, E-commerce has
provided a broad space for development as one of the important industrial modes of operation
in the new era. Third-party logistics and e-commerce integration provided a guarantee for the
realization of electronic commerce. For Amzon.com, third-part-logistic definitely is used in the
first way to work closely with e- commerce and logistics. The second way is for companies to
build their own information network system.

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9.0 CONCLUSION AND RECOMMENDATION

As a conclusion, the purpose of the research is to explore the relationship between e-

commerce and logistics in B2C (business to consumer) companies. I found Amazon China
has a mixed logistics system. Amazon tries to simplify the transportation so let logistics is
transportation by using Amazon’s own logistics area in the region. Amazon very care about
the delivery, consider it as a competitive advantage by use their own logistics areas and get a
direct feedback from the consumers.

The development of logistics is an important part of e- commerce, and an essential

part to meet customer needs. We will need the integration of companies, employees and the
e-mailing of customers to increase the business by the feedback from consumers. For the
shortcoming of logistics, some measures can be used to speed up the pace of e-commerce
logistics development in China. Amazon can learn the results of research from other countries’
logistics management. More technological logistics system is needed, and put service sector
in an important place. When developing e- commerce a complete logistics system needs to
be built.

This study helped us understand the concepts of e-commerce and logistics. For the
future studies recommendation, for e-commerce managers or logistics enterprises, they need
to know the long-term development of their own company and also the relationship between
Logistics and E-Commerce should be balanced. To provide delivery services, it is not only to
send goods to customers but, with a good attitude, to satisfy customer needs. The study
explored the relationship between customers and e- commerce companies, and found the
customers are one important factor that we should consider.

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10.0 REFERENCES

Changsu, K.& Tao, W. & Namchul, S.& K. Kim-Soo. (February,2010). An empirical study of
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Evangelista, R & Guerrieri, P. & Meliciani, V. (2014). The economic impact of digital
technologies in Europe, Economics of Innovation and New Technology, 23:8, 802-824.
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