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Intention to Adaption and Influence of Using Online Freelance Portal Among

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 International Journal of Applied Engineering Research ISSN 0973-4562 Volume 11, Number 19 (2016) pp. 10020-10026
© Research India Publications. http://www.ripublication.com

Intention to Adaption and Influence of using Online Freelance Portal among

Malaysians

Ramesh A/L Krishnamoorthy

School of Computer Sciences, Universiti Sains Malaysia (USM), 11800, Penang, Malaysia.

Ahmad Suhaimi Baharudin

School of Computer Sciences, Universiti Sains Malaysia (USM), 11800, Penang, Malaysia

Kamal Karkonasasi
(corresponding author) School of Computer Sciences, Universiti Sains Malaysia (USM), 11800, Penang, Malaysia.

Abstract way to earn a living. The purpose of this study is to understand

In order to stay competitive and financially secure, many
people turn to finding a second job or do freelancing to balance
their income and support the rising cost of living. Freelancing
is considered where self-employed individuals who do
assignments, either in series or in parallel, for a number of
different organizations or clients, on a (typically short-term)
commercial rather than the employment contract basis. With
the popularity of online job which is moving almost linearly
along with the growth of global internet users today, it becomes
almost easy for anyone to access to freelance job market from
their comfort of their home. The aim of this research is to
understand the influence of the adoption of online freelance job
by job seekers in Malaysia. Also with this research, we
anticipate to identify the trend and expectation of Malaysian
freelancers towards online contract works and what influences
them to use freelance website platform. There are so many
factors may be involved in the user’s decision to accept or reject
this freelance website portal. Therefore, it is an important issue
to calculate user acceptance of this website portal system. To
understand this theory, we use the most popular theoretical
framework, which is the Technology Acceptance Model (TAM)
to analyze user intention and influence effect of using this
website. This finding will be helpful for organizations and
entrepreneurs to design a new freelance website to attract more
job seekers and employers.
Keywords: freelancing, freelancer, electronic freelancer,
online marketplace, works from home.
INTRODUCTION
Work from home concept is fast picking up the trend of the
current job market in Malaysia. Some call it Freelancing and
others call it Contract work and those who do this job are
known as Freelancer or independent contractors. Freelance
workers, portfolio workers or independent contractors are self-
employed individuals who do assignments, either in series or in
parallel, for a number of different organizations or clients, on a
(typically short-term) commercial rather than the employment
contract basis. With the advantage of the internet, these
freelancing jobs are increasing day by day and creating a new
the Malaysian online freelance workers trend and expectation
towards online contract works and what do they look for in a
freelance website platform. With this research, we anticipate
identifying what the influence of adoption of Malaysian
freelancer towards online website for contract works and what
are the types of online job matching providers who act as a
broker in-between both of them. Little research has been done,
in order to assist researcher to identify the specific group of
online freelance workers in Malaysia to understand their user
segmentation. Hence, this study aims to analyze and identify
the appropriate online freelancer segmentation based on
specific skills specialist, demographic studies and types of
work assigned. Result from this study will assist other research
consultants or entrepreneur to be conscious of online job
market platform requirements for Malaysian Freelancers and
perceptively help create relevant market research aiming at this
target group.
LITERATURE REVIEW
Freelancing has proliferated in recent years. Some areas of the
world have enjoyed rapid deployment and high penetration of
freelance job. Based on the statistics, 70% of the world’s
population have worked as freelancer at least one (Fathima,
2013). Online freelancing marketplace basically brings buyers
and sellers from anywhere in global together for a business
relationship. With the help of technological innovation and fast
internet connections, freelancing promotes remote jobs that can
be performed by freelancers and ultimately act as medium that
connect the job seekers with companies (Ahmed, 2015). As
explained by Prakash, A (2014), the decrease in the cost of
internet search and increase in available information in job
portal makes the matching process much more efficient in
terms of both speed and quality. It will not only help workers
find jobs which suited to their skills but also help employers
identify employees who are suitable for their organization.
Today, there are many online marketplaces to help promoting
and creating a platform for freelancers to highlight their skills
and experiences to attract and retain businesses. They act as
“online labor markets” for services and knowledge work which
could be delivered via the Internet. Workers create online

