Chapter 1

1.1 Introduction
According to Malaysian Administrative Modernisation and Management Planning Unit (MAMPU)
the vision of e-government is to transform administrative process and service delivery through the
use of Information Communication Technology and multimedia. ne of the reali!ations of e-
government is e-filing system "here it allo"s ta#payers to file their ta# returns electronically to the
ta# authorities. It had $een stated $y Anna% &usni!a and 'or (aida()*+)) that Malaysia Inland
,evenue -oard (I,-M) has launched the e-filing method starting year )**.. /-filing system is an
application on filing information of ta# payment and ta# return forms (IT,0) electronically $y
o$taining a valid digital certificate from the Inland ,evenue -oard Malaysia.
The valid digital certificate helps ta#payers to complete their ta# filing online. It sho"s an o$vious
contrast $et"een the traditional manual ta# filing method and e-filing ta# method "here the
transaction process can $e done in a paperless environment and rather "ithout paying a visit to the
ta# department. 1alam%et.al ()*+)) also agreed "ith the $enefits "ith e-filing "hich it more
convenience% fast% accurate and secured in terms of payments. Although several $enefits and
advantages are $eing proved in terms of information searching% speedy filing% minimi!ing
processing errors% fast and direct deposit refunds% eliminating delays or uncertainties of ta# filing
and return $y postal mails% the usage of e-filing still not at the ma#imum level. According to
2rishna Moorthy et.al()*+3)statistics from I,-M indicates that the ta#payers "ho adopt e-filing
system represent only .4 percent of total ta#payer5s population in year )*++. There is a slight
increase of ) percent compared to year )*+*. This increase is not sho"ing a significant value% $ut
this increase sho"s that the a"areness and responds are sho"n $y the ta#payers. A!i! 6 Idris()*+))
1
also stated that e-filing usage $y the citi!ens "as seriously underused in spite of the availa$ility and
improvement of the technology. Thus% it is important to understand the relationships of diffusions of
innovations% social norms and facilitating conditions of ta#payers and intention in adopting e-filing.
This research paper "ill started "ith the literature revie" in chapter )% follo"ed $y research
methodology in chapter 7 and finally findings and conclusion of studies.
1.2 Research Objectives
+. To e#amine the relationship $et"een perceived relative advantage and intention of people
to adopt e-filing.
). To investigate the relationship $et"een perceived comple#ity and intention of people to
adopt e-filing.
7. To e#amine the relationship $et"een perceived triala$ility and intention of people to adopt
e-filing.
3. To find out the relationship $et"een perceived o$serva$ility and intention of people to adopt
e-filing.
8. To find out the relationship $et"een social norms and intention of people to adopt e-filing.
.. To find out the relationship $et"een facilitating condition and intention of people to adopt
e-filing.
1.3 Research Questions
2
+. 9hat is the relationship $et"een perceived relative advantage and intention of people to
adopt e-filing:
). 9hat is the relationship $et"een perceived comple#ity and intention of people to adopt e-
filing:
7. 9hat is the relationship $et"een perceived triala$ility and intention of people to adopt e-
filing:
3. 9hat is the relationship $et"een perceived o$serva$ility and intention of people to adopt e-
filing:
8. 9hat is the relationship $et"een social norms and intention of people to adopt e-filing:
.. 9hat is the relationship $et"een facilitating condition and intention of people to adopt e-
filing:
3
FRAMEWOR
RE!A"IO#$%I& 'E"WEE# (E&E#(E#" A#( I#(E&E#(E#" )ARIA'!E$
"ab*e 1+ Re*ationship 'et,een (ependent and Independent )ariab*es
(i--usion o- innovation
According to ,ogers (+;;8) diffusion of innovation is a process $y "hich an innovation and time
are <ey concepts in the diffusion of innovation as innovation is an idea or practice that is perceived
as ne" $y individuals "ho adopts it. -ased to ,ogers(+;=7)% innovations can $e categori!ed into
five perceived attri$utes>
i. ,elative Advantage
ii. $servea$ility
4
Perceived ,elative
Advantage
Perceived $serva$ility
Perceived Trialability
Perceived Complexity
Intention in
adopting e-filing
system
1ocial 'orms
0acilitating Conditions
iii. Compati$ility
iv. Comple#ity
v. Triala$ility
0or the purpose of this study% perceived compati$ility "ill not $eing included as the respondent
of this study only ta#payers and not current ta#payers.
Chapter 3
Research Methodo*o./
2rishna Moorthy et.al()*+3)mentioned pro$a$ility sampling design can $e used "hen the elements
in the population have a <no"n chance of $eing chosen as su$?ects in the sample. This study used
convenient sampling method to o$tain sufficient num$er of respondents due to non availa$ility of
Malaysian ta#payers list to do pro$a$ility sampling. 9e used a survey method to collect the
research data. Target population for this study is current ta#payers in Mela<a City .This study too<
appro#imately a month "here$y +** @uestionnaires "ere distri$uted ($y hand and via e-mail) to the
people around Mela<a $ut only .* "ere returned and completed. Thus% our response rate should $e
.*A. All 4 varia$les "ere measured using a 8-point Bi<ert-type scale ( +Cstrongly disagree to
8Cstrongly agree). 1P11 )) "as used to analy!e the data. Correlation Analysis has $een used to
e#amine the correlations $et"een the si# independent varia$les and dependent varia$les.
5
Chapter 0
,esult% Analysis and 0indings.
