Nowadays is the trends that trust the Internet commerce application where it can cause business operators. Some people will revert back to using the traditional method of doing business. The trust can be lost due to the situation where the hacker attack on e-commerce sites. According to the study done by Hammonds (2014) state that full-scale identity theft to web profiling come with various issues that been disturbed the consumer and vendor itself. That why, E-commerce also known as a form of buying and selling of product and services for the business and for the customer through the internet. According to research done by Mukherjee (2016) stated that online sale increasing day by day because customer take advantage of the low price product that offered by the wholesaler or the manufacturer in the online mood. Besides that, e-commerce also helps the customer and the organization in term of gaining the information through the technology that has been provided.
Under Industry 4.0 concept, outstanding growth in advance and the information technology in social media network has been increasingly influencing human perception. That small enterprise that adopts e-commerce performs better than those which fail to adopt because of the catalytic effect on business performance (Wanyoike, et al., 2012). This is because e-commerce adoption is not automatic due to the weaknesses of resources, for example, financial with e-commerce skill where the small enterprise have done it on the daily basis. It is shown that small enterprise can influence people to the business by using e-commerce by increasing the information about the social media network. The scope of study that has been done by Mihyun & Jaehyoun (2014) elaborated that the Industry 4.0 is the industrial revolution with the future of core technology trend is expected to result in an all-new era of automated industries. Furthermore, the internet devices significantly improve the quality of lives and in result will have a large impact on society. This has been proved with the development of small industry where they can go far in business by using the internet and apply the e-commerce business.
Implementation of e-commerce is required high cost and need a strong economy-justification (Valmohammadi, et al., 2016). This is because, in order to get the internet connection, there are a lot of things need build and upgraded in order to get the best connection. A poor connection can give the bad perception of the customer to the country and the nation and the ever-increasing growth of e-commerce in develop countries must be followed by the business policy and strategies that have been fundamentally reconsidered as in the developing country.
Acting as online marketplaces, e-commerce websites and mobile applications that facilitate online commercial transactions allow manufacturers, merchants, retailers and service and content providers to list their products, services or content online (Yen, et al., 2015). To get success in e-commerce, there is some business model of e-commerce which it is has been structured in order to plan the activities more thoroughly to gain profit for an organization. The table below shows the key elements of e-commerce business model.
VALUE PROPOSITION How a company’s products or services fulfill its customers’ requirements.
REVENUE MODEL How a company generates revenue and creates profit.
MARKET OPPORTUNITY The marketplace that a company intends to enter, as well as the company’s potential financial opportunities in that marketplace. Many small market segments constitute a marketplace.
MARKET STRATEGY How a company plans to enter a new marketplace and attract new customers.
COMPETITIVE ENVIRONMENT Potential new entrants or other companies that offer similar products or services in the same marketplace.
COMPETITIVE ADVANTAGE A company offers superior products or services at a lower price than its competitors do.
ORGANIZATIONAL DEVELOPMENT How a company organizes its work in a targeted, goal-oriented manner.
MANAGEMENT TEAM Leaders of a company’s business unit, responsible for the business model.
Source: Adapted from Laudon, K.C., and Traver, C.G. E-commerce 2015: business technology society, (11), 58-68, Pearson.
Industry 4.0 is one of technology innovation after been through with the other three industry before. This industry is most modern where everything needs to use the internet in order to complete the task given. The information that available on the internet are not necessarily mean or lead to the success directly (Kleindienst, et al., 2016). In contrast, the information usually gives some tools and methods and the right information is still needed in order to increase the effectiveness and lead the innovation. No wonder nowadays, it has been the topic that most frequent being discussed among the practitioners and academics in the German-speaking area (Dais, 2014, p. 625; Drath & Horch, 2014, p. 56).In this industrial revolution, it provides various opportunities to the company, especially in e-commerce fields. According to Zhou (2015) article state that industry 4.0 system is complex and flexible where there are involving). This is due to challenges that the industry facing by dealing with big data issue in order to make a decision rapidly for making an improvement. Big data becomes a buzzword for everyone because data mining already been since human-generated content has been a boost to the social network.
The development of an Internet of Things (IoT) framework and the emergence of sensing technology have created unified information that will be connected with the systems and human together (Jay Ley et al., 2014). This is because nowadays only use a database in order to get and save the information into the system. When the internet has been well developing, it can help human to work more effectively with the system and can help the human to save time use the technology wisely.
However, there are some concerns arises with respect to the emerging of technology in this industry 4.0 era. In this study, it concerns on the issue of e-commerce whether challenges which may impact the IoT are there. Focusing into the cybersecurity issue, it tends to incline the risk of users’ perception which it also tend to reduce their intention in purchasing (Miyazaki ; Fernandez, 2000). Different users have different perceptions. Hence, it is important to identify how users perceive regarding the security level in website whether it can cause challenge in the IoT towards e-commerce. Besides that, privacy has always been one of the hottest topics being rise as an issue due to the various and numerous existence of technology as well as the application that can be used in e-commerce (Ziegeldorf, Morchon, Wehrle, 2013). Finally, the acceleration of digital and connectivity of Internet is a powerful trend nowadays (Boniface ; Calisti, 2017). The problem arise when the usage of it is too much which is throughout the worldwide world. Poor connection may occur if network is too crowded.
