Disintermediation threat: do small medium traditional travel agencies in Malaysia embrace ICT adequately?

As early as 1999, Werthner and Klein have acknowledged the disintermediation threat of Traditional Travel Agencies (TTA) due to the emergence of Virtual Travel Agencies (e.g. Travelocity, Expedia) and infomediaries (e.g. Travelbids, Priceline). Almost 18 years later, (as of 2017), it is interesting...

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Main Authors: Munikrishnan, Uma Thevi, Ng, Siew Imm, Ho, Jo Ann, Raja Yusof, Raja Nerina
Format: Article
Language:English
Published: Universiti Putra Malaysia Press 2019
Online Access:http://psasir.upm.edu.my/id/eprint/67813/
http://psasir.upm.edu.my/id/eprint/67813/1/47%20JSSH-2617-2017.pdf
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author Munikrishnan, Uma Thevi
Ng, Siew Imm
Ho, Jo Ann
Raja Yusof, Raja Nerina
author_facet Munikrishnan, Uma Thevi
Ng, Siew Imm
Ho, Jo Ann
Raja Yusof, Raja Nerina
author_sort Munikrishnan, Uma Thevi
building UPM Institutional Repository
collection Online Access
description As early as 1999, Werthner and Klein have acknowledged the disintermediation threat of Traditional Travel Agencies (TTA) due to the emergence of Virtual Travel Agencies (e.g. Travelocity, Expedia) and infomediaries (e.g. Travelbids, Priceline). Almost 18 years later, (as of 2017), it is interesting to investigate how TTAs cope with the disintermediation challenges by integrating ICT into their business models. Older and more established institutions (more than 20 years in business) like TTAs were said to bemore resistant to change (Institutional Theory). Will it be the case for industries going through disintermediation threat? Qualitative multiple case studies method was used to ensure the issues were explored through multiple lenses. Semi-structured interviews, website content analysis and direct observation are used to collect data from fifteen case firms in Malaysia. The findings suggests a three level ICT adoption model for SME TTA in Malaysia: six were 'low ICT adopters', five were 'intermediate ICT adopter' and four were 'advance ICT adopter'. Low ICT adopter merely use static website and email, while intermediate and advance adopter acquired ICT capabilities almost equivalent to those of Virtual Travel Agencies with interactive website or advanced e-business. This indicated that majority of SME TTAs in Malaysia were embracing ICT adequately. The study also concluded that non-stage models explained adoption levels more appropriately since some TTAs were found regressing to lower level after advancing to higher level.
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spelling upm-678132019-04-10T01:48:27Z http://psasir.upm.edu.my/id/eprint/67813/ Disintermediation threat: do small medium traditional travel agencies in Malaysia embrace ICT adequately? Munikrishnan, Uma Thevi Ng, Siew Imm Ho, Jo Ann Raja Yusof, Raja Nerina As early as 1999, Werthner and Klein have acknowledged the disintermediation threat of Traditional Travel Agencies (TTA) due to the emergence of Virtual Travel Agencies (e.g. Travelocity, Expedia) and infomediaries (e.g. Travelbids, Priceline). Almost 18 years later, (as of 2017), it is interesting to investigate how TTAs cope with the disintermediation challenges by integrating ICT into their business models. Older and more established institutions (more than 20 years in business) like TTAs were said to bemore resistant to change (Institutional Theory). Will it be the case for industries going through disintermediation threat? Qualitative multiple case studies method was used to ensure the issues were explored through multiple lenses. Semi-structured interviews, website content analysis and direct observation are used to collect data from fifteen case firms in Malaysia. The findings suggests a three level ICT adoption model for SME TTA in Malaysia: six were 'low ICT adopters', five were 'intermediate ICT adopter' and four were 'advance ICT adopter'. Low ICT adopter merely use static website and email, while intermediate and advance adopter acquired ICT capabilities almost equivalent to those of Virtual Travel Agencies with interactive website or advanced e-business. This indicated that majority of SME TTAs in Malaysia were embracing ICT adequately. The study also concluded that non-stage models explained adoption levels more appropriately since some TTAs were found regressing to lower level after advancing to higher level. Universiti Putra Malaysia Press 2019 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/67813/1/47%20JSSH-2617-2017.pdf Munikrishnan, Uma Thevi and Ng, Siew Imm and Ho, Jo Ann and Raja Yusof, Raja Nerina (2019) Disintermediation threat: do small medium traditional travel agencies in Malaysia embrace ICT adequately? Pertanika Journal of Social Sciences & Humanities, 27 (1). pp. 707-728. ISSN 0128-7702; ESSN: 2231-8534 http://www.pertanika.upm.edu.my/Pertanika%20PAPERS/JSSH%20Vol.%2027%20(1)%20Mar.%202019/47%20JSSH-2617-2017.pdf
spellingShingle Munikrishnan, Uma Thevi
Ng, Siew Imm
Ho, Jo Ann
Raja Yusof, Raja Nerina
Disintermediation threat: do small medium traditional travel agencies in Malaysia embrace ICT adequately?
title Disintermediation threat: do small medium traditional travel agencies in Malaysia embrace ICT adequately?
title_full Disintermediation threat: do small medium traditional travel agencies in Malaysia embrace ICT adequately?
title_fullStr Disintermediation threat: do small medium traditional travel agencies in Malaysia embrace ICT adequately?
title_full_unstemmed Disintermediation threat: do small medium traditional travel agencies in Malaysia embrace ICT adequately?
title_short Disintermediation threat: do small medium traditional travel agencies in Malaysia embrace ICT adequately?
title_sort disintermediation threat: do small medium traditional travel agencies in malaysia embrace ict adequately?
url http://psasir.upm.edu.my/id/eprint/67813/
http://psasir.upm.edu.my/id/eprint/67813/
http://psasir.upm.edu.my/id/eprint/67813/1/47%20JSSH-2617-2017.pdf