Organizations Adoption of MyKad Initiative

Abstract

Malaysia has invested multi-million ringgit on the Malaysia’s Multipurpose Identity Card (MyKad) initiative for the protection of citizens from terrorism as well as for effective and efficient government and private sector applications. If it is not used, the initiative is wasted. For the success of MyKad adoption, both individual and organizations need to accept this initiative. Prior studies have been conducted on individual acceptance (e.g. Yeow et al., 2007; Loo et al., 2011); however no study has been conducted on organization acceptance. This research investigates organizations (such as banks, insurance companies, unit trust agencies and hotels) acceptance of MyKad initiative. Organizations do not have MyKad; therefore, their MyKad acceptance (i.e., the dependent variable) can only be measured by their intention to use MyKad reader for identity verification of transactions such as opening a bank/unit trust account, making insurance claims and registering a hotel room. The independent variables were taken from UTAUT’s (Venkatesth, 2003) four constructs (i.e. performance expectancy, effort expectancy, social influence and facilitating conditions) and two other variables (i.e. anxiety and perceived credibility). In this preliminary study, fifty questionnaire samples were collected from two cities in Malaysia. The findings show that organizations did not have a high intention to use MyKad reader because of their lack of understanding about its benefits (performance expectancy), ease of use, social support and facilitating conditions. Recommendations were given to increase adoption.