2.0 LITERATURE REVIEW
2.1 E-COMMERCE (DEPENDENT VARIABLE)
Nowadays, there are more and more technologies are being developed and going through better improvement which are likely giving so much impactful meaning either good or bad to human. As we are aware, the emerging of such technologies get a wide attention from people all over the world to keep being updated and avoid being left out. One of it that is widely used up until these days is the Internet of Things (IoT). Supported by the pervasive wireless network, the IoT gadgets and services is growing faster due to the rise of cloud platforms, as well as the communication costs that are lessening. According to Bernados and Vosniakos (2017), the IoT can be viewed as an endeavour to bring about together both the physical and the computerized world into one which can be done by utilizing gadgets for smooth and consistent process of trading and handling data that can be utilized whenever at anyplace. Apart from that, the IoT included with some kind of network of physical devices which is equipped with the capabilities of computational within remote areas (Villon, Huang, ; Viswanathan, 2015). The IoT is a worldwide Internet-based data design that has come to the fore, encouraging the trading of good and services in the worldwide inventory network systems (Weber, 2010). For instance, Internet of Things technology with the combination of cloud computing can be used for the storage system of mixed cloud which is through the combination from the state of multimedia data (Yang, He, Lin, ; Lv, 2015). It has been widely used with its role access to control and monitor system. There are plenty of quantum leap of the IoT and one of the biggest of it is to shift the physical world and data world together. IoT is also identified as the Internet of Objects that integrate up to billions of objects such as air conditioners, washing machine, cars, buildings, animals, as well as people (Bena, Muhammad, ; Azizah, 2017).
Moreover, there is a mutual relationship between the word ‘internet’ and ‘things’ which means it has the ability to go universally with its censoring capacities, systems of communications, data processing, and networking that may identified as a new form of the information and communication technology (ICT) (Nath ; Som, 2017). The thought is that these “internet things” expel the requirement for people to attempt consider dreary actions. A radical new measurement especially from the perspective of ease of access as well as control to owner of the device from the IoT devices such as pots, lights and coolers which are altogether associated and include (Aleisa ; Renaud, 2017). It is currently nearly ensured that there is massive increase in the quantity of the IoT devices as well as their presence in humans’ lives. The quantity of IoT devices has mushroomed, and that their essence in individuals’ lives is, particularly when one understands that the Smartphone is additionally identified as one of the IoT devices. Despite the fact that the technologies have achieved considerable achievement and plenty of progress which enable them to work effectively and efficiently, one cannot refute that some notable challenges still need to be considered. These include with the technological, standardization, as well as societal issues and the most imperative ones to be seen is the security itself and the data privacy containing in it (Bernados ; Vosniakos, 2017). Hence, close attention should be paid especially to those two which can hardly impact and bring much risks towards the usage of IoT. In addition, due to the aggressive advancement of technology, there are also an increase in the needs of consumers as well as the challenges related to the IoT itself which it will be focusing more from the e-commerce perspective.
In most of the developing countries, it has been clearly seen that businesses used electronic commerce during the past decades are inclining considerably. In this era of internet of things, the information technology is prospering swiftly while the technology for e-commerce is expanding and keep being fully developed, which it assembles a good platform for further advancement of the e-commerce industry. Furthermore, it turns out that people’s day to day life as well as shopping is greatly digitalized due to the advent of the IoT in industry (Gore, 2017). The blast made by the business sector in the utilization of electronic commerce has been colossal. The improvement towards information technology brings progressively innovation of the technologies regarding e-commerce which now e-commerce has become one of the major trends that is being practises by most of people nowadays. Since past decades ago, plenty of development organizations have gone online since the significance of the internet towards the exchange of data has been aware. Plus, with the greatly inclining number of activities of the e-commerce all over the internet, and the resulting decrease in the development assist in the course of the most recent decades.
The development of World Wide Web (WWW) nowadays has given the business another genuine trend and shape instituted as the e-commerce. As a consequence, most of the e-commerce companies have seen the potential possess by the IoT which makes them occupy the benefits and put them at an edge. Currently, the regular daily activities has been identified as surfing the web-based interface through which the catalogue provided in order to purchase goods, subscribing services available on line, and using smart cards to make payment (Vishwakarma, 2017). The existence of Internet has connected as well as assists the e-business in reaching their customers throughout the whole worldwide world. Hence, in this manner, the e-commerce has empowered business in giving its customers borderless marketplace instead of physical marketplace. This wide exposure enable the IoT to discover its full possibilities which it must first cope with any possible threats effectively as well as ensuring the security and the privacy of the information obtained from the IoT devices (Jayaraman, Yang, Yavari, Georgakopoulos, & Yi, 2017). However, there are several distinctive challenges which make the approach of the existing security and the privacy system somehow strenuous. It is due to the solutions of the IoT that enclosed with plenty of security and privacy solutions in order to protect the existing IoT information.