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profiles and buyers post jobs and wait for workers to apply
and/or actively solicit applicants (Horton 2010). For example,
Upwork.com offers a platform that can be used to “find, hire,
and pay the world’s best freelancers.” Another player is
Freelancer.com who claims it is the world's largest freelancing,
outsourcing and crowdsourcing marketplace by number of
users and projects. Types of work offered on these sites range
from high-skill graphic design and web programming projects
to low-skill data entry and local tasks (Lehdonvirta, 2015).
There is no direct relationship between the employer and
employee which basically comes to a term there are no
permanent work contract with an employer. Freelancer doesn’t
receive fixed salary and are paid on a fee basis for the work
they undertake (Fathima, 2013). Demand for outsourced
services depends on the relative cost of producing the services
in-house compared to outsourcing, which varies across firms
according to the firm’s investment in ICT. The result is that
some businesses outsource more than others (Abramovsky,
2006). This explains that freelance is such a flexible type of
activity that can be combined with any other work or used as a
way to create a primary source of income (Shevchuk, 2012).
Modern communications allow freelancers to realize their
intellectual capital, working at any distance from the place
where their activities are in demand (Absalyamova, 2015). The
freelancing web portal uses the C2B (consumer to business)
business model which is the opposite of B2C (business to
consumer) concept. B2C is controlled by the enterprise and the
consumers are at the end of the supply chain. C2B efficiency is
higher than B2C, where consumers can bid their own pricing
and at the same time they can enjoy the collective bargaining
by getting higher consumer surplus (Zhu, 2015).
By further analysis, the literature shows the shift of
organization structure, its response to technology and dealing
with Freelancers. Organizations are outsourcing individual
professionals on temporary contract basis, which provides them
with cost benefits, and they may get services of highly skilled
professional from the world (Kazi, 2014). This also brings in
the threat of price bidding war between freelancers who
anticipating in getting a reasonable market rate fee for the
service they provide.
Under the UK research done by Kitching (2012), explains that
freelancer is to be granted greater attention than hitherto. They
are qualitatively different from other types of small business
owner and quantitatively important to the UK economy
(Kitching, 2012). On the other hand, Russian researcher
Andrey Shevchuk (2012) did explore the remote work patterns
of Russian electronic freelancers using empirical data from
their online-marketplace – Free-lance. Ru site, which conclude
that Electronic Freelancers play an important role in the
development of the internet, e-business and innovative
entrepreneurship (Shevchuk, 2012). This literature leaves room
for further exploration of the Asian freelance market, especially
Malaysia and how freelancers are doing business to promote
freelancing industry.
As what researcher Skybinskyi (2014) did with his survey
findings in Ukraine, It is necessary to conduct a sociological
research for more objective freelance market evaluation and
analyzing. Especially to which category of the population is
prone to freelance belong barriers to which freelancer’s front at
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efficient work and what is the level of development of business
(Skybinskyi, 2014).
The boundary between a knowledge worker and job provider
will become linkage because of the communications allowed
by the Internet. Except for extremely professional consultants
that can only be utilized by experts, most of the information can
be accessed by knowledge-consumers through new broadband
technologies and internet service. For example, one would no
longer have to hire full time employees get a job done.
Comparatively, in the “Internet Era” where people can assign
and receive work thru online website, the tasks that originally
required employees to be in the office can now be done through
home computers located far away from the office. Based on the
research done by Kitching (2012), freelancer makes
relationships with multiple clients/end users of labor services
during a particular time period, rather than a single one.
ONLINE FREELANCE MARKETPLACE
Since the late 1990’s, dedicated online marketplaces have been
offering comprehensive technical infrastructure and
institutional support for electronic freelancers and their clients
(Shevchuk, 2012). On top of providing job listings, profiles and
other context needed for hiring, these sites enabled the actual
work to happen online, thereby reducing dependence on
physical location and opening up a broader talent pool. These
sites disrupted traditional hiring models and empowered
flexible work by enabling clients to connect with motivated,
independent professionals actively looking for freelance work
[10]. Researcher Abdul Ghafoor and Dr. N. Fatima Tabassum
(2013) explore many online freelance marketplace websites
which provide these services to freelancer namely oDesk.com,,
Guru.com, Freelancer.com and Elance.com (Kazi, 2014)
(Fathima, 2013). There is nowhere to find out about Malaysian
online marketplace trends for freelancers in their journals. This
niche market is a gap in their literature analysis found.
According to Eppel (2014), usage of internet and private
employment agencies are more effective in reducing
information asymmetry between job applicants and employers.
Internet portal channels such as an online freelance job boards,
employment portal for major companies and online social
media sites could make job search processes more efficient.
Also freelancing economy is likely to become a much bigger
part of the employment landscape in the future. These websites
provide a number of high end jobs like web and software
development, networking, etc., to low end non-technical jobs
such as data entry and customer service jobs (Fathima, 2014).
Here, there is a gap in finding more details about Malaysia job
market which relate to freelancing.
The online freelancing marketplace usually will act as a
moderator between freelancers and job providers and earn their
revenue from both parties by charging a marginal fee or a
percentage from the total payment transaction (Fathima, 2013).
Most payments are handled via online payment sites like
PayPal and escrow account to safely handle payment
transactions between job provider and job seekers (freelancer)
(Fathima, 2013). Recently leading online marketplace for
freelancing job site, Freelancer.com acquired a number of
online marketplace, businesses in 2014 and working towards
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for becoming the world’s biggest site for freelancing job subjective norm, but with an addition of the perceived
matching, this includes Malaysia. However, Malaysia still behavioral mechanism.
lagged behind developed countries such as the USA and the UK
in developing its own online freelance marketplace. Freelance
websites differ from other job search websites with their focus
on remote professional service and facilitate from the point of
bidding to billing and final payment under one roof. These
marketplace websites enable to match the need of job seekers
and job providers without any initial investment. Few local
sites like Jobless.com.my, Kaodim.com and
Freelancer.com.my create platform to post job vacancies and
letting freelancers to add their profile and services on the sites. Figure 1: Technology Acceptance Model (Davis et al., 1989)
Most of the freelancers found on these sites are involved in an
errand task like home cleaning, delivery services and promoter
for products. Skilled professionals in specialized areas are As shown in Figure 1, the TAM proposed that two particular
rarely found among these sites and they intend to promote beliefs are the main drivers for technology acceptance, which
themselves using their personal websites. are perceived usefulness (“the degree to which a user believes
Freelance marketplace does have a constraint in the acquisition that using a particular system would enhance his or her job
of high quality sellers in demand constrained markets. We performance”) and perceived ease of use (“the degree to which
consider markets where a small number of buyers must choose a user believes that using a particular system would be free of
from a large pool of sellers. As an example, consider online physical and mental efforts). Perceived usefulness and
freelance marketplaces like Elance.com and oDesk.com: here perceived ease of use influences one’s attitude towards system
the buyers are the clients bringing jobs to the marketplace, usage, which influences one’s behavioral intention to use a
while the sellers are the freelancers looking for work. The system, which determines actual portal usage (Davis et al.,
number of freelancers on such platforms often far exceeds the 1989).
number of clients, bringing work (Banerjee, 2014). Another In the light of literature review and research objective of this
area of drawback is the bidding system where freelancer bids study, following hypotheses were developed:
for proposal using price war and offers lower than market price
which eventually defeats the purpose of helping skilled
professionals from winning the job. Also, many online users
today are increasingly finding themselves to be exposed to
security threats during their online activities. Security threats
include those risks like manipulation with information, data
like selling or modification of data or various types of fraud and
misuse (N.K. Malhotra, 2004). To overcome these drawbacks,
our intent to develop a new online freelance marketplace for
local Malaysian users to overcome all the above loopholes by
connecting skill freelancers with clients.