0.1 Respondents1 &ro-i*e
It could $e seen from Ta$le + that .7.7 percent of the respondents are female "hile 7..4 percent
"as male respondents. Most of respondents fall into age group $et"een )* to 7* years old follo"ed
$y those "hose age $et"een 7+ to 3* years old ()8A). Ma?ority of the respondents "ere degree
holders (78A) follo"ed $y post graduate.()8A). Most of the respondents gain salary under range of
,M )8*+ to ,M 8*** and it5s follo"ed $y those "hose salary $et"een ,M* to ,M )%8**.
Ma?ority of respondents "ere employed (=7.7A) and most of them also "ere attached "ith private
sectors (8*A).All of them "ere ta#payers "ith ma?ority that had used e-filing for + year only.
"ab*e 1+ Respondents1 &ro-i*e
6
7
)ariab*e Ite2s Fre3uenc/ &ercent
Dender 0emale 7= .7.7
Male )) 7..4
Age )* - 7* years 74 .+.4
7+ - 3* years +8 )8.*
3+ - 8* years 7 8.*
8+ - .* years 7 8.*
More than .* years ) 7.7
/ducation Eegree 78 8=.7
Eiploma 4 ++.4
thers + +.4
Post Draduate +8 )8.*
1econdary 1chool ) 7.7
1alary ,M* - ,M)8** +. )..4
,M )%8*+ - ,M8%*** )8 3+.4
,M 8%**+ - ,M4%8** +8 )8.*
More than 48** 3 ..4
/mployment /mployed 8* =7.7
1elf-employed +* +..4
1ector * = +7.7
Private 7* 8*.*
Pu$lic )* 77.7
Ta#payer
&es .*
+**
/-filing Usage 'o +8 )8.*
&es 38 48.*
&ear of Usage * +8 )8.*
+ )* 77.7
) +3 )7.7
7 + +.4
3 7 8.*
8 7 8.*
. + +.4
+* 7 8.*

3.) Measurement of Central Tendencies
Ta$le ) sho"s the central tendencies measurement. The highest mean is for the @uestion is e-filing
$eing perceived as a relative advantage (MeanC3.73%1EC*.3;) follo"ed $y e-filing $eing perceived
as o$serva$ility system(MeanC3.)*%1EC*..*)
Ta$le )> Central Tendencies measurement of constructs
Descriptive Statistics
8
N Minimum Maximum Mean Std.
Deviation
Variance
Perceived Relative
Advantage
60 2.80 5.00 4.3367 0.49333 0.243
Perceived
Observability
60 2.50 5.00 4.2000 0.59802 0.358
Perceived Trialability 60 2.25 5.00 4.0212 0.60758 0.369
Perceived Complexity 60 1.50 5.00 4.1583 0.67955 0.462
Social Norms 60 2.50 5.00 4.1667 0.68064 0.463
Facilitating Condition 60 2.00 5.00 3.9083 0.78918 0.623
IntentionGrp 60 2.00 5.00 4.4278 0.59531 0.354
Valid N list!ise" 60
3.7 Correlation
All correlations are significant e#cept for 1ocial 'orms and 0acilitating Condition. "ab*e 3 sho"s
that the highest correlation is $et"een perceived relative advantage and intention in adopting e-
filing system(pC*..+4)
9
"ab*e 3+ Corre*ation Ana*/sis
I#" RA O'$ "RIA! COM $# FC
I#" Pearson Correlation +.*** ..+4
FF
.748
FF
.3)8
FF
.474
FF
.7)7
F
.7*4
F
1ig ()-tailed) .*** .**7 .**+ .*** .++= .+.;
' .* .* .* .* .* .*
RA 1ig ()-tailed) .**) .*** .*** .**) .+.4
' .* .* .* .* .*
Pearson Correlation .33;
FF
..))
FF
.7;*
FF
.+=+
O'$ 1ig ()-tailed) .**3 .*** .*)3 .**+
' .* .* .* .*
Pearson Correlation .74+
FF
.3=3
FF
.);+
F
.378
FF
"RIA! 1ig ()-tailed) .*** .*** .*);
10
' .* .* .*
Pearson Correlation ..*+
FF
.88*
FF
.)=8
F
COM 1ig ()-tailed) .*++ .*3+
' .* .*
Pearson Correlation .7)4
F
.).8
F
$# 1ig ()-tailed) .*+8
' .*
Pearson Correlation .7+7
F
FC 1ig ()-tailed)
'
Pearson Correlation
11
The summary of the hypotheses and results of the analysis are given in Ta$le 3 $elo".
0rom the constructs% it could $e seen that there is a relationship $et"een perceived relative
advantages% perceived comple#ity% perceived triala$ility and perceived o$serva$ility. (o"ever%
social norms and facilitating conditions do not influence intention in adopting e-filing system in
Mela<a.
"ab*e 0+ $u22ar/ o- h/phothesis
12
Hypotheses Significance value Result
H1 : There is a relationship between perei!e" relati!e
a"!anta#e an" intention o$ people to a"opt e%$ilin#
0&00 'epte"
H2: There is a relationship between perei!e" omplexity
an" intention o$ people to a"opt e%$ilin#
0&03 'epte"
H3: There is a relationship between perei!e" trialability
an" intention o$ people to a"opt e%$ilin#&
0&01 'epte"
H4: There is a relationship between perei!e"
obser!ability an" intention o$ people to a"opt e%$ilin#
0&00 'epte"
H5: There is a relationship between soial norms an"
intention o$ people to a"opt e%$ilin#
0&12 (ot
'epte"
H6: There is a relationship between $ailitatin# on"ition
an" intention o$ people to a"opt e%$ilin#
0&17 (ot
'epte"
13