2.2 CYBERSECURITY (INDEPENDENT VARIABLE)
Internet of things security is one of the major challenges where it must be overcome in order to push the Internet of Things (IoT) in the real world of security. Based on the research was done by Roman (2013) state that IoT architectures are supposed to deal with the estimated population of the huge amount of object and it will interact with each other and with other entities, for example, human being or virtual identities. This is because all the interaction must be secured in order to protect the information and the service positioning of all relating element that will affect the entire Internet of Things (IoT). The complexity of existence from the Internet of Things will entitle in a various context where the information can be changed for each other. This method can be more complex in term of design and the efficiency of uses where it can be operated on the big scale of security mechanism. Internet of things (IoT) devices naturally used resource- constrained. Employing the conventional security mechanism directly in smart things is not straightforward. The security requirement is needed in order to be expected to meet by the IoT security schemes (Hossain et al., 2015). This is because information is very important especially personal information that needed a trusted security that the e-commerce company can give in order to gain the customer. Integrity is one of the requirements needed for information security because the enemy can change the data and compromise the integrity of IoT system where the received data are ensured has not been altered in transit. Besides that, information protection is referred to limiting the information access and the reveal to the IoT node that is allowed for example, and IoT network should not expose the sensor reading to the public.
In E-commerce business, security is very important, especially it is one part of Information Security framework and will apply to the components that will give effect wider parts of the framework. That is why security is one of major concern for electronic technologies. Besides that, the transaction is one of the core issues of the development of E-commerce. Web of e-commerce application usually the payment that has more compliances issues (Niranjanamurthy et al., 2016). The risks usually will be increased from being targeted than other websites and data loss will be the greater consequences. That is why when purchasing online people must follow the step correctly in order to buy the product with safe and secure. There are guidelines for securing systems and network available for e-commerce systems. Nowadays, in Industry 4.0, people need to be more aggressive in order to be the one hit the button first and explore the technologies. Read a lot about the technology and try and error to implement it in business.
Trust is another important factor in E-commerce especially under conditions of uncertainty and risk. Nowadays in an electronic world of business stated that trust is the central component of the consumer and the internet merchant. Online customer trust affects online repurchase intention and through online customers will evaluate trust through first information about the business (Yulin et al., 2014). Trust become security for the business because when the customer does not trust the business, bad news about the business will be spread among the people and give the bad effect for the business itself. In addition, some researcher has done studies on E-commerce security where more focused on E-commerce security solution. In the scope of study that is done by Yajuan (2012) state that an approach to elicit security requirement had been proposed in order to develop a security management framework to make better E-commerce security. Unfortunately, because of the limitation of security technology and the complexity, the solution will be very hard to be found.
Cloud computing is an innovative system (IS) architecture and visualizes what may behave in future. In order to achieve increased popularity, the security issue has been concerned topic in intention through the adoption of the new model. The effectiveness and efficiency of traditional protection mechanisms where it has been reconsidered as part of innovative deployment model, by refer them differently from the traditional architectures (Zissis et al, 2012). The name of cloud computing was inspired by the cloud that represents the flow of the internet chart and diagram. In the cloud environment, the trust depends on selected deployment model for example as governance of data and applications is outsourced and the owners were the strict control for delegate it out.
Security threats increasing every time where it must be secure and overcome in order to get the full benefit from the uses of the technologies. The graph below has been showed the rank of top concern for cloud security at the year 2012 and 2014. It graphically shows that in 2012, the security of corporate data is the most concern while in 2014, where two years after that show that concerns on identity theft has the highest percentage of other concerns. It has been proven that theft is increasingly widespread in order to steal the important information.
A scope of a study done by Mosry (2016) state that the data and information can be secured by using the secure Software Development Lifecycle (SDLC with the security engineering activities) which is included with security requirement, threat modelling, augmentation of security requirement to the system models and always generated the code. This is because when in business, the customer information is very important in order to the company follow up them. If their information is not secure, they will lose their trust towards the company. This is the reason why the security software of information is highly needed especially for business organization and the challenges occur when the company needs to hire the correct person to overrun the software and complete the task cleanly.
2.3 PRIVACY (INDEPENDENT VARIABLE)
The exposure of all the connected devices available nowadays such as the smartphones has leads the generation of bigger numbers of digital traces as the users of it engage in their daily activities which is due to the widespread systems. Service providers is in need of understanding their customers in order to make rises in the level of personalization, as well as improve their services quality. Thus, these traces are pivotal for those service providers to gain that what is needed. However, when the widespread systems share the generated digital traces with those service providers, it might increase the concern pertaining to the privacy issue since the digital traces can even identify the latent data regarding how the users behave. In addition, the existence of the digital traces also able to reveal and expose the data of the users such as information about the places that is frequently visited, extent range of personal information which might as well include about their living place, workplace locations, and some others (Baron & Musolesi, 2017).
Besides that, it is quite challenging in identifying as well as fulfilling customer’s requirement regarding their privacy that is need to be attended. It is imperative to first understand and really know the users’ preferences regarding their privacy up until what extent before outlining any privacy applications, services or even technology (Lee & Kobsa, 2017). According to Eya, Mapoka, Shepherd, Abd-Alhameed, Elfergani, & Rodriguez (2016), technologies are adopted in order to assured or provide approval to access the available data for confidentiality. For instance is The Privacy Enhancing Technology (PET) which is described as below:
Virtual Private Network (VPN) which is an extranet that is derived by some business partners groups. The data obtained is privileged causes it to have trustworthiness since the access can only be obtained by those partners. Plus, the data cannot be exchange stiffly throughout the world due to the restriction from the VPN itself and it is much improper if involved outsider, the third party.