RESEARCH MODEL AND HYPOTHESES

We used the method proposed by researcher, Davis (1989) who
suggested Technology Acceptance Model (TAM) to address
the issues of why users decide to accept or reject a new
information system portal. It uses the perceived usefulness
(PU) and the perceived ease of use (PEOU) which is two
primary drivers for technology acceptance. PU is defined as the
degree to which a person believes that using a new information
system could enhance his/her job performance. PEOU is
described as the degree to which a person believes that using
the system could be free of effort. TAM is a theoretical
extension of both Theory of Reasoned Action (TRA) proposed
by Fishbein & Ajzen (1975) and Theory of Planned Behavior
(TPB) proposed by Ajzen (1985). TRA indicates a person’s
behavior is determined by their intention to perform those
behaviors and the intention is, in turn, a joint function of the
person’s attitude towards the behavior and his/her subjective
norm. On the same note, the TPB indicates that a person’s
behavioral intention is jointly determined by their attitude and
Figure 2: The proposed research model
The figure 2 above illustrates the modified TAM research
model to support our research to understand the intention of
potential freelance user to use the online freelancing portal.
Below are the hypotheses which included:
H1: There is a positive influence of perceived ease of use on
perceived usefulness of online freelancing portal – study to
understand whether freelancer would naturally try to add their
perception of online freelancing based on their experience in
engaging in online freelancing and the ease in which the work
was executed.