Transport Layer Security (TLS) has the ability to make the privilege and trustworthiness better than it used to be since the process of information searching can be negatively influenced by the few stages involved. Hence, each stage needed new connection of the TLS.
DNS Security Extensions (DNSSEC) which uses the public key cryptography in order to sign the record of the resource so that the privilege and the trustworthiness of the data delivered can be guaranteed as well. (Nath & Som, 2017).
Furthermore, in this 21st century, the life as a human being happens in both physically as well as cyber space concurrently. Basically, it is clearly seen that people are physically moving from one place to another such as the movement that occur between their living place, work place, shopping malls, amusement or recreational park, and touristic district. In the meantime, people also stay connected as well as interacting through their smartphones or some other mobile devices which make them engaged in a position of the cyberspace. The activities might occur through the signing in into the various social networks, chit-chatting with companion or even business affiliates, using the services available through online, and might as well include the process of searching up the prices online for certain products that they see at the physical stores to be obtained through online (Turgut & Boloni, 2017). This involvement in numerous physical and also the cyber spaces generate unexpected privacy issues. The IoT operations may have remarkable effect on the privacy of the users due to the widespread data that have been collected and processed from variety of sources (Sun, Chang, Ramachandran, Sun, Li, Yu, et al., 2017).
Privacy issues also have been seen available in the IoT environment by some of the researches. Huge number of them reckon privacy of people as a portion of an extensive investigation regarding security (Roman, Zhou, & Lopez, 2013). The privacy issues can be categorized into two distinct groups based on the entity whose privacy is being jeopardized, specifically the users or the network itself (Rios & Lopez, 2011):
User-centric privacy: In this type of privacy, the issue of the privacy arises from the sensors’ capabilities to detect the existence of human being or other pertinent assets and obtain confidential data regarding them. Hence, in this case, the wireless sensor network is able to be used as a source to unintentionally trail on anything or anyone. Furthermore, this user-centric privacy cannot be achieved solely by the technological means as easily as it seems since the privacy culprit is the owner of the networks itself which the person might illegally use supervision capabilities of those networks to outline as well as trace down the users.
Network-centric privacy: In this type of privacy, the attacker is identified as an entity from outside who is trying to assimilate data regarding the network or either the elements being supervised also by the network itself. The content of the collective data is protected by a confidentiality mechanism from the first line of defence. However, the user-centric privacy is not guaranteed due to the insufficient protection and the attacker might as well obtain entry towards the available cryptographic materials. Not only that, through the traffic analysis attacks, relevant information can be extracted also by the attacker (Lopez, Rios, Bao, ; Wang, 2017).
Source: Based on Evolving privacy: From sensors to the Internet of Things. Future Generation Computer Systems
2.4 CONNECTIVITY (INDEPENDENT VARIABLE)
Internet of things (IoT) is a term that been used to determine the devices that have been hidden with the internet connection that allowed them to do interaction between each other, services, and people in a global scale. Due to a large number of applications, the IoT has the potential to replace people as the largest consumer and producer of information on the Internet. Powerful connectivity is based on cost-effective and needs a small infrastructure, but the internet protocol is not suitable because of lack of resources (Mukhopadhyay et al., 2014).
The internet helps people to connect with static information available but nowadays in advance internet helping in building the connection from people to people, people to physical objects and physical object to another physical object. According to research done by Lobo (2015) state that the connectivity within the shop-floor can hardly be considered as a something new with the changing in order to achieve such as connectivity with significant impact. This is because, with an advanced manufacturing environment, the connectivity already have for a long time. Connectivity and mobile is the combination that can allow the high adaptable interfaces. There are expected to bring tangible gain in this area in order to identify and localize of material or maintenance related activities.
The system mainly depends on connectivity and internet in order to operate. If there are some important system that cannot be connected to the internet, which means losing their connection with the internet, and no means to communicate with outside world. Other than that, the risk to be hacking and other threat by the cybercrime may occur when the whole system connected to the internet. These issues can be overcome with the proper planning and preparation by making sure the system can still be operating if connectivity is lost and the system need to be strong in term of security and protection (Sheladiya et al., 2017). However, connection with the internet is the main key in order to keep the system operates very well in serving the customer especially in a business that uses e-commerce as their medium to operate. The strong connection is highly needed in this field of business in the term to get in touch with the customer and provide the best service for the customer.
One of the potentials of underlying technologies is greatly seen as the wireless sensor networks (WSN) of the future relating to the IoT environment. The setting that can be predicted towards the upcoming era of IoT from what is happening nowadays is that there will be major increase and countless number of connected wireless devices, and the various types of applications that can be found on such devices will go to expand more up to the extent surpassing the wireless sensor networks’ role at the time being (Murakami, Leibnitz, Kominami, Shimokawa, & Murata, 2017). This is because the connectivity is essential in order to guarantee to transfer the information and monitor the specific area. Meanwhile, a strong connectivity is necessary in order to make sure the connection has enough coverage to be operating on the system. In (WSN), the network is considered connected when there is at least one path between the sink and each sensor nodes in the considered area. A research was done by the Khoufi (2014) state that full connectivity usually can be maintained during the deployment procedure or can be provided only when sensors have been deployed in the area. Usually the connectivity use in order to represent the full connectivity which is known as simple or multiple connectivity preserve connectivity, and the connectivity at the end of the algorithm. During dissemination, the connection can be lost and the function of the algorithm is to make sure the connection is getting the full connectivity. According to research done by Singh (2014) in order to monitoring network, there is a few component that should figure out including:
Wireless Sensor Networks hardware – Typically a WSN node contains interfaces to sensors, computing and processing units, transceiver units and power supply. More sophisticated sensor nodes can communicate over multiple frequencies.