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H2: There is a positive influence of perceived usefulness on Table 1. Demographic data

the intention to use online freelancing portal – this will study
the behavioral intent which depends on cognitive choice of user
who are intenting to use the website based on the technology’s
usability and usefulness.

H3: There is a positive influence of perceived ease of use on

the intention to use online freelancing portal – this is related
to “user-friendliness” of the website and create the intention to
use the online freelancing portal.

H4: There is a positive influence of perceived security on

the intention to online freelancing – One of the main factors
in the adoption of online freelancing services is trust and
security of the website, because when users uses the website,
they expect the information on the website to be reliable,
accurate and timely. Therefore, the security of the portal will
encompass the intention to use online freelancing services.
RESEARCH METHODOLOGY
This research study was to examine the relationship between
perceived ease of use, perceived usefulness and perceived
security with the intent to engage in online freelancing. The
independent constructs for this study are perceived usefulness,
perceived ease of use, and perceived security. The dependent
constructs for this study is the intention to use online
freelancing. This research questionnaire consists of 5 sections,
namely demographics, perceived usefulness (PU), perceived
ease of use (PE), perceived security (PS) and intention to use
of the freelancing portal (OFI).
Perceived usefulness (PU) was measured using 5-item scale
(items PU1-PU5). Usefulness perceived by respondents
referred to their judgment regarding how useful is the freelance
website for them to interact. Perceived ease of use (PE) was
measured using 5-item scale (items PE1-PE5). This section
gathers the respondents input to their judgment regarding how
easy it is to use the freelance website service. Perceived
security (PS) was measured using 5-item scale (items PS1-
PS5). Security perceived by respondents referred to their
judgment regarding the security of transaction and security of
collecting data when using the online freelance website service.
And finally the intention of using the freelancing portal (OFI)
was measured using 5-item scale (items OFI1-OFI5) which
measures the interest user has to visit and use the website
services.
The above table 1 reflects the demographic characteristics of
user who took the survey. The survey form was handed out to
them during class and during office hours at the work place.
The survey questionnaires are designed in a way that it’s not
too complicated and easy to answer. The majority of the
respondents is working adult and female within the age group
of 23 - 40. The majority of them had done some kind of
freelancing work before. The items used to measure perceived
usefulness and perceived ease of use was adapted from the
Technology Acceptance Model (TAM) with some minor
modification to reflect the context of the freelance websites.
We use the 7-point scale Likert to get the respondent’s view on
using the website and each item was rated on a scale of 1 to 7
(Strongly Disagree to Neutral to Strongly Agree).
RESULT AND ANALYSIS
The purpose of this study was to identify the relationship
between factors which influence freelancer willingness to adapt
this newly implemented website. From the descriptive
statistical analysis below, all questionnaires receive a mean of
above 3.5 which indicates the users agreeing to the questions in
positive mode. Table 2 and Table 3 are showing the descriptive
statistics of the study.
Table 2. Descriptive statistics of items

The research model was tested with data obtained using offline
survey questionnaires. The items used in the survey can be
found in the Appendix on last page. Data was collected from
varying age group of people in USM and work place to test the
questionnaire. The IBM SPSS system was used to interpret the
results. Overall, 35 respondents completed the questionnaires
for this study. Respondents were screened according to whether
they had experience with the new freelance websites. Of this,
only 31 are considered as a freelancer and remaining 4 have not
done any kind of freelancing work before, but plan to use the
website to do freelance work in the future.

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Table 3. Descriptive statistics Table 5. Coefficient Matrix

The above Coefficient matrix shows there is a significant value

To ensure that the measurement items are measuring the same
to show that Perceived Usefulness and Perceived Security are
construct, Cronbach’s alpha was used to measure the internal
showing significantly better results (. 015 &.000). The
consistency of multi-item scales on 35 user’s survey. The
correlation matrix in table 5 shows all the constructs in the
results of the reliability analysis are presented in the Table 4.
research model. As can be seen from the matrix, there is a
As shown, the reliability analysis gave alpha coefficients
significant relationship between the Intentions for online
exceeding.920 which are regarded as an acceptable reliability
freelancing with the rest of the constructs, although the
coefficient (Nunnaly 1978). Therefore, items measuring the
association varies in strength from one construct with others.
construct dimensions are acceptable and reliable with high
Overall, the correlations provided confidence that the measures
level of internal consistency. One of the components in this part
were functioning effectively and there is a strong direct
is system will auto-generate new medical record id when users
correlation between Perceived Usefulness, Perceived Ease of
click the button “save”. It can be implemented to generate the
use, Perceived Security and Intention of online freelancing.
id key for other parts such as diagnosis id, treatment id,
Table 6 shows the model summary.
prescription id and so on.
Table 6. Model Summary
Table 4. Reliability Statistics
Cronbach’s Cronbach’s Alpha based No. Items
Alpha on standardized items
0.920 0.923 4