Wireless Sensor Networks Communication Stack (WSNCS) – The nodes will be deployed in an ad hoc manner. Communication topology will be an important factor for communication through the system of WSN nodes. There is this communication stack at one central node which will be able to interact with the connected world through the Internet and which will act as a gateway to the WSN subnet and the Internet.
Middleware –This is associated with the internet infrastructure and the concept of service-oriented architecture (SOA) for access to heterogeneous sensor resources.
2.5 RELATIONSHIP BETWEEN E-COMMERCE (DV) AND CYBERSECURITY (IV)
Cyber security is one of the topic that recently have been discussed of all size of business in every sector. The strength of cyber security should be increased in order to have a good security for customer information. A vital factor for success in e-commerce is to gain online customers’ trust in security of their sensitive data (Raghavan et al., 2017). Customer trust become important because customer need to give their personal information especially about their details and account bank number where they are needed to prepare the information in order to pursue their online purchase. According to the research done by Ashwini (2017) stated that some of private sector seller will give the customer information to the spammer and this matter need to be avoided by the private organization has taking some steps against them. The organization need to be trusted in order to gain the customer trust because before the customer placing their order, they have been analysis themselves whether the site are can be trusted in order to do transaction. Internet has been categorize by relationship of interdependence where there are a thousand of individual computer networks interconnect to form the internet and relying on each other to carry data traffic from origin to destination. According to the research done by Mathew (2017) state that the dominant view on cyber security is the risk that can be managed through the technological solutions. The practice of cyber security are concerned about ensuring the stability and reliability operation on interdependent such as draw on critical studies of infrastructure, frame the cyber security for internet infrastructure for a system of technological elements. This is because, the solutions can be critically importance for the social relationship with the community that are managed and controlled the infrastructure technologies.
Cloud computing model transforming the IT landscape where the internet is being used in order to deliver reliable service to the customers. The combination of existing technology that make an improvement in building and maintaining distributed computing system of cloud computing. When the security is break the rules of any component in the cloud infrastructure will give impact to the security system (Grundy, 2010). This is because, cloud computing model help the organization by providing the organization with more efficient, flexible and cost effective alternative to own their computing resources. Hackers and security researcher have been aware with the capabilities of virtualization where it can be exploited to create new and can avoid current security technologies. According to the Latifa (2012) stated that the migration from a personal computer based paradigm to a cloud computing paradigm will carries some risks along with a lot of rewards but not least of which are the loss of control and the loss of security. This is because security enables service providers and service subscribers to identify the risks that they incur as a result of prevailing security threats and system. Other than that, security also has been determine the much bigger concern in cloud computing than it is in other shared utility paradigms where the cloud computing involves a two-way relationship between the provider and the subscriber.
The existence of internet of things IoT enables the constant transfer and sharing of data among this and users in order to achieve some particular goals (Sicari et al., 2014). That’s why the security of IoT have the requirement in order to secure their system such as authentication where this approach has been makes in order to use of a custom business security of IoT. The authentication of IoT security scheme have been implemented where are based on existing internet standards and through the extensive evaluation authenticity.
The personal computers are fairly depending in general but it required relative expertise in order to maintain and operate under this computing paradigm (Jouini, 2013). This is because, safekeeping of a user’s data is the responsibility of the user alone, who is must rely on media such as hard disks, compact disks, and flash memory, which are prone to loss, damage, and theft. It show that not only the personal information can be stolen by the spammers or theft but all the detailed that are in personal computer can be missing if the users does not concern more about the details itself. That’s why the security is very importance especially in e-commerce business.
Security measures should be increase to the application and services such as Facebook, because this is some of the vital platform that has been used by organization in order to get the information of the customers. The graph below show that what the researcher have been found in next three years about the top cyber security threat.
Source: http://www.businessinsider.com/facebook-google-snapchat-focus-on-mobile-app-security-2016-3/?IR=TAccording to the article by Richman (2017) stated that millions of buyers purchase online via e-commerce sites and these sites required them to set up accounts that need to fill the form with their personal information. By having the information, it can lead to cybercrime where hackers can attacks such as website blocking where it can affected the retails business badly. That’s why cyber security is the most challenging in e-commerce because it need a very single details in order to make sure the best running of system.
2.6 RELATIONSHIP BETWEEN E-COMMERCE (DV) AND PRIVACY (IV)
As being discussed by Bernados and Vosniakos (2017), much progress for each technology available nowadays can be experienced. However, there are still challenges arise from the emergence of IoT itself which include the standardization of the technological systems as well as societal issues, but the most essential issues here are the security, privacy, and connectivity of the data, contradiction of the systems and the tools used, and lack of an equal legislation between the several distictive countries regarding the data governance. In this section, intense focus will be much more on the privacy issue itself that causes challenges towards the ubiquitous network of the IoT especially in e-commerce.
Source: Based on Sfar, A. R., Chtourou, Z., ; Challal, Y. (2017). A systemic and cognitive vision for IoT security: A case study of military live simulation and security challenges. 2017 International Conference on Smart, Monitored and Controlled Cities (SM2C). Retrieved from https://hal.archives-ouvertes.fr/hal-01478323/document
Based from the above figure, relevant relationship is created between persons node with the technological systems node. This relation concerns with the surveillance that is needed in order to provide protection towards the data especially private and sensitive data of a person from being exposed clearly in the IoT environment (Sfar, Chtourou, ; Challal, 2017). Apparently, the privacy issue concerning with IoT has leads so much worries to the users of internet since the abilities possess by the IoT are surprisingly more than one could ever imagine. Hence, close attention should be paid such as regarding the requirements for user privacy, structural design of the technological systems, and type of privacy protections that can be attended.
As sites fill in nowadays era of digital as the interface for the internet business framework which is the e-commerce system, a great extent in order to attend the online business is being addressed towards the designation of the e-commerce website (Oliveira, Alhinho, Rita, ; Dhillon, 2017). Close attention is being paid on the perceived ease of use as well as on the convenience when experiencing the website. As for the key component that may lead towards the users’ satisfaction and impact the loyalty of the users on the e-commerce is referred to the quality of data served on the website. With a high quality of data, users have more knowledge regarding the process, procedure and other information that they supposed to know before proceeding in any transaction to avoid post-purchase dissonance since Internet is a boundless platform. In addition, prior knowledge will make users feel safer and trust the websites especially regarding their privacy issue when they need to provide the details of themselves to the unknown. The level of information that users have regarding things such as mobile data security, privacy of data, as well as technology in which the differences between the input available will cause information gap to take place and affect the behaviour of the users whether to disclose information or not (Crossler & Belanger, 2017). Hence, positioned the users’ information at risks with a high chances of meeting danger.
Moreover, privacy is typically identified with the utilization of customers’ data in this digital business field. The activity of shopping which is done via e-commerce has entered all sections of products, running from the basic supplies to the electronic products and vehicles as well (Palak, Rucha, Vishwa, & Trupti, 2017). Fast development in portable processing and advancements of communication has encouraged the fame of e-commerce. As we are aware, there are several different applications in e-commerce for users to make payment of their purchases such as through online banking application, PayPal, PayUMoney, debit card as well as Visa card, are at expanding danger of being used wrongly and there is a more noteworthy possibility of loss and change of information becoming false information, thus causing misleading. The expanding development and extent use of e-commerce has causes the privacy issue turned into one of the main priorities for users, suppliers, technologist, as well as policy creators to not take it for granted. The transaction processes won’t be fulfilled by the users of web based business in the event that it doesn’t give personal data. Therefore, in order for the suppliers, technologist and policy creators to shield that data from spreading is seen as another extremely complex undertaking and quite challenging for them.
It is essential to discourse inquiries regarding the data of privacy and safety for users’ confidential information in these evolving settings, with particular concentrate on users’ data sensitivities to sorts of information caught on their cell phones. Plus, the inclinations and concerns of their privacy. The mix of current business hones, fears of the buyers, as well as the oppression from media has consolidated in making the privacy as a strong issue for e-commerce. Handling protection, notwithstanding, is a complex issue. In the case of non-others, privacy dialogues frequently turn warmed rapidly. A few people view privacy matter as a principal right while some others view it as a tradable item (Varsha & Amit, 2016). Hence, depending on how people view the privacy issue is imperative to be understood in order to serve them the way that it should be effectively and efficiently.
2.7 RELATIONSHIP BETWEEN E-COMMERCE (DV) AND CONNECTIVITY (IV)
The Big Data certainly provide the vitals inputs such as in maintenance, diagnosis and development where the integration of diverse organizational system promotes their machine, devices, sensors and people where they can connected and communicate each other (Pereira et al., 2017). Through the time, IoT spreading will force all the company in order to open standards-based industrial solutions where it will facilitate the connectivity and interoperability between the devices. According to Roblek (2016) article stated, there are four key component of Industry 4.0 which is cyber-physical (connections between real and virtual world), IoT, IoS and smart factory. The digitization that includes the Internet and mobile technologies with high speed connectivity can help to bring a big changes for the establishment of business models. Connectivity is one of the vital elements that should have in order to have a good system especially in e-commerce business.
The number of the user of technology device depends on the available of bandwidth, the resources blocks for the cell and data that have been transfer by the users. By introducing new IoT devices, people can use it as addition for increase the number device demanding connectivity for the access where it can increase the number of traffic over the network. The challenges that has been address when need to supply the sources for both mobile users and connected to IoT device user after the ongoing research into the specification and development of 5G (Thomas et al., 2015). Alternative approach that can be use is utilize the existing of WiFi networks for connected with the device every place that have the access. This is because, using WiFi network can up to ten user simultaneously connect with it. However, using the WiFi connectivity got some consideration such as while it is straightforward to connect with single wireless network, the challenge of deploying access pass for any types of network.