Based on the regression analysis results, all drivers were found

to have a significant intention on online freelancing. All the Table 7. ANOVA Matrix
drivers were found to be significant at 1% significance level
(Sig = .000) with positive beta scores. These results give
support to all the hypotheses and meant that all drivers
(perceived usefulness, perceived ease of use, perceived
security) can influence anyone to engage with Freelancing.asia
web portal. Therefore, all three hypothesis’s were substantiated
and hence accepted. Deducing from the Beta, perceived In Table 7, we can see that the significance level in Anova
security had the most significant effect on online freelancing (β analysis is showing there is a model (p =) which is below 0.05
=.542), followed by perceived usefulness (β =.291), and and therefore shows there is a positive effect to the intention of
perceived ease of use (β =.182). usage of the website.

The R score was 82.4%, which means that all the three
variables can explain 82.4% variance towards the intention of
online freelancing. In other words, it implies that the
explanatory power of all the three drivers for having the
intention for online freelancing put forth in this research is
82.4%. On the flip side, this indicates that there are other factors
or other drivers that may explain the remaining 49.0%. The VIF
(1 – 10), tolerance (0.1 – 1) and the condition index considered
to be within an acceptable range. Hence, there was no multi
collinearity problem in the regression model. The F value was
large (48.489) and found to be significant at significance level
of 1% (Sig F =.000). Thus, the result shows that this model is
free of serial correlation. All in all, the regression model used
for the analysis was fit or in other words, it conclusively
projects that there was an adequate model.
CONCLUSION
In this research, we use the Technology Acceptance Model
(TAM) by Davis to apply in analyzing user intention to adopt
and influence of freelance portal. Our TAM is consisting of four
major construct, which are the perceived usefulness, the
perceived ease of use, perceived security and online freelancing
intention. Our questionnaire was separated into 3 areas, namely
personal profile, the adoption factors and intention factors.
According to these analyses, we could conclude several findings
as below.
The perceived usefulness is a main factor for the behavioral
intention or in this case the intention to engage online
freelancing. Users are likely to accept this freelance website
usefulness when the system is safe and secure. And when the
user gets knowledgeable in using the portal, the impact of the
perceived ease of use should become more important.
Despite the pervasiveness of freelancing penetration around the
world, data and information collection that have been carried out

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© Research India Publications. http://www.ripublication.com
are based on website secondary data list and comparison charts
between those four websites. There were no end user or direct
contact with freelancers to communicate or do survey to
understand their perception or preferences on freelancing trend
and its job process. An in-depth data collection survey will be
sufficient to gather this information on user behavior towards
freelancing jobs in the Malaysian environment.
With the digital age of fast internet today, the freelancer will
grow enough to make up half of the global labor force by 2020.
That's going to change not only their life, but it's going to change
the way everyone works. The freelancer has numerous
opportunities for expansion in Malaysia keeping in view the
development of the online freelance marketplace which are
responsible for its growth. However, at the same time the threat
perception, such as security measurement, complexity of
finding freelancers and trusted paying client needs to be handled
with care and security.
Research on the local Malaysian freelancing industry is still
untapped and explored by researchers. Further study of
Malaysian freelancing landscape could help to give better idea
and clear picture of this job market to local freelancers. Besides
this we find it difficult to reach all types of freelancers
nationwide who do online work and this would require a larger
budget, more staff and long time—all of which could not be
afforded due to the economic constraints.
To conclude, the results from this study suggest that TAM can
be applied to understand the users’ intention to do online
freelancing. They focus primarily on perceived security and
perceived usefulness, but place less emphasis on perceived ease
of use.
ACKNOWLEDGMENT
The authors would like to acknowledge Universiti Sains
Malaysia (USM) as this research has been supported from the
Short Term Research Grant [Account Number:
304/PKOMP/6312103] and from the Research University Grant
(RUI) [Account Number: 1001/PKOMP/811251] from the
Universiti Sains Malaysia.
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