By having the strong connection of Internet, it can help the organization so well. This is because the businesses will use the internet connection in order to collect sales order from the customer and more likely to perform growth relatives activities such as exporting, investing and introduces new product, services and processes (Aotearoa, 2013). The challenges will occur if the organization failed to have and improve the internet connection. The figure below show that how innovation is one of the activities that most growth by business when used the internet as a medium to collect the sales order. This happen when the connection is strong and the organization can run the system smoothly to identify the customer feedback and comment about the product and the organization can immediately fix it. Customer will feel easy and comfortable to build the relationship with the organization for this.
Source: http://archive.stats.govt.nz/browse_for_stats/businesses/business_growth_and_innovation/ict-use-business-characteristics.aspxIt is very difficult to run a website these day without the connectivity database. In e-commerce system should have the products, customer and orders that have been saved in the database because when customer want to load the homepage of a site, it will uses many database calls to grab the content or build the navigation. Many organization need to be able to pull the e-commerce data out from the solution. According to Benyoucef (2013) article state that e-commerce involve online communities where they support social connection and make the businesses have the need to feel successful and competent. So, the relationship of e-commerce and connectivity has been one of the challenges that will be faced by the organization in order to run up their business.
Basically, this section depicted the methodology of the research made that provide rationale of the objective as well as the general view of how the overall study was conducted. This section also included with the purpose, data collection, sampling design, and the theoretical framework used in order to obtain, generate, as well as analyse data for the study to be carried out. Along with the method used, research from past studies has been used to assist in order to understand more regarding the study conducted. Comparison with what have been analysed by past authors is critically analysed. With that, similarities of differences between the studies can be seen. Hence, better result can be obtained.
3.2 PURPOSE OF RESEARCH
This study was conducted for the purpose of having clearer and extensive view of how past studies measured the issue arise on the challenges facing Internet of Things (IoT) towards e-commerce. The challenges measured are referred to as security, privacy, and connectivity. Each author has described and defined each variable according to their view.
3.3 DATA COLLECTION
Quantitative type of study is used to measure the relationship between e-commerce with security, privacy, and connectivity. It is shown that:
There is relationship between e-commerce with cybersecurity.
There is relationship between e-commerce with privacy.
There is relationship between e-commerce with connectivity.
Along with that, a set of questionnaire is used to support the study conducted which can support in term of doing observation, recognition, as well as investigation in order to gain substantial comprehension and analyse better the study conducted. However, data is first obtained from the respondents’ answer based from the questionnaire provided. Apart from that, polls and surveys also been used to assist the process of gathering data. Computational technique is important as well to accurately generate relevant data for processing and also statistical analysis by using software such as SPSS.
3.4 SAMPLING DESIGN
The main concern in this study is regarding the issue of challenges facing Internet of Things (IoT) towards e-commerce. The unit of analysis involved in this study is respondents from Sungai Petani area which included with both male and female gender. As for the sample size, 200 of respondents are picked randomly with the age ranging from 13 years old and above for both gender with various marital status which are either divorced, married, or single. Convenience sampling which is the non-probability sampling is used in order to gain information from various people since it is easy to be carried out as well as less cost is needed. It is also because this sampling technique made it easier for the prospects of respondents to be reached.
3.5 CONCEPTUAL FRAMEWORK
Based from the studies done, we have seen the general view of security, privacy and connectivity in Internet of Things (IoT) towards e-commerce. In this study, we used e-commerce as our dependent variable. Meanwhile, our independent variables are security, privacy, and connectivity. From what can be observed is that e-commerce alludes to purchasing and offering of goods over the web, yet any exchange that is fulfilled only through electronic channels can likewise be viewed as e-commerce. Bit by bit, e-commerce has become an imperative part in web based marketing especially in this era where industry 4.0 is being practised extensively all over the world. The number of Internet users who utilizes this innovation are also expanding from time to time, everywhere throughout the world especially when there is a sign that shows e-commerce keep blooming and not decelerating.
However, with this thrilling growth, e-commerce still can be improved and there is space for it to expand bigger and bigger. Plus, with the existence of Internet of Things (IoT), e-commerce can be taken into the next level with the aggressive development made. Hence, for those who involved in business world which is especially through the practises of e-commerce trend need to always strengthen their position and be on top of the trend in order to stay ahead either from competition existed or potential competition. In this study, some limitations are identified which is time constraint as well as lack of cooperation shown by the respondents. It is because the convenience sampling conducted chooses respondents due to the ease of access towards them. Hence, not every respondent is able to give cooperation. Due to that also, time is delayed and prolonged since more respondents is needed for more accurate result.
To conclude, all the independent variables involved in this study which appear as the security, privacy, and connectivity, have significant impact on the dependent variable which is e-commerce. Even though the emerging of technology such as the availability of the Internet of Things (IoT) is greatly seen of having countless of benefits, there are also challenges possess by those variables towards the e-commerce through the existence of IoT. It is however can be improved and altered to meet the standard that it should have in order to provide satisfaction for all users.
The level of security provided by website sometimes are not that tight and inadequate which causes users’ insecurities towards those websites rise. Next, users also have issue on their privacy level where they are afraid of providing their personal information to the related website since the information may be wrongly used or spread by irresponsible people. Last but not least is the connectivity. Internet without connectivity is pointless since any activities or transactions cannot be took place. Users having this problem in the first place may cause their prior intention on transaction through online interrupted.
Finally, we hope that this study can contribute to others as well by providing better insight and adding new knowledge regarding the topic of our study which is the challenges facing Internet of Thing (Iot) towards e-commerce. In addition, since we are in the industry 4.0 era, the knowledge regarding it is considered imperative which it can help people to avoid or reduce the chances from being left out, scammed, or cheated. As we are aware, the technology keeps growing. Hence, our knowledge should be grown as well in order to meet the moving trend and keep ourselves stay in the pace.
As day passed by and Internet of Things (IoT) keep evolving and thriving, more issues concerning the IoT are rising. As we can see the trend of e-commerce is getting more intense as people been practising it since the day it is been introduced. The issues focused in this study are security, privacy, and connectivity. It seems that these three issues have caused challenges and have impacted especially those who are practising e-commerce as well as those with the intention of getting involved in e-commerce business. It is because, people might have trust issue towards the Internet world. Hence, some measures should be taken into consideration in order to maintain the pace of this emerging of Internet things.
The online business (e-commerce) is pertinent in giving protection towards the internet business resources against unapproved access, utilization, adjustment, or demolition of it. The threats shown from the security issue represented a continuous harm towards resources as well as people. Past studies have worked on this variable and there is a significant relationship between e-commerce and cyber security based from the fifteen articles found and studied. One of the cases that make users feel insecure is due to the hackers which are now widely available online since the emerging of the technology. They want to take advantage of the wide usage of technology that some parties may not be able to control and monitor the performance of their websites itself. Hence, users are afraid of fraud or getting attacked which will lower down the integrity of the website. In this case, attackers are able to modify, make changes, or discard as well the data or information being transmitted between the users and the receivers. Due to the unauthorized access, the system is no longer secure since data can be obtained by those ignorant people. Plus, the data has the tendency to be misused by them.
An organization can better protect data effectively through some measures by analysing in depth of how secure will users perceived when they are going for online transactions. Besides that, they can fully make use of the encryption technology which it will jumble up the data that will be transmitted between sender and receiver. The data transmit will be much secured since not all people can obtain the data in its origin state easily. Only certain people can rearrange back the data that has been jumbled up by using specific private code. Those people are referred to them who have been given the privilege towards authorize access.
Maintaining privacy of the users’ of Internet is also one of the e-commerce main concerns. The expansion of technology and the wide usage of technical system as a mean in tracking down and obtaining users’ data by using system such as cookies has increased greatly the issue regarding privacy. Past study have worked on this variable and there is significant relationship between e-commerce and privacy based from the fifteen articles found and studied. One of the most common methods in providing users a better privacy is by supplying them with privacy information which is privacy statement to ensure better protection. In order to make this happen, organizations need to notify and educate the users of their website about their policy when it comes to information protection, and give data about who is gathering their information as well as what it will be utilized for when obtained.
Apart from providing users with privacy information prior to their purchasing, privacy verification seals can also be used as another alternative to improve users’ trust regarding the privacy when going online through the website they surf. This usually been adopted by the organizations that concern more on providing safer environment when users are going online. This privacy verification mark will establish the website whether the website have policy of privacy that is guaranteed or not. By having the verification and being accredited, users will more likely to trust the website in order for them to make comfortable transaction as well as providing their personal data. Even though some may still feel insecure with the verification seal usage since they might feel that it is still inadequate, at least the uncertainty towards the website’s reliability as well as trustworthiness that they feel can be reduced. Eventually, users will build their trust towards the website once the website showed their integrity and users will place trust on the website.
Due to the growth of e-commerce, it requires more steady and reasonable connection of Internet with a faster speed. E-commerce can possibly enhance the effectiveness as well as the productivity in numerous regions and accordingly, has gotten serious consideration in various countries. The appropriation and dispersion of Information and Communications Technology (ICT) and the Internet are vital element in the current business industry, especially when the connectivity has expanded our capacity to integrate and stay in touch with other people broadly over the worldwide world. Past study have worked on this variable and there is significant relationship between e-commerce and connectivity based from the nine articles found and studied. The hurdles in receiving the advantages which arises from the internet business are frequently been underestimated. The connection to get access to the website is conceivable just when the mobile phones and personal computers (PCs), as well as laptops are accessible with the availability of the Internet, yet these advances still have inadequate and limited supply especially in the remote areas. The connection of Internet is unreliable and inconstant due to the weak and poor phone wireless communications as well as the unstable power supply. This shows that the countries facing this trouble are still not ready for the e-commerce practises since the network infrastructure is lacking make it hard for them to get the access.
Basically, in this digital era, the critical part that need to be considered more is regarding the building of fibre network. Data can be carried more efficiently when the connection is strong enough to be accessed. It seems that the connection is stronger when the tools being used for Internet access such as mobile phone, being near towards the network towers where all the cables are placed. Hence, not every place have strong connection. Plus, connection is needed for smoother transaction to occur. For instance is to make online payment. Having poor connection may affect the process of transferring and may cause delay and troubles. Therefore, much attention and consideration need to be taken care as connectivity is also one of the vital parts in e-commerce. Without connection, the process of e-commerce may not available.
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